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CHINA

CHOKING ON SUCCESS? INCLUDING

• FUEL CELL FOCUS • CYBER SECURITY & CHINA • DIAGEO & GREEN INDUSTRY

SPECIA L REPOR T

VOLUME 3, ISSUE 3

CRITICALLY

ADVANCED Malaysia’s Tanjung Bin Power Project

CHINA ON TRIAL

KEPCO

ANTI-DUMPING MEASURES FINALLY EXECUTED PAGE 40

EXPANDING ON PROMISE

AND THE PHILIPPINES:

PUB: Exclusive interview with Mr. Chong Hou Chun

Shanghai Electric and Harbin in Manufacturing Roundtable

LONE OKW !

THE DOMINANCE OF CHINA:


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So... How do you like our new look?

This is the Chinese power industry in a microcosm; it is a fluid and colossal oxy-moron.

Power Insider Magazine has had a makeover! We decided to freshen up and add a number of exciting new features as well. Make sure you check out our News pages and Events Listing, and let us know what you think of our roundtables. This issue of PI Magazine Asia will focus on Thailand and China. We’ve got a fantastic article from SEAREPA on Thai mini hydro, and an exclusive interview with EGAT. However, it has been China that has commanded most of our attention. We would be lying if we told you that this issue had been a breeze. It would be a fabrication to describe the Chinese power industry as transparent. This is because, as my staff writers have been asserting regularly, China is a researchers nightmare, as the data is simultaneously abundant and elusive, and trying to pin down power plant specifications and installed capacities is not a task for the faint hearted. You either have six different sources telling you six different things, or you’ll encounter total silence. This is the Chinese power industry in a microcosm; it is a fluid and colossal oxy-moron. There are five major state owned enterprises that call themselves Independent Power Producers. These same “IPPs” claim to produce 50% of China’s electricity, but the source of the remaining 50% remains a mystery until you investigate the Big Five’s multiple subsidiaries. The dominance of these companies is startling in a country that claims to be opening up their power market. You’ll notice this dominance in a new addition to PI Magazine: our Country Directory. Every issue, we’ll provide you with a comprehensive, country specific guide to the power industry. This two page data guide will include power capacities and energy mix, top projects under construction and the players in the manufacturing industry.

Our frustrations with China must be shared with the foreign companies that seek to invest in China’s vast, but closed, energy sector. The Chinese are extremely reluctant to award tenders for power projects to foreign IPP’s. Instead, Chinese companies sign technology transfer contracts, in which obliging companies like Foster Wheeler and Westinghouse form JV’s to assist in the development of Chinese made power equipment. After that, Chinese companies strike out on their own, and start exporting as well. This technique of technology absorption has had a prolific impact on the manufacturing industry, and is the subject of a roundtable, with contributions from Shanghai Electric, Jiangsu and Harbin. We also have a report on the EU Commission’s antidumping charges. Other highlights include a report on China’s clean coal technology, a whole section on fuel cells, and an overview of Alstom’s Tanjung Bin 4 power plant. We have some fantastic interviews with PUB, MWM and Plansee, and some great contributions from Itron, KEPCO Philippines and Quartzelec. Also, our Managing Director, Sean was lucky enough to be invited to the Diageo Group’s Korean facility to investigate their green manufacturing solutions. It’s a jam packed issue, we’d love to know what you think about our new look and features. Don’t hesitate to contact us on our website, Facebook page, Twitter feed and LinkedIn account to voice your opinion.

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Contents

May / June2013

62

48 44

40 FEATURES 18

Critically Advanced: Tanjung Bin 4 Alstom takes us on a tour of their Malaysian coal power project.

26

Thailand’s Micro-Hydro Potential SEAREPA tell us about their work with micro hydropower in Thailand.

36

Survival of the Fittest Robin Samuels catches up with Trina Solar

38

Manipulating Backsheet Design How Backsheet design can improve the performance of solar modules.

40

China on Trial Chinese Solar Manufacturers feel the pinch with EU antidumping duty.

4 POWER INSIDER MAY / JUN 2013

48

Condition Monitoring Systems We look at how systems like Quartzelec’s LifeView system can help reduce risks and costs.

75

The Engineering Consultant Boris Smondack explains the importance of this role for hydropower projects.

52

KEPCO and the Philippines A look at KEPCO’s expanding business ventures in the promising Philippine market.

78

Make Data Work for You Itron make the case for District Metering Analysis.

62

Solid Oxide Fuel Cells: Have you arrived? Robin Samuels examines the exciting developments in SOFC, with some expert input.

83

The Water Hammer Phenomena Arjang Alidai and Daniel Rudolph talk testing in desalination plants.

90

Raising a Glass for Green Industry MD Sean Stinchcombe takes a tour of Diageo’s Korean factory.

68

China, Cyber Security and Industrial Espionage Chris Hefferan analyses China’s cyber weapons.


INSIDE THIS ISSUE

REGULARS 06

News May and June’s biggest headlines from the Asian power market.

92

Country Directory: Thailand An overview of Thailand’s power industry and significant projects.

10

China Versus Carbon PI takes a look at the achievements of China’s clean coal technology market.

94

Country Directory: China An overview of China’s power industry and significant projects.

55

Technology Focus This issue, fuel cells take the spotlight.

98

Event Directory and Advertiser’s Index.

SPECIA L REPOR T

SUBSCRIBE

10

PI Magazine is your one-stop shop for the latest news on the power industry in Asia. For your FREE subscription of PI Magazine Asia, visit: www.pimagazine-asia.com/subscribe

GET IN TOUCH Online For news and further insights, visit www.pimagazine-asia.com Twitter Follow us on Twitter @pimagazineasia Linkedin Search for Power Insider magazine

INTERVIEWS & OPINION 32

Pioneering Gas Technology in Malaysia An interview with Ruprecht Latterman.

44

The Dominance of China Shanghai Electric, Harbin and Jiangsu give their opinion on China’s manufacturing dominance.

60

Plansee and SOFC An interview with Dr. Adreas Venskutonis.

72

EGAT’s Power Plant Developments An Interview with Mr. Soonchai Kumnoonsate.

80

PUB and Water Supply An interview with Mr. Chong Hou Chun.

86

Ensuring Quality, Minimizing Waste The W.O.G Group’s work on waste water in Southeast Asia.

80

Facebook Search for Renewable Energy Asia Advertise www.pimagazine-asia.com/advertise sam@sks-global.com Editorial team If you have a story you think we might want to feature in a forthcoming issue email rachael@sks-global.com

GET POWER INSIDER ON THE MOVE PI Magazine is available for FREE in print and online. Get PI Magazine on your laptop or tablet and always have access to top industry news. Download from our website or sign up for a free subscription at: www.pimagazine-asia.com

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REGULARS

SAUDI ARABIA

News from around Asia

The Ministry of Water and Electricity in Saudi Arabia plans to tender the country’s biggest sewage treatment plant in Jeddah, as the Kingdom’s spending on water and sanitation projects is expected to reach $6.4 billion USD in 2013 alone.

The past two months have resurfaced some underlying capacity issues in both Vietnam and Thailand. Both countries have experienced major blackouts highlighting the distinct supply and demand shortfall in many parts of South East Asia. These incidents have been offset swiftly with the exciting news of Tata Power bagging a big 1,200 MW plant in Vietnam, EGAT’s memorandum of understanding for power purchase from China following Myanmar gas supply disruption, and the Thai company also pledging to press ahead with the Krabi coal plant in the Southern province despite public opposition. The biggest news of the month has to lie with the assertive actions of the EU with ruthless anti-dumping measures placed on the Chinese manufacturers for the solar business. Other incidents surround efforts from the powers that be in China to impose sanctions on low calorific value coal, some very large hydro projects coming to light in India, Indonesia & China, and new large scale solar opportunities appearing in Japan on a daily basis as the country emerges as the standout PV market globally. This is all combined with major investment into desalination and water treatment in the Middle East, with Saudi Arabia calling for billions of dollars worth of investment into the Kingdom’s upcoming sanitation and potable water infrastructure.

FOR MORE INFORMATION ON THESE NEWS STORIES USE THE QR CODES TO VISIT OUR ONLINE NEWS PAGE 1 Visit an app store and download a free QR reader. 2 Look for the QR codes on the pages of Power Insider. 3 Scan the code by holding your smartphone over it and enjoy the extra Power Insider content.

6 POWER INSIDER MAY / JUN 2013

THAILAND

Thai Energy Minister Pongsak Ruktapongpisal has given EGAT the green light to proceed with a plan to build coal-powered plants in Myanmar and Cambodia – providing Thailand with 10,000 MW of electricity.


NEWSDESK

INDIA

APGENCO has identified 100 potential sites to set-up mini hydro projects throughout Andhra Pradesh to provide relief to one of India’s most power starved regions.

SOUTH KOREA South Korea announce plans to launch a scheme that will cap around 70% of its greenhouse gas emissions, resulting in the Korean carbon price reaching the penalty level of $90/tCO2, higher than any other in the world.

JAPAN

Tokyo Electric Power Co. and Chubu Electric Power Co. are in talks for a rare joint construction of a 600 MW coal-fired thermal power plant in Ibaraki Prefecture, east of Tokyo, hoping to reach operation by 2019.

CHINA

China Southern Power Grid sign MOU with EGAT to supply electricity from major hydroelectric plants through new transmission lines in China’s Yunnan province via Laos to Thailand.

CHINA

China Guodian Group receives approval to build the 20 GW Shuangjiangkou hydropower project that will become the tallest dam in the country at 1,030ft costing a $4 billion USD.

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REGULARS

Timeline

There’s always plenty going on in the Asian energy market, and the Spring of 2013 has been no exception! Here is PI Magazine’s timeline of top picks to guide you through the most significant developments in May and June. MAY

14

CHINA DESALINATION PRICING MECHANISM PROBLEMS

>

China’s State Oceanic Administration claim that a lack of an effective pricing mechanism for water produced by desalination is affecting the development of the country’s seawater desalination industry.

21

WIND WORLD INDIA TAKE POLE POSITION

16

>

MAY

MAY

Nanyang Technological University (NTU) launch an overseas water treatment plant in Long An province, Vietnam. The new plant has an output of 1 million litres of drinking water daily and is linked wirelessly back to Singapore, where it is managed remotely.

> MAY

Suzlon Energy concedes the top spot in the Indian wind business for the first time in ten years. Wind World India take pole after installing 454 MW of turbine capacity last fiscal year.

22

THAILAND BLACKOUT HIGHLIGHTS IMBALANCE IN SUPPLY & DEMAND

>

Southern Thailand experienced a massive power blackout in 14 southern provinces, highlighting the huge supply and demand unbalance for the South.

MAY

24

> JUNE

The Indian government broadcast plans to roll out Rs 43,000-crore ‘green energy corridor’ project to facilitate the flow of renewable energy as part of the Indian smart gird.

04

>

29

NEW GREEN ENERGY CORRIDOR FOR INDIA

TAISHAN 2 STEAM GENERATORS NOW FINISHED

China General Nuclear Power Group (CGNPC) has announced that the first domestically-produced steam generators for Taishan 2 are now finished.

> MAY

OVERSEAS WATER TREATMENT PLANT IN LONG AN PROVINCE, VIETNAM

3 NEW SOLAR POWER STATIONS FOR JAPAN

> JUNE

Sumitomo Corp will build three solar power stations in Japan with a combined capacity of 49 MW. The plants are going to be in Ehime, Fukuoka and Hokkaido and are scheduled for completion in 2015.

05

ROOFTOP SOLAR SCHEME FOR JAPAN FARMERS

Mitsubishi discuss a scheme with National Federation of Agricultural Cooperative Associations to promote installation of distributed rooftop solar systems using the rooftops of facilities owned by farmers in Japan farms into solar farms.

> JUNE

05

ANTI-DUMPING DUTIES BEGIN IN CHINA

Official start date of the first phase of anti-dumping duties imposed on China by the EU Commission. Imports of solar panels, wafers and modules will incur a tax of 11.8% until August, when the tax will leap up to 47%.

8 POWER INSIDER MAY / JUN 2013

> JUNE

06

KOL DAM PROJECT GETS GREEN LIGHT

NTPC are given the green light from the Indian environmental ministry for their 800MW Kol Dam project on the Satluj river in Himachal Pradesh.

> JUNE

07

TATA POWER CO WINS CONTRACT FOR LONG PHU 2, VIETNAM

India’s Tata Power Co. Ltd wins a contract to develop the 1200MW Long Phu 2 coal-fired thermal power plants in South Vietnam.


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REGULARS

China Versus Carbon: The Explosion of Clean Coal Technology One of the biggest issues in the Chinese fossil fuels industry is carbon emissions, and how to mitigate them. Rachael G. Stephens looks at how China is having its cake and eating it too, with the rapid deployment of Clean Coal Technologies.

C

hina’s coal consumption is not easily exaggerated. The Asian nation devours coal with a veracity that leaves the rest of the world figuratively breathless, whilst the inhabitants of its cities literally choke on the pace of economic and industrial expansion. At 47%, nearly half the world’s coal consumption takes place in China, reputed to have been the world’s biggest coal

10 POWER INSIDER MAY / JUN 2013

producer for the past 2000 years. In 2011 alone, China burnt 3.8 billion tons of the valuable black stuff. China is consuming so much coal that despite having the third largest coal reserve in the world, they became a net importer in 2008. Trends suggest that the country’s usage will only continue to spiral upwards. In order to support China’s voracious economic growth, more and more coal applications will be added to the energy mix. According to the IEA, China will add an

additional 600GW of new coal-fired power generation by 2035, a number that exceeds the current coal capacity of the USA, EU and Japan combined. Global Villain

With this in mind, it is easy to understand why China has become the ultimate global villain, considered an enormous stumbling block for governments that are trying to slow climate change and reduce carbon emissions;


REGULARS: CHINA VS CARBON

if the rest of the world puts their back into the cause, and this one nation does nothing, it’s still only half a job. China isn’t unsympathetic to the environmental cause. Growth in the renewable energy sector is expeditious and sizable, particularly for wind and solar (though not without consequences; see our China on Trial report for details). However, whilst coal is running out, it is still the most abundant and efficient energy source, and because of the existing infrastructure and technology, it is still the cheapest. China needs cheap power to electrify its booming industry. Harsh Realities

China has realised that there aren’t a lot of choices to be made. According to the journal “Foreign Policy” Xiao Yunhan, a leading energy thinker at the Chinese Academy of Sciences, argued that “even if China utilises every kind of energy to the maximum level, it is difficult for us to produce enough energy for economic development. It’s not a case of choosing coal or renewables. We need both”. This harsh reality doesn’t change the fact that China is belching out ozone damaging emissions, and they have to be mitigated. It has been acknowledged that the development and deployment of clean coal technologies are crucial to promote sustainable development in China in their 12th Five ear Plan (2011-15). During the 12th Five Year Plan,

investment in pollution control will grow by 57.4%, and the Central Government’s budget for pollution alleviation is 210.13 billion yuan, a year-on-year increase of 18.8%. The new national standard for air-polluting emissions require that all newly built thermal power plants should emit no more than 100 milligrams ofnitrogen oxides per cubic meter, and the existing plants should be transformed before July 1, 2014.

Trends suggest that the country’s usage will only continue to spiral upwards. In order to support China’s voracious economic growth, more and more coal applications will be added to the energy mix.

Utilizing Clean Coal Technology

Wang Shiwen, President of the China Environmental Investment Union, says environmental protection investments are two pronged: those for postponing or preventing pollution, and those for combating the damage wrought by pollution. The clean coal technology being utilized in China largely follows these two prongs. Burning coal cleanly has already started in China with the consolidation of their coal assets. Over 80GW hours of small and old power plants have been shut down since 2006, replaced with modern plants that produce significantly less CO2. It is the technology that is going into these new power plants and being retrofitted onto older ones that this article will focus on. PI Magazine will look at how Chinese power plant operators and manufacturers are installing clean coal technology like FGD systems, SCR, CFB and supercritical boilers, and the research that is going into carbon capture and storage. Flue Gas Desulphurisation Systems (FGD)

Whilst some of China’s old, dirty plants are being replaced; a more realistic option for some facilities to reduce emissions is to install FGD systems. FGD represents an attractive market in China. Notorious for the appalling inner city air quality, the Chinese government is insisting on the installation of FGD systems at all new

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REGULARS: CHINA VS CARBON power plants, and have implemented a rigorous retrofitting program. Over the next 11 years, China will add 32,000MW of FGD per year. To put that in perspective, the world has been adding FGD at a rate of 19.000MW a year. The installed capacity of FGD systems in China will rise to 723,000MW in 2020, with China spending more on FGD systems than the rest of the world combined. Initially, China had to import FGD technology, with system suppliers teaming up with major licensors like Babcock & Wilcox, Alstom, Hitachi, Ducon, Wulff, and Mitsubishi. Currently, the FGD market in China provides opportunitiesfor component manufacturers because of this reliance on foreign know-how. However, China is becoming very proactive in developing domestic technology. For example, FGD slurry recycle pumps, originally available only from a few European and American suppliers, are now being offered by Chinese companies, and ceramic scrubber nozzles are now also available from multiple sources within China. Companies such as China National Electric Engineering CO. LTD. are now offering full EPC services for the installation of FGD systems, showing how quickly domestic production in China can pick up and become competitive. CNEEC have provided FGD technology for the Huanrun Yixing power plant, and can provide EPC services overseas as well as at home. DeNOx systems and SCR

China has shown how serious they are about reducing pollution by implementing a measure considered unnecessary by many other Asian nations. It is now mandatory for all new thermal installations to have DeNOx systems integrated into their pollution control. DeNOx systems use the Selective Catalyst Reduction (SCR) process to strip the flue gases of poisonous nitrogen oxides before being released into the atmosphere. A catalyser system utilises a reaction of ammonia or urea with the NOx, converting the gas into nitrogen and water vapour. Whilst a very effective system, it also very expensive. The materials required for efficient and long lasting use can discourage a plant operator, and as a result some Chinese vendors have tried to compromise by investing in cheap catalysts. Unfortunately, this hasn’t saved the end user any money. As the Chinese proverb states, cheap things are good, but good things are never cheap. Low cost catalysts have been found to show signs of early degradation and poisoning, which has reduced the effectiveness of the DeNOx systems and forced maintenance and early replacement, making the initial outlay a pointless waste of money.

12 POWER INSIDER MAY / JUN 2013

This issue has been brought to the forefront of the industry by Mr. Wang Zhenbiao, Vice President of Datang International Power Corporation, who has highlighted how essential it is to invest in the correct equipment. He summed up the industry zeitgeist nicely by using his company as an example; Datang International Power Corporation is under enormous pressure to utilise effective air pollution control, with the company having to invest heavily in DeNOx systems in their fleet of thermal installations. Mr. Zhenbiao reports that the company had to consider carefully their system selection, revealing that some plants faced difficulties with catalysts sourced from local manufacturers. These catalysts showed signs of the premature erosion described above on the titanium structure, which has resulted in heavy replacement costs. Mr. Zhenbiao is keen to avoid such instances in the future, after feeling increasing pressure on fuel cost following Beijing’s vow to ban all low quality coal imports. Datang International Power Corporation can be held up as an example as to why it is essential to make that expensive but sensible investment in high quality catalysts from reputable suppliers. The Right Equipment for the Job

Continuing to use coal as the main source of power generation has a number of significant disadvantages. One of these problems has prompted a flurry of technological research and development in order to better utilise coal. This issue is coal quality, and the lack thereof. So many older installations require high quality coal in order to burn efficiently, and reserves of such coal are becoming increasingly scarce and more expensive. In order to optimise high quality coal or utilise cheaper, dirtier coal, the Chinese have led the world in the installation of clean coal technologies. Two main categories of technology have made a particular impact: ultra supercritical boilers and Circulating Fluidized Bed (CFB) combustion.

Coal in China

FAST FACTS China has the third largest coal reserves in the world, with an estimated 128 billions short tons China’s coal reserves are equivalent to about 13% of the world’s reserves China is the largest coal producer in the world 27 Chinese provinces produce coal Northern China has the most accessible reserves Coal makes up 70% of China’s primary energy consumption

Ultra Supercritical Technology

Supercritical technology manipulates the molecular forces that holds together three states of water; solid, liquid and gas. The supercritical technology applies an enormous amount of pressure to the steam produced in a thermal boiler, which forces the molecules together until the steam becomes like a liquid again, while retaining the properties of a gas. This is called a supercritical fluid, which provides excellent energy efficiency by allowing the supercritical steam turbines to be driven at higher speeds using the same amount of energy as traditional steam power. This results in less CO2 released in to the atmosphere. Ultra Supercritical thermal power plants increase the temperature and pressure on the steam even more, raising energy efficiency to around 46%. China has enthusiastically promoted

In 2011,China consumed 4 billion short tons of coal


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ultra supercritical technology. Some commentators have even suggested that they are miles ahead in terms of utilisation and installation, outstripping the USA and Europe. Many Chinese vendors acquired the technology through equipment transfer agreements with foreign partners, but just like FGD equipment, Chinese manufacturers quickly began producing their own versions. Up to 2011, there were approximately 100 domestically manufactured 600MW supercritical units installed in China, with contracts for another 200 signed.

“China has the largest capacity of Circulating Fluidized Combustion (CFB) boilers in the world at 40,00 MW” Shanghai Electric

Shanghai Electric Group Co., Ltd. is one of the largest diversified equipment manufacturing groups in China.In 2000, Shanghai Electric successfully manufactured China’s first 600MW supercritical thermal generator, and their equipment accounts for around half of the sets already installed in China. In 2006, Shanghai Electric built China’s first 1,000MW ultra supercritical generator, and was able to apply this technology in 2009 by commissioning the 2GW Waigaoqiao III Power Plant. These GW class ultra supercritical turbine generator units have set a world record in high efficiency coal consumption, as the average coal consumption is only 282g coal per kWh. Shanghai Electric has been commissioned to manufacture 66 sets of 1,000MW class ultra supercritical generator units, which account for more than 50% of the total domestic market share. By the end of 2009, 20 units were delivered and consecutively put into operation in China’s major power plants such as Yuhuan, Taishan, and Ninghai. Alstom and Wuhan Boiler Company

In August 2007, Alstom acquired 51% of Wuhan Boiler Company, and in 2009 relocated the company to a new factory in the Wuhan East Lake Development Zone. The factory covers 463,000 square meters with a total investment of 900 million RMB, and employs over 2,046 people. It is Alstom’s

14 POWER INSIDER MAY / JUN 2013

largest boiler manufacturing facility in the world, and one third of the products are exported. The JV produces high efficiency 600MW supercritical boilers and 1,000MW ultra supercritical boilers. The ultra supercritical boilers manufactured at the WBC factory have an efficiency of almost 50%, leading to a considerable reduction in CO2 emissions. Harbin Boiler Company

Harbin is the largest power equipment supplier in China with a 30,000MW annual manufacturing capacity. The boilers and the auxiliary equipment designed and manufactured by Harbin have equipped more than 360 power plants in China and exported to more than 20 countries. Harbin manufactures 350MW supercritical boilers, 670MW tower type lignite supercritical boilers and 600MW and 1000MW ultra supercritical boilers. Harbin previously worked with Mitsubishi Heavy Industries (MHI) on the development of ultra supercritical technology. Harbin ordered four 1000MW ultra supercritical boilers for the Yuhan thermal power generation facility. The Yuhan plant was the first ultra supercritical facility in China, and became operational in 2007. MHI supplied the core components, and Harbin provided the remaining equipment. The plant cost 9.6 billion yuan, and the units run at 45% efficiency. The plant is operated by China Huaneng Group, China’s largest power producer, who claim that Yuhan Units 1 and 2 are the world’s cleanest, most efficient and most advanced ultra supercritical units. Whilst the first three units were supplied by MHI, the fourth was built by MHI and Harbin together. Harbin Boiler Company is a great example of a Chinese company who negotiated equipment transfers with a foreign partner in order to get top quality equipment installed in China, and then went on to develop the technology themselves. Circulating Fluidized Bed Combustion (CFB)

China has significant coal resources, but coal quality is an issue. A large proportion of China’s coal has less than 18% volatile matterand of anthracite coal too.Anthracite coal is difficult to ignite in a PC boiler, and over 30% of coal reserves are low volatile coal in China. CFB combustion offers a way to stop anthracite and low volatile coal going to waste. CFB boilers are able to burn a wide range of fuels, including the anthracite Chinese fare. Low temperatures, staged combustion and minimal emissions make CFB even more attractive. The fuel flexibility also allows power plants the potential to one day burn exclusively biomass and municipal waste. China has the largest capacity of CFB boilers in the world at 40,000MW. The first project was the 300MW Anthracite CFB Baima Demonstration Project in Sichuan Province.

Carbon Capture and Storage

THE THREE METHODS Post-combustion carbon capture

With post-combustion carbon capture, the CO2 is extracted from the flue gases. The biggest advantage of this technology is that it can be retrofitted. A solvent filter absorbs the CO2 as its travels up a chimney or smokestack.The post-combustion method can capture up to 90% of a plant’s carbon emissions, but the process requires a lot of energy. Pre-combustion carbon capture

With pre-combustion carbon capture, CO2 is trapped before the fossil fuel is burned. Fuel is heated in pure oxygen, resulting in a mix of carbon monoxide and hydrogen. This mix is treated in a catalytic converter with steam, which produces more hydrogen and CO2. These gases are fed into the bottom of a flask. The gases in the flask will naturally begin to rise, so amine is poured on top. The amine binds with the CO2, falling to the bottom of the flask. The hydrogen continues rising, leaving an amine/CO2 mix that is separated by applying heat. This process is cheaper, but can’t be retrofitted. Oxy-fuel combustion

With oxy-fuel combustion, the power plant burns fossil fuel in oxygen. This results in a gas mixture comprising of mostly steam and CO2. The steam and carbon dioxide are separated by cooling and compressing the gas stream. The oxygen required for this technique increases costs, but the technique can capture 90% of a plant’s emissions. Foster Wheeler

Foster Wheeler is globally prolific in the CFB market. The company has developed the technology spectacularly over the last decade, with huge successes in scalability. They are responsible for the largest CFB power plant in Poland, which utilizes 460MW CFB boilers. Foster Wheeler is also currently developing GW class CFB boilers for the Samcheok project in South Korea. Foster Wheeler have entered into license agreements with a number of Chinese vendors to develop CFB combustion technology in China, and will be working with Dongfang on GW class CFB boilers, the Wuxi Boiler Company on CFB boilers up to 300MW, and Harbin and Shanghai Electric on 300MW boilers.


REGULARS: CHINA VS CARBON Chinese Companies Flying Solo

Shanghai Electric now offers 300MW CFB boilers, and has installed them in the Xiaolongtan, Pingshuo, Mengxi, and Diaobingshan power projects. Harbin have also successfully domestically designed CFB boilers 50MW to 300MW. Dongfang have also been at the forefront of CFB boiler design since the 1970’s, and has developed a series of CFB boiler products successfully exporting them to the likes of Indonesia and Vietnam. A standout project for Dongfang is the 300MW Guangdong Baolihua Power Plant. The Guangdong Baolihua 135MW unit reached over 300 days continuous operation, and its shutdown time only reached 9 days in 2006. Dongfang possesses a complete CFB boiler series ranging from 135MW to 150MW, which can use fuels such as lignite, bituminous coal, anthracite, gangue, coal peat and paper slurry. Supercritical CFB

The next generation of both the supercritical and CFB technologies is to combine them, to manufacture efficient clean coal technology, and scale it up. China has an independent R&D program to help develop a 600MW supercritical CFB boiler. In April this year, Dongfang announced a successful first operation of their independently designed

600MW supercritical CFB boiler at the Sichuan Baima demonstration power plant. The power plant completed a 168-hour operation with full capacity at the facility operated by the Shenhua Guoneng Group. During the trail operation, the fully loaded unit operated with an average loading rate of 100.509%, the protection device input rate of 100% and automatic thermal control input rate of 100%.TheBaima project is the first ultra supercritical CFB demonstration project in China and the largest in the world. Carbon Capture and Storage

Carbon Capture and Storage (CCS) is a technology that can capture up to 90% of the CO2 emissions produced from thermal plants.The CCS chain consists of three parts; capturing the carbon dioxide, transporting the carbon dioxide, and securely storing the carbon dioxide emissions, underground in depleted oil and gas fields or deep saline aquifer formations. There are three methods of capture technology: pre-combustion capture, post-combustion capture and oxyfuel combustion. Sounds perfect doesn’t it? So why aren’t all power plants fitted with CCS? Largely, it’s because the technology is still in the R&D stage, with many demonstration projects using the technology on gas applications only.

Another drawback is the cost of equipment, maintenance, and safe transportation and storage of the carbon. Despite these concerns, huge sums of money are being invested into CCS research. According to the IEA, in mid 2010, there were 80 large-scale integrated CCS projects, 5 of them operating. China is becoming instrumental in the development of CCS technology, with several demonstration projects utilising foreign partnerships.Many of the new coal fired plants planned for China are designed CCS in mind, as many of them are Integrated Gasification Combined Cycle plants. China is taking a systematic approach to deploy CCS, based on the establishment of a strong R&D base. China has one of the largest numbers of CCS pilot projects in the world, with six large-scale fully integrated projects were in operation. Alstom and Datang

Alstom and Datang formed a long-term strategic partnership to develop CCS demonstration projects in China. Together the companies will develop two demonstration projects, located in China’s two biggest oilfields:

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REGULARS: CHINA VS CARBON

Daqing and Dongying. Alstom offers three technologies for carbon capture: oxy-firing, chilled ammonia and advanced amines. The 350MW coal fired power plant at Daqing will be equipped with Alstom’s oxy-firing technology and the 1000MW Dongying coal-fired power plant will utilise post combustion technology, using chilled ammonia or advanced amines. Both CCS projects are scheduled for operation in 2015. Once completed, the demonstration projects will each be able to capture above 1,000,000 metric tonnes of CO2 emissions annually. Huaneng Group

The Huaneng Group is the most proactive driver of CCS. China’s largest power produceralready has two fully integrated pilot projects in Beijing and Shanghai. Post combustion capture technology was retrofitted onto the 1,320MW coal-fired Shidongkou power station, and the system scrubs roughly 120,000 tonnes of CO2 a year from 3% of the facility’s flue gases. Similar technology was fitted onto the Gaobeidian power plant in Beijing in 2008. Huaneng claims that these plants boast the cheapest running costs for a CCS facility in the world, quoting a mere US$30–35 per tonne of CO2. This cost is approximately four to five times lower than anywhere else. This has caught the attention of American firm Duke Energy Corporation, and the company has signed a research agreement with Huaneng to study its technology. Duke wants to learn how much it would cost to retrofit its largest power plant in Gibson County, Indiana, and how much of Huaneng’s cost savings flow from its proprietary technology rather than lower labour and capital costs. The Huaneng Group have also initiated a three phase, $1.5 billion CCS project with UK firm GreenGen. The first phase is the 250MW oxyfuel IGCC power plant burning hydrogen and carbon monoxide with plans to scale up to a 400MW IGCC-CCS plant by 2016. A second phase involves a pilot plant to produce electricity from hydrogen, and the third will be a 400 MW commercial plant with CCS. The

16 POWER INSIDER MAY / JUN 2013

project is part of the Tianjin Lingang Industrial Zone Circular Economy Plan.

“Whilst vocal about plans, the energy authorities are notoriously obscure about the extent of China’s carbon emissions.” Sinopec

In 2010, Sinopec commissioned China’s largest coal-fired power plant CCS device at Shengli Power Plant at Sinopec’s Shengli Oilfield. The system reduces over 30,000 tons of carbon dioxide emissions every year. The device can process captured carbon dioxide to a purity level of over 99.5%. Sinopec is also planning to build an advanced facility in Wyoming that will convert coal into gasoline.DKRW Advanced Fuels wholly owned subsidiary, Medicine Bow Fuel & Power has entered into an EPC contract withSinopec Engineering Group. Using bituminous coal from southern Wyoming, the Medicine Bow facility will produce 11,600 barrels per day of low sulfur gasoline using General Electric gasification technology and methanolto gasoline technologies. The project will capture 92% of the CO2 generated throughout the development process and provide the liquefied CO2 for use in the enhanced oil recovery market in the Rocky Mountain region. Clear Goals, Opaque Progress

There is no doubt that China is adding coal capacity at the rate of knots, and the nation has talked openly and extensively about plans for the future and the technology they intend to use. These intentions place China ahead of the pack in terms of clean coal technology. Like China,

many countries in Asia are continuing to add coal capacity despite dwindling resources, and the simple reality is that to electrify populations, coal is a necessary evil. China’s utilisation of FGD, DeNox systems, ultra supercritical boilers, CFB combustion and CCS helps them make the best of a bad job,with commentators in the USA openly admitting that Chinese clean coal technology installation is putting the world’s second largest power producer to shame. However, what is in doubt is the actual success of this program. Whilst vocal about plans, the energy authorities are notoriously obscure about the true extent of China’s carbon emissions, which makes it tricky to assess just how far these measures are mitigating the country’s significant impact on global warming. For government officials, the priority for China is still economic growth; and that requires a lot of power. Additionally, the Chinese power industry is at best opaque when viewed from outside the Republic. The major companies are stingy with details, and it is difficult to glean project specifics, anddespite having to rely on overseas companies for technology transfers, the Chinese power industry remains largely closed off to foreign companies. All of this makes it difficult to assess just how many plants are being built, who they’re being built by, and with what success. The Chinese power industry is truly the embodiment of the mysterious Orient.

GET INVOLVED IN THE DEBATE Is China being honest about its carbon emissions? Are they’re reduction plans realistic? Is the closed nature of their market limiting potential growth? Join the debate and tell us what you think on Twitter, LinkedIn and on our website: www.pimagazine-asia.com Alternatively, email the editor: rachael@sks-global.com


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feature

Advanced Technology:

Tanjung Bin 4

PI Magazine, together with Alstom, brings you an overview of one the most exciting power plants currently being constructed.

A

nother step forward for clean coal technology has been taken by a consortium led by Alstom with the development of the Tanjung Bin 4 supercritical power plant now under construction in Malaysia. The 1000 MW Tanjung Bin 4 power station will be built adjacent to the existing 2,100 MW coal-fired Tanjung Bin Power Station in the southern peninsular state of Johor, ramping the facility’s capacity up to 3,100 MW. The coal-fired station is being constructed under a turnkey contract. Alstom’s scope

18 POWER INSIDER MAY / JUN 2013

within the consortium is the supply of all key power generation equipment and switchyard as well as overall project management, engineering, procurement, construction and commissioning. Other parties to this consortium are Malaysian companies, Mudajaya Corporation Berhad and Shin Eversendai Engineering Sdn Bhd. The contract was signed in February 2012 for the equivalent of €1 billion with Tanjung Bin Energy Issuer Bhd, which is the wholly owned subsidiary of Tanjung Bin Energy Sdn Bhd (formerly known as Transpool Sdn Bhd), which in turn is a subsidiary of Malakoff Corporation Berhad.

Scheduled to be completed by 1st March 2016, the new project is Alstom’s second supercritical unit in Malaysia. Following the power plant’s completion in 2016, Malakoff will be supplying the power to Tenaga Nasional Bhd (TNB) under a 25-years power purchase agreement. Alstom’s contract for Tanjung Bin 4, together with the earlier order to build the 1000 MW Manjung 4 power plant in 2011 further strengthens Alstom’s position as the largest original equipment manufacturer in Malaysia, having supplied key equipment for nearly 7.5 GW of the country’s installed power generation capacity.


ADVANCED TECHNOLOGY: TANJUNG BIN 4

“The 1000 MW Tanjung Bin 4 power station will be built adjacent to the existing 2,100 MW coal-fired Tanjung Bin Power Station in the southern peninsular state of Johor, ramping the facility’s capacity up to 3,100 MW.”

Local Market Overview

Malaysia’s demand for electricity is accelerating in tandem with its rising GDP. Datuk Seri Peter Chin, the former Malaysian Minister of Energy, Green Technology and Water had stated that: “For the period till 2020, the average projected demand for electricity is expected to grow at approximately 3.1%. Based on this forecast, the country is going to need even more energy as it strives to grow towards a high-income economy. An estimated 10.8 GW of new generation capacity will be needed by 2020 given that 7.7 GW of existing capacity are due for retirement”. This means that by 2020 the total installed capacity will have increased by 16% over the total installed capacity in 2012. Of this new capacity, the minister believes that gas and coal will continue to feature strongly, with coal most likely to take up a bigger share. This projected growth in the energy market is also being driven by new energy policies in Malaysia concerning energy pricing and the rationalization and removal of subsidies. Whilst subsidies encouraged business growth in past, fuel and energy subsidies cost the Government RM23.5bil in 2009, and continues to be a huge financial strain. Energy commodities across the region are taxed and subsidized at various levels, engendering huge market distortion and hindering

harmonization of the energy market. These negative impacts have led to a consideration of reform in energy subsidy in the 10th Malaysia Plan 2010 to 2015. New policies emphasize the need for a return to market-based energy pricing, which will create a more stable and competitive market, and an enabling environment for investment in the energy sector. The Malaysian government hopes that by 2015 energy pricing will be market-based, which will ultimately lead to new players in the supply chain. This will in turn help to improve Malaysia’s energy security. Energy security will be further improved by strengthening the reserve margin. Although margins in Malaysia appear generous installed capacity in Peninsular Malaysia in 2011 was 21,817 MW - this depends upon the availability of fuel, as TNB found out early in 2011 when it had to import power from Singapore when gas supplies were restricted. Meanwhile the continuous upward trend in demand, in spite of the global economic recession, means that additional capacity is needed if adequate margins are to be maintained under all circumstances. Malaysia aims to meet that margin by maintaining a 20% reserve margin by the end of 2015.

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ADVANCED TECHNOLOGY: TANJUNG BIN 4 security can be circumnavigated, however, by the technology employed at new power plants. The Tanjung Bin 4 plant will use Alstom’s supercritical technology, and will be able to utilize 100% sub-bituminous coal. Using lower grade, cheaper and more abundantly available coal ensures a lower risk from the erratic coal import market.

Entities Involved

Malaysia’s Five-Fuel Diversification Policy

As well as encouraging the market and increasing Malaysia’s reserve margin, it is essential that Malaysia develops and maintains its “Five-Fuel Diversification” policy, put in place to avoid excessive reliance on a single fuel. In spite of this, Malaysia’s generation mix is dominated by fossil fuels with gas taking 45% of the total generation in 2011 and coal 44%. Together with oil and distillates, these accounted for more than 94% of all power generation. Only hydropower, with 5.8% of the total in 2011, provided any alternative. However, 75% of Malaysia’s power demand comes from the Central region, where natural hydro resources are limited. The contribution from other renewable energy sources, such as solar and biomass was less than 1% in 2011. Despite the dominance of the gas industry in Malaysian energy generation, electricity production using gas experienced a drop of 15.2% between 2010 and 2011 due to tightening supplies, with gas for the power sector being curtailed due to maintenance and upgrading of offshore facilities of big companies such as Petronas. This unscheduled reduction in the use of gas in 2011 prefigures a planned fall in the proportion of power generated from natural gas in the future. By 2020, the gas market share of generation is scheduled to fall to 47.8% and by 2030 to 41%. Meanwhile coal use will rise to over 48% by 2020. Beyond that, nuclear power is also planned to take a share of the mix, with coal’s proportion then falling. The government is also trying to promote alternative types of renewable generation including solar photovoltaics and biomass, through an FiT system implemented in 2011 that requires utilities to buy renewable energy from power producers at a rate set by the government. However, with the gas curtailment and the long development

20 POWER INSIDER MAY / JUN 2013

time associated with nuclear and renewable energy, the short term alternative to gas remains coal. However, Malaysia is a major importer of coal, with no reserves of its own in the peninsula. According to TNB’s 2011 annual report, Malaysia imports 20 million tons of coal every year. This means that Malaysia is exposed to fluctuating market prices, which proved to be a distinct disadvantage between 2004 and 2011, when the coal price rose from $34/tonne to well above $100/tonne. This startling situation has been improved, however, with the steady fall in coal price since May 2011. Coal for electricity generation is currently imported from Indonesia, Australia and South Africa. Supply risk is one of the major issues governing coal as any disruption in the supply side could pose major risk in failing to meet the demand. Coal exporting countries could change their policy in the future if they see a need to utilize more for their own local consumption. There is also stiff competition from China and India for coal as these countries are undergoing rapid development. Malaysia is also competing with Korea, Japan and Taiwan for coal. This situation definitely exerts tremendous pressure on the price. As Datuk Seri Peter Chin suggested, the Malaysian government are nevertheless focusing on the development of coal-fired power plants. As well as Tanjung Bin 4 and Manjung 4, (2016 and 2015 respectively), another 3,000MW are in the pipeline. The Energy Commission has requested an open tender for the development of two coal-fired power plants. The first will be a 1,000MW plant on a fast-track basis, with the second a 2,000 MW plant at a new site. The fast track 1000 MW plant will be in operation by October 2017 and the second power plant, which is to be developed at a Greenfield site, will be commissioned by 2018/19. Issues in supply that threaten energy

For the project, Alstom has formed a consortium with two local, reputable Malaysian companies, both of which Alstom has worked with before on previous projects, and so has fostered excellent local relationships. Alstom plan to replicate the concept of Manjung 4 and will be using a similar project set up and approach. The operation and maintenance for the new power plant will be provided by Malakoff Power Bhd, a wholly-owned subsidiary of Malakoff, under a long-term operation and maintenance agreement. Malakoff is Malaysia’s largest independent power producer, with a net generating capacity of 5,020MW from its six thermal power plants. Malakoff Corporation Berhad, through its subsidiaries, engage in power generation, water desalination, and operation and maintenance services activities in Malaysia and internationally. Shin Eversendai Engineering Sdn. Bhd is providing the mechanical plant erection work and the turbine hall steelwork, and have successfully completed work on a number of large coal fired power plants. Having worked with Alstom on the Manjung Power Plant in Perak for the boiler, mill bay, ESP, FGD, coal and ash handling, Eversendai will complete similar scope for the 1000 MW Tanjung Bin 4 project. Mudajaya Corporation Bhd will provide the complete civil works, including the civil engineering and building construction services. In addition to these local companies, the Coal Handling contract has been awarded as a turnkey supply to Thyseen Krupp India. Alstom not only has a excellent reputation of delivering projects in Malaysia, but also has excellent working relationships with Malaysia’s most successful companies. In fact, Alstom’s local expertise is what strengthens their global presence.


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Why Alstom?

Saji Raghavan, Alstom Country President Malaysia, said of Tanjung Bin 4 Power Project: “This project, closely following Manjung power plant order in 2011, is a testimony of our customers’ confidence in Alstom’s supercritical technology and ability to deliver. Our market-leading solutions pave the way for additional capacity as well as substantially reducing emissions, resulting in delivery of cheaper, cleaner power to Malaysian consumers and industries.” This in a nutshell is why Alstom have been chosen to build Tanjung Bin 4 Power Plant. Alstom has over 100 years of experience in building steam power plants, proving that Alstom has the expertise, technology and the product portfolio to meet customers’ specific requirements. As a result, Alstom is the number one turnkey contractor for thermal power plants worldwide. Alstom’s global network delivers high quality, cost-effective equipment and related services to customers around the world. The company prides themselves on using consistent processes in execution, engineering and manufacturing – delivering the highest level of product excellence in each of our locations. With the support of local service centers in 70 countries, customers are assured that Alstom can deliver efficient steam power plant solutions and services anytime, anywhere. Alstom apply their Plant IntegratorTM concept for optimized power solutions. As an OEM, EPC and O&M provider, Alstom has a unique perspective that allows for analysis of the whole plant and the full lifecycle as an integrated system. Using proven models and established benchmarks, Alstom demonstrates how specific investment costs can be understood in their true context. Customers benefit from a greater range of options to

“This project is a testimony of our customers’ confidence in Alstom’s supercritical technology and ability to deliver. Our market-leading solutions pave the way for additional capacity as well as substantially reducing emissions, resulting in delivery of cheaper, cleaner power to Malaysian consumers and industries.” 22 POWER INSIDER MAY / JUN 2013

determine the solutions that are best suited to their needs. These help them achieve their business objectives and consequently better serve their markets. Additionally, Alstom offer a comprehensive customer experience, right from the design process to the after sales service. Alstom offers the broadest product portfolio for all steam applications ranging from 10–1200 MW and are experienced leaders in manufacturing, delivering, installing and servicing boilers, steam turbines and turbogenerators, as well as balance of plant components. Alstom also drives technology improvements to increase efficiency and reliability while reducing all emissions including NOx, SO2, particulates and greenhouse gases. Alstom’s product portfolio includes suspension-fired boilers for firing pulverized coal, oil and gas plus fluidized bed boilers for firing coal, waste coal and biomass. Alstom offers world-class project management and EPC capabilities, including power plant concept, design, manufacturing and construction. As a result, Alstom have become the industry benchmark for proven availability, reliability, and overall plant efficiency. Alstom is also a recognized project manager, able to lead a consortium whether or not they are the main supplier. As an EPC provider, Alstom has installed almost 580 GW in steam turbine generator sets and 835 GW of boilers worldwide.

Tanjung Bin 4: The Components

Alstom will engineer, supply, construct and commission the 1000 MW supercritical steam turbine and generator, the supercritical boiler, power plant auxiliaries such as mills and airpreheaters as well as proprietary environmental control systems. The emissions at the plant will be significantly reduced through the use of low NOx burners, a highly efficient seawater FGD facility and Fabric Filters to lower nitrous oxide, sulphur oxide and dust emissions.

Additionally, Alstom will also supply and install its latest ALSPA® Series 6 Distributed Control System. The equipment utilized by Alstom in the Tanjung Bin 4 project is the latest in supercritical pulverized coal technology. Supercritical technology improves the efficiency of steam technology by advancing the steam conditions in the boiler. By increasing the temperature and pressure at which the steam is produced, supercritical technology can increase the potential efficiency of the coal to electricity conversion. The idea of a supercritical plant is to bypass the point at which water boils, by keeping the steam pressure maintained above the critical point of water (221.2 bar, 374°C). In the supercritical boiler, instead of finding a mix of water and steam as in most conventional boilers, the fluid is in a supercritical state. The result of this is that the boiler drum is not required in a supercritical plant, because the conversion from water to steam entirely takes place in the evaporator circuits. The result of this technology, however, is that this increase in temperature and pressure places greater stress on the boiler materials, but this has been resolved with the development of improved materials especially for supercritical plants. Though boiler performance does depend on a number of factors such as specific site conditions, these materials have enabled the most advanced supercritical plants to achieve an efficiency of between 40% and 45% (HHV basis). Further advantages of supercritical plants is that the technology allows the plant to consume less fuel per kWh, and that corresponds with a decrease in emissions, lowering NOx, sulphur dioxide (SO2), carbon dioxide (CO2) and particulates. Additionally, the supercritical unit does not have thick walled steam drums and has quicker start up times. Finally, since a supercritical plant costs only slightly more than a subcritical plant of a similar size, the unit cost is still extremely competitive.


ADVANCED TECHNOLOGY: TANJUNG BIN 4 1. Steam Generator’s Technical Data Main Steam Flow

3226 t/h

Superheater outlet pressure

282. bar

Superheater outlet steam temperature

600 °C

Feedwater inlet temperature

304 °C

Reheater steam flow

2687 t/h

Reheater outlet steam pressure

60.2 bar

Reheater outlet steam temperature

603.5 °C

Reheater inlet temperature

365.4 °C

Source: Alstom

The Boiler

The Tanjung Bin 4 Supercritical power plant will be equipped with a vertical wall, twofireball, two pass boiler equipped with Alstom’s low-NOx tangential firing system (LNTFS). The boiler is able to maintain a main steam flow of 3226 tons/hour (t/h) at 282 bar and 600°C, making the unit a state of the art supercritical unit. More technical data for the unit is shown in Table 1. The vertical wall tube design includes two design features which allow sliding pressure operation within the boiler, which in turn allows more flexibility during daily load swings, less maintenance and increased availability. The first of these features is rifled tubing, which aids cooling. The rifled tubing spins the water and steam mixture traveling through the tubes, throwing water onto the tube surface. The second feature of the vertical wall tube design is the use of orifices, which help to distribute the flow of fluid to the furnace wall tubes in proportion to tube heat absorption. Because the tubes at the centre require more cooling, accurate fluid distribution reduces temperature differentials, and therefore reduces the stress put upon the furnace wall. Alstom’s LNTFS has a number of advantageous design features. The firing system injects fuel and air from wind boxes at an angle into an imaginary circle at the centre of the furnace. The Tanjung Bin 4 system will optimize two of these imaginary firing circles, creating two fireballs. In addition, the fuel and air injectors improve efficiency by tilting in order to control reheat temperatures without using spray de-superheat. The windbox will consist of seven coal nozzles which in turn contain enhanced ignition coal tips. Concentric firing system (CFS) air and auxiliary nozzles are placed between the coal nozzles. Equipped with yaw capacity, the nozzles dictate the position of the air on the furnace walls, which in turn controls corrosion and slagging. Of the auxiliary nozzles, four contain No.2 fuel oil burners in order to supply the oil fired warm up capacity. They are positioned so that the coal nozzles can be used in any order or combination, alongside high energy arc igniters. Additionally, a separated over-fire air

(SOFA) windbox, each containing six vertically and horizontally adjustable air nozzles, will be placed above the main wind box. This SOFA windbox will be able to boost air staging whilst reducing NOx emissions. The advantage of these features is that it produces stable fireballs, which in turn leads to more predictable heat absorption profiles. This maximizes combustion efficiency whilst still keeping NOx emissions low, and allows the combustion system to adjust the fuel and air conditions to suit a multitude of different coal types. This is an essential design feature, because of the reduced availability and increased price of quality coal. New plants must be capable of utilizing fuel with a low heating, high moisture and high ash contents (see Table 2 for the boiler’s range). This will allow the operator to purchase coal for the most competitive price. The Tanjung Bin 4 boiler has been designed to be capable of burning imported coals primarily from Indonesia and Australia, which display these qualities. The boiler will be manufactured in Alstom’s new Chinese manufacturing facility in the Wuhan East Lake Development Zone. Alstom acquired a 51% stake in the Wuhan Boiler Company in 2007 and constructed a state of the art boiler factory on a new site at the end of 2009.

2. Boiler Fuel Range Content

Design Target

Specifications

Moisture

26%

Up to 30%

Ash

1.5%

Up to 15%

Sulphur

0.1%

Up to 1%

Volatile Matter Composition

37.2%

22% and above

Source: Alstom

The Turbine

The Tanjung Bin 4 Supercritical power plant will also utilize Alstom’s 1080 MW STF100 steam turbine unit. The STF100 is equipped with one high pressure turbine, one intermediate pressure turbine and two doubleflow, low pressure turbines. The steam turbine unit will receive steam conditions which include a high-pressure steam turbine inlet pressure of 270 bar, steam inlet temperature of 595°C and a steam flow of 3226 t/h from the boiler. For more technical data such as the reheat steam flow, see Table 1. The construction of the STF100 steam turbine unit will also take place in China, just as the boiler. The unit will be built at the Alstom Beizhong Power (Beijing) Company Limited factory.

The Generator

For this plant, Alstom will use their 1080 MW GIGATOP 2-pole generator. This unit has evolved from a successful design first developed in the 1970s. With a water-cooled stator

winding, the GIGATOP 2-pole generator’s stator core and rotor will be hydrogen-cooled. With output ranges of 400 MW to 1,400 MW at 50 Hz and 340 MW to 1,100 MW at 60 Hz, the GIGATOP 2-pole turbo-generator is ready to support the largest steam turbine power plants. The GIGATOP 2-pole is powerful; and it is also modular and flexible in design. GIGATOP 2-pole has demonstrated extremely high reliability in operation – for example, a unit in the U.S.A. boasted 607 days’ uninterrupted operation before a scheduled shutdown. It is the world’s most powerful turbo- generator running at full speed; it delivers up to 1,400 MW. Its compact design results in a short overall shaft length, occupying less space than conventional design. And the unique design of the GIGATOP 2-pole press plates allows it to deliver high reactive power, which contributes to stabilizing the grid voltage quickly in case of a disturbance on the grid. The GIGATOP 2-pole’s cooling system enables the unit to operate efficiently at part and full load. The water is cooled by passing de-ionized waster through stainless steel tubes, which circumnavigates issues of corrosion. At the same time, hydrogen cooling is carried out by utilizing a triple-circuit hydrogen sealing system. This system is able to minimize costs which can be translated into operational savings. Adding to these savings, the stator core is maintenance free for the lifetime of the unit. The water cooling tubes of the stator winding are made of stainless steel instead of copper, so there is no risk of corrosion and clogging from copper oxides. All this adds to the reliability of operation. To ease maintenance, the stator end-winding can be retightened, quickly and simply, during regular maintenance, while man-holes at both ends and in the terminal box make access easy for maintenance personnel. The unique design of the re-tightenable stator end-winding reduces the maintenance effort and increases the GIGATOP 2-pole’s availability. Axially flexible to allow thermal expansion, it is rigid in the radial and tangential directions to withstand high electromagnetic forces. To facilitate maintenance, the endwinding has been designed so that it can be easily re-tightened during regular maintenance, which accelerates maintenance operations. Safety has been given pride of place in the GIGATOP 2-pole, with a triple-circuit hydrogen sealing system instead of a doublecircuit system. The resulting very low hydrogen consumption also helps to reduce operational costs and keeps the hydrogen at very high purity levels. So the GIGATOP 2-pole’s efficiency is sustained at a high level over the long term. A key GIGATOP 2-pole feature is Alstom’s MICADUR® insulation system, the result of over 50 years of continuous development. MICADUR® consists of a glass-fibre tape incorporating mica flakes. The taped bars are vacuum- impregnated with a solvent- free

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ADVANCED TECHNOLOGY: TANJUNG BIN 4

epoxy resin and thermally cured. Finally, the surface is coated with a corona- protection varnish. MICADUR® meets all the requirements of thermal class F (155°C), while GIGATOP 2-pole operates in thermal class B (130°C); that means it has a built-in safety margin. Thanks to the MICADUR® insulation system, the GIGATOP 2-pole offers excellent durability and reliability under all operating conditions. The stator core is designed for zero maintenance. It is held under constant axial pressure by press fingers, press plates and fully insulated through bolts. As a result, there is no expected loosening of the laminations for the entire life time of the machine. The stator core is made of low-loss insulated steel sheet. The patented design of the laminated press-plates leads to low losses, low temperature and better efficiency, which enables reactive power to be increased and can be used to support grid voltage stability.

Sea Water FGD System

Seawater FGD uses seawater itself as the absorbent. Seawater is naturally slightly alkaline and will absorb and react with SO2, converting it in the presence of oxygen from the air, into soluble sulphate, which remains dissolved in the seawater. Absorption takes place in a packedtower counter-flow absorber into which is fed around 20% of the seawater drawn into the plant from the seawater intake system. The process is capable of absorbing above 90% of the SO2, depending on input levels. The seawater is then ejected from the absorber tower and mixed with the cooling water from the condenser at a seawater treatment plant. The mixture is treated with ambient air to increase the dissolved oxygen level, after which it is released back into the sea. The returned water will be altered, but not enough to infringe upon the stringent environmental standards, and the process produces no by-products. The returned water will have an increased sulphate load of approximately 55 mg/l, and the pH of the water will be lowered from approximately 7-8 to 6-7. Alstom’s Seawater FGD system has both low lifetime and maintenance costs. Meanwhile, the flue gas exiting the FGD plant is reheated in order to rise high into the air and disperse after leaving the stack. The flue gas is reheated using the gas-gas heater (GGH), using the heat extracted from the flue gas before entering the absorber.

ALSPA Series 6 Control System

The ALSPA® Series 6 Control System takes advantage of Alstom’s extensive experience 24 POWER INSIDER MAY / JUN 2013

in power plant control, integrating the latest technologies for the benefit of the customer. ALSPA® Series 6 encompasses all the operation, management, maintenance, automation and safety functions that a modern power plant needs. Central to Series 6 is ALSPA® CONTROPLANT™, the state-of-the-art plant automation system, based on a flexible, modular and open real-time architecture (based on Ethernet Power Link) and designed in line with the trend toward increasing data centralization. ALSPA CONTROPLANT™ can be used from small systems to large complex systems in power stations or industrial applications to control, optimize and protect all types of power plants and their turbines. ALSPA Series 6 uses the latest Microsoft. net technology for the operator screen of the system (or Human Machine Interface – HMI), producing an ergonomically friendly and easy-touse system. The control room can be configured according to the different architectures needed for the various processes e.g. hydro, combined cycle or supercritical thermal projects. Control functions, such as the analysis of historical plant operation data, remote maintenance diagnostics and remote power plant supervision can be securely accessed through the internet. Automation cells – machine controllers, distributed controllers and input/output devices – that report information back to the control system are now more powerful, allowing for more complex operations. For example, the main controllers are 300% more powerful than the previous machine controllers.

Expansion of the 500kV Switchyard

An integral part of the project is the addition of a further two diameters to the existing three diameter 500kV switchyard. This forms the actual connection of the new Unit to the TNB Grid. The equipment being provided by Alstom Grid is of the Air Insulated outdoor type. 6 Circuit Breakers, 18 Disconnectors, various measuring and protection equipment plus flexible and fixed connectors are being installed and commissioned on new supporting structures and foundations. This set of equipment is then connected to the Switchyard control system which is also being expanded to cater for the new Power Plant. Major challenges of this portion of the project include organization of the work in a confined area close to a continuously live existing facility, work required at the actual interface point requires meticulous planning and attention to detail with close co-operation with Malakoff

and TNB to ensure safety of personnel and equipment, and to ensure the work is carried out to the required quality in the optimum time.

Challenges of the project

As with many large scale power projects, there are a number of challenges that must be overcome. The first is the time schedule where the power plant must be handed over to meet the dates set in the customers’s PPA and is dependent upon availability of interconnections with the grid and existing coal supply infrastructure. A fully detailed programme is developed with the customer to ensure all Parties are aware of their obligations to meet the COD date. The second is the power plant’s location. The Tanjung Bin 4 unit is adjacent to the current three coal fired units and is required to meet DOE regulations for the overall site. The existing Tanjung Bin plant already produces a certain amount of emissions, and the new 1000 MW extension will add to the total emissions level which is within a confined area. This means that care must be taken in the design to ensure emissions level are kept within the DOE regulations and thus ensure that the plant can be operated.

To Conclude

Malaysia is a country that needs to quickly and efficiently produce power. Despite the numerous issues surrounding the supply of coal and the adverse environmental impact, the development of coal fired thermal projects is the most pragmatic solution to Malaysia’s power issues. However, neither the government, state owned enterprises or the private companies involved in developing power in Malaysia want to do so irresponsibly, which is why they have chosen Alstom and their Supercritical technology for the coal fired project at Tanjung Bin 4. The use of Alstom’s boiler, turbine, generator, FGD, fabric filters and control system technology has a number of advantages. The equipment is high performance with increased operational flexibility. The plant will be able to maximize its fuel flexibility, whilst still maintaining low NOx emissions over a wide load range. In short, the new 1000 MW unit at the Tanjung Bin will be able to provide a steady supply of electricity without a negative impact on emissions, whilst still being cost effective. PI FOR MORE INFORMATION: E. info@sks-global.com www.pimagazine-asia.com


feature

Thailand’s Micro Hydro Potential:

Lessons Learned in Sarawak and Sabah Chris Wright of SEAREPA and Raveen Kulenthran of TONIBUNG tell Power Insider about the work going in Sarawak and Sabah to encourage the installation of micro-hydro electric systems.

L

ike many States across the region, Thailand is currently undergoing something of an energy revolution. With growing electricity demand both in its rural communities and urban megacities, Thailand is looking to its vast hydropower potential to fill its current and projected energy needs. According to the Thailand 15 year power development plan for 2008 to 20221 (Power Policy Bureau, 2010), the total hydropower potential across Thailand is approximately 328 MW. In addition to this, Thai energy companies are also seeking to develop vast hydroelectric reserves in neighbouring Laos and Myanmar to supplement local energy supply and develop hydroelectric capacity across the region. Construction is underway on the controversial 1,285 MW Xayaburi dam in Laos of which 95 per cent of the energy generated will supplement Thailand’s electricity needs. However, this has already resulted in the displacement of hundreds of local villagers, and environmentalists across the region have warned that due to its size and scope, it may threaten fish catches and food security for up to 60 million people throughout the Mekong region. Similarly in Myanmar, construction of the 1,200 MW Hat Gyi hydroelectric dam, a joint initiative between China’s Sinohydro Corporation, the Electricity Generating Authority of Thailand and Myanmar’s Ministry of Electric Power, has long been

26 POWER INSIDER MAY / JUN 2013

opposed by neighbouring villages on both sides of the Thai-Myanmer border, and has even faced violent opposition from members of the Karen National Union. This is not so dissimilar to current development plans in Sabah and Sarawak. Collectively, these two states represent the most underdeveloped states in Malaysia. While national poverty rates in Malaysia have dropped dramatically since the 1990’s, 23 per cent of households in Sabah are considered poor and 6.5% of Sabah’s households are categorised as ‘hardcore poor’.2 Similarly to Thailand, electricity access has not become a reality for much of Sabah’s rural population, and across the state electricity access is currently at 82.51 per cent, with estimates that rural access to electricity is as low as 67 per cent.3 Also, due to a weak distribution network, the System Average Interruption Duration Index (SAIDI) for Sabah was 2,540 minutes in 2005, 25 times worse when compared to Peninsula Malaysia’s SAIDI of 101.6 minutes.4 While many rural villages in Sabah do have access to diesel generators, this is highly costly, unreliable and causes significant localised pollution. As a result, Sabah is currently looking for ways to significantly increase its energy generation capacity, reach and strength. According to the Sabah Development Corridor Blueprint (2008-2025), this would require adding 2,700 MW in new capacity across the state and notably increasing access to electricity in rural areas. Sarawak also plans to increase its energy supply, but on a much larger scale. Currently,

Sarawak Energy Berhad (SEB), the stateowned holding company of Syarikat SESCO Berhad, has targeted a nine-fold increase in energy output between 2010 and 2020. In terms of current versus future capacity, this translates to an expansion from 1,300MW in 2010 to between 7,000MW and 8,500MW in 2020.5 However, these energy expansion plans are aimed primarily at increasing urban industrial energy supply as opposed to supporting rural energy demand across Sarawak’s low density, rural population. Due to their unique topography and annual precipitation rates upwards of 3850mm/y, these two states are highly attractive sites for hydroelectric development. It has been estimated that Sabah has the potential to develop micro-hydro power in

“the state-owned holding company of Syarikat SESCO Berhad, has targeted a nine-fold increase in energy output between 2010 and 2020.”


THAILAND’S MICRO-HYDRO POTENTIAL

68 sites with a collective energy potential of 1,900 MW5. However, this study only considered areas with more than 40 meters head for micro-hydro deployment. Considering that newer turbines now enable micro-hydro systems to operate at considerably lower head levels, this number may underestimate Sabah’s micro-hydro potential. Sarawak has much greater potential, with a projected capacity of 20,000 MW, and a total energy output of 87,000 kWh per year.7 Over the next ten years, both of these states plan to rapidly increase their current hydro power capacity. In Sabah, plans for several large hydroelectric plants are under development. This includes the 150 MW Upper Padas dam planned for 2014, and the 150 MW Liwagu project. If development of these plants is successfully implemented, they will contribute towards making hydro the second largest electricity resource in Sabah by 2020.8 However, due to the proportion of Sabah’s population that remain off-thegrid, it arguable as to whether these large systems will increase access to electricity in rural, poverty stricken areas. A majority of these off-grid communities are gatherers and farmers who, although poor, have developed complex resource management systems that ensure their food security through sustaining and conserving local ecosystems. As such, there is an ever-pressing need for development initiatives that do not negatively impact the local ecosystem, while embracing the traditional values of local people. In Sarawak, current hydroelectricity plans include a series of up to 50 hydroelectric dams, including 12 mega-hydro projects to be constructed before 2030.9 Sarawak currently has over 1300 MW of installed capacity through Batang Ai Hydroelectric (100 MW) and the added capacity of the 2400 MW Bakun Dam, completed in 2011, and the 944 MW Murum dam which is scheduled to be completed this year. Leading up to 2020, SEB plans to develop at least 5 new mega-hydro proects, including the proposed 1,200 MW Baram Dam. According to SAVE Rivers, a grassroots network of indigenous communities and civil society organizations in Sarawak, the existing Sarawak dams have already displaced over 12,000 people. In the resettlement villages for the Bakun and Batang Ai dams, many of the indigenous people live in poverty with high unemployment, insufficient land to grow crops, and poor access to schooling and healthcare. Furthermore, they report that more

than 20 villages including upwards of 20,000 more Indigenous people will be displaced if the Baram Dam is built.10 However, as unrest continues to grow across Sarawak in response to these large-scale development projects, more and more people are starting to realise the potential of smallscale, micro-hydro. Micro-hydro projects tap into the natural kinetic energy of flowing rivers, producing between 1-100 kW without the need for a dam and large-scale flooding. While not being able to add significant amounts to state-wide or national energy supply, their small size can play a significant role in expanding energy access in rural areas, and are often used to electrify rural villages or provide power to remote, off-grid facilities. This is particularly true in remote and hilly areas where the extension of the grid system is comparatively uneconomical.11 In regions such as Sabah, Sarawak and Thailand, with significant and consistent annual rainfall, small-scale run-of-the-river systems are able to generate energy throughout the year

“There is a pressing need for development initiatives that doesn’t negatively impact the local eco-system, and embraces the traditional values of local people.” in non-drought years. As a result, microhydro projects have proven to be a highly practical, low-cost and low impact options for electricity generation in remote areas across Southeast Asia.12 Due to their ability to be used as a direct mechanical drive or electricity generation scheme, they can have significant direct socio-economic benefits to remote villages that may have relied on diesel generators, or not previously had access to electricity at all. In Sabah and Sarawak, rural electrification is particularly difficult and the development of decentralised energy has not been effectively prioritised. However, local civil society organisations have taken the lead. Since 2001, Sabah-based ‘Friends of Village Development’ or Tobpinai Ningkokoton Kobuburuon Kampung13 (TONIBUNG) has focused on expanding microhydroelectric systems through the implementation of 15 micro-hydro projects across Sabah and Sarawak, as well as 6 others in partnership with private companies. In each of its 15 projects, TONIBUNG has focussed on building a sense of community ownership in order to ensure the long term success of their micro-hydro installations.

This begins with a significant allocation of time and resources to pre-project research of village customs, the establishment of communal funds, democratically elected committees, and the practice of shared labour in the planning, implementation and maintenance of each project. TONIBUNG also works with community farmers and craftsmen to assess needs in developing productive uses for the renewable energy produced. It also develops watershed management plans with community partners in order to ensure that their work has no negative impacts on the local environment. As such, the organisation prides itself in the development of what it calls ‘appropriate’ renewable energy. Furthermore, it openly promotes the idea that the vast majority of its work occurs before and after the micro-hydro turbine is installed, in order to provide a truly sustainable source of energy for each community it works in. TONIBUNG is also currently seeking to build their capacity and multiply their impact through a skills development scheme which works to enable rural indigenous technicians to design and implement renewable resource management schemes of their own. TONIBUNG’s micro-hydro projects also highlight that even small-scale systems can be relatively cost-competitive. As shown in figure 1, TONIBUNG’s small-scale systems average just over 7 kW in capacity at a total cost of approximately $46,000 USD each. This equates to a levelized cost of approximately $0.17 per kWh over 20 years.14 In 2010, researchers from the University of Berkely’s Renewable and Appropriate Energy Laboratory conducted a systematic cost-assessment of Sabah’s energy options.15 Currently Sabah is dramatically subsidising the price of energy produced from natural gas and diesel. If it were to eliminate these subsidies, these micro-hydro projects would in fact be cheaper than diesel and on par with natural gas in Sabah. Malaysia currently imposes considerable import duties on parts required for micro-hydro development. Reeling back these duties would again decrease their costs and make micro-hydro even more competitive. The social and environmental impacts of these schemes are also important to consider. While all of TONIBUNG’s micro-hydro schemes occur in areas without previous access

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THAILAND’S MICRO-HYDRO POTENTIAL to reliable electricity, more than 70 per cent of TONIBUNG’s micro-hydro schemes in Sabah have been implemented in areas where absolute poverty is officially assessed as affecting more than 30 per cent of the population. Often these communities cook their food on fire stoves or resort to diesel generators, both of which are significant contributors to localised pollution levels. As such, these schemes provide sustainable alleviations to rural poverty, dramatically increase access to opportunities for the villagers, and contribute to localised environmental conservation. As Adrian Lasimbang, Executive Director of TONIBUNG noted: “The bigger picture is that they will now take care of the forest that gives them not only food but also energy. What they do at the community level contributes to addressing climate change issues.”16 The majority of these micro-hydro projects

have also occurred in extremely remote areas, often without adequate road access. After installing a 10kW system in Kg. Buayan, the village chief John Sabating commented that: “The system also means there is no longer a need to carry fuel from Donggongon town, which required a three-hour walk and a hour’s ride on a four wheel drive”.17 Their most recent project in Long Lamai, Sarawak is only accessible via boat. As such, while the micro-scale of these schemes results in increased operational and maintenance costs over time relative to larger-scale technologies, it is their very nature which proves their potential as “appropriate” solutions to expanding rural electricity access. This sense of long-term ownership also opens up the opportunities for capacity development, community-based implementation and maintenance assistance, and community-based

Figures Data Centre

Data

Exchange Rate (RM to $)

0.32

Average Cost ($)

46,807

Average Installed Capacity (MW)

0.0073

Average Cost ($/MW)

6,415,950

O&M Cost ($/Yr)

3,36018

Capacity Factor

0.73

Discount Rate

8%

LCOE ($/MWh)

174

LCOE ($/kWh)

0.17

(Fig. 2 showing the levelised costs per MW and kW, capacity factor, discount rate, operational and maintenance costs)19

TONIBUNG Micro Hydro projects (fig.1) Capacity (kw)

Turbine Type

Supplier

Year Commissioned

Budget (RM)

Long Lawen, Belaga, Sarawak

10

Crossflow

Heksa Hydro

2001

230,000.00

MHP Terian

Kg. Terian, Penampang, Sabah

5

Pelton

Heksa Hydro

2005

130,000.00

3

MHP Bantul

Kg. Bantul, Pensiangan, Sabah

5

Pelton

Heksa Hydro

2006

150,000.00

4

MHP Bario

Bario Asal, Bario Sarawak

40

Crossflow

Heksa Hydro

2009

500,000.00

5

MHP Buayan

Kg Buayan, Penampang, Sabah

10

Crossflow

Heksa Hydro

2009

250,000.00

6

MHP Masakob

Masakob R&R, Rafflesia Forest Reserve, Tambunan, Sabah

3

turgo

EXMORK

2009

60,000.00

7

MHP Mudung Abun

Kg. Mudung Abun, Belaga, Sarawak

25

pelton

Heksa Hydro

2010

380,000.00

8

MHP Lumpagas

kg Lumpagas, Pensiangan, Sabah

2

turgo

EXMORK

2010

80,000.00

9

Pak Dawat/Edwin

Punang Kelalan, Ba'kelalan, Sarawak

1.5

turgo

EXMORK

2010

5,000.00

10

MHP Tg Rambai

Kg Orang Asli Tg Rambai, Hulu Selangor, Selangor

5

Kassim dual axis turbine (prototype)

One Hydro Sdn Bhd

2011

230,000.00

11

MHP Saliman

Kg. Saliman, Pensiangan Sabah

3

Turgo

EXMORK

2011

98,000.00

12

MHP Poring

Kg Poring, Ranau

3

propeller

EXMORK

2011

50,000.00

13

MHP Maang

Maang Wellness & Spa Resort

3

Turgo

EXMORK

2011

50,000.00

14

MHP Trus Madi

Trusmadi Forest reserve, Tambunan Sabah

2

turgo

EXMORK

2011

40,000.00

15

MHP Inakaak

Kg Inakaak, Pensiangan, Sabah

3

turgo

EXMORK

2012

80,000.00

16

MHP Sg Rellang

Kg Orang Asli Sg Rellang, Gombak, Selangor

1.5

turgo-solar hybrid

EXMORK

2012

25,000.00

17

MHP Babalitan

Kg Babalitan, Pensiangan, Sabah

5

Pelton

Heksa Hydro

2012

150,000.00

18

Labanrata RES

Pendant Hut, Labanrata, Mt Kinabalu

1.5

turgo-solar hybrid

EXMORK

2012

30,000.00

19

MHP Marudu

AFC nursery, Kota Marudu, Sabah

5

Pelton

Heksa Hydro

2013

150,000.00

20

MHP Sg Rellang

Kg Orang Asli Sg Rellang, Gombak, Selangor

2

Pelton

Heksa Hydro

TBC 2013

30,000.00

21

MHP Long Lamai

Long Lamai, Baram, Sarawak

15

Crossflow

Heksa Hydro

TBC 2013

350,000.00

160.5

Total (RM)

3,218,000.00

7.30

Average (RM/kW)

20,049.84

no

Project Name

Location

1

MHP Long Lawen

2

Total (kW) Average (kW)

28 POWER INSIDER MAY / JUN 2013


THAILAND’S MICRO-HYDRO POTENTIAL crowd funding initiatives. These feedback into the project and may decrease the economic cost for the implementing agency as well as assisting the long-term social sustainability of the project. Initiatives such as these were highlighted in December, 2012 at the Southeast Asia Renewable Energy People’s Assembly. This was the first regional gathering of communitybased renewable energy developers to share their knowledge and experience of developing micro-renewable schemes across the region. What became evident at the gathering, is that if done in accordance with the localised sociocultural, economic and environmental needs of the communities affected by these schemes, hydroelectricity as well as a number of other community based renewable energy sources could significantly contribute to community empowerment.

“Micro-hydro implementers from across Southeast Asia formed a regional network to exchange knowledge and experiences, and expand the impact of their projects.” During this initial gathering in Sabah last year, micro-hydro implementers from across Southeast Asia formed a regional microhydro network to continue to exchange their knowledge share their experiences, and expand the impact of their ongoing community-based, micro-hydro projects. Similar networks were also formed across a range of other community based technologies, research groupings, policy initiatives and advocacy platforms. It is also hoped that through the creation of these network, they may be able to more effectively highlight the potential of community-based renewable energy development across the region, particularly to those governments seeking to dramatically expand their energy capacity. In spite of the ability of organizations like TONIBUNG to mobilize international support and corporate donations towards rural electrification, the responsibility of the

task falls, ultimately, on local governments. It has been proven that integrated electrification schemes that prioritize community ownership tend to be both more resilient and costeffective than off-grid systems that are owned and managed by government institutions. If Southeast Asian governments were to implement some of the strategies employed by these small organizations, it could help these countries meet both development targets and climate change mitigation commitments. Thailand is also looking to rapidly develop its mini and micro-hydro potential as a means of supporting decentralised energy supply to a number of its rural communities. As of 2012, Thailand has a total of 101.75MW installed capacity for mini and micro hydro power. In accordance with ambitious plans to ensure that 25% of total energy consumption in Thailand would derive from “alternative energy sources” by 2021 (Alternative Energy Development Plan 2012-2021), the Thai government has planned to increase its supply of mini and micro-hydro electricity 10 fold, with a projected 1,608 MW of mini and micro-hydro power planned by 2021. This will have a particular impact in Northern Thailand, which has a very high potential for small hydropower development due to its steep slope topography and local energy needs. According to the World Renewable Energy Congress, who have conducted a study in Northern Thailand on the potential for small and mini/ micro hydro projects, there are 64 potential projects in the Ping River Basin with an overall electricity potential of approximately 211 MW. Additionally, there are 19 potential projects in the Wang River Basin with a total energy capacity of approximately 6 MW. Many of these projects aim to create the multi-dimensional impact that is evident in TONIBUNG’s schemes. Through their implementation, Thailand may indeed make considerable strides towards poverty alleviation, environmental conservation and socio-economic development across the affected areas. However, as Thailand develops its micro-hydro potential over the next 10 years, it will need to invest considerable attention to the ‘appropriateness’ of their hydroelectric development. Like in Sabah, many indigenous communities across Thailand have developed intimate agricultural and spiritual links with their land, resources and river systems. It is these links that must not only be understood, but critically engaged

1 Power Policy Bureau, 2010. 2 Sabah Development Corridor Blueprint (SDC) 2008-2012. 3 This is taken from the SDC 2008-2012. Recent analysis of electricity access across the state places the number as high as 82.51 per cent but fails to differentiate for rural versus urban areas (H. Borhanazad et al. Renewable Energy, Volume 59, November 2013, Pages 210-219). 4 SDC 2008-2012. 5 SEB Annual Report 2010. 6 Tenaga Ewbank Perunding Sdn Bhd, Sabah Power Development Master Plan Study, Volume One, p. 3-7. 7 www.recoda.com.my/invest-in-score/what-is-score. 8 McNish et al, 2010, Clean Energy Options for Sabah. 9 The Regional Corridor Development Authority (RECODA) is the agency tasked with overseeing and managing SCORE. 10 SAVE Rivers 11 Raman, N. et al, Proceedings of ICEE 2009 3rd International Conference on Energy and Environment, 7-8 December 2009, Malaysia 12 N.C. Domingo et al, ‘Overview of Mini and Small Hydropower in Southeast Asia’, GRIPP Knowledge Center,

30 POWER INSIDER MAY / JUN 2013

13 14 15 16 17 18 19

with in order to ensure the social and financial sustainability of any community-based microhydro scheme. However, similar to Sabah, this level of engagement is already occurring in many of Thailand’s river basins. In the Ping River Basin for example, Indigenous farmers, local residents and civil society actors representing the Ping River Basin Committee have developed mutually agreed upon, ecologically sustainable and equitable systems of water allocation. In this case, it is therefore critical that the Thai government actively engage with these stakeholders and build upon this participatory process in the development of their potential micro-hydro projects. Rather than seeking to implement these schemes in the traditionally top-down image of government-led development, it would in fact be more efficient and sustainable to adopt a community-based methodology focuses on developing long-term community ownership of each micro-hydro project. This will have a significant cost impact in the long term as community members may become stewards rather than simply beneficiaries of micro-hydro electricity. In order to achieve these long term benefits, those implementing the projects will have to significantly invest both time and social resources towards first developing culturally appropriate strategies to foster that sense of community engagement, ownership, and multi-dimensional community development. PI

ABOUT THE AUTHORS: Chris Wright is part of the original Southeast Asia Renewable Energy People’s Assembly, and is now working to develop their regional capacity and communications network. Raveen Kulenthran currently works with TONIBUNG on a communitybased micro-hydro mudule and regional level renewable energy analysis tools for communitybased renewable energy implementers.

ECASEAN Green Independent Power Producer Network; M.R. Noumi et al, Journal on Energy Policy, Elsevier, Volume 34, Issue 10, July 2006; R. Muhida et al, Journal of Solar Energy materials and Solar Cells, Volume 67, Issues 1-4, March 2001. Kampung is the Malay word for Village and may also be written as kg. With an estimated discount rate of 8%. McNish et al, 2010, Clean Energy Options for Sabah www.theborneopost.com (formally note 17, etc) www.thestar.com.my Based on assumptions made in McNish et al, 2010. After assessing the Micro-hyro scheme’s over a 20 year period, we have assumed that all capital expenditure occurs in the first year, and we have estimated the operating expenditure for the next 20 years to be $3360 per year (based on McNish et al 2010). To calculate the levelized cost of electricity, we have assumed a discount rate of 8%. Then by applying the discount rate, the electricity generated and the operated expenditure was discounted. The electricity is calculated by assuming the average 7kw plant operates 24h/ day, 365 days/year while accounting for a capacity factor of 0.73 (also in accordance with McNish et al 2010).


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Pioneering Gas Technology in Malaysia

Malaysia has a huge amount of potential for power generation when it comes the gas industry. Imbued with a wealth of natural gas that can be exported and utilized in domestic power plants, Malaysia also has a flourishing palm oil industry which allows the potential for co-generation, biogas and bio-fuel applications. To learn a little more about these industries, and about what can be achieved in Malaysia, we spoke to the President and CEO of MWM Asia Pacific Pte Ltd, Ruprecht Lattermann. Recently taken over by Caterpillar, MWM is entrenched in the Malaysian gas-fired power generation industry.

INTERVIEW WITH: RUPRECHT LATTERMANN, MWM

Ruprecht, thank you for taking the time to speak with us. Since the takeover of MWM by Caterpillar in October 2011, has the strategy or operation of MWM Asia Pacific changed?

In the near-term, the strategy, by and large remains unchanged. Caterpillar has embarked on a dual-brand strategy; as well as the traditional Caterpillar distribution organization selling CATbranded products, the traditional MWM distribution organization continues to sell MWM-branded products under the umbrella of our parent company. On the MWM side, we continue the implementation of our action plans developed for each country, with the objective of growing the MWM business in collaboration with our distribution partners. The dealers for the respective brands continue to compete and complement each other with the differently branded products with the respective product advantages for the individual requirement and their respective strengths in the market, to the benefit of the parent company.

32 POWER INSIDER MAY / JUN 2013

How is MWM represented in the Malaysian market?

MWM is represented in the Malaysian market by our authorized dealer, SP Energy Sdn Bhd. Led by Mr. Kebir and Mr. Zihanz and with coverage across East and West Malaysia, they have established MWM as the leading brand for cogeneration natural-gas power plants in our performance category. From MWM Asia Pacific Pte. Ltd., the Asia Pacific regional headquarters of MWM GmbH, we actively support our local dealer in Malaysia with marketing, sales and after-sales support. How do you cover both the West-Malaysian and East-Malaysian part of the country?

SP Energy Sdn Bhd has representatives focused on handling enquiries across East and West Malaysia. Most of our customers in East Malaysia either have their headquarters in the capital city Kuala Lumpur or have at least an office there. This being the case, with our dealer SP Energy Sdn Bhd also headquartered in Kuala Lumpur, communication and project handling for projects in the Eastern part of the country is quite easy.

In 2010, MWM delivered 15 units of TCG 2032 V16 type within three months for a 60 MW project in Bangladesh.


INTERVIEW

All stages of the projects are handled from enquiry stage to commissioning are directly undertaken by SP Energy Sdn Bhd. Dedicated project managers are assigned to sites to oversee installation and commissioning, and application engineers work in tandem with MWM counterparts. Which is MWM’s main focus in the Malaysian market? Is there a medium to long-term direction?

There are two main thrusts in the strategy for MWM’s business in Malaysia. Our near to medium-term focus is the growth of biogas power plants, which are strongly supported by government initiatives such as the preferential feed-in tariff. MWM has products perfectly suited for these market segments. MWM’s medium to long-term focus is on the increased acceptance and viability of distributed cogeneration power plants fueled by natural gas. How has MWM benefitted from Malaysian National Grid feed-in tariffs as a manufacturer of distributed power systems?

The feed-in policies for renewable energies have in recent times, been adjusted in favour for the implementation of distributed power systems that employ renewable energies. The highest feed-in tariffs are for small hydro and solar photovoltaic, followed by biomass (inclusive of municipal solid waste) and biogas (inclusive of landfill/sewage) sources. The increase of installations of MWM powered biogas power plants is a direct result of these feed-in policies. Can you give us a few examples of MWM’s success in Malaysia?

Our market success in Malaysia is founded on the excellent, the well-recognized technical expertise of our local dealer SP Energy Sdn Bhd, and the relentless marketing efforts of the key members of our dealership. In the biogas segment, a very well-recognized customer is Bukit Tagar Landfill, where there

The Melbourne Water Corporation operate 7 MWM gas gensets (TBG 620 V16 K) to ensure the reliable sanitation and water treatment.

The Mannheim training centre students learn theoretical knowledge and practical use of gas engines

are multiple units of MWM TCG 2020 range gensets installed. Besides waste management and landfill application, MWM also has a foothold in the palm oil industry of East and West Malaysia. From the distributed cogeneration power plants segment, based on natural gas as the fuel, MWM has secured the lion’s share of glove manufacturers, including Top Glove and WRP as its customers. Malaysia is one of the biggest palm oil producing countries of the world, an industry closely associated with biogas production. What are the key drivers for an enhanced utilization of the waste waters from palm oil production for electricity generation and co-generation?

Palm oil mills require electric power and heat for their processes. The location of palm oil mills are often remote, and in the center of huge plantations where electric power from the national grid may not be readily available. In this case, decentralized power generation utilizing waste heat is key. Furthermore, the huge amount of waste water with substantial organic content provides the foundation for decentralized fuel production for a captive power plant. Anaerobe digestion turns the waste water into biogas fuel that can run a plant. Prior to combustion in the gas gensets, it is critical to have a gas-purification system in place to meet the gas purity criteria imposed by the power plant components, in order to ensure longevity and optimized efficiency/reliability of the complete system. So, a key driver is the seamless integration of the waste water processing system and the power plant system, whilst at the same time ensuring that methane generated during the decomposition process of the waste water does not enter the atmosphere. Whilst being a key driver, the remoteness of the palm oil mills can be a disincentive. Because of the amount of organic waste water available

from the oil-milling process, excess power can be generated that could be sold to the national grid. However, with the national grid either not being available, or potential consumers for the excess power so far away from the production, transportation losses do not allow this to be a viable additional advantage. Do you regard palm oil as a threat to MWM’s gas-genset business? Is MWM working on engine developments to burn palm oil?

Yes, we are aware that palm oil can be directly used to operate diesel engines. Some industrial engine manufacturers have initiated engine development to burn 100% palm oil. Furthermore, in the automotive sector, all modern automotive diesel engines are designed to burn diesel fuel mixed with a certain percentage of palm oil. So palm oil is regarded more a replacement or complement to fossil diesel fuel rather than a replacement for gaseous fuels. Engine developments directly burning palm oil are not regarded a threat to the gas-genset business of MWM.

“Our near to mediumterm focus is the growth of biogas power plants, which are strongly supported by government initiatives such as the preferential feed-in tariff. ”

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INTERVIEW Malaysian market, especially in mains-parallel operation, where the grid stability in terms of voltage stability and power factor stability cannot be taken for granted. What are the typical unit sizes of gas gensets used in Malaysia? Did MWM observe any trend towards larger or smaller unit sizes?

The 30-acre landfill in Ämmässuo (Finland) uses landfill gas from anaerobic digestion to power four TCG 2032 V16 engines.

Malaysia is also a significant natural rubber producer. Does MWM participate in this market? Does it have a similar potential for biogas production like the palm oil industry?

pipeline distribution network for the natural gas. With the current gas pricing in Malaysia, natural gas fired, decentralized energy systems are only financially viable if a high degree of waste heat utilization can be achieved.

You are right, Malaysia is one of the biggest natural rubber producing countries, and during the rubber manufacturing process, organic waste water is being produced. However, compared to the amount of organic waste water produced in the palm oil milling process, the usable amount is very small, so we do not regard the rubber industry a core target market for our biogas generator sets. However, I have mentioned earlier that MWM is the market leader in the Malaysian glove industry. Glove production is part of the rubber industry, and has natural gas applications, so the natural rubber industry in Malaysia is very much in our focus at MWM.

Are the off-shore gas fields and the onshore gas processing plants a market for MWM gas-gensets?

Which direction do you expect the Malaysian market to take and is it well aligned to MWM’s strategy?

Normally, as the manufacturer of gas generator sets we do not primarily define which direction the market in Malaysia takes. But from our perspective, which ever direction the market takes, we will carefully observe and analyze market trends and we will immediately adapt our market strategy to the changing market requirements. MWM has done this successfully in the past and will be able to sinfluence and follow the market trends as it may be required.

Switch over to energy efficiency. MWM products can be engineered to burn With MWM gas engines.

many types of gas, including flare gas from the Tomorrow’s off-shoreenergy industry. Theeffioff-shore gas fields today – with ciencies of over 90 %. engines can integrated into your existing equipment flexibly to ensure andMWM the gas onshore gasbe processing plants present a reliable supply of energy and high efficiency. An investment that pays off quickly. an opportunity for MWM. We had some Which other market does MWM focus on successes with our gas-gensets in the market www.mwm.net in South-East Asia? of off-shore platforms and floating storage & processing vessels that we continually look to Later in 2013, the first LNG terminal will develop further. go operational in Singapore. With LNG

Malaysia is a large natural gas producing and exporting country. Compared to the huge natural gas production, we have observed few natural gas fired decentralized energy systems in Malaysia. What is the reason behind this?

Your observation is correct. We see two main reasons for the relatively low penetration of Malaysia with natural gas fired decentralized power systems. Firstly, the export of natural gas enjoys priority in Malaysia. Quotas are defined for domestic consumption and for export. The quota allocated for domestic consumption is almost entirely absorbed by the large, gas-fired power plants forming the national grid, so there is little gas available for decentralized power generation with natural gas. The second reason for this is that the pricing of natural gas remains a major factor in driving financial viability of the installation and the

Are there any other specific industries MWM is targeting in Malaysia?

Synthetic gas applications require classleading technology gas engines that MWM has available and in Malaysia, we have started to receive enquiries from industries with proposals to install synthetic-gas power plants for own-consumption and/or electricity sales to the power grid. Since the takeover by Caterpillar, which new products has MWM launched that benefit coverage of the Malaysian market?

During the last two years MWM has launched products with increased electrical efficiencies. Furthermore, we have hardened all our generator sets against adverse effects from the grid for mains-parallel operation. These new developments help us to keep MWM in the fore front worldwide. They also help us in the

MWM12009-Anzeigenkampagne 2013_Anz_EN_Erfinder_DinA4_mQR_7.0_RZ.indd 1

34 POWER INSIDER MAY / JUN 2013

For biogas power plants, the typical installed capacity ranges from 400kW to 3MW and for natural gas power plants the typical installed capacity ranges from 1MW to 10MW. Given an increased availability of natural gas for domestic consumption and thanks to the relentless efforts of our local dealer SP Energy Sdn Bhd, and an increasing awareness in the industry of the advantages of biogas fuelled co-generation and tri-generation systems, the trend for both biogas power plants and natural gas power plants is towards larger installed capacities, employing larger per-unit capacity MWM gas gensets.

becoming available in Singapore at an unprecedented level, the opportunities for MWM will increase greatly. You can be sure, MWM will not miss these opportunities. With Singapore also being a role model for the entire South-East Asian region, successful MWM case studies from Singapore will also help us grow our market opportunities in the entire region. May be not yet for the next issue of the PI Magazine, but for an issue later next year, we might be able to proudly report a significantly increased number of success stories of MWM from the Singapore market, compared to what we would be able to present today. PI

FOR MORE INFORMATION: T. +65 6268 5311 E. info-asia-pacific@mwm.net www.mwm.net

29.04.13 17:08


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PLA-1-1


feature

Survival of the fittest Power Insider Asia caught up with Trina Solar to find out about their outlook and strategy following the damning ‘anti dumping’ measures brought into play by the EU last month. The measures are forcing many executives from Chinese companies to rethink business models, and we wanted to find out how much of an impact these enforcements are going to have on one of China’s finest. The Chinese solar industry has experienced a uniquely turbulent growth since its inception, and following exponential global dominance has reached a crucial period, as the vibrant solar export market has been hit with a series of strategic levelling tactics from governments throughout Europe and the United States. These ‘anti-dumping’ measures are going to hit some household names over the next year in a devastating manner with some feeling the pinch more others. The world’s biggest panel manufacturer, Suntech Holdings, has been one of the first victims to spectacularly collapse, just a year on from reaching the production podium. In these challenging times, contingency and consolidation is vital. Recognizing these needs, one Chinese manufacturer is adapting in admirable fashion, restructuring according to global economic pressure, diversifying regional sales focus and optimizing its business model. That company is Trina Solar. Trina Solar were incorporated in 1997 and have since grown to become a major international force, presently offering annual ingot and wafer production capacities of 1,200 MW and white cell and module capacity of 2,400 MW. Despite the countervailing duty tariffs, they remain committed to serving customers in Europe, but are seeing strong sequential shipment growth in Japan and India, two of the most important emerging markets for the PV industry.

36 POWER INSIDER MAY / JUN 2013

Manufacturing Trina Solar’s manufacturing facility site is located in Changzhou, China. Careful research, development and manufacturing of ingots, wafers, cells and modules is conducted at these facilities in the same compound, where the main campus site area occupies approximately 545k square meters. This integrated manufacturing model has enabled Trina to better control cost, quality, yield, product development and cycle time, which all contributed to creating world-class quality modules and success on the global stage. The high efficiency ‘Honey’ Product Lines and State Key laboratory are located in the North East and South East campus areas. Extending beyond the in-house vertically integrated business model, Trina Solar took an important step with regards to supply chain management through the establishment of the Trina PV Park in 2008. The park covers approximately 5.12 square kilometers. Drawn by the strong growth and the sustainable value of Trina Solar, some of Trina’s key strategic suppliers and business partners have co-located their manufacturing facilities in the park, which enhance the benefits of the cluster effect along the value chain. Formula for success Trina Solar have seen considerable success in the residential, commercial and utility markets with tailored products for each application.

The company has been a pioneer for a range of high-efficiency monocrystalline and multicrystalline modules, coloured modules for architectural applications and larger sized modules for on grid utility scale systems. The cutting-edge Honey Cell Processing was recently introduced to offer advanced cell texturing, metallization, and optical materials. The advanced cell texturing techniques have enabled Honey products to set a world output record of 284.7Wp output for a 60-cell module, making the technology a perfect partner for rooftops and other space governed installations. In 2011 Trina Solar also released the new ‘Comax’ cell-powered modules. ‘Comax ‘cells have 4.2% more surface area to capture more sunlight, and a significantly higher number of embedded gridlines to enable better electron flow. ‘Comax’ modules can achieve efficiencies of up to 15.2% and outputs of up to 195kW yield. These advances are some of the benchmarks reached by Trina products from a performance perspective, ratified by certification from the likes of TÜV Rheinland, UL and CGC. This global competence really signals the true quality that these Chinese products can offer despite the negative perception offered by certain industry quarters. A new frame design across the full range of 72cell monocrystalline and 60-cell polycrystalline


FEATURE: TRINA SOLAR

modules was recently announced bringing a new edge to installation. The frame thickness has been reduced from 40mm to 35mm. The thinner frame profile delivers a 5% reduction in weight, making modules substantially easier to handle and reducing the time needed to complete projects. Trina Solar’s 72-cell monocrystalline modules now weigh only 14.9 Kg, down from 15.6 Kg, and 60cell polycrystalline modules now weigh 18.6 Kg, down from 19.5 Kg. Furthermore, this slimmer profile enables an 18% improvement in shipping container efficiencies, with associated reductions in the carbon footprint and transport costs. Modules with the new thinner frames feature enhanced rigidity and torsional strength. By optimizing the heat treatment process and the aluminium alloy, and introducing an automated corner-key production process, Trina Solar is able to deliver a thinner frame without compromising the mounting flexibility or overall strength of the system. Evolving with competence The solar business is facing unprecedented challenges globally, placed in a precarious position relative to the fluctuating price of oil and plagued by an oversupply of products through influx in manufacturing. Both of these factors are intensified with political and economic uncertainty following retraction and revision on feed-in-tariffs. To sum up such a bleak outlook, it begs the question; how can these relatively young Chinese companies stay afloat with such heavy bank debts, overheads and uncertainty in demand? Trina have adopted a pragmatic approach, completing several restructuring and streamlining initiatives in the second half of 2012 that saw sustained improvements in the general and administrative expenses in the first quarter of 2013. Solar module shipments were approximately 393 MW during the first quarter of this year, representing a sequential decrease of 5.3% from the fourth quarter of last year, but this is a pattern consistent with the global trend and order book of all panel manufacturers.

What does make for interesting reading is that the Trina Solar operating loss was an impressive $30.3 million less than the last quarter of 2012, owing to impressive reductions in non-silicon costs that outweighed the fall in average selling price of modules. The company also collected a significant portion of overdue accounts receivable at an important stage. In recognition of the challenges that lie ahead, the company will continue to strictly control operating costs while maintaining industry leading product quality and service capabilities. Balancing those quality control characteristics with operational cost is ultimately, the major factor in the photovoltaic industries race for survival of the fittest.

“How can young Chinese companies stay afloat with such debt, overheads, and market uncertainty?” Key Components The Trina Solar quality control method was set up according to the quality system requirements of ISO 9001:2000. This process consists of three components: incoming inspections through which the quality is ensured of the raw materials sourced from third parties, in-process quality control of manufacturing processes, and outgoing quality control of finished products through inspection and by conducting reliability and other tests. After the cells themselves, there are number of vital aspects essential for the functionality and protection of the solar module, ranging from cabling and connectors through to cover glass. One area in particular revolves around the backsheet. This versatile laminate has an imperative role to provide long-term protection to the solar module. System failures related to backsheets include degradation of packaging materials, adhesion loss, degradation

of interconnects, degradation due to moisture intrusion, and semiconductor device degradation. Anyone of these unfavourable instances can have a devastating effect on the performance and longevity of the module, echoing the need to incorporate higher grade backsheet laminates, but also research innovative techniques to overcome issues with multi layered laminate failure, not just focussing on increasing the thickness to improve weatherability. So what lies ahead in the future? Regardless of the testing global climate for the solar business, the outlook remains positive for Trina Solar in 2013. The company expects to maintain its guidance of 2.0 – 2.1 GW for total PV module shipments and in the second quarter alone, they are confident of delivering 500 – 530 MW. There was official approval obtained from the Gansu Provincial Development and Reform Commission to develop a 50 MW grid-connected solar power plant in Wuwei, Gansu Province. The project is part of a plan to stimulate the economy in a region challenged by semi-desert conditions. The Wuwei municipality is well-suited for solar energy production due to favourable irradiance and the ability to sell and transmit electricity to other regions, in addition to supplying local needs. The Australian market continues to be strong, as Trina Solar were the named the most popular solar panel brand during 2012 with installations totalling 100MW. South Africa is also an emerging destination with a 30MW order to one of the world’s leading developers, Gestamp Solar. These expanded deliveries for end-market installation in the likes of Australia and Africa, along with the Middle East, Japan and India is bolstered with advanced products such as the new line of dual rated frameless modules. This regional diversification and willingness to push the boundaries in product development demonstrates the competence of Trina Solar, echoing the fact that their fascinating growth story is not quite ready for the final chapter, anytime soon. PI

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CASESTUDY

Manipulating Backsheet Design How backsheet design can enable improvement in the long term power output of solar modules Background

A solar module, typically made from polycrystalline silicon cells, converts a portion of light energy impinging on its surface to electrical energy. This converted portion of energy is expressed as the module power output. Once in the field, however, the initial power output of the module begins to decay slowly over time. When the actual power output drops to 80% of the initial power output, the module is said to have reached the limit of its useful life. World renowned institutes have studied the decay phenomena over real-time. They have concluded that degradation directly correlates to several factors, amongst them Encapsulant Failure (light-induced degradation), and Backsheet Failure (weather-induced degradation). Specific to backsheet design, the studies have led and continue to lead to advancements of raw materials used in backsheet construction. This cascades to the steady improvement of the module’s long term reliability, as evidenced by module manufacturers offering performance warranties exceeding 25 years of useful life. This in turn leads to additional long term value for the consumer and a key means of competitive differentiation for the module manufacturer. In recent years, however, a new trend in backsheet design has emerged. Backsheet manufacturers have begun to focus their efforts on other ways to increase the initial power output of the module and sustain a higher level of power performance throughout the module’s anticipated life. Leading Backsheet designers believe the answer for improved module power generation will come as a result of direct manipulation of the light PATH itself inside the module construct. Article

The photovoltaic module is a multilayer construction represented by the following diagram. The backsheet is also a multilayer construction and creates design opportunities at

38 POWER INSIDER MAY / JUN 2013

each key material interface. The interior interface between the backsheet and the encapsulant is highlighted to indicate its importance in design. When sunlight encounters a smooth, opaque surface, the light travels back through the medium from which it came. In simplest form, the behavior of light at the boundary can be described by the angles made with respect to the normal line, a line perpendicular to the surface of reflection. In a perfect world, this reflected light can be captured by the cell and increase the initial power output of the module. However, a backsheet is neither smooth nor perfectly opaque. As a result, diffuse reflection and surface absorption of light occurs. Reflected photons leaving the surface at different angles are scattered, and for all intents and purposed to the module purpose, lost. Similarly, absorbed photons are not available to the module purpose and are also lost. Backsheet design can be manipulated to capture this value for the module manufacturer and the consumer. A backsheet designed with a higher % of Initial Reflectance will have a greater initial positive impact on module energy output than a backsheet with a lower % Initial Reflectance. However, as we are concerned with power generation over time, the critical-to-performance variable is not Initial Reflectance, but Reflectance-over-Time. Similarly, manipulation of a transparent backsheet’s material interfaces can improve the power output of a bifacial module design. When sunlight encounters a boundary between two transparent materials, some portion of light is reflected and some portion transmitted across the interface. The proportion of energy transmitted across the interface is described by the Fresnel Equation and directly influenced by the relative Refractive Indices (RI) and the angle of impingement relative to the surface topography. Further, the fraction of energy transmitted is then subject to both light scattering and absorbance. These phenomena are commonly and collectively

represented by critical-to-performance variable called Visible Light Transmittance. Transparent backsheets, for use in bifacial cells, designed with a higher % VLT will have a greater positive impact on module power output than a backsheet with a lower % VLT. Such an impact can be competitively differentiating for the backsheet manufacturer and the module manufacturer. Conclusion

Backsheets are traditionally designed to protect the internal components of the module over time from the negative effects of UV radiation, moisture egress, insulation, and other related weather issues. These attributes establish traditional backsheet values. In recent years, technically leading backsheet manufacturers have demonstrated the ability to add additional value by increasing initial and long term power output of the module itself by manipulating the light path entering the module. As backsheet designers move to commercialization of this new generation of materials, they are challenged in three specific regards: 1) Demonstrating the new ability (increased power-over time) without compromising the traditional role, 2) Expressing the new variable (power-over-time) as a key performance attribute, and, perhaps most importantly, 3) Capturing a return for the research investment in a market where cost reduction has become the primary relationship focus between supplier and manufacturer. PI Madico Photovoltaic Backsheet


The Best Panels are Backed by Madico. As sure as the sun shines, Your watts are protected.

Madico Photovoltaic Backsheets 64 Industrial Parkway Woburn, MA USA www.madicopv.com Phone: 1-800-633-0140 Fax: 1-781-935-6841 Email: InfoSF@madico.com


feature

China on Trial:

Solar Dumping In the last year, the solar industry has been abuzz with news of the EU Investigation into solar equipment dumping. Rachael Gardner-Stephens examines the evidence against China

40 POWER INSIDER MAY / JUN 2013


FEATURE: SOLAR DUMPING

DER I S N I R E W PO COURT OF T: China DEFENDAN Europe PLAINTIFF:

. own as dumping to a practice kn in n io at ig t st ke ve GE e is an in average mar THE CHAR de war. The caus 88% below the the brink of a tra lar products at on so e d ar re tu ors out of the pe ac tit ro uf pe Eu China and lume of com mestically man vo do gh hi ng a lli se ng of ici d accuse ucts and pr China has been with cheap prod eap ing the market od flo , pe ro Eu subsidies and ch value in ing that unfair im cla o, r market. ag la ar so ye er. against a e European market altogeth d the complaint ering 80% of th rn ele co , lev n se lar panel di Su so o an r Pr ch fo d er EU global deman ‘dump’ their m A group called e to th s an or th nd e ve or e m stroy an ring 1.5 times allowed Chines e potential to de d of manufactu state loans have dumping “has th ve been accuse e ha es e in res to ‘level es Ch su in ea at Ch m e th have called for Additionally, th l De Gucht said n re Su Ka o r Pr ne io EU e. iss Trade Comm bs are at stak equipment. EU 00 European jo more than 25,0 ith w ” ry st du important in an import tax. ’ in the form of the playing field

S

olar manufacturing companies in the EU have not held back in their damning indictment against Chinese business strategy in the solar photovoltaic market. They claim that the effect of solar equipment dumping on the EU market is already catastrophic, and should they be allowed to continue, the result would be cataclysmic. They have accused Chinese companies of breaking WTO trade rules, ruthlessly pricing competitors out of the market and of using the might of their wealthy government to fund them; hardly the behavior of a nation committed to free and fair trade. Selling products for up to 88% less than what they would be sold for domestically, China produces more than double of what the EU demands in solar panels, in a market worth €27 billion. An organization of European solar companies, EU Pro Sun, formed in order to combat this startling dominance. Led by German company Pro Sun, the organization filed an official complaint with the European Union Commission in 2012. This led to an extensive investigation that began in September, and in which the EU Commission found substantial evidence that

ARGUMENT FROM: THE PROSECUTION “dumped Chinese exports exerted undue price pressure on the EU market, which had a significant negative effect on the financial and operational performance of European producers”. The Commission believes that if allowed to continue, local producers will be driven out of business and would discourage EU producers from developing cutting-edge technologies in the renewable energy sector. After a nine month investigation, the EU Commission announced in May that Chinese solar panel equipment would be subject to an anti-dumping tax of up to 47%. The tax will cover solar panels, cells and wafers, and will vary depending on the company. This announcement understandably caused a furor in the Chinese market, with even some European companies considering the tax far too high. There is a precedent set, however, as China have form when it comes to anti-dumping measures. Last year, the USA held their own investigation into Chinese dumping practices in the solar sector, and found them to be similarly guilty of dominating the market and damaging local producers. In October, an antidumping duty of between 18 and 249% was imposed on imports of solar panels and cells, a whopping sum which cause considerable damage to companies such as Suntech, who

“After a nine month investigation, the EU Commission announced in May that Chinese solar panel equipment would be subject to an anti-dumping tax of up to 47%.”

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FEATURE: SOLAR DUMPING

declared bankruptcy in early 2013. The EU Commission claims that the destruction of Chinese solar giants is not the intended result of these harsh measures. After being accused of protectionism, the Commission was compelled to justify why imposing anti-dumping duties is the right sentence for Chinese manufacturers’ crimes. Karel De Gucht called the description of anti-dumping measures as protectionist as “simply wrong and misleading”, highlighting the willingness of the EU to negotiate with China to reach an amicable compromise before the duties are imposed in August. She asserts that these measures are not punitive; China is not being put on the naughty step. Instead, the tax is a tool to make the market competitive and fair again. The duties are far lower than the 88% rate at which the panels are being dumped because the EU applies the so-called ‘lesser duty rule’, imposing only enough needed to restore a level playing field. Gordon Brisner, president of SolarWorld Industries America, and a key player in the US move against Chinese dumping, sums up the importance of this level playing field by stating that “only fair competition can provide sustainable gains in technological efficiency, cost reduction and end-user pricing.” De Gucht also claims that these measures will stimulate job growth in the EU market eventually, even if end users initially experience a raise in costs. But De Gucht argues that as the situation of EU producers improves and imports from other countries increase, these jobs could be recreated. Additionally, any job losses would be substantially less than the 25,000 jobs that are likely to be lost if these measures are not imposed.

VERDICT China is undeniably guilty of trading unfairly in the solar market. The nation’s subsequent threats to other industries that will most likely start a trade war show how aggressive they are when it comes to foreign economic policy. In order to keep the European solar market afloat, these measures do need to be executed, but with extreme caution.

42 POWER INSIDER MAY / JUN 2013

U

ARGUMENT FROM: THE DEFENCE

nsurprisingly, China does not share this point of view, and are resolutely opposed to the measures. Chinese trader leaders see the tax as purely punitive, and have been ominous in their hints about retaliation. The Chinese Premier, Li Keqiang, has claimed that anti-dumping measures will ‘damage both sides’, and the People’s Daily, the Communist Party’s official newspaper, published an article in early June that spoke aggressively of the cards hidden up China’s sleeve. The article was published under the pen name ‘Zhong Sheng’, meaning ‘Voice of China’, and warned Europe that their ‘high and mighty attitude’ does not reflect their waning economic influence. This has sparked fears of an all-out trade war between these two economic giants. Fueling these concerns is the announcement that China will be investigating Europe’s wine market for evidence of dumping. The Chinese are accusing Europe of flooding the Chinese wine market in exactly the same fashion as the Chinese are doing with solar panels: by producing more than the demand and utilizing government subsidies. Chinese imports of European wine rose by 60% a year between 2009 and 2012, and China imported 25.7 million liters of wine in 2012. Despite the Foreign Ministry spokesman, Hong Lei, denying suggestions that the investigation was a retaliation, any commercial impact of the import taxes would fall on France, Spain and Italy; countries whose governments supported the anti-dumping tariffs. The European nations in question have strenuously denied any wrongdoing, with Louis Fabrice Latour, president of the Federation of Wine and Spirits Exporters of France expressing his disdain at the use of the

wine industry as leverage in an utterly unrelated trade dispute. The ministry said it would conduct an anti-subsidy and antidumping investigation of European wine but gave no details of how Beijing believed exports were being subsidized. Another threat issued by Chinese companies was pretty straightforward: if you implement these measures, we will move our manufacturing bases out of China to Taiwan, Malaysia and Korea, rendering the tax null and void. Solar panel producer CSun already began relocating their facilities after the USA implemented their duties. But this action, like tit-for-tat trade duties, will damage both the Chinese and European economy, resulting in job losses and market slowdown. This is the Chinese official’s main argument against the EU Commission’s action; anti-dumping measures don’t benefit anybody. Li Kegiang stated that the decision “will not only harm jobs in China as well as development in the affected industries, but it will also affect development and endanger industry in Europe”. What Li Kegiang didn’t make clear was whether this danger comes from the real effects of applying anti-dumping measures or from China’s counter strikes.

“The Chinese Premier, Li Keqiang, has claimed that anti-dumping measures will ‘damage both sides’”

SENTENCE The EU Commission certainly has caution in mind, and have stated repeatedly that they would infinitely prefer to reach a compromise with Chinese economic ministers instead of applying anti-dumping duties. This is reflected in the way in which the EU Commission has constructed the implementation of the tariffs. Instead of applying the 47% straight away, Chinese vendors have a grace period until 6th August with only an 11.8% tariff. If the EU and China are unable to reach the desirable compromise by then, the Commission will have to enforce the 47% duty for five years from December 2013. Applicable from 5th June, this provisional duty will affect the import of solar panels, cells and wafers from China. De Gucht told a news conference that this phased approach was

a “one-time offer” to China, and expressed her willingness to continue to negotiate with the Chinese exporters. A Chinese statement expressed equal optimism, claiming that the EU has shown ‘sincerity and flexibility’. The compromise that the EU Commission would ideally like to reach is something in line with Article 8 of the Basic Anti-Dumping Regulation, which would allow them to suspend the provisional duties if Chinese vendors agree to sell products above an agreed price. So far, negotiations between the EU Commission and Chinese delegates have repeatedly broken down, so it is apparent that this solution is not ideal in the eyes of the Chinese. However, their choice is simple: abide by the rules or face enormous financial restrictions. China has until August, and the clock is ticking… PI


ROUNDTABLE

Shanghai Electric’s 1000 MW Class Ultra Supercritical Power Plant

The Dominance of Chinese Manufacturers OUR EXPERT PANEL

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

44 POWER INSIDER MAY / JUN 2013

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


ROUNDTABLE: CHINESE MANUFACTURERS

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

High quality and inexpensive, and what is more, Chinese manufacturers have a strong production capacity. Due to cheap Chinese labor costs, as well as rapid development in industrial manufacturing technology and electric power construction markets in the past thirty years, power equipment in China has great advantages in the market. At the same time Chinese labor is comparatively high in efficiency and quantity, so the product delivery time is very short. China began to build a large number of 1000MW scale of Ultra-supercritical power plant and 1000kV class UHV power transmission & transformation projects in recent years, which also promoted the technology level of Chinese power equipment. Fast delivery, cost effective and world class equipments with state-of-the-art technology. Standing from developers’ position, setting up a power plant within shortest period of time, with reasonable costs and excellent quality means they can maximize returns on their investment. It will make more sense if we extend the same logic to a developing country, who normally has limited capital available for funding the development of their power generation sector, but is hungry for power and energy to fuel the development of their economy. Is the Chinese dominance in the power equipment market positive because it provides competitiveness?

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

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

I did not feel obvious backlash, but in my opinion all countries hope their domestic manufacturing industry vigorously develops, so there will be some form of resistance to foreign manufacturers. The most obvious example is that because of the advantage of Chinese electrical equipment, Chinese companies begin to get more and more share on the market compared to Japanese and South Korean companies in the EPC market, which is almost the same story with Japanese and South Korean companies’ triumphing over European and American companies in earlier years. In general, the so called “backlash” is actually the reaction of intensified competition in the market, especially with the background of post global financial crisis after 2008, when the global economy comes to the down cycle and results in fewer power projects available in the market.

Is Chinese power equipment poor quality? As our contributors have argued, one reason for Chinese manufacturer’s dominance is their ability to turn projects around very quickly and at reduced costs. But do these advantages come with a cost? Chinese power equipment has had mixed reviews, with companies like India’s Reliance Power still investing millions and megawatts into China’s supercritical technology, whilst companies like BHEL consider the equipment inferior. The international market is not convinced that Chinese vendors meet the stringent technical assurances from third party certification bodies to bring the equipment in line with global standards. That means that Chinese vendors are allegedly bringing equipment on to the market doesn’t deliver exceptional safety standards, quality components or performance over the lifecycle of the plant. The equipment apparently emits more pollution, isn’t fuel efficient and allows less flexibility in fuel choice. Additionally, Chinese equipment in general tends to need more maintenance at earlier dates and has been known to completely fail. A notorious example of this

is at the Sagardighi thermal power station in India, when the turbine blades supplied by Dongfang collapsed within weeks of the station commencing commercial generation. But is Chinese equipment that bad? Why do so many other vendors claim Chinese power equipment to be inferior? What qualities do Chinese vendors have?

All vendors have their own advantages, and if a vendor’s equipment is inferior it will be sifted out. So in the international markets, we can not claim any vendor’s equipment is inferior. Firstly, it is because China has developed very fast, but most people from other countries still regard China as undeveloped. Secondly, due to China’s active domestic market, most of the best companies are busy undertaking orders domestically, so the first companies going to overseas market are comparatively small scale and second-rate. For the reasons above, some failures occurred and owners began to form an impression that Chinese suppliers are poor in quality. In fact, leading power equipment manufacturers in China are superior to their European and American counterparts whether on technology research, product manufacturing, or quality control, which is the reason why most European and American power equipment suppliers have their large-scale R&D centers and OEM works in China. Chinese power equipment suppliers emerged as new players in international market in the beginning of the 21st century, and faced the same criticism as the Japanese in the 1960’s and the Koreans in the 1980’s. Chinese players shall invest more to improving communication skills and advertising. For example, we have units operating in various countries with fabulous performance parameters that few people know about. However, we’re focusing on the comments from our end users rather than other vendors, since it is eventually the clients using our equipments who understand the real story. Regarding the quality of Chinese equipments, there’re below facts to be known: t 1PXFSHFOFSBUJPOFRVJQNFOU FTQFDJBMMZ core equipments such as boiler, turbine, and generators, are high end & technologically intensified products which are designed and manufactured to operate under extremely bad working conditions. There are strict international standards for those special utility equipments to be followed, which means Chinese power equipment suppliers are following the same international standards as their international peers do. t $IJOBIBTUIFMBSHFTUJOTUBMMFEQPXFS generation capacity in the world with its total volume of 1140 GW, in which nearly 70% is thermal power. All power

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ROUNDTABLE: CHINESE MANUFACTURERS equipments and technologies supplied by Chinese players have been well operated and proved in the domestic market before entering the international. The only difference that might exist is erection quality, which needs to be taken care of properly both by the local erection team and supervisors. t /PXBEBZTUIFTVQQMZDIBJOPGQPXFS generation equipments has became completely integrated and internationalized, it has been found that nearly all international peers are actually using similar sub-vendor or sub-supply system as we are, they have actually set up their sourcing centers in China purchasing critical components and materials for benefits of cost effective and fast delivery. This phenomenon on the other hand has reflected that the Chinese power generation equipments supply chain have been able to meet most strict quality plans required internationally. Based on above elaborated, we do believe that Chinese power generation equipments are in line with the world class quality and we’re confident that time will tell the truth. What needs to be done to show that Chinese equipment can compete for reasons other than price?

The production facilities are international advanced, and HTC has complete product design systems and experimental verification capacities. HTC has achieved a lot in the thermal power steam turbine and combine cycle turbine international market, and in the domestic nuclear steam turbine market. Additionally, HTC has competitively performed in the new energy field. Firstly, Chinese products and enterprises lack effective publicity and advertising. Secondly, the service concept in China companies has to be improved, and cannot yet perfectly meet the requirements of overseas markets in product design and on-site services. Finally, as more Chinese first-class equipment manufacturing companies and EPC’s have begun to get involved in overseas market, it will be become a reality that Chinese companies can supply excellent power equipment and carry out EPC projects around the world. Fast delivery and commitment to delivery, and continuously improving technology. Due to large scales of manufacturing, Chinese power generation equipment suppliers such as Shanghai Electric can deliver equipments comparatively fast. Shanghai Electric is investing heavily in R&D, with massive experience accumulated from delivering the largest number of thermal power units in the world (more than 300GW in total). Shanghai Electric will deliver more new technology along with our equipment to our

46 POWER INSIDER MAY / JUN 2013

clients. In the domestic market we’re developing double reheating technology for ultra supercritical units with single capacity of 1260 MW, and in India we have modified our boiler design to accommodate the high ash content Indian coal. Also, the learning curve of Shanghai Electric in overseas market in last decade has enabled it to improve its project management skill under international environments, which will eventually help us deliver better service to the clients. What are the major project achievements that you reached with your equipment in China and other markets in Asia that demonstrate positive attributes for your technology?

There are so many achievements in China and international markets it is hard to choose our most significant. In the recent five years, our company has finished six 1000 MW coal-fired power generating units, and nearly 600 km of 1000kV grade UHV transmission lines as well as other large projects. These projects are of high design and environmental standards, and the energy consumption index has reached the world level. As you may know, the world’s best coal consumption standards in a coal-fired unit are also in Shanghai, China. In China, from 1950s Shanghai Electric has delivered more than 300 GW power generation equipments to the country and is the single largest contributor to the thermal power generation capacity of the country. In India, Shanghai Electric has delivered power equipment to developers for projects including the Reliance Sasan 6x660MW project, the Adani Tiroda 5x660MW project, the HPGCL Hisar 2x600MW project, the Reliance Buttibori 2x300MW project, the JSW Ratnagiri 4x300MW project, and the CESC Hadia 2x300MW project, amongst many others.

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

but is this kind of action the most positive step to take? Do you think imposing sanctions from countries like India, to control China’s dominance by implementing import duty, after pressure from the likes of BHEL is unfair?

Yes. Chinese equipment’s price advantage will be weakened because of the import duty, but we can not control it. All we can do is to provide high quality products and excellent after-sale service; I think that is the key. Sanctions will not solve the problem; on the contrary, it can only lead to trade wars. As far as I know, Chinese power equipment manufacturers and power EPC companies do not get any special subsidies from the Chinese government, their prices reflect the actual cost which is needed to complete the work in China, so the sanctions are not fair. What are the potential consequences for the imposition of the import duty in India?

It will just prevent foreign manufactures from entering the Indian market. And because of the lack of competition, India domestic vendors will experience slow development, even the economy. In the past few years India has imported large amounts of coal-fired power generating units from China, and the Chinese EPC’s won a lot of contracts. However, this trend has fallen in recent years. Why are Chinese products are so welcomed in India? There are two reasons, the large demand in the Indian power market, and people’s preference to low-price products. If India is to levy high tariffs on Chinese products, the only result is that there will be harm to the power development of India, leaving the people of India with insufficient and unstable power supply. The increased duty will eventually be transferred to power developers, causing increased initial investment cost. Accordingly, higher tariffs will be charged so as to recover the increased cost. PI

JOIN THE DEBATE The interview panel make some interesting, and controversial points. What do you think? Do you agree or diagree? Send us a tweet, using the hastag #chinesemanufacturers @pimagazineasia


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The Quartzelec team deliver a world class refurbishment and rewinding programme on a main generating rotor at the Takoradi Power Station in Ghana following severe arcing damage.

CASESTUDY

48 POWER INSIDER MAY / JUN 2013


Condition Monitoring Systems: Reducing Risk, Increasing Reliability Regular readers of PI Magazine Asia may recall from last year’s July/August issue an article entitled Mission: Critical, which examined the importance of having in place a structured maintenance regime for high voltage rotating machines. In it, we looked at the importance of optimising the uptime and efficiency of this kind of equipment, whether it is for generating power for industrial requirements or a national electricity provider. We reviewed the risks of wear, degradation, reduced efficiency and in the worst case, failure, and the obvious benefits of preventive maintenance. We profiled a

leading South-East Asian vendor of preventive maintenance and repair services, Maser Quartzelec SDN BHD, which operates across the region from its base in Kuala Lumpur. Amongst the company’s extensive portfolio of engineering, repair, maintenance and support services, we highlighted a new and innovative offer in the market: condition monitoring.

In this article, a sequel to last year’s piece, we will look at how the company’s rotating machine condition monitoring solution has advanced substantially in the ensuing period – both in terms of technology and installed base – and how it is already playing an important role for the company’s customers in the Asean region and worldwide.

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CASE STUDY: QUARTZELEC Winding Condition

The reliability of rotor windings is more difficult to determine than in stator windings. Defective stator windings are revealed by partial discharge, presenting the opportunity to plan resolution. Rotor windings, however, have a different insulation system that makes it challenging to detect faults. To overcome this problem, Quartzelec has incorporated another new module in LifeView®. Flux Probe cleverly measures the magnetic field of the turning rotor by inducing voltage in the probe to determine the presence of winding damage. Making Condition Monitoring ‘The Norm’ Splayed coils arced to retaining ring, a type of failure that could be avoided

Prevention versus Cure: No Contest

According to Maser Quartzelec, condition monitoring works on the premise that earlystage intervention is preferable to pure periodic inspection and maintenance. Parent company Quartzelec’s LifeView® system monitors various condition parameters – such as thermal, mechanical, ambient and electrical stresses – via a series of sensors installed on the generator’s key components. Telemetrically collecting and then analysing the ensuring data, the system detects changes from baseline settings and interprets indicators of developing wear and potential failure. Importantly, the generator is monitored during the actual load situation rather than using load simulation or modelling techniques, so total accuracy and integrity are assured. Sensors can be installed on new machinery, during repair/refurbishment or routine maintenance shutdowns. LifeView® is a truly online monitoring system, meaning that both the customer and Maser Quartzelec can dynamically view status from any connected desktop, anywhere and at any time. This capability was showcased at PowerGen Asia in Bangkok in October 2012, when visitors could view live internal condition monitoring of EON’s 161MVA, 15,000V, T240-370 Generator at its Burghausen plant in Germany. It was set up to monitor partial discharge on the high voltage side of the stator. Customers also benefit from Quartzelec’s specialist engineers always being on hand to interpret the data and provide informed recommendations. The technical and economic benefits are clear. Scheduled repair and reconditioning of worn components is less costly and onerous than undertaking a major, premature equipment overhaul or the replacement of components for which there is no hope of reclamation. It also enables planned downtime and contingency, rather than lost production, revenue and reputation. Importantly, LifeView® also enables Quartzelec to confidently provide its customers with guarantees on repair and maintenance work, as the unit will be continuously and proactively monitored on an ongoing basis.

50 POWER INSIDER MAY / JUN 2013

And the customers themselves are assured peace of mind that everything is in good working order, and that they will receive timely prior notification if things are beginning to go wrong. Early Successes

Eight months and an impressive development programme later, LifeView® is now successfully installed at a number of customer sites, including the previously-mentioned German chemical works. Perhaps of more interest to PI Magazine Asia readers are the more local installations of LifeView®, including those on six generators in Sri Lanka, with a further three systems due to be installed, in-situ in August 2013. At the time of writing, Quartzelec has recently installed partial discharge and rotor shaft monitoring on a generator at a geothermal power plant in the Philippines, helping justify an extended warranty on recent refurbishment work to the 37.5MVA, 13.8kV, 2-pole generator, which had recently been carried out. A number of Lifeview® modules have also been ordered and are due to be installed in China shortly. Rotor and Bearing Condition

In developing the LifeVew® solution, Quartzelec has integrated monitoring all of the major parameters that could influence premature failure: partial discharge, magnetic field and sharp voltage monitoring. The system’s rotor monitoring module can protect from upcoming faults by measuring temperature increases in the rotor and issuing a warning when the temperature profile differs from a pre-set ‘norm’. Bearings are looked after by the Shaft Voltage Module, which monitors bearing stress and warns when thresholds are exceeded, which could otherwise result in irreparable bearing and hence shaft damage. Bearings are also protected by the Connection Module, which incorporates transient voltage splash suppression to detect voltage developing on the non-drive end, causing electrical breakdown and arcing and in turn, damage to bearing surfaces. Potential faults in rotor windings are detected by signal FFT (Fast Fourier Transform) frequency analysis.

According to Maser Quartzelec’s Managing Director Dr Bernhard Fruth, all major repair work should be underpinned with condition monitoring systems. “It reduces downtime and cost for the customer and of course reduces the warranty risk on our side. We want to minimise the damage when something goes wrong, and in knowing that the customer has peace of mind too. Instead of being frightened, he gets data!” Fruth adds: “We’re constantly looking for new types of sensing to provide a more holistic monitoring solution, and that development includes joint projects with customers.” Robots

The holistic, preventive monitoring solution also encompasses other areas currently under development by the company. Fruth revealed the forthcoming launch of an ultra-compact inspection robot that can provide closer and more granular detail of the internal condition than many existing methods, including the use of borescopes. Fully equipped with multiple video cameras for omnidirectional inspection, magnetic core imperfection detector and wedge tiredness analysis system, the robot attaches vertically to the core, propelled by supermagnet-equipped tracks that enable travel in any direction and over most obstacles. Remarkably, this capability is contained in a package not much larger than an iPhone. LifeView® condition monitoring and the new development in robotics are just two examples that confirm Quartzelec’s leadership in high voltage rotating machine maintenance, ably complementing the company’s traditional expertise in major overhauls, reverse engineering, consolidation, cryogenic decontamination, stator rewinds, re-cores and upgrades and life extension programmes, all of which can be carried out anywhere in the world. They serve to demonstrate not only technical expertise but a proven capability to think and consult strategically on behalf of its customers. PI RIV inspections offer rotating electrical machines a cost effective and modern alternative to traditional inspections methods


feature Steady and Organic:

KEPCO’s Growth in the Philippines Power Market KEPCO Philippines’ CEO MR. KYU-BYENG HWANG speaks to Sam Thomas to discuss the Korean conglomerate’s expansion into overseas markets.

K

EPCO has a clear goal in mind after experiencing countless changes and innovations on their journey as a utility conglomerate. The company is now expanding its scope beyond Korea’s borders, and is committed to nurturing overseas power projects and green growth, aiming to emerge as a global energy company. The Philippine market in particular has seen KEPCO flourish and become a vital part of the power capacity. We caught up with KEPCO’s Chief Executive Officer, Mr. Kyu-Byeng Hwang to understand how the company become one of the major IPPs in the Philippines, looking at their foundation and growth. KEPCO has a clear strategy for the global market, and they are currently implementing 99 overseas projects in a wide range of areas, including nuclear power, hydro and thermoelectric power, transmission and distribution, renewable energy, and resource development. Mr. Kyu-Byeng Hwang explained that: “Due to the success of our projects in South Korea, one of KEPCO’s key objectives has been to strengthen its overseas business. Our goal is for the technologies and methods that we have successfully utilized locally to be applied internationally, particularly to countries that are still in the process of developing and stabilizing their own power supply.”

52 POWER INSIDER MAY / JUN 2013

With these goals in mind, it was clear to see why the Philippines was identified as suitable for the expansion path of this diversified utility major. Mr. Kyu-Byeng Hwang revealed that the successful growth of KEPCO Philippines has been attributed to the adherence of the company’s core values of integrity, growth, innovation, and excellence, mentioning that these have been KEPCO’s “guiding principles for each and every project that we have undertaken in the Philippines”. The executive also highlighted the strong support that KEPCO Head Office had provided, which has been instrumental in this exciting voyage. Cautious Steps and Organic Growth The first steps into the Philippines for KEPCO were in 1995, in response to the Philippine Government’s calls to develop and utilize the country indigenous resources and augment its power supply. At that time, the Philippines was experiencing nationwide brownouts due to a high power demand and lack of power supply. There were also some security concerns because of several coup attempts. The tender for the rehabilitation, operation, maintenance and management of the 650 MW Malaya thermal power plant in Pililla, Rizal was opened up to the international market and subsequently won by KEPCO. Mr. Hwang explained that “it was an opportune time for us since we were looking for an entry project in the Philippines and we saw how a stable power supply was badly

needed here. Since this was a ROMM project, the state in which we found the Malaya Thermal Power Plant posed some challenges at first but we were able to find some great engineering solutions for these problems.” KEPCO Philippines went on to operate the Malaya plant successfully for over 15 years, and when KEPCO were awarded the ROMM contract in 1995, the Malaya Thermal Power Plant was operating at around 430 MW. Mr. Hwang was modest about their achievements, telling us how “after the rehabilitation, the plant’s original rated generation capacity of 650 MW was recovered, a feat equivalent to that of building another 220 MW power plant but at less cost.” An impressive effort to say the least, and Mr. Hwang also touched on the delivery: “The plant’s thermal efficiency was improved by an average of 4.5%. KEPCO was also able to complete the rehabilitation 10 months ahead of schedule.” Impact and Contribution to the Philippines Grid

Since its entry into the market, KEPCO Philippines now provides approximately 12% of the total installed generation in the country. The Ilijan combined cycle is one of their most impressive performers, which was won on a build-own-operate (BOT) basis after competing with 7 other international IPPS in the bidding. The Ilijan Power Plant is a 1,200 MW combined-cycle, dual-fuel electricity


FEATURE: KEPCO’S GROWTH

generation facility with a design life of 25 years. Mr. Hwang highlighted some of the accomplishments: “We succeeded in raising capital of approximately US$543 Million through project financing, earning raves from international financial institutions for its profitability.” The Ilijan Power Plant is one of Luzon’s base-load units and contributes to the Philippines’ natural gas consumption by utilizing gas from the Malampaya gas fields in Palawa. Mr. Hwang proudly revealed that: “With its construction, the Ilijan Power Plant marks several milestones in the Philippine power industry – the construction of the highest voltage (500kV) switchyard system and the biggest capacity of reverse osmosis in the Philippines. Another notable feature of the plant is the first successful commercial operation for the state-of-the-art Mitsubishi 501G gas turbines, holder of one of the highest efficiency ratings among industrial gas turbines in the world.” A groundbreaking feat indeed, when you consider how many plants this gas turbine is now operating in across the globe.The performance of the plant has been impressive, and KEPCO is committed to regular maintenance duties. We asked Mr. Hwang about the importance of real time condition assessment for pre-emptive maintenance across critical components such as generators and gas turbines:

“Based on our experience in developing different power plants, we always focus and conduct extensive preventive maintenance on the critical and weak points of major equipment.” He went on to reveal that “for new equipment, we thoroughly study the technical bulletins and recommendations released by the manufacturer and adopt these, especially for items affecting the reliability of the units.” When there is such strain on a grid like the Philippines it is vital to study the behaviour of power equipment to avoid unplanned outage. Mr. Hwang also promoted the important role of staff members at plant level, asserting that “our Operations and Maintenance personnel perform daily plant trouble analysis to develop solutions to problems that may arise, it is critical to be focussed in this area.”

The New 200 MW Hanjin Project

Like many other Asian nations, the Philippines has a distinct reliance on coal which is forcing investment into clean technologies, but KEPCO feel quite strongly that LNG will play a significant future role in the energy mix. The ambitious IPP is also working hard to establish a 200 MW coal plant to support the Hanjin shipyard in the Philippines. Mr. Hwang opened up regarding the state of play on what promises to be an exciting initiative: “We are currently searching for possible sites, preferably near Hanjin’s shipyard if possible, wherein we can establish the project. Our goal is to start the feasibility study within the year.” Luzon and Visayas are still facing major electricity shortages. The question remains will KEPCO Philippines continue to grow capacity and firmly establish a position as the

“Since its entry into the market, KEPCO Philippines now provides approximately 12% of the total installed generation in the country.” The Naga Complex

The Naga Complex is an important contributor to the Visayas grid. Avoiding the expenses concerned with FGD and SCR is a significant CAPEX and OPEX saving, and KEPCO took a bold decision to utilize clean CFB technology for the first time in the Philippines on the Cebu thermal plants. Mr. Hwang discussed some of the logic behind this calculated risk: “It was KEPCO’s decision to utilize CFBC technology for the Cebu thermal power plants. We felt that CFBC is a proven technology worldwide and given that KEPCO has previous experience in the successful construction and operation of CFBC power plants in Korea and other countries, it made a lot of sense. It was a conscious choice for us to choose CFBC because it is more environmentally friendly compared to other coal-based power generation technologies, due to the significant reduction of NOx and SOX levels and because of the lower generation cost.”

leading IPP in the near future? Mr. Hwang was confident and unassuming, stating that “KEPCO Philippines’ vision, since its establishment in 1995, is to be the leading energy company in the Philippines and that vision has not changed. We hope to continue developing power projects here and contribute to stabilizing the country’s power supply.” He also excitingly divulged that aside from the proposed project with Hanjin in Luzon, the company would be ‘looking to establish one or two more power plants across the nation within the next three years.’ The growth of KEPCO in the Philippines has been admirable and organic, starting with rehabilitation and operation, and building up to new construction. They have certainly learnt to walk before they run, and with an impressive pipeline of new projects and an attentive maintenance approach to their existing facilities, they offer a lot ofPIpotential for this market in the near future.

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REGULARS TECHNOLOGY FOCUS:

Hydrogen Fuel Cells

Power Insider Asia Magazine looks at some significant breakthroughs in the hydrogen fuel cell industry in this issue’s Technology Focus

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FAST FACTS:

The Benefits of Hydrogen Fuel Cells More efficient than diesel an d gas engines Extremely quiet operation The only by-products of fue l cell operation are heat and water Stationary applications that do use thermal fuels as feedstock produce 1 ounce of pollution per 1,000 kWh, whilst thermal plants produ ce 25 pounds Fuel cells aren’t grid depend ent Fuel cells can be utilized for different applications, like heating or vehicles Though they use a chemica l reaction like batteries, they don’t have a ‘life’ As there are few moving pa rts, maintenance is straightforward and minim al Waste heat can be captured for cogeneration Most fuel cell systems includ e a reformer which allows greater fuel flexibilit y

Potential; that is a key word for describing the current status of hydrogen fuel cells. Efficient, silent, and with almost zero emissions, the technology was first conceived in 1801. Since then, despite having 200 years of research behind it, the large scale commercial viability of the product has only recently become a reality. Even still, there are a number of obstacles that are limiting the development of this exceptionally promising technology. The development of fuel cells is an enormous challenge, one which the scientific community is rising to with great enthusiasm. This is why PI Magazine Asia has decided to take a look at the fuel cell market in this issue’s ‘Technology Focus’. It will examine the benefits of hydrogen fuel cells, the key obstacles preventing full commercialisation, and then at some recent key breakthroughs.

Fuel Cell Technology

Simply put, a fuel cell is an electrochemical energy conversion device that converts hydrogen and oxygen into electricity, heat, and water.

56 POWER INSIDER MAY / JUN 2013

There are many types of fuel cells that operate in different ways with different components, but the general process is quite consistent. The fuel cell has two electrodes, a positive anode and a negative cathode. The hydrogen enters through the anode, where a catalyst breaks the element into protons and electrons. The electrons are sent around an external circuit as electricity, reentering the cell at the cathode. The protons are carried to the cathode via an electrolyte, where it meets the electrons and oxygen in another catalyst, where waste water is produced. This process happens quickly, efficiently, quietly and with no green house gases. The technology has a number of applications, from power packs for frontline soldiers, multi-megawatt power plants and back up generators, to decentralized power for rural areas and the hydrogen car. Different fuel cells cater for these applications, but the two main types currently utilized are Polymer Exchange Membrane fuel cells (PEMFC) and Solid Oxide fuel cells (SOFC).

t 1&.'$VTFBQPMZNFSFMFDUSPMZUFJOUIF form of a thin, permeable sheet. PEMFC use platinum based catalysts, with a 40-50% efficiency and an operating temperature of about 80°C. Cell outputs generally range from 50 to 250 kW. Due to the low temperatures and the use of platinum electrodes, these cells must operate on pure hydrogen. PEMFC’s are scalable and modular, and are currently the leading technology for vehicles. The low operating temperature allows a quick start, making them ideal for cars. t 40'$PQFSBUFTBUWFSZIJHIUFNQFSBUVSFT  usually between 700 and 1,000°C, with an output of up to 100kW. SOFCs use a solid ceramic electrolyte instead of a liquid or membrane. Their high operating temperature means that fuels can be reformed within the fuel cell itself, eliminating reformers and allowing great fuel flexibility. Easily scalable, these fuel cells are most suited to stationary power generators, and are very stable during continuous use. Waste heat from the SOFC can be utilized for cogeneration, taking the overall efficiency of the system to over 80%.

Commercialisation

The fuel cell market has experienced some success on a small scale. Fuel cells have proved useful as back up generators and transport batteries, as well as being used in a number of residential demonstration projects. Big brand names like Apple, Google, Walmart and CocaCola have put their faith in fuel cell technology, and manufacturers like Panasonic, Toshiba, and Fuji Electric are spending big to develop them. The larger markets for such applications are in the USA, Japan, Germany, Indonesia and South Korea, where more than 120 MW from one company alone have been installed. Despite this, the benefits of fuel cells are not yet fully exploitable on a large scale because of a number of key obstacles blocking the technology’s scalability and commercial viability. Capturing, Storing, & Transporting Hydrogen

Despite being one of the world’s most abundant materials, pure hydrogen has to be extracted, usually from fossil fuels and gases. This process has several methodologies, from steam reforming methane gas, to electrolysis, to the gasification of biomass or coal. Most methods are energy intensive, expensive and require cheap power from fossil fuels to keep costs down. Once the hydrogen has been captured, it is difficult to store and transport safely and efficiently. Hydrogen is highly combustible and burns with an almost invisible flame, and must be stored at extremely low temperatures or high pressures. Containers capable of withstanding these specifications are much larger than a standard gas tank. Hydrogen can be transported by pipeline or by road via cylinders, tube trailers, and


TECHNOLOGY FOCUS: FUEL CELLS cryogenic tankers. For long distances, hydrogen is usually transported as a liquid in super-insulated, cryogenic vehicles and then vaporized for use at the customer site, which an energy intensive and costly process. The hydrogen distribution infrastructure is also underdeveloped. This is a problem not only for the consumers who need fuel for their existing fuel cell installations, but it also presents an obstacle to the development of hydrogen cars; there’s no hydrogen refuelling station in every town! Power Density

Whilst hydrogen contains three times more energy per weight than fossil fuels, hydrogen gas contains only a third of the energy per volume that fossil fuels do, meaning that the size and weight of hydrogen storage solutions are greatly increased. Additionally, each fuel cell only produces a few kW of electricity, and have to be put in stacks to produce more. This means they can get fairly sizable. With large, weighty storage solutions and fuel cell stacks comes added expense and reduced viability. Fuel Cell Components

Similarly, fuel cell components are currently extremely expensive. The catalysts and electrolytes are often made of costly metals, and many fuel cell designs require pure hydrogen. Those that don’t require reformers, which adds to the size, weight and expense of the fuel cell. Additionally, the precious metals used, like platinum, can be easily deactivated in the presence of even low levels of carbon monoxide, rendering the fuel cell inoperable.

Research and Development

It is an enormous mountain to climb. In order to make them commercially viable, breakthroughs are required in almost every aspect of the fuel cell power generation process to cut the cost of this comparatively expensive technology. There has been some success using

gas, waste gas and solid waste as alternatives to pure hydrogen feed stocks, especially using SOFC (see our SOFC Overview later in the issue for more!). Nevertheless researchers and private companies need to find more ways to cheaply capture hydrogen, safely and compactly store and transport it, and develop an infrastructure to support it. Research is required to improve the energy density of the fuel and cell, and to find new ways to reduce the costs of the fuel cell components. With so much work to be done, it is a testament to the potential of this fuel source that governments, universities and private conglomerates are investing terrific sums of money into researching solutions. Innovative Hydrogen Capture

A research team at Virginia Tech has recently unveiled a process that captures hydrogen safely and efficiently from a green source. Instead of extracting hydrogen from fossil fuels, the team led by associate professor Y.H. Percival Zhang have found a way to extract hydrogen from plants using enzymes. Described as a game-changer, this new method of producing hydrogen utilizes renewable natural resources, releases almost no greenhouse gasses, and does not require costly or heavy metals. To liberate the hydrogen, the team took xylose, an abundant simple sugar that makes up 30% of the cell walls of plants, and subjected it to a polyphosphate and a customized enzyme cocktail that does not occur in nature. This releases an unprecedentedly high volume of hydrogen, resulting in the production of about three times as much hydrogen as other hydrogen producing microorganisms. In fact, this process generates hydrogen energy that is greater than the chemical energy stored in xylose and the polyphosphate. This results in an energy efficiency of more than 100% a net energy gain. Even more appealing, this reaction occurs at low temperatures, with reaction conditions only reaching 1220°C

under normal atmospheric pressures. That means that low temperature waste heat can be used to produce high quality chemical energy hydrogen for the first time. Zhang hopes that the process will become commercially available within the next three years, claiming that the technology has the potential to make an enormous impact, with a market capacity of at least $1 trillion in the United States alone.

“Canadian researchers at the University of Calgary have developed a cost effective electrolyzer, the piece of equipment used to break up water into oxygen and hydrogen.” Affordable Electrolyzers

Canadian researchers at the University of Calgary have developed a cost effective electrolyzer, the piece of equipment used to break up water into oxygen and hydrogen. Electrolysis is a preferable mode of hydrogen production to thermoforming, because fossil fuels are not required for the process. However, it requires a lot of electricity, and they are expensive to build. This means that fossil fuels are often used to provide cheap electricity, which increases the method’s carbon footprint. Current electrolyzer designs depend on expensive rare earth metals in precise crystalline arrangements to catalyze the reaction. However, the catalyzers built by Chris Berlinguette and Simon Trudel at Calgary uses metals as common as rust, and don’t require a crystal structure. It delivers results comparable to current techniques but costs about 1,000 times less.These new electrolyzers are between 70 and 90% efficient at isolating hydrogen and oxygen. Berlinguette and Trudel have already formed a company called FireWater Fuel Corp. to market their work and expect to have a commercially available electrolyzer by next year.

India Tackles Infrastructure

Stack production at the Ningbo Institute of Material Technology and Engineering

In 2012, the Indian government announced a plan to bring more than 1 million hydrogenpowered vehicles to the country by 2020. To do this, the country will have to embolden its infrastructure and develop more efficient storage technologies. Researchers at the National Environmental Engineering Research Institute (NEERI) have announced the development of a new technique that could solve some of the storage problems associated with hydrogen fuel. The safe storage and transportation of this fuel is considered a serious issue in India, where car accidents are somewhat common. The technology developed by NEERI will be used for India’s

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TECHNOLOGY FOCUS: FUEL CELLS supply chain of hydrogen fuel and for hydrogenpowered vehicles, and researchers believe that the breakthrough will make hydrogen storage safer and more efficient. NEERI combined hydrogen gas with cycloalkane hydrocarbons to reduce its reactive capacity and make transportation less hazardous. The combination is liquid at ambient temperature and pressure and therefore can be easily transported using trucks, and has a relatively high hydrogen storage capacity. For the delivery of the fuel at a station, dehydrogenation is performed in a reactor. The liquid hydrocarbon is sprayed over a catalyst resulting in formation of vapor hydrogen and vapor toluene. The toluene is condensed and recycled again to combine with aromatics. Researchers at NEERI boast that this process has a conversion capacity of 98% per unit of catalyst used, one of the highest in the world. Having made this breakthrough in 2012, the next phase of the project will be to scale up the lab-based technique for real use in collaboration with the Technology Incubation Centre of IIM-Ahmedabad, who have contributed Rs 6 crore for the project.

UK Consortium Delivers Efficient Fuel Cell Design

A research project involving several of the UK’s leading technology companies has delivered a major breakthrough in fuel cell power density for vehicle applications. The Enhanced Fuel Cell Systems project, led by Intelligent Energy, has successfully demonstrated a new fuel cell design that delivers an improvement of more than 30% on the power density of previous systems. Moreover, the system achieved reliable cold-start performance in temperatures as low as -200°C, overcoming a technical hurdle commonly faced by fuel cell systems. Intelligent Energy said the £2.8m, three year project had resulted in a new 40kW test cell that boasted the same system size and mass as previous 30kW systems. The breakthrough promises to further cement Intelligent Energy’s position as one of the world’s leading fuel cell developers. In recent years, the Loughborough based company has secured millions of pounds in funding, established itself as a provider of vehicular and stationary fuel cell systems, and inked a number of partnerships with high profile firms such as Suzuki. Suzuki and Intelligence Energy formed the JV SMILE FC in 2012 to develop hydrogen fuel cell systems for vehicles, and it has started production. The small-scale production facility will manufacture air-cooled fuel cell systems. Next to come is a larger-scale production line to further commercialization of the product.

Cutting the Cost of Catalysts

A research team at the Center for Molecular Electrocatalysis have developed a catalyst that is 1,000 times cheaper than current ones utilizing platinum. Research leader R. Morris Bullock claims that his team have been able to develop a catalyst that converts hydrogen to electricity using iron instead of the precious metal. One of the properties the catalyst needed to have, 58 POWER INSIDER MAY / JUN 2013

like platinum, was the ability to split hydrogen atoms into all of their parts by moving both the protons and electrons around in a controlled series of steps, sending the protons in one direction and the electrons to an electrode. To do this, they need to split hydrogen molecules unevenly in an early step of the process. One hydrogen molecule is made up of two protons and two electrons, but the team needed the catalyst to tug away one proton first and send it away, where it is caught by a molecule called a proton acceptor. In a real fuel cell, the acceptor would be oxygen. Once the first proton with its electron attracting force is gone, the electrode easily plucks off the first electron before another proton and electron are similarly removed, with both of the electrons being shuttled off to the electrode. The speed of the team’s new catalyst peaked at about two molecules per second, thousands of times faster than the closest, non-electricity making iron-based competitor. In addition, the catalyst revealed itself to be similar in efficiency to most commercially available catalysts. Now the team is figuring out the slow steps so they can make them faster, as well as determining the best conditions under which this catalyst performs.

“The researchers at Cornell have developed platinum nanoparticles that are 2,000 times more resistant to carbon monoxide, and reduces the cost of fuel cell systems considerably.” Cornell University

Researchers at the Cornell University Energy Materials Center have also made a breakthrough catalyst. Instead of trying to replace platinum, the research team have developed a way to utilize the precious metal in a more economic way. The researchers at Cornell have developed platinum nanoparticles that are 2,000 times more resistant to carbon monoxide, and reduces the cost of fuel cell systems considerably. Platinum nanoparticles are deposited onto a support material of titanium oxide, where tungsten is added to increase the electrical conductivity of the catalyst. The resulting carbon monoxide resistance means that the fuel cell can burn hydrogen with as much as 2% carbon monoxide in it. A catalyst able to withstand more carbon monoxide eliminates the need to clean the hydrogen as much, thereby reducing the cost. Nanotechnology

Using nanotechnology for fuel cells has a number of other advantages. The nanoscale of the particles creates a larger surface area which makes them more reactive, and are ideal for use as a catalyst. By using platinum nanoparticles, less of the precious metal is required.

Additionally, by using nanopores in membranes you can better control the reaction in the fuel cell. This is because fuel cells require the movement of ions through membranes, and nanopores limit that movement. To do this, researchers have capped the ends of the nanopores to trap the acidic solution inside the membrane, thus improving the transport of hydrogen ions in low humidity. This capability opens up the possibility of making fuel cells that operate in a wide range of humidity conditions.

Wonder Material for Fuel Cells

If you are a regular reader of PI Magazine Asia, you may remember graphene popping up in last issue’s Technology Focus, and it will most likely pop up again in the next issue’s Technology Focus on solar power generation. So what’s so great about graphene? Graphene is a carbon allotrope discovered by researchers at Manchester University in 2004. Previously thought to be theoretically impossible, the material is the basic building block of all graphitic materials like carbon nanotube and graphite. Described as a ‘wonder material’, the exceptionally thin graphene could have a number of potential applications as a fuel cell component. Because graphene is only one atom thick, it has the highest surface area exposure of carbon per weight of any material, and it extremely cheap to produce. Additionally, high hydrogento-carbon bonding energy and carbon’s high surface area exposure make graphene a good candidate for storing hydrogen. Researchers at Brown University have utilized graphene with cobalt and cobalt-oxide to make a catalyst. Cobalt is an abundant metal, readily available at a fraction of what platinum costs. Tests led by chemist Shouheng Sun show that the graphene sheet covered by cobalt and cobalt-oxide nanoparticles can catalyze the oxygen reduction reaction nearly as well as platinum does, and is substantially more durable. Sun admits that the new graphene-cobalt material was slower than platinum in getting the oxygen reduction reaction started, but once the reaction was going, the new material actually reduced oxygen at a faster pace than platinum. The new catalyst also proved to be more stable, degrading much more slowly than platinum over time.

In Summary…

Hydrogen fuel cells have come a long way in the last decade. Using of techniques, developers have been able to start extracting hydrogen’s full potential as a fuel source. With over 700 installations in Indonesia alone, small scale applications have been very successful across Asia. Work is still required, however, as a truly efficient and green way of extracting hydrogen is still elusive. Even the reformers profiled later in our Fuel Cell Roundtable have a huge disadvantage; the fossil fuels they use are infrequently renewable. The work described above is enabling manufacturers to continue to develop fuel cell technology, and the promise of industrial scale power generation from fuel cells looks likely to one day be fulfilled. PI


Powder metallurgically produced stack components for SOFC made by PLANSEE As a leading supplier of powder metallurgical high performance materials, we develop and manufacture customized, coated ready-to-stack metallic SOFC components. Net shape interconnects for stationary applications - Superior thermal conductivity - Coefficient of thermal expansion to high performance electrolyte - Excellent corrosion resistance

www.plansee.com


Plansee and the Future of Fuel Cells: SOFC

PI Magazine Asia is increasingly focusing on the potential of fuel cell technology, and on the breakthroughs that are making the future of large scale commercial fuel cell power generation ever more viable. Whilst there are many different types of fuel cell, the Solid Oxide Fuel Cell (SOFC) technology has seen rapid development in recent years. One company responsible for these successes in SOFC production is the Plansee Group. We’ve asked Dr. Andreas Venskutonis, Manager of Solid Oxide Fuel Cells at Plansee SE, to tell us more about interconnects and their impressive offering for this fast growing sector.

INTERVIEW WITH: DR. ANDREAS VENSKUTONIS, PLANSEE SE

Dr. Venskutonis, thanks for taking the time to speak with Power Insider Asia today. When did the fuel cell business become a focus for you?

In retrospect, our fuel cell activities can be divided into three phases. Twenty years ago we began our materials research, looking closely at whether it would be possible to use powder metallurgy processes and alloys to produce interconnects for fuel cells. Ten years ago, our customers built their first prototype systems and we installed a pilot production line. Then five years ago, we had our first breakthrough when our customers’ first systems were launched on the market. This was the trigger for the Plansee Group to put into operation a first automated production line for interconnects at the GTP division in Towanda (US). The second of these production lines will be coming on stream shortly. Solid oxide fuel cells (SOFC) are undergoing rapid development and are increasingly being employed in a number of different applications; can you explain how the Plansee products fit in with this intricate technology?

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There is always a demand for our products when materials have to withstand high stress levels. In the case of solid oxide fuel cells, this is the stack – also called the heart of the fuel cell, where electrochemical reactions take place at a temperature of typically more than 800°C. To develop the necessary highperformance metallic stack components (interconnects), we had to extend our expertise in the fields of alloys, coating and powder metallurgical production technologies. Today, we are able to produce consistently high-quality interconnects, cost-effectively and in large quantities. Can you tell us about Plansee’s current experiences with the SOFC business, both in Asia and globally?

Essentially, our product – the interconnect – is always based on the same technology principle, called net shape process. On the other hand, our customers worldwide, including those in Asia, use these interconnects with custom made designs for a broad spectrum of systems and applications, ranging from decentralized power generation systems with hundreds of kilowatts, through to micro-combined heat and power devices (CHP) with up to five kilowatts and portable solutions with 500 watts.

ABOUT THE PLANSEE GROUP The Plansee Group is one of the world’s leading suppliers of the high-technology materials molybdenum and tungsten – from powder production and powdermetallurgical processes, through to customer-specific processing and recycling of these materials. The materials are used by customers in advanced industries, and are essential for the high-tech products of both today and tomorrow.


INTERVIEW Which SOFC applications do you envisage experiencing biggest most growth in Asia?

In both China and India, air pollution is staggeringly high. The reasons for this are the rapid increase in private transport, particularly in the megacities, and the massive thirst for energy, which is mainly being met by coalfired and nuclear power plants. However, a rethink is underway, with intensive research into environmentally friendly electrical fuel cell cars and into decentralized energy generation systems that are connected via smart networks taking place. Both of these applications are perfectly suited to mobile and stationary solid oxide fuel cells.

“Thanks to the developments already mentioned, and our net shape high-precision technology, we are now in a position to offer extreme flexibility when it comes to interconnect design. In my view, we are now capable of supplying any design and meeting any customer requirement.” ESC-type 1 kW stack, Fraunhofer Institute IKTS Dresden

The lifecycle of interconnects has been a frustrating obstacle to longevity in stack performance. We understand that you have made some significant progress towards solving this problem with your chromium based products – can you explain?

The lifecycle of interconnects was a vital factor in making the solid oxide fuel cell marketable. There were a number of key milestones here, the first of which was the development of advanced ceramic barrier coatings to protect the electrochemical cell from corrosion. Then the thermo-physical properties of the ceramic cell and the metallic interconnect had to be harmonized using a special chromium alloy, to prevent damage of the ceramic SOFC during the countless hot/cold temperature cycles. We also had to refine our net shape highprecision powder metallurgical production method in order to ensure that the interconnects were all structurally identical. This production route ensures that there are no variations from part to part and from lot to lot, which is essential for the performance of a SOFC stack that is electrically connected in series. Lastly, using new glass seals helped us to achieve considerable advances in sealing technology. Many stack manufacturers are looking for tailored interconnects to optimize their own performance. How does powder metallurgy meet these demanding design requirements?

Thanks to the developments already mentioned, and our net shape high-precision technology, we are now in a position to offer extreme flexibility when it comes to interconnect design. In my view, we are now

The net shape high-precision powder metallurgical production method ensures that the interconnects are all structurally identical.

capable of supplying any design and meeting any customer requirement. Where can SOFC stack developers go to assess the performance of your interconnects in the field, under different operating conditions?

Parallel to our activities on SOFC stack components, we are in cooperation already for more than ten years with the Fraunhofer Institute IKTS in Germany. Together we have developed an ESC-type stack which is available now for stack testing and benchmarking. What challenges still remain for full commercial SOFC roll out?

The stack exists – now the entire supplier industry needs to evolve, and unit costs for large orders need to be optimized. One of our customers is currently working extensively on decentralized power generation systems with hundreds of kilowatts which show’s that the industry has a future in large scale applications. PI

For more information on SOFC interconnects, please contact the Plansee sales team in Asia: Plansee China

Linda Zhong, Tel. +86 13917363675 linda.zhong@plansee.com Plansee Japan

Takatsugu Akedo, Tel. +81 6 62097240 Takatsugu.Akedo@plansee.com Koji Kurita, Tel. +81 3 3568 2451 Koji.Kurita@plansee.com Plansee Korea

Chris Lee, Tel. +82 2 451 0033 Chris.Lee@plansee.com Plansee Taiwan

Bruce Tseng, Tel. +886 287808979 Bruce.Tseng@plansee.com

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feature Solid Oxide Fuel Cells:

Robin Samuels examines the exciting new developments in SOFC technology, with some expert insight from some of the market leaders nearing commercialization. This issue of Power Insider Asia is undertaking an exciting focus on the growth of the fuel cell business in Asia. We have seen a number of different system types in the Technology Focus varying in application, size, operating range and price. Given some of the challenges associated with the cost of platinum and development of pure hydrogen infrastructure, one system above all others is sending a wave of excitement throughout the industry. Compatible with hydrocarbons and perfect for combined heat and power applications, this technology has potential to change the way that we generate power forever, as a number of renowned players are reaching commercialization on a global scale. We caught up with the activities of Mitsubishi Heavy Industries, JX Nippon Oil and Energy, Osaka Gas and the Ningbo Institute of Materials Technology & Engineering to look at the activities of these pioneers.

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FEATURE: FUEL CELLS A Journey to Tomorrow The concept of Solid Oxide Fuel Cells was conceived in 1937 when Swiss scientist Emil Baur and his colleague H. Peris experimented with hydrocarbon fuel and solid oxide electrolytes, made from exotic materials including zirconium, yttrium, cerium, lanthanum, and tungsten. Their designs were not as electrically conductive as expected and they reportedly experienced unwanted chemical reactions between the electrolytes and various gases, including carbon monoxide. By the late 1950’s, research into solid oxide technology was being conducted at several destinations around the world including the Central Technical Institute in The Hague, Netherlands, Consolidation Coal Company in Pennsylvania, and General Electric in Schenectady, New York. Despite different attempts with a variety of electrolyte materials, development on Solid Oxide Fuel Cell seemed to be drawing to a close in 1959 after insurmountable technical difficulties, such as high internal electrical resistance, melting, and short-circuiting caused by semi conductivity. Representing a challenge to the world, all hope was not lost and the lure of providing new and clean energy for military, space and transport applications drove research programs to experiment with materials throughout the 1960’s, before an intense period during the mid1980’s delivered exciting progress in the SOFC race. The likes of Siemens Westinghouse, Sulzer, Fuji and Tokyo Electric Power Company were pushing the boundaries, raiding the periodic table, thrusting the SOFC market into a hive of activity along the supply chain, and bringing us to the modern day: within touching distance to large scale commercialization in many of the diverse applications proposed. So, What is So Special About SOFC? One of the outstanding benefits of Solid Oxide Fuel cells is that they can generate power from existing hydrocarbon fuels, opening up a wealth of potential in current energy infrastructure, and overcoming some of the major obstacles related to clean hydrogen availability. The likes of diesel, gasoline, and natural gas/methane fuels are all candidate hydrocarbons for use in a Solid Oxide Fuel Cell, demonstrating clear advantages in fuel flexibility.

“The outstanding benefit of Solid Oxide Fuel Cells is the ability to generate power from existing hydrocarbon fuels” Solid Oxide Fuel Cells also operate at an extremely high temperature, which has of course been a challenging factor in respect of stack lifecycle, but the heat released from the cell offers fantastic possibilities with recovery of high quality exhaust

heat leading to potential for the greatest efficiencies that fossil fuelled power generation has ever seen. Tolerance to fuel impurities and these high operating temperatures means that the heat released from the cell can be efficiently transferred and utilised for coal gasification or hydrocarbon reforming. When integrated into coal gasification plants, the technology has the potential to significantly increase overall efficiency, and dramatically reduce the cost of sequestering CO2 emissions. SOFC’s make CO2 sequestration economically viable, reducing the impact on electricity prices by 50% to 80% compared to other technologies. This high operating temperature can also provide high quality waste heat suitable for use in cogeneration or bottoming cycle. Combined Heat and Power Systems, operating at or near the source of demand, can provide both highly efficient electricity and high-grade heat for heating and cooling to the surrounding facilities. We take a look at the large scale Fuel Cell Combined Cycle possibilities from MHI later in the article. Solid Oxide fuel cells offer a two phase, gas-solid system which overcomes many of the problems associated with liquid electrolytes such as corrosion, electrolyte distribution, flooding and the maintenance of stable triple phase boundary (tpb) electrode-electrolyte regions. Moreover, because of their mainly ceramic structures, SOFC’s can be configured into lightweight and compact structures unachievable using a liquid electrolyte. Japan: Leading by Example Japan has undoubtedly been one of the pioneers for fuel cell development. Through their government supported ENE-FARM program, they boast arguably the most successful residential micro-CHP fuel cell capacity in the world. The ENE-FARM scheme has been a combined effort with leading Japanese equipment manufacturers such as Toshiba, Panasonic and JX Nippon Oil and Energy (under the Eneos Celltech brand name) working with prominent oil and gas majors such as Osaka Gas and Tokyo Gas. Development began in the 1990’s after a particularly fast progression with domestic PEFC systems, and it was not long before a large demonstration programme, subsidized by the government, was built between 2005 and 2008 at ‘Fukuoka Hydrogen Town’. There was a phenomenal 3,307 units installed during that period demonstrating the competence of the technology from the companies above. Since then Tokyo Gas alone have sold more than 20,000 units. The most recent PEFC generation from Panasonic was released in April 2013. It has an impressive total rated efficiency of 95.0% (lower heating value), a notable 5% higher than the 2011 model. The durability of the 2013 model in terms of operating life is 60,000 hours, up from 50,000 hours, and most importantly the price has come down by a staggering $7,700, making the technology considerably more affordable. This has largely been down to the optimization

Comment:

“At Tokyo Gas we offer the ENE-FARM PEFC type. Our latest system consists of 3 parts; fuel cell unit, hot water storage unit and back-up boiler, installed outside of the house. The price of the system is currently around $20,000. ENE-FARM has seen great success, but for widespread deployment the price must be reduced. We have a scope realising that achieving a unit cost of less than $10,000, will increase use drastically. Further improvement of the main parts, the stack and fuel processor, is also necessary to reduce the price. The size of ENE-FARM is another challenge: a downsize would vastly improve the ease of installation and suitability for more property types. In Japan, 100 hydrogen stations for fuel cell vehicles are planned for construction by 2015. Tokyo Gas is playing a big role in this, as we expect the expansion of fuel cell vehicles to be a significant factor for the price down of ENE-FARM. The development of a value chain for the product, for example, educating shops dealing gas appliance on ENEFARM about installation for existing houses, promoting ENE-FARM to new house builder and preparation of a maintenance scheme, has been hard work and it is still ongoing as we plan to see 300,000 systems in the Tokyo metropolitan area by the end of fiscal year 2020. In the long term we hope it will be the dominant energy source hugely contributing to reduction of CO2 emission.”

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Comment: “Osaka Gas, with our experience of marketing the largest number of homeuse cogeneration systems in the world, has been engaged in designing and evaluating SOFC from the standpoint of CHP utilization. We currently offer SOFC on natural gas but may introduce units for use on LPG. Once further cost reduction and higher efficiency is achieved, broadening the scope of market introduction of SOFC through commercial and industrial uses may also be examined. We have made some great achievements with SOFC relating to the world’s highest power conversion ratio at 46.5%, but of course there have been challenges of the core device materials with a 50% platinum reduction in the catalyst from the previous model. There was also an MEA cost reduction by developing base material-less GDL, achieving the balance between the strength and conductivity by optimizing the compounding ratios of carbon fibre and PTFE. This model has also interestingly increased the number of applicable gas types, with an improved tolerance to gases containing nitrogen. The Panasonic ENE-FARM is being adopted by most of the major regional gas companies in Japan, including Hokkaido Gas, Tokyo Gas, Hiroshima Gas, Saibu Gas, Toho Gas and Shizuoka Gas. It is clear that this PEFC model is leading the market at present, with a major advantage being its suitability for the heavy start/stop cycling required in a domestic set-up.

“The Panasonic ENEFARM model is being adopted by most of the major regional gas companies in Japan” The SOFC still poses challenges for the domestic market with slow start-up operation because of the ceramic cells’ weakness to rapid temperature change, but it’s flexibility on input fuel and subsequent ability to be connected directly to natural gas networks makes it an irresistible choice, not forgetting that it offers the highest electrical efficiency of all fuel cell products, and distinct space saving features through a smaller water storage tank requirement. The differing characteristics of these ‘competing technologies’ is driving end-user purchase decisions to be motivated by desire for enhanced operational efficiency or extended cycling duties. It is certainly not an easy decision in the modern climate.

64 POWER INSIDER MAY / JUN 2013

So When Did SOFC Figure in ENE-FARM? After an astonishing amount of research, development and persistence, an SOFC model was finally added to the ENE-FARM scheme in 2011, under the ENEOS brand through Japan’s largest oil refiner, JX Nippon Oil and Energy Corporation. The product is currently available for $31,000 USD and comes with a ten year warranty, which may seem expensive in comparison to PEFC, but JX forecast bringing the unit cost crashing down to a figure close to $5,000 USD by 2015. The major future difference in price to the PEFC version is primarily down to the absence of precious metals like platinum, but also the component and raw materials price shifts when large scale commercialization is underway. If the ENEOS SOFC range does come down in cost by the sums anticipated, it will put an entirely new spin on the aforementioned argument. Taking advantage of the accumulated technologies and know-how of petroleum refining, JX Nippon Oil & Energy Corporation were always going to offer a very unique insight into the use of petroleum-based fuels such as LPG, naphtha and kerosene in a Solid Oxide Fuel Cell. That expertise has clearly paid off through their head start on introducing the SOFC into the ENE-FARM programme. The Osaka Gas Alliance Osaka Gas and Kyocera launched a joint program to develop a cell stack in 2004 which was later joined by Toyota and Aisin in 2009. During this period, Osaka Gas and Chofu also started R&D work on a waste heat recovery/ utilization unit for water heating, with a clear expectation of fast adoption for the promising domestic market in Japan. The end result was the ENE FARM Type ‘S’ solid oxide fuel cell, which is currently available for $28,000 USD. The research and development phase has been a long process for Osaka Gas, so when the product officially became commercial on April 27th 2012, it was a great milestone for all of the different components concerned. The road to retail has led

on the way. Prior to commercialization, we conducted tests and analysis of cell deterioration mechanisms and worked on identifying those elements in order to evaluate their performance in a ten-year operating period. We are continuing the work on acceleration tests for each deterioration element to ensure long-term durability of cell stacks. We are of the view that SOFC in particular, has the potential to become a major energy supply system for households, because of the high energy efficiency features of power generation & heat utilization. It is on this basis that further cost reduction will undoubtedly be achieved.” Osaka Gas to be heavily involved in the evaluation of environmental acceptance, reliability and durability of SOFC, through the testing of 121 units during the “Demonstrative Research on Solid Oxide Fuel Cell” project undertaken by the New Energy and Industrial Technology Development Organization (NEDO) and the New Energy Foundation. This verification initiative was combined with the evaluation and study on the long-term durability of coating materials on power collecting metals for connecting cells. The SOFC system has been developed based upon the companies’ competence in areas such as the design, installation and maintenance from Osaka Gas for co-generation systems; the design and production technology of Kyocera for cell stacks; the design and production technology of Aisin/Toyota for generation units; and Chofu’s design and production technology of hot-water supply and heating units using exhausted heat. The system is environmentally and economically enhanced, eliminating annual CO2 emissions by about 1.9 tons, while also reducing annual energy costs by over 30% in comparison to ordinary gaspowered hot water supply and heating units. The back-up boiler ensures that there is an uninterrupted hot water supply, whilst the efficient power conversion offers continuous electricity supply for 80% of household power needs. Moreover, due to the low number of parts and small quantity of exhaust energy, a compact design was made possible for both the power generation


FEATURE: SOLID OXIDE FUEL CELLS unit and the hot-water supply and heating unit water storage tank is just 90 litres - thus allowing it to be installed in homes with limited installation space. In the future, the companies also plan to expand use of the system to apartment buildings. Scaling Up Although the high temperatures of SOFC eliminate the need for a reformer, this heat also leads to thermal shock, and the main wear and tear from such extreme heat occurs when the fuel cells are turned on and off. Thus, the SOFC is particularly well suited for continuous operating duties in distributed power applications for the commercial applications and upwards. We have seen the excitement that SOFC is bringing to the domestic market in Japan, but the micro systems are not the only applications that are making noise. Some very capable players in Japan are working hard on scaling the technology up. Miura Kogoyo and Sumitomo Precision Products are two of these companies that have formed an alliance. Miura Kogoyo is a major Japanese boiler manufacturer and Sumitomo offer extensive experience from the aerospace, heat exchanger and semiconductor industries. Predicting commercialisation from 2015 and aimed at the small commercial sector, the compact nature of their 4.2kW SOFC system and the ambitious price and efficiency targets means it could be an exciting new product on the market. The generation module, the core component, is provided from Sumitomo Precision Products, and Miura designed the system to heat water from collected heat. The product is undergoing a demonstration test with Tokyo Gas and Osaka Gas for two years, and Miura plan to sell it to restaurants and care facilities for under $41,000 USD from 2015. So, we have established that the commercial and industrial sectors offer the most logical growth given the current state of play for SOFC, but Mitsubishi Heavy Industries is one company that is not content with small commercial applications. Mitsubishi Heavy Industries are very busy developing a large scale fuel cell combined cycle industrial power plant, under its ‘Solidia’ brand. ‘Solidia’ is an innovative Solid Oxide Fuel Cell adapted to a Fuel Cell Combined Cycle system, which incorporates a power generation system with a fuel cell, existing gas turbine and a steam turbine. Integrating this approach with the latest in GTCC can help to push electrical efficiencies beyond 70%. Using its proprietary integrated cosintering technology, MHI has developed mass-producible, multi-functional, high performance fuel cells. Low cost features have been achieved by adopting stacking and modular manufacturing methods for phased modularization. MHI believe that replacing all gas power plants in Japan with FCCC would reduce natural gas consumption by approximately 23 million metric tons per year, and offer a phenomenal 29% reduction in Japan’s CO2 emission.

The company has three different plant sizes in the pipeline. The smallest being a 0.25-1.35 MW hybrid cogeneration system integrated with a micro gas turbine, targeted at distributed power generation facilities and the industrial sector. The middle range is a 40 MW up-scaled version of the micro turbine, based on the Mitsubishi MF111 gas turbine, and is widely expected to play an important role for the industrial and small utility sectors in Japan. The biggest and most ambitious vision of MHI has the potential to be a real game changer for the way large utilities generate power. The technology makes it possible to create a 1000MW class fuel cell combined cycle power plant, offering efficiency exceeding 70%. These systems will be developed and commercialised from smallest to largest and fed with city gas and LNG. MHI plans to manufacture the entire product at some stage, but initially it will buy in SOFC stacks offering great opportunity for a blossoming market. A New Age for South Korea Japan is not the only market aggressively pushing fuel cells. Regular readers of Power Insider Asia may recall the November/December focus of 2012, showcasing another Asian tiger nation’s commendable effort, following some fantastic support mechanisms from the government to push fuel cell technology. The large fuel cell stationary power deployments being installed in South Korea are expected to significantly boost the annual megawatt figure for the fuel cell industry globally. Last year represented an important milestone for the SOFC market in South Korea, with the country’s foremost industrial conglomerates embarking on some noteworthy joint ventures with prominent western players. LG announced in June that they had purchased a 51% stake in Rolls Royce subsidiary, Fuel Cell Systems, which is based in North Canton, Ohio. The business has now been renamed LG Fuel Cell

Systems and will focus extensively on research, development, testing and commercialisation of Solid Oxide Fuel Cell technology. Diversified major SK Holding signed a memorandum of understanding with Denmark’s Topsoe Fuel Cell with the aim to commercialize the Solid Oxide Fuel Cell technology (SOFC) right through to 2020. One agreement concerns micro-CHP systems for residential applications and the second agreement is made for the development and commercialization of large Combined Heat and Power (CHP) systems. Topsoe Fuel cell will be providing the fuel cell stacks, while SK Holdings will be developing, manufacturing and deploying the SOFC power systems. Both companies will be cooperating in the technical development. Samsung SDI are also a prominent SOFC developer in South Korea, with a 100kW tubular system close to realization. The race to commercialization is heating up remarkably in South Korea, but one company is standing just slightly above the rest; POSCO Energy. They have been developing solid oxide fuel cells since 2007 and are looking at commercializing a 10kW SOFC system used for buildings by 2014. The company is well on course to meet these targets, at a time when South Korea is desperate for clean energy options in light of nuclear plant retirements and an unfavourable reliance on the global resources market for energy. As part of SOFC development project, POSCO Energy concluded an agreement in June 2012 with Jinsol Turbo Machinery, Jipilos and Inno-N in the Daegyung Regional Economic Zone, for developing core components of the SOFC’s balance of plant (BOP). They also intend to expand the fuel cell market for the industrial sector by commercializing competitive 50kW SOFC products. At present POSCO are leading the South Korean fuel cell industry in developing fuel cells for various purposes across buildings, ships, emergency

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FEATURE: SOLID OXIDE FUEL CELLS and prime power applications, but clean energy markets come hand in hand with fierce competition and SOFC in South Korea is no exception. What remains clear is that South Korea is hot on Japan’s heels with world class research institutes for the testing of western cells and new systems concepts, unbelievable expertise in manufacturing and early markets for domestic adoption & large export opportunity.

Comment:

“Fuel cells are seeing huge growth in China due to the dense population and fast urbanization we are experiencing. We expect the Chinese fuel cell market to be the biggest in the world within 10 years. Stack life is still of course a major problem in SOFC technology, but we are starting to see light at the end of the tunnel, as the degradation rate is continually being reduced to an acceptable value. One of the main advantages of SOFC technology is the absence of a precise metal as a catalyst. At Ningbo Institute, we have sold 5kw systems for testing and demonstration and currently we are running two projects to develop 100 kW systems. We expect our 5kw micro-CHP systems to be commercially available next year and the 100 kW systems to be deployed in 2015. We strongly feel that SOFC, as a technology for power generation, will enjoy a dramatic increase in interest from society during the next 5 years. It is going to grow from a business generating multi-millions to multibillions, with adoption in distributed energy systems to central power generation and eventfully to every household, it will revolutionize the energy industry.”

66 POWER INSIDER MAY / JUN 2013

Challenges There are three different system geometries of SOFC: planar, coplanar and micro-tubular. In the planar design, components are assembled in flat stacks where the air and hydrogen traditionally flow though the unit via channels built in to the anode and cathode. In the tubular design, air is supplied to the inside of an extended solid oxide tube (which is sealed at one end) while fuel flows round the outside of the tube. The tube itself forms the cathode and the cell components are constructed in layers around the tube. The planar design has many advantages, such as low cost of the cell production, high volumetric power density, easy integration of the stack bundle and simple management of heat, but it also has an inherent problem with sealing and needs to improve on its ability to cope with thermal shock. For small CHP and some niche applications, the tubular design has advantages and offers ease in sealing when compared to the planar design. However due to the issue of the thermal management of the system, the tubular design is widely thought to be unsuitable for the larger system applications and also presents a slightly lower current density. Although SOFC is seeing promising uptake as a cogeneration system in the residential market, the continual development of systems that can balance a high degree of reliability and durability with low cost are vital to its long term success. There have been certain breakthroughs, one of which recently saw a team from the University of Maryland, headed

up by Dr Eric Waschman, prove that a low heat Solid Oxide Fuel Cell is possible by achieving an extraordinary operating temperature of 350°C . As the price is driven down through increased competition and product refining, there is no denying that Solid Oxide Fuel Cells are going to change the way that we use energy forever. The impact that they potentially have to make on stationary power generation, in particular for the industrial and distributed energy business, is causing a stir that government, property developers, investors and power producers are taking seriously. Whilst the Japanese are firmly sitting in the driving seat today, South Korea, China and Taiwan are racing up behind. Their efforts can only be positive as the industry edges closer to commercialization across all capacities, fuel types, applications and regions. So as the world waits for the SOFC complete arrival, I think it is safe to say that this time, there will be no cancellations.

What is your opinion of this exciting technology? The potential it offers is clear for residential, commercial and utility applications but we would like to hear what you are doing in the industry. Tell us your opinion on Twitter, Linkedin or contact the PI team direct www.pimagazine-asia.com/contact-us


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feature

CHRIS HEFFERAN investigates the rise of espionage in cyber warfare, China’s role as a key perpetrator, and how the energy sector may be targeted.

68 POWER INSIDER MAY / JUN 2013


FEATURE: CYBER SECURITY As technological developments surge forward at an unrelenting pace, control over the cyber domain has fallen behind. Society is exploiting the benefits that technology has to offer without a comprehensive understanding of the potential threats. Mass data storage, instant international marketing and streamlined operations are just some of these benefits, but the world has largely forgotten about the drawbacks. Cyberspace is an uncontrollable playing field, and to a large extent ungovernable. There are no borders in cyberspace, just a few passwords and security software in a vast, interconnected network. With states and private companies alike exploiting the slow acknowledgement of the cyber threat, international diplomacy is facing its next significant challenge. The security of any society is dependant on its critical infrastructures. What constitutes a critical infrastructure is strongly contested, but the United States were the first to define them as services “so vital that their incapacity or destruction would have a debilitating impact on defence or economic security”. Although this is an extremely government-centric description, it does place the energy sector at the heart of a fully functioning society. Almost every critical infrastructure, such as telecommunications and transport, depend on the energy sector. The energy sector’s defence should therefore be a nations highest priority. Computer networks have become extremely dominant in the energy sector, with private companies and governments increasingly relying on and planning smart grids that utilise a huge amount of cyber technology, leaving the energy sector increasingly vulnerable. There is not a sector of society that does not use the cyber domain in some way, and the energy sector is no less immune to its faults.

“Cyberspace is an uncontrollable playing field, and to a large extent ungovernable.” China & Diplomatic Tensions

China is probably closer than anyone else to fully understanding the cyber realm. The global economic powerhouse has begun to not only protect itself, but use its understanding of cyberspace to exploit the failings of other states and their corporations. State sponsored hackers have engaged in industrial espionage using interconnected networks on the cyber platform since the Internet’s conception. Over the last couple of decades, China has been robbing the US cyber domain and their efforts have yielded extensive levels of confidential information without consequence. The US has been far too slow in recognising this threat. Earlier this year, Verizon Enterprise

Solutions published their 2013 Data Breach Investigation Report (DBIR). It provides evidence that China is all too active on the cyber domain. The report, focusing on attacks on American computer networks, states that 92% of cyber attacks are now perpetrated by external actors. 30% of these attacks come from China, which was the highest of any external source. What is more, an overwhelming proportion of these attacks fall under the category of espionage. This industrial espionage is used by state-sponsored hackers to compromise data files of international businesses in order to manipulate markets for the economic benefit of Chinese companies. Up to this point, there has been a common consensus that governments do not spy for private sector gains. China, however, has challenged this notion extensively in recent months, engaging in not-socovert cyber attacks in order to gain intelligence from foreign based companies.

“Over the last couple of decades, China has been robbing the US cyber domain and their efforts have yielded extensive levels of confidential information without consequence.”

Causing Significant Strain

The increasingly blatant hacking of US networks by state-affiliated hackers is causing significant strains upon international relationships. For example, earlier this year the US Department of Defence found that the manufacturing details of military technologies had been compromised, along with detailed floor plans of their new domestic intelligence agency. The list of stolen intelligence was staggering, and included the PAC-3 (advanced Patriot missile systems), the Navy’s Aegis missile defence system, Black Hawk helicopters and even the most expensive weapons system ever built; the F-35 Joint Strike Fighter. In their Annual Report to Congress, the department attached blame for these cyber attacks on the Chinese People’s Liberation Army (PLA). The US government claims that “the PLA continues to conduct frequent military exercises demonstrating advances in information technology and information integration of its military forces”. In a report which supports these accusations, US cyber security firm Mandiant exposed a Shanghai based hacking agency APT1 as PLA sponsored hackers. These are bold claims, and will be impossible to avoid discussing when Barack Obama and Xi Jingping meet to conduct a series of diplomatic meetings in July this year. Billed as a ‘get to know each other’ event, it is likely that Obama will address an issue that he has labelled as one of the key threats to US homeland security. However, when he meets with Xi Jingping he cannot expect resolution. The cyber espionage threat is a complex, game-changing topic which will only continue to increase tensions between China and the US in the coming months.

US Cyber Crime

The United States aren’t innocent of cyber wrong-doing themselves, and China will be quick to highlight America’s involvement in the Stuxnet attack. It is a popular topic for Chinese commentators, as an example of how the US has engaged in similar levels of contentious cyber warfare. The incident saw US and Israeli hackers FOLLOW US ON TWITTER: @PIMAGAZINEASIA WWW.PIMAGAZINE-ASIA.COM 69


attack the Iranian Nuclear Facility at Bushehr, and is possibly the most overt use of cyber technologies to commit an attack so far. This is largely down to the objectives and methods; its was committed in a physical manner and, in part, with a physical objective. The worm was injected into the system with a USB stick, rather than using the interconnected networks which are the playing field of more recent cyber attacks. The resulting disruption of the nuclear centrifuges reportedly delayed Iranian nuclear development significantly. Despite the sophisticated nature of the virus itself, the attack utilised conventional technology, and the US was unable to control it. Stuxnet was leaked onto the web and infected a number of other networks not originally targeted, showing just how unreliable using cyber weapons can be.

“If your organisation is indeed a target of choice, understand as much as you can about what your opponent is likely to do and how far they are willing to go.” Reclaiming Security

The cyber debate may have a significantly state-centric feel to it, but it will not be long until the energy sector is riddled with industrial espionage over computing networks. This could have a range of consequences for the energy market. For example, the nuclear industry in China is having to rely extensively on foreign partnerships to develop domestic nuclear technology. This has enabled a number of profitable joint ventures and market stimulation, as well as competition between international companies seeking to secure lucrative Chinese contracts. But what would happen if China were to cross the line in industrial espionage, and hack their way to the latest technology? It would enable them to develop the technology independently using stolen data, which would have grave consequences for the wider market. Up to date security programs and hardware, recognising the objectives of the threat and internal security measures are just some of the ways in which security can be improved in the cyber war. Unfortunately, there is no simple solution to this very complex threat, yet the threat can be managed into an acceptable risk. The Verizon DBIR report is introduced with the following solemn advice: “If your organisation is indeed a target of choice, understand as much as you can

70 POWER INSIDER MAY / JUN 2013

about what your opponent is likely to do and how far they are willing to go.” This raises the most stringent point to be made; understanding the threat itself is key. The report found over 47,000 reported incidents using cyber technologies having taken place during 2012, with 619 of those confirmed data hacks. This has resulted in 44 million records being compromised. Furthermore, added to the findings of previous DBIRs, this means that in the last nine years over one billion records have been compromised.

Up to Date Software

Up to date hardware and software are vital in the battle for a secure network. According to Moore’s Law, technology is in a state of revolution. The processing power of computing technologies theoretically doubles in sophistication every two years, meaning that we are developing technologies faster than we can control. This is the crux of the cyber security dilemma; new technologies are sprouting before we’ve worked out how to secure the last one. There is race between those aiming to secure their networks and those who will benefit from any insecurities or weaknesses. Rapidly developing new systems can be an aid to cyber security, however, as it takes the hackers time to control a new system. Therefore, the longer any software or programme has been around, the more back doors and insecurities will be discovered. Windows XP, for example, is about to be removed from service, after 10 years of being poked and prodded by hackers. This means that there will be no more security updates for the software after the 8th April next year, leaving anyone still using the system increasingly vulnerable to attack. It is vital to keep up to date in terms of hardware as well as security software.

Cyber Objectives

It is also important to acknowledge that there are many different ways in which a cyber attack can occur, with many different objectives. Recent months have seen a strong increase in compound attacks, where an hacker attacks a key or password holder rather than the system itself. Although it is assumed that hackers always look for a back door into a system, a compound attack allows for them to walk straight in through the front entrance. Insider attacks are another forgotten human element in cyber security, and more common than expected. Imagine that you are working in an IT department; after years without the promotion you deserve, the company decides to reduce its IT department’s running costs. You’ve been fired. As you’re packing your desk into a box, you see your USB stick still plugged into the computer. Why not place ‘secure’ company data onto that memory drive and take it with you? You’re out of a job, with a financially uncertain future, and the data would be very valuable. This is a realistic, albeit hypothetical, scenario which could be disastrous for a company. As

with other cyber threats, there are safeguards, with the key precaution being the limitation of information that any one person has access to. Nonetheless, it is vital to consider the more simple threats when discussing the cyber issue, as it is easy to get distracted by complex hacking techniques and challenges. With some reports claiming that a third of all cyber attacks come from the inside, a coalition of metaphysical borders and internal surveillance is key. Just as a building should have guards on the door and security cameras inside, cyber networks must create a similar harmony. Passwords may guard the door, but without consistent surveillance within the network, hackers who have gained access to a system can freely gain full access to either the information he came for, or potentially take down an entire network.

“the cyber threat is serious, with potential consequences similar in some ways to the nuclear threat of the Cold War.’ How Prepared are You?

Overt, physical war is too harmful for international respect and domestic public opinion to be a reliable option in modern international relations, and traditional spying and data theft are too clumsy in modern business relations. However, metaphysical war and espionage on the cyber stage is sneaky. Its subtle, its quiet, and its often unseen. Recent developments have seen China take centre stage, with the US, their main target, just beginning to take the issue seriously. The Defence Science Board have even gone so far as to claim that “the cyber threat is serious, with potential consequences similar in some ways to the nuclear threat of the Cold War.” With such an issue already at an international level, it wont be long before cyber warfare starts to affect the energy sector and infrastructure. The time has come for utilities, power producers, state corporations and manufacturers to start asking themselves: Are we prepared? PI

ABOUT THE AUTHOR: Chris Hefferan is an expert contributor on the subject of International Politics. An MA graduate from Aberystwyth University, Chris specializes in the relationships between technology and international politics.


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INTERVIEW

EGAT’s Power Plant Developments

AN INTERVIEW WITH: MR. SOONCHAI KUMNOONSATE, EGAT

PI Magazine always enjoys working with the Electricity Generating Authority of Thailand (EGAT) and hearing about their continual energy developments. We caught up with Mr. Soonchai Kumnoonsate, the Deputy Governor of EGAT, to hear about their latest plans, including the development of Thailand’s abundant hydropower potential, the first pumped storage hydro plant, and the replacement programs for retiring thermal plants. Welcome, Mr. Kumnoonsate, to the latest edition of Power Insider Asia. With the Thai government policy targeting a 25% increase toward the share of renewable energy and alternative energy within the next 10 years, can you explain to our readers what impact this is having, specifically toward your Hydropower Developments?

The Thai government have introduced policies focussing on renewable energy and alternative energy, not only to heavily reduce imported oil and gas but also help to diversify the supply of fuel in electricity production. The Alternative Energy Development Plan 2012-2021 (AEDP) was established and has been applied for all energy sectors in Thailand. This policy has obviously impacted EGAT’s Hydropower Development, as it is an imperative source of renewable

72 POWER INSIDER MAY / JUN 2013

energy for EGAT. In the AEDP, the EGAT target for additional hydropower capacity is approximately 1,608 MW, consisting of 324 MW of small hydro developments and 1,284 MW of pump storage. At present, in cooperation with the Royal Irrigation Department, EGAT has six ongoing projects with a total installed capacity of 78.7 MW, three of which are currently under construction and three of which are under tendering process. Besides that, another twenty plants totalling 100 MW are planned for the near future. EGAT also have two pumped storage hydropower plants with a capacity of 1,284 MW, which comprises of the 500 MW Lam Ta Khong Jolapawattana Project phase 2 and the 784 MW Chulabhorn project. EGAT also plan to construct about 500 MW of pump storage, now in the feasibility study phase.

With Electricity Generating Authority of Thailand’s subsidiary EGAT International (EGATi) recently confirming their involvement in the Nam Ngiep 1 Hydropower Project in Laos, can you give us an insight into how this and other similar International ventures are helping toward Thailand’s energy security?

Currently, Thailand’s power system depends very much on natural gas, which contributed around 70% of total electricity generation in 2012. In order to avoid the risk of fuel shortage, fuel type diversification and fuel source diversification are proposed in Thailand’s energy policies to have more energy security for the country. Therefore, one alternative for Thailand is power purchase from neighboring countries. An additional challenge is that the new power generation projects in Thailand are limited and presented


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INTERVIEW looking to develop other power plants in Myanmar and Laos to supplement demand?

Krabi Project is a very challenging project for EGAT. It will not, however, produce enough power to completely serve demand in the southern region of Thailand, which should have more power supply sources. Solutions to meet the increased power demand of southern region may be from the new 500 kV transmission lines to connect central region and southern region, as well as power imports from Malaysia. Power import from Laos is quite far from Thai’s southern power demand, but Laos’s power may come in to play in serving the north eastern region of Thailand. Mae Moh has a number of units due for retirement, we understand there are plans to replace units 4-7 with a new 600 MW plant. When is this expected to come online and will lignite be used as fuel again?

with many obstacles in development, coal fired power plants in particular. We have to balance our power demand and supply by power purchasing from neighboring countries. Nam Ngiep 1 Hydropower Project is one of many projects in Laos that can help assist to fulfill and strengthen Thailand’s energy security. On February 26, 2013, EGAT International has signed contract as a joint venture with a 30% shareholding with Kansai company (Japan), in a 45% shareholding and LHSE (Laos), 25% shareholding to develop Nam Ngiep 1 Hydropower Project in Laos. This project will be completed in 2019. Power output will be 289 MW, of which 269 MW will be transmitted to Thailand and the remaining 20 MW will be used in Laos. Can you tell us about the developments of Lam Ta Khong, Thailand’s first pumped storage hydro project?

The Lam Ta Khong Jolapawattana Project has 2 phases, of which the first phase (units 1&2: 2 x 250 MW), was successfully completed in June 2004. This hydropower plant contains reversible machines which, during off peak periods, would utilize excess generating capacity in the system to pump about 3-3.5 MCM per day of water from the lower reservoir (Lam Ta Khong reservoir) to the upper reservoir. During peak periods, the operation would be reversed and the stored water would be run down for power generation. Phase 2 (units 3&4: 2 x 250 MW) was officially approved by the government on the 27th February 2013, and will hopefully be completed in 2017. The schedule is consistent with the policy on the promotion of energy generation from renewable systems. Can you explain some of the outstanding benefits of the Lam Ta Khong project?

The main benefits of this project entail an obvious increase to the efficiency of the country’s

74 POWER INSIDER MAY / JUN 2013

power system. As explained previously this is done by using the power left in the system during the off peak period to pump the water stored in the upper reservoir, subsequently generating electricity in peak period. This system has a great ability to quickly strengthen capacity in the power system during peak period. The proportion of renewable energy has increased significantly in Thailand, but supply can be uncertain with the fluctuating nature of wind and solar. If the renewable power plant can not generate energy, Lam Ta Khong can help the system immediately. This plant is remarkable in terms of being the biggest and the first underground hydropower plant of Thailand. Thailand is seeing huge growth in demand with EPPO’s PDP 2010 – 2030, aiming to add a phenomenal 55,130 MW during that period. What role does gas have to play for EGAT and what are the standout combined cycle projects in that period?

As you will see in the PDP 2010 Revision3, combined cycle power plants remain the major source of electricity. They will supply 44% of total installed capacity at the end of 2030. The outstanding power plants in this period consist of Chana Combined Cycle Project Block 2 and Wang Noi Combined Cycle Project Block 4 due for completion in 2014, and also the North Bangkok Combined Cycle Block 2 which is due for completion in 2015. During the period 20202030, EGAT plans to replace a huge amount of retiring power plants. Those plants include Bang Pakong Combined Cycle Replacement Project Block 1-6, South Bangkok Combined Cycle Replacement Project Block 1-4 and Wang Noi Combined Cycle Replacement Project Block 1-3. When Chana Block 2 comes online in 2014, it will be a much needed boost to power output in Southern Thailand, but environmental opposition is a big challenge for proposed plants like Krabi. Are EGAT

For the Mae Moh Power Plant Units 4-7 Replacement Project, now we are working on the EHIA approval process. If all goes to plan, the power plant could operate in January 2018. The power plant will use lignite from existing Mae Moh Mine, and will be designed using new technology which has higher efficiency, consume less fuel and reduce emissions, especially CO2. What is EGAT’s forecasted energy mix for 2030?

At present the Power Development Plan (PDP) is under revision and we expect a new version to be issued around August 2013. The new PDP will consider adjusting the energy mix using more renewable energy, less natural gas and increased purchase of electricity from neighbouring countries. The new version will comply to the energy efficiency plan that has been approved by the cabinet. PI

DID YOU KNOW? Currently, Thailand’s power system depends heavily on natural gas, which contributed around 70% of total electricity generation in 2012.


CASE STUDY: THE ENGINEERING CONSULTANT Early Stage: Finding the Right Projects

A Power Project requires large investments at an early stage, with sensitive uncertainties on the CAPEX and final revenues. This is particularly acute for hydropower projects with extensive investigations prior to construction and for which hydrology estimates are the keystone to assess the project attractiveness. Identifying the right projects is therefore critical to avoid wasting time and money. External expenses at an early stage tend to be avoided and internal assessment is often conducted. Difficulties then arise when the main focal was solely on the financial parameters. Hydropower projects are highly site specific and context should be carefully taken into account from the beginning of the selection process, not only by assuming a fair amount of contingencies (generally underestimated) but also by addressing the inherent development risks (technical, contractual, socio-environmental), thus involving broad international and local knowledge and expertise. In its assignment the Consultant should be able to fully understand the Client’s objectives and concerns in terms of strategy, the legal and financial aspects, as well as corporate policy and external communications. Close collaboration and exchanges between both parties is thus required. Having specialists, providing assistance to screening, projects review and service specifications, seconded and integrated into the investors Business Development Team can also be envisaged, thus drastically reducing the risk of unforeseen technical problems at an early stage, allowing a fruitful transfer of knowledge.

Construction Ceremony - Gibe III (Ethiopia)

Mitigating the Risks in the Development Phase

The development phase shall not only aim at (1) optimizing the Project Layout to meet the sponsors objectives and constraints but also (2) carefully assessing the best alternatives to develop the projects in order to properly mitigate the identified risks and minimize the consequences of unforeseen problems. The Concession agreement, the Power Purchase Agreement (PPA) and the Construction contract are the key elements that shall reflect the adopted philosophy for the Conceding Authority, the Off-taker and the Sponsors respectively. The hydropower sector can be considered a mature technology, but the way projects are implemented have sensitively evolved during the last 15 years, following energy sector deregulation and the increased involvement of private companies. From a Conceding Authority perspective, the private sector involvement in a project should be obviously minimized for critical projects with large uncertainties on the cost

76 POWER INSIDER MAY / JUN 2013

and revenues, because such projects are unable to provide guarantees on the level of return. In other cases, the PPP scheme shall be carefully addressed based not only on government objectives and private sector maturity but also on specific technical issues, as the same standard BOT scheme for every single project may not be adapted. For example, in the case of Inga 3 HPP project in Democratic Republic of the Congo, a consortium of Consultants was involved from the early stage of the project to assist the government of Congo to define the right development scheme (Equity Financing, BOOT conditions, developers selection process, etc.) until the Concession award. The government of Ethiopia has also recently shown that the traditional way of developing hydro power projects, requiring generally at least 5-10 years of preparation, could be questioned. By selecting a strategic partner involved in the early stage of the project and starting the project implementation before financial closure, the government of Ethiopia has proven that strong dedication and willingness could lead to drastic time reduction in the implementation; less than one year was required to start Gilgel Gibe II, Beles, Gibe III and the Grand Renaissance mega projects (9,000 MW in total). The Power Purchase Agreement (PPA) is also part of the documents defining the project risks allocation, therefore the project development philosophy. The different Off-takers worldwide have adopted a wide range of approaches to manage construction costs and hydrology uncertainties: from capacity payment (India), shared risks mechanism (Brazil) to full developer responsibility (Thailand). Those mechanisms (quality of energy, capacity vs. energy, penalties, deference, and sovereign guarantee) will be well understood by the Sponsors and therefore the Consultant to develop the Project to its optimum configuration. The question of the construction contract type (BoQ, EPC, EPCM, Design & Build, FIDIC silver/yellow) has also entailed extensive and recurrent discussions. Evolving from full turnkey contract with all risks born by the EPC contractor, recent developments have shown that, even for relatively modest projects, geological risks shall be, for example, as much as possible addressed by defining (1) normal variations and exceptional events, (2) risks allocation (Owner or Contractor) and (3) potential cost and duration variation consequences. The integration of a Geological Base Report in the Contract, such as the one used in the 1,000 MW Tehri Pump Storage Plant (India) contract, has become a standard good practice. Theun Hinboun Expansion Project (Laos)

QA/QC - Bulb Turbines - Factory (China) Jirau HPP Project (Brazil)

Implementation: What Makes a Success?

The reason for the failure of a project is usually rooted in the planning. The success of a Project is to be seen as the success of all stakeholders and not of one against the others. During the construction, this ‘same boat’ concept shall favor a ‘solution finding’ attitude using Value Engineering and an open mind approach under the contract provisions. Too often, time and efforts is spent to finding the responsibility instead of solving the relevant issues to the interests of all parties: stay lucid when serious difficulties arise and evaluate them with fairness. The role of the respective parties Engineering Consultant (OE, lenders, EPC) is generally instrumental in those discussions. With the increase in project size, the large worldwide demand and offers from relatively new comers in the market (India, China, Argentina), the question of the supplier control has also raised increased concerns. Traditional regular ‘Shop Inspections’, generally performed monthly or bimonthly, have revealed to be largely insufficient for the owner when supplier track records do not provide enough guarantees. In such case, a fully dedicated QA/QC team shall be envisaged. A sound approach is the one adopted for the Jirau Project (3750 MW, Brazil) with a full dedicated team of specialists located directly in the supplier factory in China. Operation & Maintenance: Not to be Neglected!

During the design stage, O&M aspects are unfortunately often neglected. One of the primary reasons is the separation between the team involved in the Development, the Construction and the Operation (different department for the investors, end of the Owner’s Engineering assignment). Taking careful considerations of the O&M aspects is therefore a serious concern during design stage. As the design relies on the Engineer, it should have the experience and knowledge of sound operation and maintenance aspects. PI

Choose Experts find Partners A ‘Partner’ Engineer Consultant may be a key asset for the successful Development of an Hydropower Project. To play such role, the Consultant should demonstrate: s A solid track record in providing services throughout the entire life cycle of a project (from initial projects screening to operation and rehabilitation) and with the different parties generally involved in project implementation (Authorities, Contractors, Lenders and Investors). s Experience as advisor to project development; s Ability to blend with ‘Client’s’ vision and team; s The capability to respond quickly to Client’s needs (local presence) s The capability to help clients meet their operation and business objectives in terms of sustainability, profitability, reliability and safety.


MAKE OUR PAST EXPERIENCE BECOME YOUR FUTURE

Tractebel Engineering S.A.

TRACTEBEL ENGINEERING , acting under the commercial name of COYNE ET BELLIER, is a leading international company in hydro power, dams, multipurpose water resources projects.

Le Delage 5, rue du 19 mars 1962 92622 Gennevilliers CEDEX – FRANCE engineering-fr@gdfsuez.com Tel. +33 1 41 85 03 69 - Fax +33 1 41 85 03 74

More than 600 dams and 90 hydropower plants (90,000 MW) have been planned, designed and built in 70 countries in over 65 years.

Tractebel Engineering Itd. ASEAN Regional office 12th Fl., Park Ventures Ecoplex 57 Wireless Road, Lumpini, Pathumwan Bangkok 10330 - THAILAND Tel. +662 256 0400 engineering-th@gdfsuez.com

www.tractebel-engineering-gdfsuez.com CHOOSE EXPERTS, FIND PARTNERS

Tractebel Engineering – Coyne et Bellier works on the world market, integrating the world’s different cultures, languages, and climates to fully understand each of its clients and partners and propose solutions for sustainable development.

CO YNE ET B E LLI ER Ingénieurs Conseils


CASESTUDY

Make Data Work For You

Water utilities across Asia face sizeable hurdles including significant non-revenue water, an ever-expanding demand for fresh water, and continuing challenges in timely revenue collection. Many utilities are turning to Water Data Analytics (WDA) to get out in front of these issues by transforming data into actionable knowledge to solve these problems. By leveraging raw data delivered by a variety of databases already installed at the utility, innovative solutions can be developed to pinpoint the problems and quickly resolve the issues. TEXT BRIAN FLUT Detect Non-Revenue Water

One of the most frustrating issues for water utilities are insidious distribution system leaks. While many leaks eventually become visible and can be addressed as they are discovered, a large percentage remain underground and can continue to literally bleed money into the ground over many years. In Asia, this non-revenue water (NRW) typically runs from 5% - 65%, while the global average is 34%. That is a lot of revenue that is quite literally going down the drain, and is lost to the utility even after they have expended resources to treat, transport, and deliver it. One approach to solving this problem using data already available within the utility is District Metering Analysis (DMA). Using granular hourly, time-synchronized data provided by the utility’s chosen data source, new analytic software packages can compare the total amount of water pumped-in to a pressure zone or district (through a ‘master meter’) to the simultaneous total aggregated amount of water metered out of the pressure zone or district (through the aggregated “district”). See Figure 1 below.

Once the analysis is conducted for each zone, a clear picture emerges where growth is happening, (and where it is not), what shifts in population may be occurring, and ultimately yields an overall demographic image of where capital could best be invested using quite simple data visualization techniques. Figure 2. Forecast and Meet Increasing Demand

As populations expand, urban areas grow, and demand for clean fresh water continues to increase, enormous strain is placed upon the existing water distribution infrastructure, and capital investment must be made to keep up with demand. But where to invest? One way is to use capital planning tools such as software, but these can be expensive and complex. A simpler analysis using available data obtained through various data systems is a straight-forward linear regression using a data analytic tool or even an ordinary spreadsheet on a zone-by-zone basis using the same zones from DMA above. As data is accumulated over time, it can be compiled and visualized in a data analysis tool (see Figure 3 below). Once a sufficient sample set of data is compiled for a specific zone, it can be visualized and used to forecast future demand based on past growth trends using linear regression analysis.

Customer Satisfaction & Revenue Protection

It’s a fact: happy customers pay their bills, and unhappy ones do not. Building trust and credibility with customers is crucial to a steady and reliable revenue stream. And it is this revenue stream which is paramount to satisfying the issues identified above. Many of today’s Customer Information Systems (CIS’s) generate bills from data collected by AMR/ AMI systems, but offer little additional insight when customers call in to complain about what they perceive as a high bill. Customer Service Representatives (CSR’s) have precious few tools in the bag to respond with meaningful information when these inquiries come in. For this reason, many utilities are turning to a data analytics package that gives CSR’s access to better, more detailed information about the customer’s consumption patterns over the period of time in question (see Figure 4.)

Figure 1. In theory, water pumped-in to the district should be exactly equal to water metered-out. Any difference between the two as detected by the Water Data Analytics package is NRW. The analysis can be conducted by comparing these two measurements in an analytic tool to visualize the difference. In Figure 2 below, the red line is indicative of water metered-in to a specific zone, and the yellow line is indicative of the aggregated water metered-out in the same time frame in the same zone. The blue line is the difference, and is an indication of total NRW in this zone. By conducting this analysis across many zones in the distribution network, a water utility not only gains awareness of how bad the problem is across their entire distribution network, but can also prioritize the worst areas to address first with a leak detection strategy.

78 POWER INSIDER MAY / JUN 2013

Figure 4.

Figure 3.

Now, using these tools, the CSR not only has access to the most current register reads available in the system, but a wealth of other relevant information including daily and even hourly consumption, minimum, maximum, and average usage over the billing period, environmental data such as temperature and average rainfall, as well as geographic mapping data that offers context about the particular customer including whether they are in an urban or rural setting, have a large or small lawn, or own a swimming pool.


CASE STUDY: MAKE DATA WORK FOR YOU

All of this additional information gives the CSR the information they need to quickly spot the high-consumption period(s) in question, and share this information with the customer. Indeed, many systems today offer the ability for the CSR to take a snapshot of what they are seeing and email it directly to the customer, as well as a Customer Web Portal which allows utility customers to log-on directly to the system and observe their own consumption patterns for themselves (see Figure 5).

Not only do these web portals allow customers to answer their own questions about their consumption patterns, but many of them also allow customers to set consumption goals for themselves, and be notified as these goals are approached or exceeded. Another trend in web portals is the use of games which allows community groups to compete against each other to reach specific consumption or conservation goals. Use of a customer web portal is central to this approach.

About the author: Brian Fiut is a senior product manager with Itron Inc. and is responsible for the ChoiceConnect™ 100 Fixed Network solution. He has over 25 years experience working in the communications and utility industries.

Summary

There is no doubt water utilities are facing challenging issues that include non-revenue water, increasing demand, and timely revenue collection. The good news is there are new and affordable Water Data Analytics tools that have emerged in the market place that transition data into actionable knowledge to allow water utilities the ability to quickly and accurately address these issues in an ongoing and sustainable fashion. PI

FOR MORE INFORMATION: ITRON METERING SYSTEMS SINGAPORE PTE LTD 47 SCOTTS ROAD #12-01/02 GOLDBELL TOWER, SINGAPORE 228233 PHONE: +65 6736 7060 WWW.ITRON.COM

Figure 5.

INTERVIEW WITH: DOMINIQUE LEROUGE, VICE-PRESIDENT, WATER & HEAT, ASIA PACIFIC, ITRON What are the most successful projects you have been involved in recently?

Can you provide us with a brief outline of your operations in the smart water metering business throughout Asia?

Itron is a global technology company that builds solutions to help utilities measure, manage and analyze energy and water. We provide end-to-end metering solutions and our smart water metering business has a strong presence across Asia including China, India, Indonesia, Australia, Malaysia, Thailand, Singapore and Vietnam. We have three main manufacturing locations in India, Indonesia and China.

We have had significant success in Asia. In partnership with Itron, Water Corporation in Australia started to deploy Itron’s Fixed Wireless Network Collection system as part of the Kalgoorlie Smart Metering Trial in Western Australia. At the end of the two-year trial, which concluded recently, water supply to the region decreased by 10%. We also recently deployed a combination of 25,000 smart water, heat, and gas meters and communication modules as well as its fixed network for Sino-Singapore Tianjin Eco-City in Tianjin, China. The comprehensive solution measures, collects and analyzes data from water, heat and gas meters. In India, we were recently awarded an automated meter reading (AMR) solution project by the Delhi Jal Board (DJB) to reduce losses of treated water and ensure continuity of service.

This is DJB’s first domestic AMR project in New Delhi and, when completed, will be one of Asia’s largest mobile AMR deployments. What are the key elements of a successful smart water metering project?

Smart metering is an enabler for the utility to achieve their objectives, and change is necessary to achieve these objectives. First of all, the water utility has to commit to integrate smart water metering and its data with their systems and processes. Good planning has to be implemented. This creates natural drive, accountability and urgency to implement and maintain a smart water metering system. Before implementation, the utility should also gain buy-in from all internal users (not just the project team and management) of the system and involve them in the planning phase. Good project planning, management

and an implementation team with clear objectives, roles and responsibilities is essential. Both the utility and their service providers need to be actively involved. The utility should also ensure that tools and systems are in place to take advantage of smart metering data and that the utility is actively using them. Lastly, utilities should select smart metering technology vendors that can demonstrate the robustness, predictable life-time, data availability and quality of their solutions.

GET INVOLVED Do you use Water Data Analytics? What are your thoughts? tweet us @pimagazineasia

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INTERVIEW

Planning, Checking, Maintaining: PUB’s Efforts to Secure Supply INTERVIEW WITH: MR. CHONG HOU CHUN, PUB

Ensuring a secure supply of fresh water is a dilemma faced by many growing Asian nations, and Singapore’s National Water Agency has implemented rigorous measures to ensure they can fulfill demand. The efforts of PUB have contributed almost exclusively to the nation’s water success. We asked Mr. Chong Hou Chun, PUB’s Director for Water Supply Network, to tell us a bit more about PUB’s water technology, metering practices and future plans. Mr. Chong Hou Chun, thank you for speaking with us today. Can you tell us about the water supply system in Singapore, and the role technology plays in managing it? How well has this worked for Singapore so far?

  PUB relies on a gravity-driven system to generate the necessary pressure to deliver water to consumers. In this system, PUB employs a system of Service Reservoirs (SRs), which stores treated water from the waterworks atop natural high terrain such as hill tops, or in elevated tanks. The SRs are sized to ensure a buffer supply stock, in case of any supply disruption upstream to the SRs, and also to help regulate the supply of water to customers. In certain instances, the pressure of water supplied to customers located at high grounds is augmented by boosting stations. Our water network is also designed in loops built with alternate feeds to ensure that an alternate stream can be tapped on for supply if a source is not available. Thus, the loop system, together with water storage tanks at the customers’ end, helps ensure a reliable water supply network. Today, we have developed a highly reliable network of 5,400 km of pipelines serving a population of five million. PUB has been perennially conscious of the need to manage the water supply network efficiently and account for the amount of water distributed through the network. Over the years, with a system

80 POWER INSIDER MAY / JUN 2013

planning approach, close inter-department coordination, and the use of advanced technology, PUB has created sustainable work processes which in turn enable Singapore to achieve a Unaccounted-forWater (UWF) rate of about 5% today, one of the lowest in the world.   What measures and metering practices do PUB have in place to address NonRevenued-Water losses?

  PUB has an Integrated Water Network Management which comprises both the ‘hardware’ and the ‘software’ necessary to ensure the integrity of the water supply network and address non-revenued water losses. ‘Hardware’ refers to the technical and legislative aspects of network management; ‘software’ refers to close partnerships with stakeholders to ensure quick resolutions to any deficiencies in the network. The key components of the Integrated Water Network Management System are categorized as the following: Good quality network and efficient management.

PUB uses good quality and corrosion-resistant materials for pipelines (cement lined steel/ductile iron pipes and fittings) and ensures that newlylaid pipelines are watertight during pipe-laying work. In addition, PUB implemented the Mains Replacement Program to replace all unlined cast

iron pipelines and galvanized iron connecting pipes in the water distribution system with cement mortar-lined ductile iron pipelines and stainless steel or copper connecting pipes. The bulk of the asbestos cement (AC) pipelines have also been replaced. Moreover, to further enhance the performance of the transmission and distribution network, PUB also constantly identifies leak-prone water mains for replacement /rehabilitation under the Mains Renewal Program. These programs have been effective in reducing the number of leaks in the transmission and distribution system.   Active leakage controls

A dynamic leak detection program is carried out for all mains in the system throughout the year. The objective of the program is to minimize the occurrences of leaks through annual checks on the mains of the entire network, with leak-prone areas checked two or even three times a year. To operationalise this, the entire transmission and distribution network is divided into 112 regions, and further divided into 2 to 5 sub-regions, amounting to a total of 312 sub-regions, where leak noise loggers and other detection equipment are used to pinpoint any leak position.  Apart from the dynamic leak detection program, PUB also monitors the dry weather flow in the drains/canals and waterways to spot tell-tale signs of underground water leaks. During dry spells, there should be


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INTERVIEW PUB has also expanded its engagement platform to include mobile applications, so as to offer an additional avenue for the tech-savvy public to provide immediate and prompt feedback on issues and problems such as major pipe leaks.   What specific tools is PUB looking toward implementing to ensure continual operational success and functionality throughout the entire water Network?

 

Smart Water Grid

little or no water flow in the drains/canals and waterways. Substantive water flow in these waterways may indicate possible leaks in the underground water mains in the vicinity, where water finds its way to the drains/canals and waterways. Excess influx of water into the underground sewerage system may be another tell-tale sign, hence inter-departmental coordination amongst the water supply, water reclamation and drainage departments is important to maximize the effort to detect underground water leaks. The dynamic leak detection program was intensified in 1990, and has contributed significantly to keeping underground leakage to a very low level.   Accurate metering practices

Singapore’s entire water supply system - from waterworks to customer premises - is 100% metered. The accuracy of meters is important as any error in registering would affect the water balance account. PUB operates a workshop for maintaining and testing water meters. Since 1985, the in-service testing of meters has been carried out periodically to check for their accuracy.  A random selection of meters according to model, size, period in service and location are returned to the meter workshop for accuracy testing. The results obtained are useful in checking the effectiveness of particular meter models and deciding on the replacement or bulk-changing intervals and frequencies. In addition, a dynamic meter replacement program ensures that meters in domestic premises are replaced when the meters are more than 15 years old. For large non-domestic customers, their meters are replaced every 2-7 years; for customers that have very high water consumption such as refineries and wafer fabrication plants, the meters are replaced at least bi-annually. A computerized billing system incorporating a check program called Investigation & Report system (I&R) is used to verify readings taken off meters. Any abnormally high or low consumption is automatically detected by the computer during

82 POWER INSIDER MAY / JUN 2013

the billing process and singled out for further investigation. This enables defective meters and leaks in the customers’ reticulation systems to be identified and rectified early.   Strict legislation on illegal draw-offs & minimizing damages to pipelines

The low incidence of illegal or unauthorized siphoning in Singapore can be attributed to the deterrent legislation and stringent enforcement.  Anyone found responsible for carrying out an illegal or unauthorized siphoning can be fined under the Public Utilities Act or imprisonment or both. To prevent the damage of water mains, the Public Utilities Act issues stiff penalties for failing to ascertain the location of water mains before excavation work. Anyone who fails to ascertain the location of water mains prior to excavation work or found damaging our water mains can be fined under the Public Utilities Act or imprisonment or both. Customer relationship management

It is essential to enlist public co-operation in the reporting of leaks, as the extent of water loss from a leaking main is contingent on the length of time between the occurrence of the leak and the isolation of its location. PUB manages all feedback from customers, including water, drainage and sewerage issues, through its one-stop PUB 24-Hr Call Centre. Based on the nature of feedback, the call centre allocates cases to the different response centers. In particular, water-related issues are sent to the Water Services and Operations Centre (WSOC) which operates 24 hours, 7 days a week. The WSOC maintains a crew of officers and service vans to respond promptly to any water-related cases, especially for leakages.   Customers can contact the PUB 24-Hr Call Centre by telephone, fax, emails, SMS, web-chat and voice-over-IP. The centre is also equipped with modern data recording and retrieval systems, CINDY (Central Information And Data System) and a communication system.

PUB is developing a Smart Water Grid for the real-time acquisition of hydraulic and water quality information with monitoring and modeling applications.  Together with research institutes, MIT-Center for Environmental Sensing and Modeling (CENSAM) and Sandia National Laboratories, PUB is looking at the island-wide deployment of water quality, pressure, and flow sensors to monitor the quality of potable water and pressure within the water distribution network.  These sensors, together with analytic algorithms to detect changes in water quality and system pressure, will help us to support operational decisions to ensure water quality and enhanced leak detection. In the future, the data from the pressure and flow sensors can also be used together with the automated meter readings (AMR) to develop a more comprehensive method of detecting leaks, in the manner of a “virtual DMA”. Instead of leak detection conducted at routine intervals, the comparison of aggregated consumption with actual flow in the network can identify the area of potential leaks at the macro level. This can be supplemented by pressure sensors within the network to cross-check possible leak locations, before deploying leak detection teams to identify the exact location of outflows through the use of leak-noise localizing techniques. Such DMAs need not be confined zones, as boundary flow meters can be installed to track the flow in or out from a “virtual DMA”, thereby alleviating the drawback of compromising supply reliability with confined supply zones. Automated Meter Reading (AMR)

PUB has been keeping abreast of technological advances in the field of meter reading, one of which is automated meter reading. This technology allows us to save on the hassle and expense of regular trips to each physical location to read a meter. An additional advantage is that billing can be based on near real-time consumption rather than on estimates based on previous or predicted consumption. PUB is carrying out small-scale pilot projects to evaluate the technical feasibility of implementing AMR systems under local conditions. The pilots involve 2 AMR systems to read a total of 445 meters located in 2 high-rise residential estates and 1 low-rise industrial estate. Preliminary findings show that the cost of AMR is still high and we will continue to explore more cost effective systems. PI    


CASESTUDY

The Water Hammer Phenomena Arjang Alidai MSc. and Daniel Rudolph MSc., a Hydraulic Engineer and Manager respectively at Deltares, help explain why performing water hammer analysis at desalination plants is so critical

T

he importance of high quality drinking water for public health and production processes makes water treatment and desalination plants crucial infrastructure elements. Due to stressed groundwater resources and a growing demand, the dimensions of water treatment and desalination plants are constantly increasing. Hence, careful planning is necessary to design fit for purpose plants. Water treatment in desalination plants takes place in several sequential stages. In each stage, the quality of water is improved and then water is transferred to a next stage. Each stage consists of several hydraulic systems which are connected to the systems of prior and post stages. In order to ensure a safe and efficient operation of the systems, it is necessary to carry out a hydraulic investigation. This investigation assesses the hydraulic capacity of the systems, determines the settings for their operation and leads to optimizations which decrease the operational risks due to transient events and increase the efficiency of the plant. Often, the hydraulic study is limited to a simple steady state investigation where

main hydraulic aspects of the systems such as capacity and component performance are examined. However, dynamic behaviour of the systems resulting from transient events such as start up, shut down, pump trip and valve closure etc. is often not investigated in detail. These events determine the maximum and minimum pressures. They can put a serious threat to a safe and reliable system operation and hamper the efficiency of the plant. Therefore, it is vital to perform a surge analysis in addition to the normal steady state hydraulic investigation. In the following, a brief explanation about the hydraulic systems in a sea water desalination plant is given. Moreover, the method with which a surge analysis can be carried out is explained. Finally, the importance of performing a surge study is elaborated through a case study. Sea Water Desalination Plant

According to recent statistics (IDA Desalination Yearbook, 2011), most of the feed water is obtained from seawater (60%) followed by brackish (22%) and river water (8%). The worldwide installed capacity already exceeds 65 million m3 per day. Most common technologies are Reverse Osmosis

DEFINITION

Water Hammer: Water hammer (or, more generally, fluid hammer) is a pressure surge or wave caused when a fluid (usually a liquid but sometimes also a gas) in motion is forced to stop or change direction suddenly (momentum change). Water hammer commonly occurs when a valve closes suddenly at an end of a pipeline system, and a pressure wave propagates in the pipe. It is also called hydraulic shock. This pressure wave can cause major problems, from noise and vibration to pipe collapse.

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CASE STUDY: THE WATER HAMMER PHENOMENA (RO, 60%), multi-stage flash (MSF, 27%) and Multi-Effect Distillation (MED 8%). In this article, we are focussing on SWRO (Sea Water Reverse Osmosis), although similar hydraulic studies need to be conducted for all technologies. The first screening is done in the intake structure by the trash racks and the travelling water screens. After that, the water is pumped into the pre-treatment system in order to remove the un-dissolved particles from the water. This improves the water quality and avoids an excessive fouling of the SWRO membranes in the later stages, which results in a more sustainable system. The brackish water from SWRO is purified further in a Brackish Water Reverse Osmosis (BWRO) filtration system. Depending on the initial quality of water, mineralizing or de-mineralizing of water takes place in post treatment stages. Finally, water is transferred directly to the consumer network or stored in storage tanks. In all of these stages, hydraulic components such as pipes, pumps and valves are deployed to transfer water through the treatment process. These components are chosen in the design phase of the plant so that they meet the capacity requirement of the plant. However, special attention should be paid to the effects of these components on the dynamic behaviour of the system. For example, a fast closure of a valve might lead to excessive pressures which damage the pipeline. On the other hand, a slow closure of the valve might result in large losses in the product water and consequently hinder the efficiency of the plant. Therefore, a proper surge analysis is required to obtain a good understanding of the dynamic behaviour of the systems. This provides a guideline for operation of the hydraulic components. The surge analysis starts with building a numerical model of the hydraulic system, and all relevant hydraulic components should be included. After creating the model, numerical simulations should be performed to assess at first the steady state behaviour for all extreme operating conditions. After the completion of the steady state analysis, the dynamic behaviour of the system has to be analysed. This requires a robust and validated numerical program which is able to compute cavitation accurately, allows to model control systems, and which includes considerable amount of components for performing the simulations. For this purpose, the water hammer program Wanda (Deltares in-house program) can be deployed.

84 POWER INSIDER MAY / JUN 2013

Figure 2: Schematic view of hydraulic model for pre-treatment system of Ashdod desalination plant. After carrying out the numerical simulations by a water hammer program, the results have to be analysed, critical events should be identified and proper measures should be taken. It has to be noted that maximum flow rate is not always decisive for the design, especially if control systems are implemented. In some cases, it is even necessary to make small but crucial changes to the initial design of the plant in order to ensure the safety of the system against the adverse effects of the water hammer phenomena.

“According to recent statistics (IDA Desalination Yearbook, 2011), most of the feed water is obtained from seawater (60%) followed by brackish (22%) and river water (8%).� Ashdod Desalination Pant Case Study

Here, the surge analysis of the pre-treatment system of the Ashdod desalination plant is briefly explained and the benefits obtained from the study are presented. The Ashdod Seawater Reverse Osmosis (SWRO) plant will be located in the northern industrial zone of Ashdod, Israel. Its maximum production capacity will be 16,000 m3/h (384,000 m3/ day, if 24 hours operation is considered). The seawater is drawn by the intake system located offshore and is transferred to the plant by a 2 km pipe. The seawater is pumped through the disc filters and UF modules (2 separate lines, each consisting of 25 Pentair skids) and then flows to the SWRO unit for further purification. An extensive hydraulic study was performed to ensure that the transient events do not cause adverse hydraulic effects in the pre-treatment system. Figure 2 shows the schematic view of the hydraulic model that was built for the Ashdod pre-treatment system. The model included all relevant hydraulic components such as valves, pipes, and pumps. The upstream boundary of

the model was the seawater tank as the start point of the plant and the downstream boundary was the storage tanks. Since the study focussed on the pre-treatment system, the SWRO model was simplified by using a representative model which included all transient characteristics of the SWRO unit (i.e., the pressure wave travel time and the water hammer storage). Critical transient cases with regards to minimum and maximum pressure, velocity, energy consumption and water production were considered. These cases covered transient events such as power failure, start-up, shut down, unintentional valve closure, etc. The study showed that for some of these cases, the acceptance criteria defined by the manufacture of the Ultra Filtration unit were not met and therefore, the system was potentially in danger. For example, in case of power failure the pressure in the highest located UF module dropped to the cavitation pressure which might lead to a massive fibre breakage of UF modules, so preventive measures were taken to avoid large negative pressure. The backpressure on modules was increased by increasing the height of the siphon to the concentrate tank. It was crucial to keep the height of the siphon as low as possible, since higher siphon required more pressure (and higher power consumption) by the backwash pump. The minimum required height of the siphon was determined such that in combination with a surge vessel, no significant negative pressure was observed due to the power failure. Therefore, the initial design of the system was optimised in a way that the system operated safely and optimally. Conclusion

In order to ensure a safe and efficient operation of hydraulic systems (e.g. pre-treatment or Reverse Osmosis) in a desalination plant, the dynamic behaviour of the system should be realised. This can be done by performing a transient hydraulic investigation. To do so, a robust and validated water hammer program, which can compute the properties of all relevant hydraulic components in a plant (e.g. UF modules, pipes, valves and pumps) correctly, is required. After performing numerical simulations for critical transient events, the result obtained from water hammer program should be analysed and proper modifications should be implemented to the initial design of the system. The early recognition of the adverse effects of water hammer phenomena and improving the design of the system to diminish these effects can save large amount of maintenance costs and increase the efficiency of the plant. PI


MWdZW[nWcfb[ J^[F?:i^emijmefkcf_d]ijWj_ediZ[b_l[h_d] Yeeb_d]mWj[hje\ekhY^[c_YWbfbWdji7"8"9":$ Wanda is used to analyse: š ij[WZoijWj[ioij[cY^WhWYj[h_ij_Yi" š ef[hWj_edWbi[jj_d]ie\fkcfiWdZlWbl[i" š fem[h\W_bkh[WdZkd_dj[dZ[ZlWbl[Ybiekh[" š ikh][fhej[Yj_edh[gk_h[c[dji" š ijWhj#kfWdZi^kj#ZemdfheY[Zkh[i$

DN1000A

Plant B Plant A Plant C

DN400A

DN1000C DN400B

DN1400A

DN1400B

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KW7 DN1000B KW7-1KW7-2

DN600 P7903

KW1

Plant D

P7904

P7905

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P7907

WANDA: a powerful and user-friendly hydraulic software

WANDA is a powerful and user friendly software tool for the analysis of fast transients in pipeline systems. WANDA has unique functionality and application areas. Main features: šb_gk_Z"]Wi"^[WjWdZibkhhojhWdifehj šh[Wb#j_c[ef[hWj_edWdZYedjheb š[nj[di_l[boj[ij[ZWdZlWb_ZWj[Z :[bjWh[i_iWb[WZ_d]"_dZ[f[dZ[djademb[Z][_dij_jkj[\ehmWj[h"ikXikh\WY[WdZ _d\hWijhkYjkh[XWi[Z_dj^[D[j^[hbWdZi$M[WffboekhWZlWdY[Z[nf[hj_i[mehbZm_Z[ je^[bff[efb[b_l[iW\[boWdZikijW_dWXbo_dZ[bjWWh[Wi"YeWijWbped[iWdZh_l[h XWi_di$?dj^[\_[bZe\_dZkijh_Wb^oZheZodWc_Yi"m[ fhel_Z[YedjhWYjh[i[WhY^"if[Y_Wb_i[ZYedikbjWdYo" [d]_d[[h_d]ie\jmWh[WdZjhW_d_d]$

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INTERVIEW

Encouraging Quality, Minimizing Waste: The W.O.G Group in Southeast Asia

AN INTERVIEW WITH: MR. SUNIL RAJAN, W.O.G GROUP

Power Insider Asia was lucky enough to talk to Mr. Sunil Rajan, CEO of the W.O.G Group. The company is committed to the South East Asian Water Treatment and Waste water treatment markets, and have done some great work there to improve the quality of wastewater and effluent treatment. Mr. Rajan gives us an overview of the W.O.G Group’s work in the region. Welcome Mr. Rajan to the latest edition of Power Insider. Can you start by giving a brief outline of W.O.G Group’s current activities in South East Asia?

W.O.G has been awarded a Waste Water Recycle/Reuse Project by the Phuket Municipality, Thailand, last year to increase municipal water supply in Phuket. Through this project, treated sewage is further treated to ensure tap water quality. When completed, the plant is expected to produce 20,000 cubic meters+ of ‘high-quality’ water for the municipality. The plant will treat wastewater to the same quality as the water supplied by the Provincial Water Authority (PWA). The company is committed to serve the Municipality for 30 years. By recognizing its innovative solutions, W.O.G Group is in the process of concluding a project with a Semi-Govt-local industrial partnership to build a full scale plant based on Anaerobic MBR in a petrochemical complex at 150,000 ppm of COD in Jurong Industrial area, which will be a unique plant in itself. One of W.O.G’s major installations includes ETP for Indorama Ventures, Thailand, where a hybrid digester has been installed for treating an additional 17 tonnes of COD. This allowed the company to handle additional wastewater quantities and high strength organic

86 POWER INSIDER MAY / JUN 2013

loads generated in their premises. SR- 5 membranes are used in this project in place of a fixed roof for the digester. These membranes are highly robust and are being rolled out in W.O.G’s own fabrication shop in Florida. With this, not only are the organics polished to the tune of 77%, but a substantial amount of biogas is generated with the high methane contents being used as an alternate fuel in the industry. W.O.G will be treating waste water with the characteristics of 6% Oil, 15 – 20% Fibers and 2 – 3% Solids Consistency from EFB juice as per Malaysian discharge standards, and will be producing energy in the form of methane rich Biogas with the potential to cut down fuel consumption by upto 70%. An in-house process adopted by W.O.G is quite robust to bring all advantages together for customers, such as state of the art consistent treatment, space savings, lower OPEX, no hazardous chemicals, and eco-friendly features. W.O.G has also been selected to provide a Waste-to-Energy solution by a poultry facility, through which 100 tons of chicken dung will be converted to 1.1 MW of electricity, which will be supplied to the grid. In addition, substantial amounts of fertilizer will be produced to be used for agricultural purposes. W.O.G has also recently commissioned an industrial waste water recycle/reuse project in Thailand where 90% of its wastewater is being recycled and partly used in the boilers.


INTERVIEW Your offerings toward management of water, wastewater services and renewable energy generation for industrial and municipal users are vast. Can you highlight examples of where and how W.O.G Group’s technological solutions and ability to build such facilities has been implemented?

Apart from instances cited, above W.O.G has a vast and dynamic experience in treating & managing water as per local prevailing standards and customer’s/industry’s objectives. W.O.G became the trendsetter in water resource management through a 5.5 MLD Effluent treatment plant with recycle/reuse commissioned for Yunus Textile Mill in Pakistan in 2012. It is the first of its kind in effluent recycling, with the most advanced technologies in industrial waste water treatment based on Membrane Bio Reactor (MBR) technology and low fouling Reverse Osmosis. For this reason, the project has set the benchmark for all future developments in textile effluent treatment, not only in Pakistan but in other textile clusters around the world. W.O.G is committed to the another project in India for a Drinking Water Treatment Plant with a capacity of 5.76 MLD, including O&M at the Indian Oil Corporation Limited, Mathura Refinery Township. W.O.G operations meet all the quality standards of residential water treatment in this plant. W.O.G has been treating waste water from various industrial sources as per local government discharge norms: 1. W.O.G’s Effluent Treatment Plant (ETP) for a soft drinks company in Venezuela, completed in compliance with local discharge norms, 2. Several projects in series for UB/Kingfisher Group with recycling and reuse of 85% of their wastewater with full compliance of discharge standards, 3. WWTP commissioned for Coca-Cola as per discharge norms, 4. Effluent Treatment Plant for other Breweries industries as per local discharge norms, 5. Waste water treatment projects for a Distillery in the region where W.O.G treats the most stringent molasses based distillery effluent as per local’s discharge norms. How are your technologies and services applied to optimize the performance of your clients’ water/waste water related processes?

At W.O.G, technologies and services are proposed only after careful analysis and studying existing practices of clients, for instance: 1. W.O.G has given consultation to one of the largest quality producers of Furfural and Furfural Alcohol from Corn Cobs to improve the performance of existing ETP drastically, and is now working as per

required standards. The consultation also resulted in sufficient biogas generation, from practically no generation previously. With this, the industry is now saving substantially. 2. Lucky Textile Mill is saving 3.2 Tons/day sulphuric acid after installing W.O.G flue gas based smoke neutralization system. 3. Yunus Textile Mill is recycling more than 94% treated waste water from a W.O.G treatment plant directly into processes, resulting in less raw water costs. From generating high amounts of waste water and purchasing raw water for processes from outside the mill, the company can now treat more than twice the effluent using existing structures. Also, no chemical sludge/chemical hazards are generated due to our proposed biological treatment process. 4. Phuket Municipality, Thailand: the Waste water recycle/reuse project for Aurus are show cases for minimizing disposal of waste water in the environment. After the treatment by W.O.G installed plants, these industries are able to recycle/reuse the treated water in their processes leading to minimized waste water disposal. In brief, W.O.G not only provides the end to end solution for its customers but also takes care of their future needs and prospects, and continues to provide them with the best solutions to bring revenue and lower operating costs. Can you give a synopsis of your various membrane types and combinations with conventional cleaning processes, and other treatment phases to meet specific and individual requirements?

W.O.G has vast experience in treating various stringent industrial effluents including PTA, brewery, molasses based distillery, textile effluents, and tannery effluents along with treating raw river and sea water. Treatment phases of every treatment plant are customized and decided after considering the customer’s objectives and local standards. In the Yunus Textile Mill, we have replaced the conventional system with MBR followed by a reverse osmosis system. This has enabled them to save money on the chemicals that they have been buying for the treatment, besides treating three times the flow biologically. For treating molasses based distillery effluent, we proposed two-stage anaerobic treatment followed by activated sludge treatment & physio-chemical treatment. This will result in: 1. Reduced power consumption, as there is no requirement for aeration in anaerobic treatment. 2. Less sludge generation as COD converts to biogas by anaerobic treatment. 3. Methane rich biogas production, which can be utilized as source of energy or as fuel

to boilers. For treating EFB juice effluent, the solution we proposed was a two stage anaerobic treatment followed by an MBR system. WTP installation by W.O.G for the UB Group improved the efficiency in their production. So, it’s about all of those things and more that W.O.G is doing which satisfy customer requirements with a combination of technologies. In terms of your Pre-Treatment offerings, how do you ensure that selection methods for feed waters improve the system by preventing or minimizing bio fouling, scaling and membrane plugging?

W.O.G offers pilot and demonstration units for membrane treatment where preliminary studies are conducted on waste water samples taken from client facilities. These units can be leased to client for a predetermined time period and are used to evaluate feasibility, cost, and adverse effects, which help us to design appropriate pre-treatment processes prior to giving suggestions. This ensures performance of full-scale projects. W.O.G’s proven track record on handling various type of effluents from industry shows that we take care to ensure that the right flux rate, configuration, flushing’s, and selection of chemicals for effective cleanings are implemented. W.O.G has its own rich features in design that ensures a longer run length of the membrane systems, minimizes cleanings, has effective forward/backwashing and recirculation of wastewater enhancing recovery. What new technologies can we expect to see available from W.O.G Group in the near future?

Since its formation, W.O.G has been continuously striving to develop innovative technologies that have supported sustainable growth of societies and maintain ecological balance. The long-term strategic goals of the company are aligned with the future needs of the worldwide communities. With this global view, the company has focussed on advanced and efficient technologies like Anaerobic MBR Systems, Forward Osmosis Systems, improved Reverse Osmosis linked with recycle/reuse and zero liquid discharge, Improved Activated Sludge Process, Membrane Bio Reactors, Media Filtration for Metal Removal, Waste (Biomass) to Electricity and Alcohols. PI

ABOUT THE W.O.G GROUP W.O.G has its head quarters in Florida, USA, and is targeting 22 countries currently with a very strong base in Southeast Asia through its corporate office in Singapore, with regional offices in Thailand, Malaysia and now Indonesia.

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W.O.G GROUP Empowering the Water World by Innovations

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An endeavour to provide end to end solutions for all Water and Environmental requirements

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features

Raising a Glass for Green Industry: Diageo Korea In May, beverage behemoth Diageo Asia Pacific invited PI Magazine’s Managing Director, Sean Stinchcombe, to take a tour of their production plant in Icheon, South Korea. Sean was able to see first hand the improvements that have been made to improve environmental sustainability.

E

nvironmental sustainability is a hot topic for drinks goliath Diageo, who have realized the full impact that businesses and individuals can have on the environment. The company is not alone; environmental sustainability receives plenty of attention globally from media and from governments. This has sparked a wealth of research assessing the impact that human activity can have on the environment. Although the long-term implications are not yet fully understood, a consensus exists that emphasizes the importance for an immediate response. Businesses and industry are expected to take the lead, as they are the biggest contributors, and are in a position to make a significant difference. For Diageo, environmental sustainability is about making responsible decisions that will reduce a business’ negative impact on the environment. It is not simply about reducing the amount of waste produced or using less energy, but is concerned with developing processes that will lead to businesses becoming completely sustainable in the future. Paul Walsh, CEO & Chairman of The team behind Diageo’s Icheon site, South Korea

90 POWER INSIDER MAY / JUN 2013

Diageo’s Corporate Citizenship Committee, says of the issue: “For us, sustainability is about being ready for the future – planning for how the world will be in 100 years. Climate change, water scarcity, limited resources and energy prices are all going to have an impact on our business. This is why we are taking decisive action now.” Use Less to Make More

This is certainly what Diageo is trying to achieve, and Mr. Walsh claims that: “Environmental sustainability makes good business sense and is core to the future of Diageo. Our vision is that all Diageo brands are sourced sustainably, all brands are produced sustainably, employees work in sustainable buildings, premium packaging is delivered with the smallest environmental footprint and all brands are delivered sustainably.” The company has indentified main areas to improve within their value chain, and have expressed a desire to improve environmental stability within operations and production. Diageo has a specific set of targets for 2015: t $VUDBSCPOFNJTTJPOTBUXIPMMZPXOFE sites by 50% t *ODSFBTFXBUFSFïDJFODZCZ t 3FEVDFXBUFSXBTUFEBUXBUFSTUSFTTFE sites by 50% t 3FEVDFQPMMVUJPOBTTPDJBUFEXJUI waste water by 60% t 3FEVDFQBDLBHJOHXFJHIUCZ an average 10% t .BLFBMMQBDLBHJOH reusable or recyclable t *ODSFBTFBWFSBHFSFDZDMFEDPOUFOUUP t 3FEVDFXBTUFTFOUUPMBOEëMMCZ

Diageo aim to implement these ambitious targets at their wholly owned sites worldwide. Diageo has three wholly owned facilities in the Asia Pacific region, and the company has already invested some £200 million in new technology to reduce the production carbon footprint by 22%. Diageo’s environmental philosophy is to use less to make more, which is no easy task, but the company is sure that with the right team and determination, these targets are more than achievable. The Profit in Environmental Stability

In this tense time of economic instability, the issue of sustainability may seem like a luxury that many cannot afford. However, businesses need to consider that increasing the environmental sustainability of their business could be profitable. Moving towards environmentally sustainable practices presents few or no risks to business operations. If a business acts now and environmental sustainability continues to become an increasingly important and heavily regulated issue, they would have a head start over their competitors. Additionally, besides the initial outlay long term negative impacts or expenses are unlikely. Conversely, costs will incur if businesses fail to act before environmental factors become policy regulated. For example, regulators may begin charging businesses based on their negative environmental impact. Businesses with a head start may also be in a better position to take advantage of potential incentive schemes. Another cost effective aspect of environmental measures is the potential to reduce expenses in the medium to long term. Making businesses more energy efficient


FEATURE: DIAGEO KOREA

would reduce energy costs and help improve the bottom line. Environmentally sustainable businesses may also have a competitive edge when it comes to attracting customers and investors. Modern consumers are aware of social and environmental issues and investors are equally aware of these issues, which have created a trend for investing in environmentally sustainable companies.

240 solar panels fitted on the roofs of Diageo’s Icheon site

A Unique Approach

Clearly, even the most basic changes to a company’s environmental practice can reduce costs and help generate returns. Diageo have certainly recognized this by setting their targets, and is already close to meeting several of them, having reduced their carbon emissions by 35%, improved water efficiency by 20%, and have completely met the waste water pollution and waste to landfill targets, two years ahead of schedule. What is unique about Diageo’s approach is that although the targets are company wide and compulsory, how each plant meets that target is undefined. Whilst each plant will share best practice, each facility is free to implement the strategy that fits best with their region and plant. In my visit to the Incheon facility, I was able to see what strategy the team in Korea had adopted. Incheon and Solar Thermal

Diageo’s factory in Incheon receives a great deal of their thermal energy from the solar thermal plant installed on the roof of the main facility. Installed in 2007 in co-operation with the Korean Government, the solar technology consists of 240 solar panels. The solar thermal plant is one of Incheon’s core environmental success stories, and is indeed something to be proud of! Solar thermal is useful for a plant of this nature in several ways. The technology uses the sun’s energy, rather than fossil fuels, to generate low-cost thermal energy. This energy is used to heat water or other fluids, and can also power solar cooling systems. Solar thermal systems drive business value by reducing utility bills by up to 70% and reducing carbon footprints. At the Incheon plant, the system now generates over half of the heating and cooling requirements. The Incheon team have been able to reduce their electricity consumption by 20%, the greenhouse gas emissions are down by 33% and have reduced the fuel oil consumption by a massive 75%, all because of solar power. The return on investment from installation took an impressive 2.2 years instead of the 3.7 years originally estimated. As a testament to this achievement, the Korean government has used Diageo’s Incheon facility

as a pilot study to encourage wider use of solar energy in the country. Greenhouse Gas Emissions

The team at Incheon has worked exceptionally hard over the past 4 years to reduce greenhouse gas emissions, the team certainly is leading the way for other manufacturers to follow suit. The team have implemented the following systems, with impressive results: t ")FBUJOH$PPMJOHTZTUFNVTJOHTPMBS collectors has reduced GHG by 33% t ɨFUPOCPJMFSIBTCFFOSFQMBDFEXJUIB 1.5 ton model t "MMMJHIUCVMCTIBWFCFFOTXJUDIFEUP-&%  reducing electricity consumption by 50% t ɨFBJSDPNQSFTTPSXBTSFQMBDFEXJUIB centrifugal air blower t ɨFìPPSIFBUJOHOPXVTFTFMFDUSJDBMëMN heating instead of boiler heating t )QBSFDPNQSFTTPSJOTUFBEPG)Q t ɨFSJOTJOHXBUFSUFNQFSBUVSFXBTSFEVDFE to 200c from 600c t "O*OWFSUFS5VSCP#MPXFSIBTSFQMBDFEB Roots Blower t ɨFFïDJFODZPGUIFGBODPJMVOJUIBTCFFO improved from 60% to 100% t ɨFXBSNJOHBOEDPPMJOHFïDJFODZJOUIF BIS rework place has been improved These measures have certainly given the Incheon factory a head start of their greenhouse gas reduction target of 50% by 2015, having already achieved a reduction of 19.5%.

Reducing Water Use

The growing global water availability issue particularly affects South Korea. Water usage reduction methods are being fully implemented

the waste water from reverse osmosis drainage for refilling fire fighting water reduced annual water usage by more than 8%. Other changes include installing an Air Cooling compressor to replace the water cooling system; installing a hot water circulation by pump in 2010 which reduced annual water usage by 220 tons; replacing the steam shrink tunnel with a dry heat tunnel; and installing a system to reduced the rinsed water used for flushing toilets, which saved 15% of wastewater. The 2015 target for Incheon water efficiency was to improve by 30%. This was over achieved by more than 40%, bringing the total to 71.3% Further Potential

Despite the Incheon factory’s many achievements, I was puzzled by their method of waste disposal. Diageo are spending time, effort and energy to reduce pollution, yet still incinerate their waste. Whilst this system allows Diageo to boast of a ‘zero landfill’ policy, introducing a waste to energy system would surely help them build on their already admirable success. Diageo themselves would agree that there are still improvements to be made, and Paul Walsh states that they “still have a long way to go on our journey and there is still more for us to do – as an organization and individuals”. Nevertheless, the company shouldn’t shy from the praise it surely deserves for implementing such environmentally responsible measures at their facilities, and should be regarded at the best of examples for other industries. I would like to take this opportunity to thank our hosts at the Diageo Incheon plant, it was certainly an interesting opportunity, and everyone at PI Magazine Asia wishes the plant’s green ambitions every success. PI

FOLLOW US ON TWITTER: @PIMAGAZINEASIA WWW.PIMAGAZINE-ASIA.COM 91


REGULARS

Country Directory:

Thailand Thailand Fast Facts Thailand has an installed capacity of

32,871 MW* Did you Know? EGAT are looking at developing coal plants in Myanmar and Cambodia to counteract the huge environmental opposition at home

70,686 MW

The grand total power capacity in Thailand is expected to reach 70,686 MW by 2030, more than double that of the current capacity

5,400 MW* The Energy Regulatory Commission is running an IPP bidding scheme for 5 plants totalling 5,400 MW due for operation from 2021

Did you Know? Thailand is rich in agricultural wastes, and will see huge growth in biomass, biogas, biodiesel, ethanol, and the by-products from processed food industry.

92 POWER INSIDER MAY / JUN 2013

Thailand’s Energy Mix

46%

EGAT produces 46% of Thailand’s energy, with IPP’s and SPP’s responsible for 39% & 8%

Thailand imports and exchanges

2,404 MW (7%) Thailand has a huge scheme for

SPP and VSPP projects that will see a vast number of new players enter the market

Did you Know? Gas reserves are dwindling in the Gulf of Thailand, the fuel mix will see a dramatic shift in the coming years Thailand hope that

Natural Gas

69%

Lignite

11%

Coal

10%

Hydro

5%

Imported

5%

Renewables

2%

Thailand’s Power Industry Ministry of Energy

Supported by the Energy Policy & Planning Office and the Department of Energy Development and Promotion

Electricity Generating Authority of Thailand (EGAT)

State owned enterprise producing 46% of Thailand’s electricity

by 2030,

Capacity made up by IPP’s, SPP’s & imports

20,546.3 MW

Electricity distribution carried out the Provincial Electricity Authority (PEA) and the Metropolitan Electricity Authority (MEA)

total capacity of renewable energy will be around


COUNTRY DIRECTORY: THAILAND Future Energy Mix Fuel Type

Top 5 Power Producers in Thailand Target additional capcity by 2031

Renewables

14,580 MW

Cogeneration

6,476 MW

Combined Cycle

25,451 MW

Coal

4,400 MW

Nuclear

2,000 MW

Gas Turbine

750 MW

Power Purchase from neighbouring countries

8,623 MW

Total

55,130 MW

Company

Coal

Gas

Solar

Wind

Hydro

Total

EGAT

4699 MW

6866 MW

1.01 MW

2.5 MW

3436.18 MW

15,010.13 MW

EGCO

717 MW

3010.8ME

74 MW

N/A

N/A

4,707 MW

Ratchaburi

N/A

4490.05 MW

23.98 MW

74.4 MW

N/A

4,588.43 MW

Gulf Electric

N/A

1,822 MW

N/A

N/A

N/A

1,822 MW

745 MW

2284 MW

1.55 MW

N/A

152 MW

3,182.55 MW

Glow Suez

*Based on current operational capacity in Thailand only*

*Figures as per EPPO PDP2010: Rev 3

Top Projects Under Development Type of Plant Top 3 Major Plants due to come online in the next 2 years

Top 3 Coal Plants under development

Top 5 large combined cycle plants under development

Top 3 Cogeneration plants under development

Top 3 Solar plants under development

Top 3 Biomass plants under development

Top 3 Hydro plants under development

Top 3 Wind Farms under development

Developer

Plant Names/ Location

Origin

Fuel

Capacity

COD

EGAT

Wang Noi

Unit 4 Expansion

Gas

769 MW

2014

EGAT

Chana

Unit 2 Expansion

Gas

782 MW

2014

Gulf Electric

Nong Saeng

New Plant

Gas

2x800 MW

2014

Thailand NPS

National Power Supply

New Plant

769 MW

2017

EGAT

Mae Moh

Unit Replacement

782 MW

2017

EGAT

Krabi

New Plant

2x800 MW

2019

EGAT

North Bangkok

Expansion

850 MW

2015

Gulf JP

U-Thai

New Plant

2x800 MW

2015

EGCO

Khanom

New Plant

900 MW

2016

Gulf, EGCO, EGAT, Glow

Thailand IPPs competitive

5 x New Plants

5x900 MW

2021 onwards

Amata, IRPC

Gas plant bid

EGAT

Bang Pakong

Replacement Unit

900 MW

2021

Gulf JP

Hitech Cogeneration

New Plant

120 MW

2018

Gulf JP

Thai Energy Generator

New Plant

120 MW

2018

Amata B Grimm

Pathun Thani

New Plant

110 MW x 2

2015

SPCG

Khon, Kaen, Korat, Surin, Nakhorn, Rachasrima

New sites and expansion

25 x 7.46 MW

2013

Bangchak Petroleum

Ayuttaya Phase III

Expansion

48 MW

2014

EGCO (Solarco)

Nakhonpathom & Suphanburi

New Sites

57 MW

2016

Thailand NPS

Prachin Buri

New Plant

Palm Oil Cake, Bagasse

125 MW

2013

Seema Energy

Nakhon Rachasrima

New Plant

Giant King Grass

90 MW

2014

Thai Polycons

Various locations

New Plants

Rice Husk & Bagasse

4x9.5 MW

2016

EGAT

Lam Ta Khong

Expansion

500 MW

2017

Ratchaburi, KOWEPO, LHSE and SKEC

Xe-pian Xe-Namnoy (Laos)

New Plant

410 MW

2018

CH Karnchang Public Co. Ltd

Xaiyaburi (Laos)

New Plant

1285 MW

2019

Wind Energy Holdings

Korat Province

New Site

207 MW

2013

Natural Energy Development

Nahkon Ratchasima

New Site

20 MW

2016

Pro Ventum International

Thep Sathit Farm

New Site

90 MW

Delayed

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REGULARS

Country Directory:

China China & Energy: Fast Facts China is the

World’s largest consumer of Energy

342 GW by 2015

The China Electricity Council plans to increase hydro capacity to 342 GW by 2015

1,073 GW

China ‘s installed capacity

Did you Know? The Chinese government set a target to raise renewable power to 11.4 percent of the energy mix by 2015, and to 15% by 2020

Did you Know? China is the world’s biggest producer of coal, and nearly half of all coal is consumed there

25 GW by 2020 China aims to increase solar power capacity to 25 GW by 2020

94 POWER INSIDER MAY / JUN 2013

China’s Energy Mix (GW)

12%

In 2012, China’s GDP grew by 9.3%, and power generation grew by 12%

108.8 million tons China produces 108.8 million tons of carbon emissions per year

In 2012, China completed the

world’s largest hydropower facility The Three Gorges Dam

2,390 GW? FACTS Global Energy expects installed capacity to double to 2,390 GW by 2030

100 GW by 2015 The NDRC aims to increase wind capacity to 100 GW by 2015

70 GW by 2020 China plans to boost nuclear capacity to 70 GW by 2020

Gas

8.1 GW

Oil

2.1 GW

Coal

740.3 GW

Solar

7 GW

Wind

75.5 GW

Nuclear

13.8 GW

China’s Power Industry National Energy Administration (NEA)

Key energy regulator. Approves new projects, sets domestic energy prices, and implements government energy policies.

The Big Five Power Producers:

China Huaneng Group, China Datang Group, China Huandian, China Guodian Power and China Power Investment These power producers are state owned but privately listed, and generate around half of China’s electric. The other half is generated by IPPs, often in partnership with SOE’s. A small number of foreign IPPs have a presence in China.

Two main T&D companies:

The China Southern Power Company and the China State Grid Corporation, who operate China’s seven power grids through a number of regional subsidiaries.


CN

Top 5 State Owned Power Producers

Company

Thermal

Wind

Solar

Hydro

Biomass

Total (GW)

China Huadian Corporation

27,934

741

10

1,108

25

29.7

China Guodian Corporation

70,250

5,345.2

-

6,376

54

82

China Datang Corporation

32,360

1,268.6

30

4,825.6

-

38.5

Huaneng Power International

62,642

99

-

15

-

62.7

17,572

-

-

4,698

-

China Huaneng Group

125.38

China International Development China Power Investment Corporation

22.2 80

* China’s SOE’s, their energy mix and capacities. Figures from company websites and range from 2009- 2012.

Top 5 Wind Turbine Manufacturers Company

Key Products

Dongfang

Dongfang have installed 6.9 GW of turbines. Key products include WTG sets with unit capacity covering 1MW, 1.5MW, 2MW, 2.5MW

Shanghai Electronic Wind Company Ltd

The successful launch of the currently China’s biggest wind turbine – W3600W2000 SeriesW1250 Series

Sinovel

Sinovel have installed 12,989 MW of turbines. Key products include 5MW and 6MW turbines, and the SL6000 series wind turbine

Goldwind

Goldwind have installed 15GW of turbines, including 1.5MW PMDD and 2.5MW PMDD

Ming Yang Wind Power Group

2.5-6mw turbines, 1.5MW, 2.0MW and SCD 2.5/3.0MW

*All info from companies direct, figures range from 2011-2013

Top 5 Wind Projects Operator

Location

Capacity (MW)

Turbine Manufacturer

Investment Value (Rmb)

Xinjiang Huaran Oriental New Energy Co. Ltd

Xinjian Uygar Autonomous Region

200 (67x3)

Ming Yang

824m

Lushan Wind Power Project

China Longyuan

Anhui Province

49.5 (33x1.5)

Envision

446m

Wanshengyong Wind Power Project

Datang

Hebei

150 (75 x 2)

XEMC Windpower Co., Ltd

Under construction

Binhai Offshore Concession Project

Datang

Jiangsu, Yancheng, Binhai

300 (100x3)

Sinovel

7000m

Ningdong Wind Power Phases V & VI

Huadian

Ningxia Hui Autonomous Region

99 (2x33x1.5)

Shenyang China Creative Wind Company

472.7m

Project Name Yandun No.6 Wind Power Farm

*All info from companies direct, figures range from 2011-2013

Nuclear: Installed Capacity Company

Capacity (MW)

Operator

Daya Bay 1&2

944

China General Nuclear Power Group

Qinshan Phase I

298

China National Nuclear Corporation

Qinshan Phase II, 1-4

610

China National Nuclear Corporation

Qinshan Phase III, 1&2

650

China National Nuclear Corporation

Ling Ao Phase I, 1&2

2938

China General Nuclear Power Group

92 POWER INSIDER MAY / JUN 2013

Tianwan 1&2

990

China National Nuclear Corporation

Ling Ao Phase II, 1&2

1020

China General Nuclear Power Group

Ningde 1

1020

China General Nuclear Power Group

Hongyanhe 1

1000

China General Nuclear Power Group – China Power Investment Corporation

Total Capacity

13,842

*Data from World Nuclear Association

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COUNTRY DIRECTORY: CHINA Top 5 Nuclear Plants Project Name

Operator

Capacity

EPC

Equipment Suppliers

Construction Value (Rmb bn)

Operational

Sanmen 1 & 2

CNNC, CPIC, Huadian

2 x 1,250 MW AP1000 Reactors

Westinghouse

Doosan Heavy Industries, China First Heavy Industries, Harbin, MHI

40

2013-15

Haiyang 1 & 2

CPI, CNNC, Guodian, Huaneng

2 x 1,250 MW AP100 Reactors

Westinghouse

MHI

40

2014 and 2015

Taishan 1&2

CGN

2 x 1,750MW CRP-1000 units

EDF

Areva, MHI, Dongfang, DEC, Shanghai Electric, Alstom

50.2

2014 and 2015

Pengze 1&2

CNNC

2 x 1,250 MW AP1000 Reactors

CPI, CPIC

CPIC, China Power Complete Equipment, Hamon Thermal

105

2015

Yanjiang 1-4

CGN, CLP

4 x 1,086 MW CPR1000 units

CNPEC

CNPEC

70

2013-17

*Data from the World Nuclear Association/BOCI Group

Top 5 Thermal Equipment Manufacturers Company

Key Products

Shanghai Electric

GW Class Ultra Supercritical generator units. 66 units have been commissioned and built since 2006. Serves as the EPC for gas and IGCC projects, and manufacture all supporting equipment.

Harbin Power Equipment Co. Ltd

GW Class Ultra Supercritical thermal equipment. Serves an EPC for gas and IGCC projects, using imported technology.

Dongfang Electric Corporation

Has an annual manufacturing capacity of 30,000 MW. 600MW Supercritical CFB boiler, has just completed first operation in Sichuan Baima demonstration plant. It is China’s first supercritical CFB boiler. Can supply gas turbines and combined cycle equipment up to 270MW.

Hangzhou Boiler Group Co

400 MW vertical and horizontal gas turbine HRSG, and 300-1000 MW thermal power and nuclear power high-pressure heater.

Alstom and Wuhan Boiler Company

This JV has the manufacturing capacity from 600 MW up to 1000MW sub-critical, supercritical and ultra-supercritical steam turbine and generators.

Top 5 Coal Projects Operator

Capacity (MW)

EPC/Equipment Suppliers

Investment Value (Rmb bn) Operational

Shizhu Coal Fired Power Plant

China Datang Corporation

2 x 350

-

3.05b, March 2014

Shanxi Zuoquan Power Plant

Huaneng Power International

2 x 600 USP

Dongfang

5.09b, Unit I complete 2012, unit II under construction

Pingwei Power Plant Phase III

China Power Development International

2x1000 USP

East China Electric Power Design

Recently approved

Fuzhou Plant

Datang International Power

2000

Guangdong Electric Power Design Institute

To be confirmed

China Power Investment Group

2000 USP

Shanghai Electric

Phase 1: 2013

Project Name

Changshu power plant

Top 5 Gas Projects Project Name

Company

Capacity (MW)

EPC/Equipment Suppliers

Operational

Hengqin CCPP

China Power Investment Group

2x390

Harbin Electric Company, Black and Veatch, GE

2013

Gaojing CCPP

China Datang Group

3x350

Harbin Electric Company, Black and Veatch, GE

2013

Yangzhou CCPP

Huadian

2x400

Jiangsu Electric Power Design Institute, Babcox & Wilcox

Under Construction

Tianjin Nanjiang Phase II Project

Huadian

900

North China Power Engineering Company Ltd

Under Construction

Shanghai Huadian Fengxian Thermal Power Company Limited

2x452

Shanghai Electric

Dec 2014 – Apr 2015

Jiangbin CCPP

96 POWER INSIDER MAY / JUN 2013


COUNTRY DIRECTORY: CHINA Top 5 Solar Panel Manufacturers Company

Manufacturing

Key Products

850 MW

Yingli produces monocrystalline and multicrystalline solar cells and has three manufacturing bases in China. Yingli also has a silicon manufacturing base in Baoding, and produces 3,000MT a year.

Suntech

2,000 MW

Suntech produce cells and modules, and are the biggest module manufacturer in the world. Suntech solar cells undergo a chemical surface micro-texturing process that improves their ability to capture light.

Trina Solar

1000MW

Since 2007, Trina Solar have shipped 4.8 GW of crystalline silicon PV modules. The company manufactures cells, wafers, ingots and modules.

Jinko Solar

1,200MW

Jinko Solar shipped 1.188GW of solar products in 2012. The company produces crystalline solar PV modules, as well as ingots, wafers and cells. Jinko Solar have just supplied 35MW of solar modules to the Tozzi Solar plant in Italy.

JA Solar

2,500MW

JA Solar shipped 1.7GW of solar products in 2012. The company also produces 2.5GW of modules annually, and has an annual wafer production of 1GW.

Yingli

*Information from company websites.

Top 5 Solar Projects Capacity (MW)

Operator

EPC

Investment Value (Rmb bn) Operation Date

Bohu, Bazhou Phase I solar power project

20

Datang Xinjiang Power Generation Company

-

251m

Golmud Photovoltaic Power Phase I

20

Datang

China TBEA SunOasis Co.Ltd

September 2012

Xuchang City Solar Project

60

China Gogreen

China Gogreen

720m, December 2015

Yulin Alternative Energy Park Solar Thermal Project

92

China Shaanxi Yulin Huayang New Energy, Penglai Electric

eSolar, China Huadian Engineering

By 2021

Phase I: 30MW

Bortala Government

JCS Solar

Phase I: 2012, Phase II 2015

Project Name

Sayram Lake Solar Park

Top 5 Hydro Projects Project Name

Capacity (MW)

Operator

Investment Value/Operation Date

Baishi Power Plant

420

China Power International

46.5 million USD

Three Gorges Dam

22,500

China Three Gorges Corporation

22.5 billion USD, 2012

Huangjinping Hydropower Station Project

850

Datang

To be confirmed

Haokou Hydropower Station Project

125

Datang

1.62 billion yuan

Shuanjiangkou Hydropower Project

20,000

Guodian

24.68 billion yuan, 2023

We want to know what you think! PI Magazine wants to know what you think of our new Country Directory feature! Did you find it useful and interesting? And what do you think of our daring new look? If you have any opinions or suggestions on this or any of our articles, or want to recommend a project to profile, contact us through Twitter and LinkedIn, or through our website: www.pimagazine-asia.com/contact-us Alternatively, email the editor: Rachael@sks-global.com

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