COGENERATION 2008 03

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• DECENTRALIZED GENERATION • MICROPOWER • EFFICIENCY • CLIMATE CHANGE • POLICY • MARKETS

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Cogeneration & On – Site Power march–april 2008

C o g e n e r a t i o n a n d O n S i t e P o w e r P r o d u c t i o n

Sear ch Is sue | Nex t P age

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Quantifying the value of global investment in CHP A distributed utility model for Europe Improved security with decentralized energy Market prospects for the CHP equipment industry Fuel cell CHP completes on-site technology suite Rural electrification and decentralized energy

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CONTENTS

contents volume 9 number 2 march–april 2008

FEATURES 19

The summary of a new report from the IEA attempts to quantify the energy, economic and environmental benefits that might result from greater use of CHP and district heating/cooling technologies. By Thomas M. Kerr

35 29

REGULARS 35

8 COMMENT 35

11 NEWS

Market prospects for the CHP equipment industry Quantified analysis of the two main drivers for CHP in countries around the world – local energy economics and policy frameworks – should yield robust projections of growth that will be very useful to the CHP industry. By Jon Slowe

6 FROM THE PUBLISHERS

Cover photograph: The reliability of the Rolls-Royce Trent gas turbine CHP plant at Whitby, Ontario, is among the best in North America

CHP – the value of greater global investment

a round-up of news from around the world

91 WADE PAGES how WADE aims to change the way the world makes electricity

95 DIARY

Gas turbine CHP O&M in practice – experience from the UK, Canada, Sweden and Germany Gas turbine-based CHP plants have been installed in many countries. Here, owners and operators of plants in four countries reveal details on performance, reliability, servicing and operational patterns. By James Hunt

an international listing of relevant conferences, exhibitions and meetings

96 ADVERTISERS’ INDEX

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CONTENTS

contents 69

FEATURES CONTINUED.... 45

Compressor washing – keeps gas turbines running like new

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One method used to keep gas turbine operating efficiencies ashigh as possible is compressor washing. This article compares online, off-line and hand washing, together with cleaning agents used. By Drew Robb

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Denmark’s Nordic Folkecenter for Renewable Energy uses on-site wind power, CHP, biomass and solar PV power. The organization sees the integrated system as a prototype for application at a larger scale. By Preben Maegaard

Improved security via decentralized energy One major challenge facing many areas of the world is the insecurity of energy supply, whether this is caused by natural or man-made means. But decentralized energy has considerable security benefits. By Jeff Bell

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A distributed utility model for Europe – by remote operation of multiple on-site cogeneration plants Europe’s utilities are under pressure to change to more liberalized and sustainable models. This may be an opportunity to transform electricity markets to incorporate ‘distributed utilities’. By Kurt Alen

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Rural electrification and renewable energy technologies – decentralized energy for remote communities

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PROJECT PROFILE 53

Rural electrification projects in the poorer parts of the world used to be achieved with diesel engine generators. These are being replaced with decentralized and renewable energy-based hybrid power systems. By Paula Llamas

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Integrated on-site renewable energy system – demonstrates a way forward for Denmark


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Fuel cell CHP unit completes suite of on-site energy technologies A California University campus has added a fuel cell cogeneration plant to its existing solar and microturbine-based on-site energy systems. The university uses all the outputs from the fuel cell plant – even the carbon dioxide. By Andy Skok


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cospp ISSN 1469–0349

GROUP PUBLISHER: David McConnell EDITORIAL DIRECTOR: Jackie Jones CO-ORDINATING EDITOR: Steve Hodgson ASSISTANT EDITOR: Sarah Wisson DESIGNER: Hanna Clements PRODUCTION MANAGER: John Perkins PRODUCTION CONTROLLER: Julie Challinor SALES MANAGERS: Natasha Cole, Russell Brooks DIGITAL SALES MANAGER: Leo Wolfert

From the Publishers s a recent conference on electricity efficiency (part of the World Sustainable Energy Days) sobering figures were presented showing Europe’s escalating electricity consumption, its curve far above the ‘business-as-usual’ projections from 1997. It’s not only in Europe that the benefits gained from the much-increased efficiency of many electrical appliances.is being cancelled out – more than cancelled out – by the sheer quantity of electrical devices that homes and businesses now use. Whether further efficiency measures can reverse the trend remains to be seen – but the vast bulk of that power still comes from low-efficiency generation. At the same time, something like 30% of Europe’s energy is used in the heating sector – and in most cases by means of inefficient use of fossil fuel. Facing current environmental and economic constraints, doesn’t it seem obvious that new capacity needs to maximize fuel efficiency and meet the need for heat as well as power? Exploring that, the International Energy Agency has just brought out a report quantifying the benefits – in terms of economy, environment and energy – that could result from greater use of CHP and greater use of district heating and/or cooling, and I’m pleased to say that the IEA’s Thomas Kerr has summarized it for COSPP (see page 19). In another broad-sweeping article in this issue, WADE’s Jeff Bell investigates the benefits of CHP and other DE technologies in ensuring security of supply. Kurt Alen shows one way this could be put into practice, describing a model some utilities are adopting, which involves opting for decentralized CHP rather than large power stations, in order to respond faster to demand and ensure a more secure supply. And taking a different approach, Jon Slowe of Delta looks at the value for equipment suppliers in tracking policy and conditions growing markets in order to set their own market strategies. In addition, we have a range of more ‘hands-on’ features. James Hunt, for instance, has been talking to owners and operators of gas turbine based CHP plants in four countries about how their plants are performing in practice – after all, as important as the theory and market potential studies may be, it’s the related implementation that the sector really wants to see.

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CONSULTING EDITOR: David Sweet, WADE ASSISTANT TO THE EDITORS: Jeff Bell EDITORIAL BOARD: Jessica Bridges (US Clean Heat & Power Association, USA) Michael Brown (Delta Energy and Environment, UK) Ihab Elmassry (Sindicatum Carbon Capital, Egypt) Jorge A. Hernández Soulayrac (Iberomericana University, Mexico) Jacob Klimstra (Wärtsilä) Sunil Natu (COGEN India) Fiona Riddoch (COGEN Europe) Member, BPA Worldwide

ADVERTISING: for information on advertising, please contact Natasha Cole on +1 713 621 9720 or Russell Brooks on +44 1992 656 608, or [email protected] EDITORIAL/NEWS CONTACT: Steve Hodgson, e-mail: [email protected] Published by PennWell International Publications Ltd Warlies Park House, Horseshoe Hill, Upshire, Essex EN9 3SR, United Kingdom Tel: +44 1992 656 600 Fax: +44 1992 656 700 e-mail: [email protected] web: www.cospp.com Published in association with the World Alliance for Decentralized Energy (WADE) and the Association of Energy Engineers (AEE)

© 2008 PennWell International Publications Ltd. All rights reserved. No part of this publication may be reproduced in any form or by any means, whether electronic, mechanical or otherwise including photocopying, recording or any information storage or retrieval system without the prior written consent of the Publishers.

While every attempt is made to ensure the accuracy of the information contained in this magazine, neither the Publishers, Editors nor the authors accept any liability for errors or omissions. Opinions expressed in this publication are not necessarily those of the Publishers or Editor.

Jackie Jones EDITORIAL DIRECTOR, COSPP

P.S. By the time you read this the first COSPP live webcast will have taken place – if you missed it you can still listen in on www.cospp.com. ‘Cleaner, quieter, greener – getting the most out of your onsite gas turbine’ has speakers Simon Minett (Delta), Ian Amos (Siemens) and Dave Schnaars (Solar Turbines).

SUBSCRIPTIONS: Copies of the magazine are circulated free to qualified professionals who complete one of the printed circulation forms included in the magazine. Extra copies of these forms may be obtained from the publishers. The magazine may also be obtained on subscription; the price for one year (six issues) is US$115 in Europe, US$130 elsewhere, including air mail postage. Digital copies are available at US$59. To start a subscription call Omeda Communications at +1 847 559 7330. Cogeneration and On-Site Power Production is published six times a year by Pennwell Corp., Warlies Park House, Horseshoe Hill, Upshire, Essex EN9 3SR, UK, and distributed in the USA SPP at 75 Aberdeen Road, Emigsville, PA 17318-0437. Periodicals postage paid at Emigsville, PA. POSTMASTER: send address changes to Cogeneration and On-Site Power Production, c/o P.O. Box 437, Emigsville, PA 17318. REPRINTS: High-quality reprints of any article from this publication are available. These can be tailored to your requirements to include a printed cover, logo, advertising or other messages. Minimum quantity 50. Please contact the Publishers for details. Printed in the UK by Williams Press Ltd on elemental chlorine-free paper from sustainable forests

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| march–april 2008 Cogeneration and On-Site Power Production


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                                                                                _______________________

                         

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COMMENT

Comment

Barrels of sunshine and wind

W

hile it is tempting to think of the traditional players in the oil industry as dinosaurs that will soon be extinct (perhaps creating oil supplies for generations in millennia to come), it is interesting that they often also seem to be the leaders at the cutting edge of new energy technology. They have the technical expertise to understand the energy business and, at $100+ per barrel, the resources to explore new frontiers, such as those in renewable and decentralized energy, with the same zeal and efficiency with which they scour the globe for hydrocarbons. While fossil fuels will continue to be the dominant component of our immediate energy future, ultimately M. King Hubbert will prove to have been correct – we will see peaks in global oil and gas production (assuming we are not already there). After all, he accurately predicted in the 1950s that US oil production would peak in 1970, and even today’s triple-digit prices will not bring us anywhere near those record levels. However, several interesting developments drive home a high-level commitment to an energy future vastly different from the past. Realizing that its oil reserves, while vast, are finite, Abu Dhabi launched its Masdar initiative and recently sponsored the first World Future Energy Summit. WADE was in attendance to witness this impressive public display of affection for renewable and sustainable energy. What is most encouraging is that this effort appears to go well beyond merely green labelling the oil business and is truly a major investment in cutting-edge technology and research. Furthermore, and most critically, the ultimate goal of this effort, once we go beyond the initial hype and fanfare, is the same as the oil business – profit. For this technology to be sustainable, it must ultimately meet investors’ ROI criteria as well as environmentalists’ aspirations. It doesn’t hurt that, in addition to being blessed with enor-

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mous oil fields, Abu Dhabi, along with the entire Gulf, has an abundance of sunshine that could, one day, prove more valuable than its oil. While many talk about moving the world beyond petroleum, it takes someone who literally has the keys to a kingdom to create a long-term future vision for the world, and be willing to invest today without concern for merely the next quarterly earnings report. For this, we owe Masdar a great deal of gratitude and our sincere hope for success. We see a similar May to September romance between the old and the new unfolding in other bastions of the oil industry such as Aberdeen, Scotland and the fields of Texas. The oil boomtown of Aberdeen is host to the All-Energy Conference, the largest renewable energy event in the UK. Throughout the west Texas landscape more than 2000 wind turbines are overshadowing pumpjacks, making Texas now the leading wind power producing state in the US, surpassing even California. I’m not sure if black is the new green or green is the new black, but there does seem to be a trend in wind and solar wildcatting. Those barrels of oil are slowly starting to fill with wind and sunshine. The industry is not moving beyond petroleum, but with petroleum – as it should.

David Sweet

Director of WADE and Consulting Editor of COSPP [email protected]



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                                                          ____________________  

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NEWS

Send your news to Cogeneration and On-Site Power Production e-mail: [email protected]

News EUROPE’S COGENERATION INDUSTRY ‘SHOULD BE MORE AMBITIOUS’

Cogeneration is a major tool in carbon dioxide reduction for Europe, and the cogeneration industry ought to be more ambitious, according to remarks made by the European Commissioner for Energy, Andris Piebalgs, speaking at a seminar on cogeneration efficiency organized as part of the EU Sustainable Energy Week. This was the first time in over a year that the European Commission addressed the significant potential of cogeneration energy efficiency, says COGEN Europe, which was cohost to the event with the European Commission and the International Energy Agency. The event focused on how Europe could double its current cogeneration capacity, bringing 20% of Europe’s electricity generation into cogeneration mode. The seminar heard Commissioner Piebalgs, IEA Deputy Director William Ramsay and MEP Claude Turmes reinforce the importance of cogeneration in achieving Europe’s energy efficiency goals. The key role of mature technologies like cogeneration was stressed and industry was encouraged to engage with the European Commission in putting together policies that will promote this energy efficiency tool. During the seminar there were calls on the European Commission to commit to a binding target of

20% for energy efficiency. It is becoming clear that without energy efficiency the renewables target cannot be met, adds COGEN Europe. Meanwhile, industry drew attention to the unequal approach at Member States level to the adoption of promotion for cogeneration; for example, the strong measures currently planned in Germany would leave energy efficiency industries in the Netherlands at a disadvantage. According to Dr Fiona Riddoch, Managing Director at COGEN Europe: ‘Of all of Europe’s tools for addressing climate change and improving energy efficiency, cogeneration has the potential to be one of the lowest-risk and most far-reaching in terms of near-term impact. Cogeneration is already delivering 10% of Europe’s electricity today and with it significant energy security, cost savings and climate benefits.’ NEW COAL-FIRED CHP AND DH PLANT FOR GERMANY

A consortium led by Siemens, comprising Austrian Energy & Environment (AE&E) and IHI of Japan, is to build a coal-fired CHP plant in Mainz, Germany. The hard-coal-fired CHP plant will have a capacity of over 800 MW and will be built at an existing power plant site. The plant will produce 200 MWth for district heating, for as many as 40,000

THE COSPP PAVILION IN MILAN There is to be a dedicated area for manufacturers of cogeneration and on-site renewable generation equipment at this year’s POWER-GEN Europe exhibition and conference to be held in Milan, Italy, on 3–5 June. The new COSPP Pavilion will gather together those equipment and services providers that wish to exhibit under the banner, creating a focus area for decentralized generation solutions alongside technologies for larger-scale,

households, and approximately 30 MWth of process steam for industrial plants in Mainz. The licensing phase is under way and construction is scheduled to commence in late 2008 or early 2009. Siemens’ scope of supply encompasses components such as the steam turbine and generator, and the electrical and I&C systems, including the associated planning, installation and commissioning. The consortium partners, the working group comprising AE&E and IHI, will supply the tower boiler, the flue-gas desulphurization plant, and other supply and disposal systems. AE&E is responsible for overall erection. Owner Mainz-Wiesbaden confirmed the contract following a July 2007 deal with Siemens covering planning, supply, erection

centralized power stations. The annual POWER-GEN Europe event is the largest of its kind in Europe, and features an extensive conference programme as well as the huge exhibition. Again, a section of the conference is dedicated to decentralized energy and cogeneration. The COSPP Pavilion has the support of WADE, the World Alliance for Decentralized Energy. More details from www.powergeneurope.com

and commissioning of the main components for the plant. The completion date for the project has been set as 2013. The value of the order for the consortium totals approximately €1 billion, with the Siemens share amounting to around half of that. CONNECTICUT APPROVES THREE FUEL CELL INSTALLATIONS

The Connecticut Department of Public Utility Control (DPUC) has given the go-ahead for projects incorporating six fuel cell-based onsite power plants from FuelCell Energy with a total generating capacity of 16.2 MW. All three projects will include DFC3000 fuel cells. The three projects approved are:

Cogeneration and On-Site Power Production march–april 2008 | 11

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Stamford Hospital – a 4.8 MW

project for Stamford Hospital will use two DFC3000 power plants in a CHP application providing lower cost thermal energy to the hospital as well as ultra-clean electricity to the utility grid Waterbury Hospital – a 2.4 MW project for Waterbury Hospital that will use one DFC3000 power plant in a CHP application. DFC-ERG Milford – a 9.0 MW project that pairs three DFC3000 power plants with a 1.8 MW pipeline turbo expander. The system will capture the heat by-product from fuel cells and use it in the turbo expander process. For FuelCell Energy, the 16.2 MW project approvals represent an estimated US $43 million in potential product sales after project developers finalize electricity purchase agreements and project financing. WAL-MART OPENS FIRST ON-SITE SOLAR PLANTS IN HAWAII

Wal-Mart Stores and SunEdison have announced completion of the first of four solar power systems in Hawaii as part of a pilot programme of on-site renewables on the islands. The 283 kW DC solar power system at the Sam’s Club, Honolulu, was financed, built and will be maintained for WalMart by SunEdison under a solar power services agreement. This rooftop system is part of a major purchase of solar power services from SunEdison and other solar power providers for approximately 22 Wal-Mart stores, Sam’s Clubs and distribution centers in Hawaii and California. Additional Hawaii locations to be installed in 2008 will include WalMart stores in Mililani and Pearl City on Oahu and in Kailua-Kona on the Big Island of Hawaii. During the first full year of production, the rooftop system will produce more than 440 MWh of solar electricity. Wal-Mart is currently testing onsite renewable energy technologies, such as wind and 12

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CHP FOR LONDON’S TALLEST RESIDENTIAL BUILDING Due for completion next to London’s Canary Wharf in 2009, the UK’s tallest residential building is to include a stateof-the-art, CHP-based community heating scheme and will thus make a highprofile contribution to London Mayor Ken Livingstone’s green capital. The CHP technology will enable the iconic Pan Peninsula development to generate its own heat and electricity on site, helping to reduce energy bills and its carbon footprint. Compared to a conventional electricity grid supply and condensing boiler technology, the CHP system is expected to cut emissions by 207 tonnes per year. The CHP system, manufactured by Manchesterbased cogeneration specialist Ener-g Combined Power, is part of a mechanical and electrical installation programme being carried out by Haydon Mechanical & Electrical for Ballymore Properties. It uses an Ener-g 135 gas-powered reciprocating engine running at 1500 rpm,

solar power generation, in its experimental stores in McKinney, Texas and Aurora, Colorado. Along with the experience from these stores, the company will use the results of the Hawaii pilot project and its solar power purchase to explore how to move forward with solar power generation at additional Wal-Mart stores, Sam’s Clubs, and distribution centers. ‘Wal-Mart’s decision to use renewable energy proves zeroemission solutions are viable right now, and that solar power is clearly part of the energy mix. We at SunEdison are here for the long

The CHP system at the Pan Peninsula development will cut emissions by 207 tonnes per year

with a synchronous generator, electrical output of 135 kW, heat output of 215 kW and acoustic enclosure. It also features onboard computer control and remote monitoring. Built on a site previously occupied by a much smaller office building, the development

will see two towers rise high over London’s skyline. At 149 metres, the larger tower will not only be the tallest residential development in the country, but also Britain’s 12th highest building. And only the Canary Wharf tower has more than Pan Peninsula’s 50 floors.

term, to support Wal-Mart in reducing its electric bills and helping lower greenhouse gas emissions immediately and for decades to come,’ added Thomas Rainwater, CEO of SunEdison. Last year, SunEdison won a solar services provider bid to develop solar energy systems for four WalMart store locations in Hawaii. Under the solar power services agreement, the company will sell all of the energy produced by the systems to Wal-Mart, as well as operate and maintain the systems. The upfront capital investment is made by SunEdison. Wal-Mart will

benefit from receiving all of the renewable energy credits associated with the energy output of the systems. SPENT GRAIN TO FUEL CHP PLANTS IN UK BREWERIES

International brewing group Scottish and Newcastle (S&N) has awarded two contracts to Wärtsilä for the supply and installation of biomass-fuelled CHP plants. The contracts are for CHP plants to be located on the premises of the company’s UK breweries in Manchester and Tadcaster.



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THINGS GO BETTER WITH … CHP – AT 15 BOTTLING PLANTS The Coca-Cola Hellenic Bottling Company, together with energy development company ContourGlobal, plans to install CHP plants at 15 of its bottling facilities in twelve countries. In a first stage, 19 GE Energy Jenbacher gas engines with a total output of 58 MWe have been ordered. GE is supplying the Jenbacher gas engine cogeneration units to ContourGlobal, which will install the systems at various Coca-Cola Hellenic Bottling Company’s sites in Austria, Czech Republic, Greece, Italy, Northern Ireland, Poland, Romania, Slovakia, Russia, Ukraine, Serbia, and Nigeria. Two installations each will be built in Italy, Russia and Romania. Fuelled by natural gas, the

units will generate electricity to meet Coca-Cola’s need for a reliable source of on-site power. The systems will also provide heat and cooling. As a result, each bottling plant will be able to eliminate an estimated 20% or more of their carbon dioxide emissions. Under its contract with ContourGlobal, GE is providing Jenbacher JMS 620 GS-N.L systems, including heat recovery from jacket water, intercooler and oil, as well as its DIA.NE XT control system for the units. The engines will be delivered at the end of 2008 and 2009, with commissioning scheduled as the plants are ready. The equipment is being built at GE’s gas engine manufacturing centre in Jenbach, Austria.

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America Karl Dungs, Inc. 524 Apollo Drive, Suite 10 Lino Lakes, MN 55014, U.S.A. Phone: +1 (0)651/792-89 12 Fax: +1 (0)651/792-89 19 [email protected] om www.dungs.com

The Wärtsilä BioPower plants will be the first power plants in the world to produce heat and power using spent grain, a by-product of the brewing process, as fuel. Each plant will have an output of 7.4 MWth and 3.1 MWe and will burn a mixture of spent grain and wood chips. The facilities are due to start operation in the first and second quarters of 2009, producing steam and electricity for the breweries’ processes and exporting excess electricity to the grid. ‘The Wärtsilä BioPower plants will enable Scottish & Newcastle to make more efficient use of residue from its beer production, cut down on waste handling and energy costs, as well as reducing carbon dioxide emissions,’ said Tauno Kuitunen, Regional Sales Director of Wärtsilä Biopower. LARGEST US SOLAR POWER PROJECT IN HIGHER EDUCATION

Chevron Energy Solutions and California’s Contra Costa Community College District (CCCCD) have completed the first phase of what is said to be the largest solar power installation ever built for an institution of higher learning in the US. The project is the highlight of a multi-facility energy efficiency and solar programme that is expected to save CCCCD more than US $70 million over 25 years. The state-of-the-art energy infrastructure upgrades – designed, engineered and constructed by Chevron Energy Solutions – make CCCCD’s three college campuses and district office more energy efficient, reliable and environmentally friendly as well as easier to manage. At the same time, the improvements are reducing the district’s energy costs and its exposure to utility price volatility. The programme includes three types of improvements, including a 3.2 MW solar power generation system comprising photovoltaic panels mounted on 34 parking canopies in six parking lots at Contra Costa College, Diablo Valley

College and Los Medanos College. The project’s first phase, at 2.65 MW, is completed; the final phase will add 534 kW later this year. The other two aspects are efficiency improvements to lighting and HVAC systems, and high-voltage electrical system replacements. The solar installation is expected to generate about 4 GWh of power each year, supplying up to half of CCCCD’s peak electricity needs. The $35.2 million project cost is being offset by about $8.5 million in rebates and other incentives administered by Pacific Gas and Electric Company under the State of California’s Solar Initiative, SelfGeneration Incentive Program and Community College Partnership Program. SPANISH STEEL PLANTS USE WASTE GASES TO MAKE ON-SITE POWER

Two steel production factories in northern Spain, that utilize waste gases from their production processes to fuel Jenbacher engine generators from GE Energy, have hit production milestones. In Bilbao, a coke oven gas plant installed at a factory operated by Productos de Fundición (Profusa) recently achieved the milestone of one million operating hours. Profusa’s breakthrough waste-gasto-energy plant, which features a dozen Jenbacher JGS 316 GS-S/N.L generator sets, produces an average of about 6 MWe in total, depending on the fuel composition. A second plant, at the Arcelor Mittal steel factory in Avilés, recently reached the 20,000 operating hours mark. This plant features a dozen Jenbacher JMS 620 GS-S/N.LC engines powering a cogeneration system that utilizes a different type of waste gas from the steel production process, called LD-converter gas. The power plant is owned and operated by Sidergás Energia, part of the HC ENERGÍA’s cogeneration and special generation division and the EDP group’s company operating in the Spanish region.



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GE’s gas engines were chosen due to their ability to burn the toxic and residual LD-converter gas both safely and efficiently, the company says. Low-calorific value LDconverter gas, which is mainly carbon monoxide, is created during the Linz Donawitz steel manufacturing process that converts pig iron to steel. This gas is used to generate 1.7 MWe per engine. FUEL CELL CHP UNIT FOR FINNISH SITE

Finnish engineering group Wärtsilä is to supply a fuel cell-based CHP unit to the Vaasa Housing Fair site in Western Finland. The fuel cell power plant, which is based on planar solid oxide fuel cell (SOFC) technology, is the first of its kind in the world, says the company. Fuelled by biogas originating from a nearby landfill site, it will initially produce approximately 20 kWe and 14–17 kWth. The Vaasa Housing Fair, to be held in July and August, is a

pioneer in the implementation of energy production processes for a restricted area. In addition to fuel cells, power and heat are to be produced with microturbines and from low-temperature heat collected from the seabed using a geothermal heating pump. Wärtsilä’s partners in the project include Sarlin Oy, Mateve Oy, Suomen Lämpöpumpputekniikka Oy, Sonera, as well as the City of Vaasa, Vaasan Sähköverkko, Vaasan Sähkö and Vaasan Vesi. The technology development is supported by close collaboration with the Danish company Topsoe Fuel Cells A/S and VTT Technical Research Centre of Finland. HOT CHOCOLATE WITH SOLAR SYSTEM

Solar Integrated Technologies has won a US $3 million order to build an integrated photovoltaic (BIPV) roofing system to be installed on a new CEMOI Chocolatier building being constructed in Perpignan, France.

‘OILCUBE’ DIESEL CHP PLANT FOR EL SALVADOR Wärtsilä has been awarded a turnkey contract by the Salvadorian electrical development group Sociedad Electrica de CEREN (SEC) for a 17.5 MWe diesel CHP plant. To be installed at Hacienda de San Andrés in San Juan Opico in the Departamento Libertad, El Salvador, the plant is due to be handed over in the third quarter of 2009. The new SEC plant, Termoeléctrica de CEREN, is the first Wärtsilä ‘OilCube’ power plant to be ordered since the introduction of the product in spring 2007, says the company. It will comprise two OilCubes, each with a Wärtsilä 20V32 diesel engine burning heavy fuel oil.

The value of the contract is approximately €12 million. The plant will include a waste heat recovery system consisting of two exhaust gas boilers capable of producing a total of 6000 kg/h of saturated steam. Electricity from the new CEREN plant will be delivered through a new electrical substation to the Salvadorian national grid through Unidad de Transacciones, which is the national entity in charge of managing the wholesale energy market in El Salvador. SEC also plans to sell part of its electricity production directly to private industrial customers. The steam will be delivered to a local industrial park to be used in industrial processes.

APROVIS Energy Systems GmbH

Your Partner for CHP Heat Recovery: • Exhaust Gas Hot Water Heat Exchanger and Boiler • Exhaust Gas Steam Boiler • Power range: 20 – 6,000 kW(th) APROVIS Energy Systems GmbH D-91746 Weidenbach / Germany www.aprovis-gmbh.de

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Tel.: +49 9826 6559 -22 Fax: +49 9826 6559 -292 email: [email protected]



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www.cospp.com The BIPV project is being managed by Urbasolar, a turnkey PV engineering company based in Montpellier and Solar Integrated’s distribution partner in France. The project is expected to generate 650 MWh of electricity per year, at €0.55/kWh, over 20 years. Stephanie Giraud, CEO of Urbasolar, stated: ‘Solar Integrated’s single layer BIPV product has a strong competitive position in France where there is a premium feed-in tariff of €0.55 per kWh for such systems.’ PV PANELS FOR SPANISH MANUFACTURER

Spain’s Endesa has signed an agreement with the J. García Carrión Group to install 770 kWp of

photovoltaic solar panels at its premises in Jumilla, in Murcia. The panels will be installed on several of the company’s roofs and are designed to blend in with the site’s architecture. The contract represents the first milestone in collaboration between the J. García Carrión Group and Endesa to promote PV in other locations in Andalusia, Catalonia, Castilla la Mancha and Rioja. Four other projects are currently being studied. Under normal conditions, investment in solar electricity generation activities can be recouped within 11 years, the company says, while solar powered plants operate at optimal levels for up to 25 years.

MICROTURBINES INSTALLED UNDER NY PLAN

Cogeneration contractor RSP Systems has completed the installation of New York’s first microturbines – from Capstone Turbine Corporation – in four locations under the city’s new rule for residential and commercial use. The machines are gas-fired and produce both heat and power. Last December, New York City implemented the country’s first standard for the safe use and installation of microturbine technology. Charles Norman of Millennium Partners, one of the locations for the installations said: ‘The microturbine is a highly efficient

source of distributed generation, and the Capstone C60 installed at our Millennium Tower Residences allows us to contribute to the mayor’s and the city’s commitment to increase the use of efficient, clean-burning, power-generation technologies.’ MORE CHP FOR UK WILTON SITE

Two projects to generate additional steam and electrical power on the Wilton International site in north-east England are taking shape. Construction work on the new gas turbine and heat recovery steam generator (HRSG) and four new packaged boilers is well underway, says site owner SembCorp Utilities.

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FEATURE

The International Energy Agency’s Thomas M. Kerr introduced the International CHP/DHC Collaborative in the September–October 2007 issue of

COSPP . Here, in a summary of a new

report1 from the Collaborative, he attempts to guide policy makers and industry by quantifying the energy, economic and environmental benefits that might result from greater use of CHP and district heating/cooling technologies.


A

t the conclusion of the Group of Eight (G8) Summit in Heiligendamm, Germany, in July 2007, the leaders developed a communiqué to summarize key messages. Among other things, the communiqué directed countries to ‘... adopt instruments and measures to significantly increase the share of combined heat and power (CHP) in the generation of electricity.’ As a result, energy, economic, environmental and utility regulators are looking for tools and information to understand the potential of CHP and to identify appropriate policies for their national circumstances. The new IEA report, CHP: Evaluating the Benefits of Greater Global Investment 1, answers policy makers’ first question: what are the potential economic, energy and environmental benefits of an increased policy commitment to CHP? It includes, for the first time, integrated global data on CHP installations, and analyzes the benefits of increased CHP investment in G8+5 countries (the G8 nations, along with Brazil, China, India, Mexico and South Africa). A second report, to be published later in 2008, will document ‘best practice’ policy approaches in the energy, environmental, utility regulatory, financial and local planning arenas that have been used to expand the use of CHP. The IEA has gathered data from around the world in order to assess the current share of CHP electricity generation of total national electricity generation. Two challenges have confronted this task:  

Not all countries systematically collect CHP data Where countries do collect data, they tend to use similar

Table 1. CHP capacities (MWe) Australia

1864

Japan

8723

Austria

3250

Korea

4522

Belgium

1890

Latvia

590

Brazil

1316

Lithuania

1040

Bulgaria

1190

Mexico

2838

Canada

6765

Netherlands

7160

China

28,153

Poland

8310

Czech Republic

5200

Portugal

1080

Denmark

5690

Romania

5250

Estonia

1600

Russia

65,100

Finland

5830

Singapore

1602

France

6600

Slovakia

5410

Germany

20,840

Spain

6045

Greece

240

Sweden

3490

Hungary

2050

Taiwan

7378

India

10,012

Turkey

790

Indonesia

1203

United Kingdom

5440

Ireland

110

United States

84,707

Italy

5890

Source: IEA data and analysis; data merged from years 2001, 2004, 2005, 2006.

methodologies. However, there is no international definition or standard to ensure that all data reported as CHP are truly comparable. The main exception to this is the EU, where there is a standard methodology across all its Member States. To address this lack of data and the differences in definition Cogeneration and On-Site Power Production march–april 2008 | 19

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FEATURE

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A number of European studies cite CHP potentials in the range from 150–250 GW and % – 40 more than a doubling of CHP capacity by 2025, n o i t giving a CHP electricity capacity share of more a r 35 e 31% n than 17%. EU CHP potential analysis is ongoing e g 30 y and will improve in the future, as the European t i c i r Union CHP Directive is implemented. The CHP t 25 c e l Directive requires member states to undertake e l 20 a comprehensive national studies of the potential for t o t f 15 CHP. 13% o e 11% r The Canadian government, in 2002,  9% a h 10 8% 8% 8% s identified a potential for CHP, under a ‘CHP 6% P 4% 5% H 5 4% 3% C Promotion’ scenario, of 15.5 GWe in 2015, around 1% 0% 12% of projected national capacity (current CHP 0 ca a n c e ia d a z i l c o K S l y n y 1 3 e ) n a ia share of generation is about 6%). U U ta i i s d n a G a g h i ra e x I f r J a p ra I n a n a u s rm r B C A Estimates of CHP potential in the US range  F R M C e S ve G (a from an additional 48–88 GW of new CHP Figure 1. G8+5 countries: CHP as a share of electricity generation. potential to 110–150 GW (excluding CHP / DHC ). Source: IEA data and analysis; data merged from years 2001, 2005, If implemented by 2015, the CHP share of total 2006. electric capacity would rise from a current level of 8% to 12%–21%. of CHP, the IEA has attempted to collect reliable and  The UK CHP economic potential study undertaken by the comparable CHP data from over 40 countries. Taking into UK government identified an economic potential for CHP account the differences in methodologies between countries of 17% of total national power generation by 2010 and the depth of research that these countries undertake, we (currently 7.5%), with a potential for an additional 10.6 GWe believe that this new data on current CHP status, as well as of CHP on top of the current level of 5.4 GWe by 2015. being the most comprehensive available, forms a solid basis for  The German CHP target was in 2007 raised to 25% (a the potential and benefits modelling discussed below. doubling of the current share) by 2020, based on a National Table 1 summarizes current estimates for global CHP Potential Study conducted by the government under the capacity for those countries where data was collected. European Union’s CHP Directive. This study also cites Figure 1 presents results from the same analysis for the G8 economic CHP potential to be up to 50% of electricity and Plus Five countries, presented in terms of the CHP shares capacity. of total national generation. In general, with the exception of Russia, CHP makes a The level of CHP development in a country relatively small contribution to electricity production in the major countries. depends on heating and cooling demands There is, however, some variety among countries, which can be explained by different national circumstances. For example: in the industrial, commercial and 

45







Germany has made more progress in incentivizing CHP, in particular based on district heating and industrial CHP Brazil, where the relative demand for residential and commercial heating is much lower, has based its electricity system on the development of large-scale and remote hydro generation. Only in recent years has a market for CHP opened up, based mainly in the industrial sector with a particular focus on bagasse-based CHP in sugar cane mills Russia, with a significantly higher share than the other countries, has a long tradition of heat supply to all sectors through DH networks linked to power plants. It has extended this energy supply m odel throughout the country.

CHP POTENTIAL – AN ACCELERATED CHP SCENARIO

CHP accounts for around 9% of global power generation. Its economic potential, however, is likely to be significantly greater. For example, the following countries have identified the potential for CHP, each using different assumptions: 20

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residential sectors In India, the additional potential for industrial CHP alone has been identified as exceeding 7500 MWe.  CHP potential in Japan for 2030 has been identified as up to 29.4 GW, around 11% of projected total capacity for that year. Given the findings of these existing and planned studies, for this analysis, a simple ‘top-down’ approach was chosen, rather than a detailed ‘bottom-up’ approach that might, for example, study specific CHP candidate sectors and assign growth rates to each, taking into account national circumstances. The ‘top-down’ approach can be compared with existing CHP potential studies which have been undertaken by some of the countries, using a wide range of different methodologies and approaches. Given the G8 ministers’ charge to enact CHP-friendly policies, the more pressing need is to estimate the potential benefits of expanded CHP use, as a way to guide these future CHP policies. 



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efficient and environmentally friendly

CHP solutions

At Aircogen we understand your business needs. We can offer you a pre-engineered, factory built and tested Combined Heat and Power (CHP) system that can deliver energy cost savings directly to your bottom line and reduce green house gas and carbon emissions. For a system optimised to your business needs contact Aircogen CHP Solutions.

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FEATURE

considerable proportion of CHP in the short-term is likely to be based on coal and used in district % – 45 heating and industrial applications. In the period n o i t 40 to 2030, greater use of natural gas and renewable a r e n 35 fuels is envisaged, with the development of e g y smaller applications providing both heating and t 30 i c i r cooling at the individual building level. In t c 25 e l France, by contrast, gas is likely to be the e l 20 a predominant fuel for CHP in the short term with t o t f 15 the share of renewable fuels growing as the o e r market moves beyond 2015. a 10 h s Different national circumstances explain the P 5 H C different results. Brazil, for example, is projected 0 l a l y n o i a a e y a a i K S 3 i z d i c c n c n a i 1 U U d a s i to remain a hydropower-based economy. It will a a t p x r G s f n I r a h n a a u A m I r r B n J e R a C F consequently have less opportunity for CHP. M C e S G Similarly, a high growth in end-use energy 2005 2015 (potential) 2030 (potential) efficiency is projected for Japan. This is an Figure 2. G8 +5 countries: CHP potentials under an accelerated CHP important reason why there is less scope for CHP scenario, 2015 and 2030. Source: IEA data and analysis investment there than in other countries where heating/cooling and electricity demand grow faster. The relatively slow growth of industrial energy demand in Mexico t n e 12000 also explains why CHP grows more slowly there. Russia, by m t s 10000 contrast, is already a heavy user of CHP and given projected e v ) n n i high energy demand growth there, CHP has a clear opportunity o 8000 l l i a i l t CHP i to expand even more widely. p b 6000 50

42%

38%

31%

29%

28%

27%

26%

25%

24%

20%

19%

19%

17%

17%

17%

16%

16%

16%

15%

15%

14%

14%

13%

11%

11%

9%

9%

8%9%

8%

6%

8%

8%

6%

5%

4%

8%

4%

4%

3%

1%

0%

a $ c e S U 4000 v ( i t a l 2000 u m 0 m u C

Non CHP T&D IEA APS

Accelerated CHP 2015

IEA APS

Accelerated CHP

2030

Figure 3. Cumulative global power sector capital costs, 2005–2015 and 2005–2030. Source: IEA data and analysis

The level of CHP development in a country depends on heating and cooling demand in the industrial, commercial and residential sectors. This demand was used as the basis for the approach taken to analyse CHP potentials: to estimate, taking into account different national circumstances, the proportions of current and future heating/cooling demand in each of the countries that could be reasonably served by CHP. The assumption underpinning these estimates was that there exists a pro-CHP policy regime (for example removing barriers to CHP and introducing targeted incentives) that corresponds to rates of CHP development that approach the rates seen over the past three decades in countries like Denmark, the Netherlands and Finland. Figure 2 shows the expected rise in CHP as a share of national electricity generation in this sort of accelerated CHP scenario. Most countries see a small increase until 2015, with a correspondingly larger growth by 2030 as policies are enacted and begin to be widely implemented. As a whole, the share of CHP rises from 11% of electricity generation today to 15% in 2015 and 24% in 2030. CHP application and fuel use will vary greatly depending on the country concerned. For example in China, a 22

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THE BENEFITS OF INCREASED USE OF CHP

To analyze the benefits of achieving the CHP potential that could be realised in the 13 countries, the IEA adapted an existing model developed by WADE (the World Alliance for Decentralized Energy). 2 In summary, the model ‘builds’ new power generation, according to user-defined preferences, to meet future electricity demand growth and to replace some capacity that already exists today, but will be retired in the future. The model thus allows the user to determine different power generation

The model allows the user to determine different power generation scenarios to meet future energy demands mix scenarios to meet future energy demands. The model then produces outputs that compare the different scenarios in economic and environmental terms. For this analysis, the model was programmed to build, and compare, two scenarios: the Accelerated CHP Scenario (ACS) described above and the IEA World Energy Outlook 2007 Alternative Policy Scenario (APS). The APS takes into account those policies and measures that countries are currently considering and are assumed to adopt and implement, taking account of technological and cost factors, political context and market barriers. The main results of the CHP benefits modelling are shown in Figures 3–5. Figure 3 compares the IEA APS with the



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s t 12 s o c 10 y t i c i r h 8 t c W e k / 6 l c e $ d ( 4 e r e 2 v i l e 0 D

) r 12000 y / t 10000 M( s n 8000 o i s s i 6000 m E 2 4000 O C 2000

Generation Fuel

Accelerated CHP 2015

IEA APS Accelerated CHP 2030

Operation & maintenance

0

Figure 4. Delivered electricity costs, 2015 and 2030 Source: IEA data and analysis

Advanced CHP Scenario in relation to capital cost investment in the electricity sector, and breaks down the overall total investment requirement in new generation capacity (CHP and non-CHP), and new transmission and distribution (T&D) system capacity. There is a 3% reduction in overall costs by 2015 (US $150 billion), which mainly represent the reduction in investment required in new non-CHP generation capacity. By 2030, these cost reductions climb to 7% ($795 billion). They are derived through: 




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T&D

IEA APS

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savings in T&D network investment – since CHP generates electricity at the point of use, the requirement for T&D is reduced as CHP market share increases savings through a significant reduction in non-CHP generation. The capital cost of new CHP investment is lower than the average capital cost of the central generation plant that is displaced (see Annex 1 for details of these and other assumptions). In addition, since greater use of CHP reduces T&D network energy losses, it also reduces the overall amount of generating capacity required to meet a given amount of demand.

The analysis confirms that CHP offers

Non CHP Mt/yr CHP Mt/yr IEA APS Accelerated IEA APS Accelerated CHP CHP 2015 2030

Figure 5. Carbon dioxide emissions, 2015 and 2030 Source: IEA data and analysis

different constituents, including T&D system investments. Overall, there is a small reduction in delivered costs to end consumers in both time periods, 1.1% in 2015 and 0.3% in 2030. Thus it appears that increased use of CHP may not lead to increased electricity prices. Note that the fuel component of the delivered costs is higher in the ACS as some non-fossil and coal central generation is displaced by higher price natural gas. This is in turn offset by lower T&D and generation plant costs. The analysis also shows that there is a reduction in fossil fuel use in power generation. These savings are in part offset by the fact that some new CHP in the ACS displaces nuclear capacity projected by the APS. In 2015, the fuel use in the ACS is 1.1% less than the APS; in 2030, the saving rises to almost 6% of total fossil fuel use in the 13 countries. This reduction in fuel use leads to significant cuts in GHG emissions arising from new power generation. Figure 5 shows the comparison between the two scenarios for carbon dioxide emissions arising from the new power capacity. In 2015, in the ACS, CO 2 emissions arising from new generation are reduced by more than 4% (170 Mt/year), comparable to around 40% of the EU-25 and US Kyoto targets (the difference between 1990 Kyoto base year emissions and the respective targets), while in 2030 this saving increases to more than 10% (950 Mt/year).

significant benefits and should be an essential strategy for a lower carbon, more

This is comparable to: 

efficient energy future 

It is sometimes claimed that CHP, and other low-carbon decentralized energy solutions, will result in an increase in energy costs for consumers. The impact of CHP market growth on delivered electricity costs was therefore assessed. Figure 4 compares delivered electricity costs to the end consumer for the two scenarios. The overall cost is again divided into the

the annual emissions arising from 140 GWe of coal-fired power plants operating at a load factor of 80% one and a half times India’s total annual emissions of CO 2 from power generation.

Figure 6 gives an indication of the contribution that CHP can make to achieving global climate stabilization. The World Energy Outlook APS already makes an important start toward bridging the gap, and therefore includes a degree of CHP market growth above and beyond what exists today. The

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Some key conclusions include:

) 2 O C t n o i l l i b ( s n o i s s i m E

50 45 40 35 30 25 20 15 10 5 0

 CHP

2005

2015

WEO reference WEO high growth 450 stabilisation case

2030 WEO alternative policy CHP potential

Figure 6. Contribution of CHP to a 450 ppm stabilization scenario. Source: IEA data and analysis

Accelerated CHP Scenario demonstrates a possible additional contribution that CHP can make towards stabilization. CONCLUSIONS AND NEXT STEPS

The analysis confirms that CHP, including CHP/DHC, offers policy makers and industry significant benefits, and should be an essential strategy as we investigate paths toward a lowercarbon, more efficient, lower-cost and reliable energy future.

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can reduce CO 2 emissions arising from new generation in 2015 by more than 4% (170 Mt/year), while in 2030 this saving increases to more than 10% (950 Mt/year) – equivalent to one and a half times India’s total annual emissions of CO 2 from power generation. CHP can therefore make a meaningful contribution towards the achievement of emissions stabilization necessary to avoid major climate disruption. Importantly, the near-term reductions from CHP can be realized starting from today and as a consequence of the economic benefits, offer substantial opportunities for low- and zero-cost GHG emissions reductions.  Through reduced need for transmission and distribution network investment, and displacement of higher cost generation plant, increased use of CHP can reduce power sector investments by $795 billion over the next 20 years, around 7% of total projected power sector investment over the period 2005–2030.  If the energy saving and capital cost benefits of CHP are allocated to its electricity production, growth in CHP market share can slightly reduce the delivered costs of electricity to end consumers. This is contrary to the common view that CHP and other decentralized low-carbon solutions result in higher electricity costs to consumers.  The specific potential identified for each country varies widely depending on different national circumstances and opportunities. For example, Brazil, a largely hydropowerbased economy, is not expected to see such high growth as Germany, which is likely to be more dependent on fossil fuels and biomass. More work is needed in the Plus Five countries (Brazil, China, India, Mexico, South A frica) in particular to analyse the potential for CHP expansion.

Why is there not more CHP/DHC if the economic and environmental justifications are so strong? This report provides a projection at the global level of the potential benefits that a more deliberate investment in CHP could deliver. However, it is only one piece of the puzzle. The conclusions above beg the question: ‘why is there not more CHP/DHC if the economic and environmental justifications are so strong?’ One of the key challenges is that many projects look favourable ‘on paper’; that is, when analysed in isolation from existing market and regulatory practices. However, in practice, the adoption of these technologies has historically been limited by important barriers, including:

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lack of integrated urban heating/cooling supply planning electricity grid access and interconnection regulations lack of knowledge about CHP benefits and savings the lack of an agreed methodology to recognize energy saving and environmental benefits.



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The International CHP/DHC Collaborative The International CHP/DHC Collaborative was launched in March 2007 to help evaluate global lessons learned and guide the G8 leaders and industry as they attempt to assess the potential of CHP as an energy technology solution. The Collaborative includes the following activities:   

 

collecting global data on current CHP installations assessing growth potentials for key markets developing country profiles with data and relevant policies documenting best practice policies for CHP and DHC convening an international CHP/DHC network, to share experiences and ideas.

Clean air – essential for people and machines

For more information, please visit www.iea.org/G8/CHP/chp.asp.

A few countries have been successful in increasing the use of CHP and DHC by investing in a comprehensive set of policies designed to overcome market barriers and allow them to compete equally in the marketplace. These countries and others will need a closer look as policy makers attempt to find solutions and models that are suitable for their unique circumstances. The IEA’s International CHP/DHC Collaborative is working on these issues (see box). CHP: Evaluating the Benefits of Greater Global Investment is the first of two reports; the second will be published later in 2008 and will include lessons learned from policies summarized from a series of case studies covering key energy, environment and utility regulatory/planning approaches that have been taken in different countries. The next report will also include a list of priorities for different regulators that are interested in implementing more advanced policies.

S e e u s a P o we r G t e n I nd i a & E u I r an r i a n o e , p O i l & G & W T UI U S a s , A

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Thomas M. Kerr is a Senior Energy Analyst at the IEA, Paris, France. e-mail: [email protected]

Camfil Farr Power Systems (CFPS) REFERENCES 1. Combined Heat and Power: Evaluating the Benefits of Greater Global Investment, IEA, 2008. 2. WADE, www.localpower.org

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Q: Looking for the expert opinion on international CHP market prospects? A: Delta’s new CHP Policy & Markets Service The Delta view of future CHP market trends and opportunities  From experts with over 50 years of CHP experience  Clear analysis based on in-depth research  More than a report – an ongoing, relationship-based Service 

Contact: Sytze Dijkstra: +44 131 476 4259, [email protected]

Delivering Expertise in Decentralised Energy Markets www.delta-ee.com

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Market prospects

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A careful and quantified analysis of the two main drivers for CHP in countries around the world – local energy economics and policy frameworks – should yield robust projections of growth that will be very useful to the CHP industry. Jon Slowe presents just that.

Market prospects for the CHP equipment industry

W

hich of these possible headlines for 2013, just five years from now, do you think will be closest to the truth? Will it be: ‘Demand for cogeneration systems has tripled in several markets over the past five years. Equipment manufacturers that positioned themselves for this growth have seen big increases in sales’ or perhaps ‘Cogeneration markets have been largely stagnant over the past five years. What growth there has been has been patchy at best, limited to a tiny handful of major markets.’ Readers will have different views based on their own opinions, experiences, and whether they are, at heart, an optimist or pessimist – but the drivers of future cogeneration market activity can be broken into two fundamental building blocks. 



Spark-spreads – the gap between fuel and power prices. (The term ‘spark-spread’ as used in this article refers to the income of a power plant from selling a unit of electricity, having bought the fuel required to produce this unit of electricity). The CHP policy framework – including incentives and barriers.

Delta’s recently launched CHP Policy & Markets Service analyses these twin building blocks, giving views of future market activity based on rigorous research and long experience of CHP markets. Countries covered in this first phase of the Service are: Germany, Italy, Spain, UK, Belgium, Czech Republic, Hungary, Poland, China, India, Russia and South Korea. This article explores these building blocks and how they relate to future market activity in a selected number of countries, before revisiting the two headlines. Economics is the overarching issue that determines all

cogeneration investment decisions. While the first building block, spark-spread is the primary determiner of economics, policy can tilt the playing field towards, or away from cogeneration and can be a huge influence on CHP economics. Policy is important in two ways: 



determining subsidies, incentives and market frameworks – for cogeneration and other forms of power generation creating and removing barriers to CHP market development.

EXAMPLES FROM EUROPE

Take Germany, for example. Power prices are rising on the back of tightening reserve margins. There is strong demand for new power capacity to replace ageing plant – 60 GW of capacity operational in 2000 will need to be replaced by 2020, and as much as 90 GW (75% of all capacity) by 2030. But what slice of this new capacity will cogeneration secure? Government policy will heavily influence overall market share in the future. According to our analysis, without further policy support the prospects for cogeneration in Germany are not good. For example, taking into account only existing incentive measures currently in force (mainly the Ecotax exemption on natural gas for CHP projects), the economics of a 5 MW gas turbine CHP plant are not compelling, with internal rates of return of 3% at best – far too low for developers and investors. As another example, for a 2 MWe gas engine CHP project, based on no incentives at all, the simple project payback is 10.5 years. Factoring in the value of the current incentive regime, this falls to 5.8 years. But the picture may be turning considerably rosier in the future. The Government is proposing a comprehensive support package for industrial cogeneration, with funding of some €800 million per year. Cogeneration and On-Site Power Production march–april 2008 | 29

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Market prospects

Table 1. Internal rates of return (IRR) and simple paybacks for CHP in Germany. (Note that the risks associated with building and operating a CHP plant are not included in this analysis). Technology

Capacity

IRR with existing

IRR with existing

Simple payback

Simple payback

Simple payback

support measures

and proposed

without any

with existing

and proposed support (Yrs)

(%)

support measures (%) support (Yrs)

support (Yrs)

Gas engine

2 MWe

18.2

31.4

10.5

5.8

4.7

Gas turbine

5 MWe

2.9

12.5

-

12.1

8.0

Gas turbine

400 MWe

18.0

40.3

15.3

5.4

3.8

Delta Energy & Environment 2008

Table 2. Summary and rating of UK support mechanisms for CHP Support mechanism

Eligibility

Economic value

Future prospects Expires in 2013

Climate Change

Good quality (GQ)

Up to €6.24 per MWh

Levy Exemption

CHP plants

[but generally less]

Enhanced Capital

GQ CHP plants, except

100% of investment in

Allowances

utility-owned CHP plants

generating equipment related

Delta rating





Under revision, possibly

to CHP installation can be

being extended to utility

written off in year 1 against

CHP from 2011

taxable profits EU ETS National

GQ CHP plants



Allocation Plan Delta Energy & Environment 2008

The precise details of this support are being ironed out, but it is likely to take the form of a 1.5 eurocents/kWh bonus price on all qualifying CHP electricity produced, increasing the IRR for the 5 MW gas turbine CHP from 3% to 12%. And with the additional impact of proposed new pro-CHP legislation, payback for the 2 MW engine falls from 5.8 to 4.7 years. Table 1 summarizes the IRRs and paybacks for some of the CHP system sizes that Delta has modelled. Clearly, the prospective bonus payment for CHP electricity produced, together with existing Ecotax exemption, will make CHP investments more attractive to many end users. We expect CHP to be well placed to secure a sizeable share of new power generation investment in the German market – depending on the precise details of the new policy incentives. The impact of policy in Belgium, and the extent to which it can overcome generally poor economic conditions, is also substantial. Figure 1 summarizes the recent spark-spread trends in the country for a range of CHP plants. While spark-spreads appear to be on the rise again in the second half of 2007, they are insufficient to make the case for CHP investment a compelling one. However, powerful incentives are in place in the Belgian market, helping to make it one of the most dynamic CHP markets in Europe. Consider the payback period for a typical 15 MWe gas turbine in Flanders. Without accounting for the effect of any of the existing incentives, project payback exceeds 30 years. But with current support this drops dramatically to about one year. There are similar impacts for other types of CHP project in Flanders, while Wallonia has a strong incentive system of its own, particularly so for smaller projects. These incentives explain why the CHP market in Belgium is so buoyant. Given the track record of regional governments in the country and the secure time-frame for existing incentives, we expect attractive market conditions to remain in place for several years at least. 30

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40.00 35.00 30.00 h W M25.00 / €

20.00 15.00 10.00

2006-1

2006-2

2007-1

2007-2

400 MWe (gas turbine)

4 MWe (gas engine)


2 MWe (gas engine)


300 kWe (Gas engine)

Figure 1. CHP spark-spreads in Belgium, 2006 and 2007 Delta Energy & Environment 2008

In strong contrast to the Belgian market, there are very few policy incentives in place in Italy, and the feed-in support for CHP under 10 MW was recently abolished (and, for some market segments, project-breaking barriers exist). But the sheer size of the spark-spread means that Italy does have a healthy CHP market. The country is an example where the policy is a weak driver, but the spark-spread is a strong one. At a European Union level, the 2004 Cogeneration Directive has led some Member States to take serious steps to introduce pro-CHP policy that overcomes an otherwise unattractive sparkspread environment. In 2007, the Spanish Government not only published its CHP potential study for the Directive, but it chose to combine this with an energy strategy that strongly stressed the importance of CHP. A series of CHP feed-in tariffs for CHP has been established, which we believe will drive rapid market growth, especially in small building-scale CHP. High gas prices over the past few years have left this sector so far unexploited, but



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60 50 h 40 W M / �30

20 10 0 2005-2

2006-1

2006-2

2007-1

2007-2

400 MWe GT

20 MWe GT

2 MWe GE

50 MWe GT

4 MWe GE

300 kWe GE

Figure 2. UK spark-spread trends, 2005–2007 Delta Energy & Environment 2008

with the new support interest in this market is growing fast. The UK presents quite a different picture with a weak policy regime for CHP compared to many other markets. Our insight into UK government decision making gives us little confidence that, in the short term, decision makers will open their eyes to the potential prize of some significant low-cost carbon savings that cogeneration could bring. Table 2 presents Delta’s policy rating of

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existing CHP incentives in the UK. We therefore expect the industrial cogeneration market to remain largely flat, although do see some opportunities in some sectors – such as gas engines for district heating, a growing interest in biogas and the possible emergence of the market for residential micro-CHP. And a recent government focus on reducing carbon emissions from the heat sector may result in greater policy incentives The one factor that may override this poor policy environment, similar to Italy, is spark-spread. Analysis of UK CHP sparkspreads shows upward trends that are bringing some CHP sectors firmly into economic reckoning. Figure 2 highlights these trends. CHINA – A MASSIVE POTENTIAL MARKET

Looking further afield, China is self-evidently a massive potential CHP market – but current market activity for natural gas-based CHP is restricted to little more than a handful of demonstration projects. State-wide pro-CHP policy is virtually absent, though a handful of cities and regions take more interest. Indeed, the policy environment is characterized more by adversity than incentive. Current interconnection requirements in many parts of China are a source of headaches for smaller CHP systems. The second critical building block, the spark-spread, is extremely shaky – even where natural gas is available for CHP.

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Market prospects

New supply has been slower to be introduced than originally projected; what’s more, in some cities and regions where there is supply, there remains a policy preference for gas use in conventional CCGTs than on-site CHP. For both supply and price reasons, therefore, gas-fired CHP is struggling to compete in many cities with coal-based grid supply. The best CHP opportunities in the short-to-medium term lie in locations close to the long-distance west-east gas pipelines (particularly further west), and in biogas applications and coal bed/mine methane – this latter option has been a popular target over the past two to three years. In the long run the Chinese natural gas CHP market is likely to be one of the world’s largest; possibly the largest. But the timing of the opportunity will require very close market scrutiny to predict correctly. CHP equipment suppliers and developers will have to track developments in the Chinese market with care to make sure they get a piece of the action. SLIGHTLY TOWARDS OPTIMISM

What does this tell us about the two headlines laid out at the beginning of this article? Analysis of this question depends on assessment of the two building blocks. We see these building blocks stacked very differently across the 12 major markets considered in Delta's CHP Policy & Markets Service. Some markets, such as Belgium and Italy, show healthy activity today across many CHP market segments. Others, such as Germany and Spain, show signs of take-off in the near future. China is not a great

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short-term bet, but Russia (another country covered by the Service) is already buoyant and we expect it to become increasingly interesting for CHP and on-site generation markets. Readers looking for a single answer to our choice of two headlines will be disappointed. But, if we had to pick between the two options, we would currently veer slightly towards the more optimistic headline. We expect the number of active CHP markets to increase over time due to two factors: the growing need for new power generation capacity in many markets; and government drives to reduce carbon emissions resulting in supportive CHP policies. This will help CHP to access a growing share of the growing power generation market. One point is clear. This is a crucial time for CHP equipment manufacturers and project developers to track current market activity and to have a deep understanding of how markets are likely to develop. Those that do so successfully, and are nimble enough to respond rapidly to changing market conditions, will best reap the rewards of expanding global CHP markets.

Jon Slowe is a director at Delta Energy & Environment, Glasgow, Scotland, UK. e-mail: [email protected] Delta recently launched its CHP Policy & Markets Service.


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Gas turbine CHP O&M in practice

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CHP plants based on one or more gas turbines have been installed in a wide variety of applications in many countries. But what are these plants like to operate? James Hunt talks to owners and operators of plants in four countries to find out about performance, reliability, servicing and operational patterns

Gas turbine CHP O&M in practice experience from the UK, Canada, Sweden and Germany

A

nywhere that you find industrial-scale CHP plants, and even some CHP plants serving buildings, you will find gas turbines – as well as the other main prime mover used for CHP, reciprocating engines. Gas turbines are manufactured by a small number of truly international companies, and have been applied in countries around the world. This article looks at the operation of turbine-based plants in Canada, Sweden and Germany – but starts with a look at one UK operator. Cogeneration (CHP) plants now generate more than 6% of the UK’s total electricity needs. By 2010, as part of its climate change strategy, the UK Government expects the CHP capacity in the UK to increase to 10 GW. Despite the fact that properly designed and operated cogeneration plant can reduce a plant’s total fuel consumption by 12% or more, some plant owners say that, without greater incentives from government, building new CHP plant in the UK today is simply not economically viable. Bearing these points in mind, what is it like to operate gas turbinepowered cogeneration plant? Take E.ON UK CHP, which owns and operates the cogeneration interests of E.ON UK, the leading German-owned integrated power and gas company. Cogeneration is important to E.ON, as it is part of the company’s low carbon strategy and, as one of the largest owners of a wide range of power generation plant in the UK, it has invested over £480 million (US $941 million) in 14 UK CHP schemes. These collectively provide more than 577 MW of electricity and 948 MW of heat. The plant is quite varied. At the smaller end of the scale is the £3.5 million (US $6.7 million) CHP scheme in Bradford. This provides electrical power and up to 25 tonnes of steam/hr

The Rolls-Royce Trent gas turbine powered CHP plant at Whitby, Ontario. Its reliability is now ‘in the top bracket for North America’

to chemical processing company AH Marks under a 20-year contract period. The scheme comprises a 4.5 MW gas turbine plus supplementary/auxiliary fired waste heat recovery boiler, fired to match site demand without needing the standby boilers. Another plant generates 25 MW of electricity and over 90 MW of steam (70 tonnes/hr for manufacturing processes from four waste heat boilers) for ConocoPhillips’ modern Humber refinery. The CHP plant, in this case, is owned by Cogeneration and On-Site Power Production march–april 2008 | 35

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ConocoPhillips, but is operated and maintained by E.ON. It comprises four gas turbines with back-up systems to ensure continuous running, even when primary gas supply is unavailable. At the other end of the scale, the CHP plant in Northwich, Cheshire, is one of the largest in the UK, and can supply 500 tonnes of steam/hr, plus 130 MW of electricity to two Brunner Mond soda ash works. The main CHP plant consists of two gas turbines, two heat recovery boilers and a steam turbine. Stand-by boilers provide supply security. Colin White is E.ON UK CHP’s maintenance and planning manager. He said that the company’s cogeneration business is 95% gas turbine powered, and that some of the plant dates back to PowerGen days. All are still running reliably, but several no longer run in cogeneration mode because their original customers have gone out of business or changed their requirements. These plant now run combined cycle to the grid – the 56 MWe GE LM6000PD-powered Castleford CHP plant is just such a case. E.ON’s various CHP plant use gas turbines from several manufacturers. These include GE LM6000s and GE Frame 6Bs, Rolls-Royce RB211 aero-derivatives, Siemens SGT 800s, plus Siemens Tornados and Typhoons. He also said that aeroderivative machines, being smaller and rotating faster, need a higher standard of maintenance. Even so, said White, any problems tend to come from the package (for example the lube oil systems, pumps, valves and the like) rather than the gas turbines themselves. The main air filters must typically be replaced every three years, and the pre-filters annually. Electronic monitoring of inlet-differential pressure changes over each stage keeps an eye on filter condition to maximize turbine performance and life. In any case, the company is gradually replacing existing air filters with Class H types, which increase efficiency, reduce carbon emissions and help keep down time to a minimum. The company’s CHP plants are natural gas-fuelled, though some have a distillate gas back-up capability. This may change in the future, as rising natural gas prices can significantly affect

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The Kemsley CHP plant – one of 14 operated by E.ON UK CHP

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Inside another E.ON CHP plant (Speke, Merseyside, UK). The company says it has great expertise with the maintenance requirements of larger industrial gas turbines

profitability, depending on whether the supply contract is base rate or fixed-rate based. There is one exception, that of the CHP plant supplying the ConocoPhillips Humber refinery. Its four Typhoon/Tornado gas turbines burn refinery distillate gas. Some E.ON plant uses biofuels, but not the CHP plant. The company generally prefers to incorporate bio-fuelling into larger new plant, rather than retrofit. There have been a few fuel problems caused by high sulphur content; but, this is believed to have been caused by insufficient gas pre-heating, and is being addressed. The plants use heat recovery steam generators (HRSGs), usually made by the turnkey plant manufacturers. Auxiliary / supplementary firing is usually used to take account of varying demand, so increasing plant flexibility. The HRSG equipment has been very reliable, reports Colin White. They don’t even need much cleaning with natural gas as the fuel. However, he said, if a plant is frequently cycled for supply flexibility, there can be a higher incidence of tube and header leaks. E.ON has great expertise with the maintenance requirements of larger industrial gas turbines, said White, and ‘we sometimes challenge the OEMs about maintenance and other issues. We now often use third party manufacturers too’. He pointed out, though, that CHP plant using aero-derivative gas turbines can be more demanding of OEM expertise, and ‘we may defer to them in the short term, but are working towards an independent strategy, similar to our fleet of larger gas turbines’. Finally, while cogeneration is important to E.ON, new plant is not currently being built because there is little incentive from government. It is not commercially viable, even though the plant itself is highly thermally efficient. E.ON, and other power firms, continue to lobby the UK government. SUCCESSFUL CHP INTRODUCTION FOR ROLLSROYCE’S TRENT

The first industrial application for the Rolls-Royce Trent gas turbine was for a 51.2 MW baseload cogeneration plant in Whitby, Ontario, Canada, for Whitby Cogeneration. Installed in



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     

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     

Two OP16-3 gensets in operation in Russian oil field

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OPRA Americas: Phone: +1 2815968507 Fax: +1 2815968574

E-mail [email protected], www.opraturbines.com

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Long-term servicing Long-term service agreement (LTSA) contracts typically include an availability guarantee with liquidated damages applying if the gas turbine genset falls short in any year the LTSA applies. Typically, the gas turbine manufacturer will have responsibility for the overall maintenance of the gas turbine package, with the plant operator (and often the owner) covering all maintenance on the balance of plant. The number of plant service personnel will vary according to the size and complexity of the plant. Typically, however, for a plant of around 50 MW, it might be 10 experienced staff, some of whom can fill in for each other if required. In addition, there will be around four operators and three maintenance technicians, for balance-of-plant servicing, plus supervisory operators on site at all times. These employees will operate the plant, carry out routine maintenance services, and supply the on-site manpower for scheduled and unscheduled gas turbine maintenance events, as well as engine installation and removal – the latter under the supervision of the gas turbine’s manufacturer. A typical major gas turbine overhaul involves stripping down, followed by inspection of combustors, nozzles, guide vanes, compressor blades and discs, turbine blades and discs. Replacement or refurbishment of such components is carried out as required, either because of normal wear, or damage, or in terms of lifelimit restrictions.

1998, the engine used is a natural gas-fired Trent 60. The Trent, designed for both the peaking and baseload markets, is an aeroderivative development of the RB211 family, delivering over 70,000 hp at up to 42% efficiency. It sets, says Rolls-Royce, a ‘new benchmark for fuel economy, and it meets stringent NOx and CO requirements. In addition to operating synchronously at 3000 or 3600 rpm for the 50 or 60 Hz power generation market, the Trent 60 can be used for variable speed operation with a speed range of 70%–105% speed (100% speed is 3400 rpm). The Whitby cogeneration plant, which also works simple cycle when required, comprises a gas turbine and generator that provide electric power to the provincial power authority, plus a Steam Technologies single pressure once-through steam generator (OTSG), which provides process steam for a nearby paper processing plant. The gas turbine’s waste heat passes to the OTSG to generate the required steam. Being ‘once-through’, no steam drum or blowdown system is needed, so turbine bypass stack, diverter valve or stack silencer are also not required. The gas turbine’s exhaust heat generates up to 83,000 kg/hr (183,000 lb/hr) process steam at a net plant heat rate of 5250 Btu/kWh without duct firing (65% efficiency). The plant is operationally flexible because the steam needs vary according to plant demands. The season also makes a 38

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The Rolls-Royce Trent powered CHP plant at Whitby, Ontario

significant difference in Canada, due to the widely different winter and summer temperatures. At full gas turbine baseload output, the plant produces a cogeneration heat rate of approximately 5400–5700 Btu/kWh in summer – this represents a 63%–60% efficiency – and 5600–5800 Btu/kWh with an efficiency of 61%–59% in winter. In simple cycle operation (generating electricity only), the plant is rated at 51.2 MW (40.2% efficiency). Supplementary firing is used when more process steam is required. With duct firing, 82,550 kg/hr (181,992 lb/hr) of process steam is produced by the OTSG at 204°C, and 59,874 kg/hr (132,000 lb/hr) without it. The paper recycling plant can generate its own steam using two back-up auxiliary packaged boilers. Therefore, if the gas supply becomes too expensive from time to time, Fabio Schuler, P.Eng., plant manager at Whitby Cogeneration, sometimes finds it more profitable to shut the plant down and sell gas (which has been paid for in advance) rather than electricity. He also pointed out that, as the steam demand from the paper plant has decreased a little, he sells spare electrical capacity on the spot market when required. From the outset, the Trent 60 was fitted with a dry low emissions (DLE) system, designed to provide less than 25 ppm NOx/2 ppm CO at full power. However, initially combustion noise restricted the engine from operating at full power, so the plant had to be de-rated until a fix was found, which took nearly two years. Today, both gas turbine and DLE system have run reliably and successfully at full baseload rating since 2003, as has the whole plant. Indeed, since 2000, the plant achieved around 96% reliability, increasing to 99.7% in 2007, with up to 96% availability. The reliability is now ‘in the top bracket for North America’ according to Fabio. Fired hours run/year now average over 7000 (7800 in 2007), and the total hours run to date is over 64,000. The Trent 60 boasts a rapid engine maintenance time and up to 4000 starts without overhaul. At Whitby Cogeneration, Fabio Schuler carries out routine maintenance once a month, but has some ‘flexibility’ in this. Rolls-Royce has a long-term service agreement (LTSA) to provide site and factory support for the gas turbine, with an option for a further six-year renewal in 2010. The scope of services covers trained personnel to plan and supervise all scheduled and unscheduled on-site gas turbine maintenance, spares, plus supervision of any engine



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Anytime, anywhere, we care! MTU’s industrial gas turbine experts deliver excellent service.

MTU Maintenance Berlin-Brandenburg is committed to the highest quality and reliability standards. We have been repairing and overhauling GE LM2500, LM2500+, LM5000 and LM6000 series gas turbines for decades. As MTU’s center of excellence for industrial gas turbines, located near Berlin, we take pride in our customized maintenance concepts, advanced repair techniques, outstanding reliability, quality work and smoothly organized logistics. Our highly mobile service team is available 24/7 wherever you need it. www.mtu.de

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ABOVE LEFT:

A Rolls-Royce gas turbine installed – doors open for access. ABOVE RIGHT: Rolls-Royce doesn’t only supply the aeroderivative Trent – its Avon 200 is a significantly upgraded version of the highly successful industrial gas turbine

removal, installation and commissioning. Also included is 24hour technical support. Maintenance also covers remote monitoring, and this includes regular borescope inspections (mainly to the hot section). Hot section repairs are scheduled at 25,000 hour intervals, but a major inspection and complete overhaul is carried out after 50,000 operating hours. A backup gas turbine is available to replace the contract engine temporarily when that is removed for overhaul. LARGE NEW GOTHENBURG COGENERATION PLANT

A cogeneration plant in Gothenburg, Sweden, is too new to provide meaningful operational trends, but does show how careful specification and modern requirements and design can have a significant impact on operation. Turnkey contractor Siemens built the Rya plant. This gas (and steam) turbine-powered district heating system is the city’s biggest environmental project ever, and one of the largest such plants in Scandinavia. Despite the increase in power production in Gothenburg, emissions of acid pollutants, sulphur and nitrogen oxides are actually lower. Natural gas is the primary fuel, but biogas or syngas may be used in the future. Selective catalytic reduction (SCR) reduces nitrogen oxide (NOx) emission to well under 20 mg/MJ, operating on natural gas – so there is no ash either. This plant meets around 35% of Gothenburg’s district heating demands and 30% of its power requirements with very high thermal efficiency (to 92.5%). The plant is extremely flexible because it uses three gas turbines instead of a single large one, and also because supplementary firing can be used with the HRSGs to maximize power production at any heat production rate. Optimized for district heating, this plant has a very high heat recovery – that from the lubricating oil alone results in a 0.5% increase in efficiency (representing an extra 3 MW produced, enough to heat 250–300 extra homes). The Rya plant is monitored remotely, and the operations monitoring system for the whole of Gothenburg’s district heating 40

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is located at the Sävenäs operations management centre. The local Rya plant control system for the combined cycle equipment is also controlled remotely from Sävenäs. The distributed and redundant control and monitoring system is integrated into the Sävenäs system, and decisions can be made regarding plant operation based on data from it. The Rya plant’s load range is 20%–100% of maximum heat production, and the balance between power and heat production can be varied. This high flexibility not only means easy adaptability to varying heat loads and outdoor temperatures, but also ensures security, even under difficult circumstances. Normal working includes: 

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Island operation – this allows electricity production for parts of the power grid in Gothenburg without having to be connected to the national grid. The plant can supply itself and run idle without supplying power or district heating, independently of any external power supply. If the external power supply fails, the plant can still be started up.

Siemens is responsible for maintenance of the gas and steam turbines, and the control and auxiliary systems. The company provides training, on-site assistance and telephone support CHP FOR KASSEL INDUSTRY AND DISTRICT HEATING

In Kassel, Germany, a cogeneration plant generates electricity, as well as supplying heat to both industry and the city’s 100 km domestic district heating scheme. This city-owned plant comprises a 21-year old 10 MW GE heavy-duty gas turbine, and a second 30 MW GE aero-derivate gas turbine. The latter was installed as an addition to the first machine in a 2005 plant modernization carried out by Tognum–MTU. These two machines exhaust into 40 bar pressure/485°C temperature heat recovery boilers (535°C gas turbine exhaust down to 80°C at



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Power Generation and Cogeneration Power Plants based on gas turbines

Gas Turbine Packages

Turnkey Plants up to 50 MW

Complete & Comprehensive Customer Service

Turbomach SA, a wholly owned subsidiary of Caterpillar Inc., is a supplier of power generation applications based on gas turbines from 1 to 22 MW and plants up to 50 MW. Turbomach SA has earned its reputation based on high quality innovative products and on efficient after sales services.

TURBOMACH SA via Campagna 15, CH-6595 Riazzino (Switzerland) Phone +41 91 851 15 11, Fax +41 91 851 15 55 - E-mail: [email protected], www.turbomach.com

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FEATURE

boiler exit) to provide steam for a single 10 MW BBC (now Siemens) steam turbine. Overall, the power to heat ratio is 1:1, so that – of the total 100 MW – 50 MW goes to electrical power generation, and 50 MW goes to d istrict heating. The old part of the plant as a whole was designed and built by BBC. There is also a trigeneration aspect, currently small but growing, which is used for industrial air-conditioning, and also in a shopping centre. Natural gas is the fuel, although Heinz-Helmut Faulstich, Vice Director of the Kassel plant, said that the older gas turbine was originally liquid natural gas (LNG) fuelled. The natural gas is pre-heated, as it can contain elements of liquid gas which could have too much energy for the combustors. The original gas turbine uses steam injection to improve exhaust emissions, but the nearly new GE machine doesn’t need such treatment as its emissions are so low from the outset. Faulstich said that the air filters are not cleaned. Instead, pressure differentials are electronically monitored, and the elements are changed when dirty – usually every three years (annually for the pre-filters). The Kassel CHP plant has a maintenance contract with the Tognum subsidiary MTU Friedrichshafen. Its service partner, MTU Maintenance Berlin-Brandenburg, operates worldwide and is licensed by GE to perform major overhauls and repairs on industrial (and aviation) gas turbines. Under the terms of this contract, scheduled maintenance is carried out twice a year, taking four days in total. Every 25,000 hours, the combustors and other hot-side HP side components are changed completely. Under this operating regime, the plant runs, on average, 5600 hrs / year at full load; more at smaller loads. In 2007, one gas turbine developed an oil leak between centre stages. This necessitated a strip down, but MTU is confident that the same problem will not occur again. Since July 2007, the plant has been 100% reliable, and Heinz-Helmut Faulstich is very satisfied with the plant’s operation. In any case, MTU guarantees 95% availability. REMOTE MONITORING AND PREDICTIVE MAINTENANCE

Various gas turbine OEMs have been experimenting with remote data collection over some years now. Siemens Power Generation is one example, having first connected a modem to

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The Tognum–MTU modernized CHP plant in Kassel, Germany

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the Rustronic MkII turbine control system in 1993. Today, much more developed systems are routinely used on gas turbines and plant equipment to help plant owners and operators achieve maximum performance, reliability and availability. Very often, problems in the making can be fixed before any real damage occurs, saving a great deal of money. The historic data, plus the ability to provide remote assistance, allows gas turbine OEMs to advise customers on the best course of action to take in order to alleviate unnecessary down time. For example, a gas turbine developed a vibration problem following routine shutdown. After several days of running with increasing vibration, the control system automatically shut the engine down. Following shutdown and a restart, the vibration levels increased to almost twice their previous normal levels, and the predictive trender reported that a shutdown could be expected anytime in the next four days. The customer then experienced four running trips caused by high vibration. To avoid the risk of generating primarily false alarms, the gas turbine manufacturer met with selected users and determined the rules necessary to decide when alarms should be raised. As a result, the diagnostic system alarms were automatically relayed into the SAP business system, requesting the technical support help desk investigate the problem. Also, the relevant manager was emailed to advise him. Between them, they decided that an engineer should be sent to site to investigate further, and it was found that the worst vibration levels were reported during reduced-load running; full load resulted in only an almost imperceptible increase. A second

A small plant example A recent example of a small cogeneration plant is the William Grant & Sons Distillers operation in Scotland. By investing in a Siemens SGT-100 gas turbine powered CHP scheme, the company significantly reduced and stabilized its energy costs and, in the five years or so since the CHP plant was installed, the initial capital investment has been completely recovered through savings in fuel and operating costs. Moreover, the high thermal efficiency achieved (84%) entitled Grants to an 80% rebate on the UK Climate Change Levy, a scheme designed to reduce greenhouse gas emissions. Excess electricity can be exported to the local grid network. This flexibility ensures operation virtually always at maximum efficiency. Should the grid connection fail, the cogeneration scheme will continue to operate independently. Installed in 2001, the unit had already accumulated over 25,000 hours by 2005, and it operates 24/7 for 50 weeks a year, with just two weeks’ annual shutdown, allowing Siemens to carry out maintenance. A long-term maintenance contract covers the gas turbine generator package.



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An MTU supplied gas turbine being ‘packaged’

HIGH-FLYING SUPPORT BROUGHT DOWN TO EARTH

visit included a vibration survey, and this allowed the vibration trip and alarm levels to be temporarily raised to prevent unnecessary trips. This allowed the customer to continue operation to a routine service, when some wear was found on the reverse side of the inlet bearing journal pads. The bearing was replaced and the customer experienced no more problems. CONCLUSION

The cogeneration plants covered in this article vary widely in terms of country of origin, technical arrangements, size, rating and customer type, and also in the ways that their electricity and heat are used – especially the heat. Also, some are new, or relatively so, while others are now a decade or two old. Yet all seem to have fulfilled their designated roles admirably, despite the fact that in a few cases their original rationale has disappeared, usually because the main customer has reduced its heat/electricity requirements or gone out of business. For the most part, these plants have been thoroughly reliable, especially the gas turbines themselves. If there has been any significant plant trouble at all, it has not generally been in the steam or electricity generating side. Rather, most problems, generally relatively small, have been in the plant accessories and related equipment. As long as these power units are carefully serviced in line with their OEM’s recommendations (and often serviced by the OEMs themselves), their reliability has been impressive, availability always high, and their lives long. Even though the gas- or bio-fuelled reciprocating engine has made significant inroads, partly because of its greater operational flexibility, even here gas turbines are significantly better than they used to be. In terms of performance, gas turbines are ideal for many cogeneration applications.

James Hunt is a UK-based writer on energy and electrotechnical issues. e-mail: [email protected]

We know that high availability requirements and low operating costs are as important to cogeneration gas turbine operators as they are to those in the air. That's how we have grown into a full-service partner for hundreds of gas turbine operators around the world. Our maintenance workshops for industrial and marine gas turbines have all the resources and quality assurance systems required, offering cost-effective and reliable maintenance. We also have the skills necessary for technical upgrades and development of repair methods, a field in which our lead is such that our competitors come to us for assistance. We offer standard maintenance contracts of varying scopes and levels, ranging from regular inspections to total responsibility for scheduled and unscheduled maintenance including an availability guarantee with access to lease engines to minimise operational down-time. We realise too that industrial turbine users often require more than just engine maintenance so we also offer maintenance support on the associated package equipment. Contact us to discover the benefits of a partnership with Volvo Aero.

____________ This article is on-line. Please visit www.cospp.com

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Compressor washing

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This second feature on gas turbines takes a closer look at one aspect of the many methods used to keep overall operating efficiencies as high as possible – compressor washing. Drew Robb compares on-line, off-line and hand washing, together with cleaning agents used.

Compressor washing keeps gas turbines running like new

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o keep gas turbines operating at their optimum requires regularly scheduled shutdowns and maintenance. But the major source of power loss, and the most easily correctable, is contaminant fouling of the compressor. ‘Carbon, oils and waxes, anything that is in the ambient air will get into the axial compressor,’ says Klaus Brun, manager, Rotating Machinery and Measurement Technology for the Southwest Research Institute in San Antonio, Texas. Not only does this add to the drag, it also leads to major problems such as corrosion pitting of the blades. ‘Many millions of research dollars are spent to tickle out another percent or two of turbine efficiency,’ says Oliver H. Platz, manager of FP Turbomachinery Consultants GmbH of Emmendingen, Germany. ‘All that seems almost in vain when these machines are then run at five (or more) percent fouling-based losses after commissioning.’ Those losses, however, can be easily recovered through a proper programme of compressor washing. GRADUALLY LOWERED EFFICIENCY

Overall turbine efficiency is limited by the amount of work produced by the turbine that is consumed by the compressor. Typically a bit more than half the output goes to driving the compressor, with aero-derivatives being less efficient than the larger frame units. As the compressor becomes fouled with minute particles, the efficiency drops even further. This fouling, if not remediated on a regular basis, can cause 70%–85% of a turbine’s output loss over time.

The air doesn’t have to be particularly dirty to have a profound effect. With impurities running at a mere 10 ppm, a GE Model 7FA would still bring 153 tons (139 metric tonnes) of impurities

This fouling can cause 70%–85% of a turbine’s output loss over time per year into the compressor. Industrial turbines have far smaller air intake requirements, but that is offset by the quality of the environment they work in. ‘All sites are different depending on the air filtration system, wind speed, wind direction and environmental

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Running hours Figure 1. Effects of cleaning on engine performance


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Compressor washing

Compressor-washing trailer

conditions, such as whether you have a cement factory or an oil refinery next door,’ says Andrew Bromley, Vice President of Operations for Turbotect Ltd.’s (Baden, Switzerland) US subsidiary. The particular contaminants one needs to be concerned with vary with location. At rural installations, soil, dust, sand, fertilizers, pesticides, insects and plant matter can all make it

Oil and grease act as ‘glue’ and will trap and hold other foulants entering through the air filters into the compressor. Airborne salt is a problem for offshore oil platforms or facilities located near the coast. In urban areas there is smog. In industrial areas there is coal dust and material from evaporative coolers and cooling towers. Then there are the bearing oil leaks and GT exhaust that can make their way into the compressor. ‘Oil and grease act as ‘glue’ on the compressor blading, and will trap and hold other foulants entering through the air filters,’ says Cyrus Meher-Homji, Bechtel Fellow and Senior Principal Engineer for Bechtel Corporation in Houston. Whatever the source, the deposits on the rotating and stationary blades affect their aerodynamic profile and reduce the air mass flow, gradually reducing the efficiency and output. Other effects include erosion and corrosion, higher emissions, clogging of hot-section cooling passages, and lowered reliability. The effect is most dramatic on the early stages and inlet guide vanes, as each stage’s performance depends on the performance of the earlier stages. When contaminants reach the deeper, higher-temperature stages, however, they can get baked onto the blades and are harder to remove. 46

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THREE STEPS TO CLEANER COMPRESSORS

The solution to reduced maintenance is to remove the deposits on a regular basis, but the best way to do it varies from one location to another. Generally speaking, there are three methods of compressor washing – on-line, off-line (‘crank washing’) and hand washing. The three are not exclusive; all three will be used at different times. ‘On-line washing just extends the interval between the times off-line washing is done,’ says Brun. On-line washing is the answer to keeping the turbine running 24/7, without allowing the performance to degrade excessively. With on-line washing, an array of nozzles in the inlet area injects water droplets into the compressor while the turbine is running. ‘On-line washing should be performed frequently to avoid deposit build-up; for example daily or weekly,’ says Meher-Homji. ‘If the interval between on-line washing is too long, the benefits will not be seen. Frequent on-line washing also avoids sending ‘slugs’ of foulant into the combustion section.’ Brun says that the on-line washes don’t have to last long, since most of the washing occurs in the first 30 seconds, but since water is cheap, you can keep it running till the water tank empties. The main problem with on-line washing, he says, is that it removes material from the early stages and then re-

Frequent on-line washing avoids sending ‘slugs’ of foulant into the combustion section deposits later as the water evaporates. To avoid adding to the deposits, he advises not to add any detergents to the spray, but to use pure, demineralized water – and lots of it. ‘It has to be done with the highest possible water to air ratio,’ he says. ‘By increasing the water amount, by having a very high water to air ratio, you are reducing the re-depositing.’



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Some consider the marks of time a sign of old age. { We consider them signs of success.}

For over 100 years, Thomassen Turbine Systems has answered the ever-changing demands of the industr y with innovative solutions that keep heavy-duty gas turbines up and running, right from the start. From flexible ser vice agreements, customer training and 24/7 field service to online monitoring systems, control systems and low emission combustion systems, Thomassen is the one name you can trust. For more information visit www.thomassenturbinesystems.com.

Headquarters: Havelandseweg 8d • P.O. Box 95 6990 AB Rheden • The Netherlands • Ph: +31.26.497.5800 • Email: [email protected] Service & Sales Centers in: Australia, India, Indonesia, Italy, The Netherlands, United Kingdom, United Arab Emirates and Venezuela

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Compressor washing

Choosing a cleaner In addition to selecting the compressor washing equipment, one also has to decide what type of cleaner to use for off-line and on-line washing. ‘If you are in the middle of farm country you will have completely different kinds of soils that will get on your blades than if you are near a refinery,’ says Gregory Labas, president of Conntect, Inc. in Brookfield, Conn. ‘What product works best and how often you need to clean is a site-specific thing.’ For years, the standard had been to use solventbased cleaners. These did a good job of removing any oil or grease from the compressor, and reducing the build-up of particulates – while these are still available, environmental and safety regulations have caused a shift to waster-based detergents. ‘Solvent-based cleaners are classified as hazardous and their low flash points make them more expensive to transport,’ says Andrew Bromley, Vice President of Operations for Turbotect Ltd.’s (Baden, Switzerland) US subsidiary. ‘Also, with off-line washes where you have an effluent water stream to dispose of, you have to treat that effluent like oil. If you use a water-based detergent, however, that effluent can go into a holding tank and can be less expensive to dispose of.’ Early detergents did not do as good a job with oil and grease as their predecessors, but vendors have released a newer generation of water-based products that are designed specifically for addressing this problem. ‘If you do head-to-head comparisons, particularly with the crank-wash chemicals we offer, we can’t measure a difference,’ says Bruce Tassone, president of Engine Cleaning Technology, Inc. in Bridgeport, Penn. ‘If you can’t measure the difference, with all the liability and cost impact of solvents, why use them?’ Whatever type of cleaner is used, however, timing

can be important for meeting emission limits. ‘When you wash on-line with either a solvent- or water-based cleaner, the NOx goes down, but the CO goes up,’ says Labas. ‘If you have a permit with a CO requirement, you have to make sure the CO doesn’t exceed your limit.’ He says this gives you two options. One is to get a variance for the permit, but this can be difficult. The other, if you have a 24-hour time limit, is to start the wash shortly before midnight and split the increased emissions over the two days. This same strategy can be used with VOC limits. Size of turbine also affects the choice of cleaner. ‘For large machines, we have found it is important to have better foam dissipation properties,’ says Bromley. ‘In an off-line wash, if you are not careful, the whole plenum fills up with foam. As machines get larger, it takes more and more rinse cycles to clean it out. It requires a balancing act. The foam acts as the transport mechanism for the dirt, so you don’t want it to collapse too soon, and redeposit the material on the blades. On the other hand, stronger foam will require additional rinse time, and more effluent water to manage and dispose of.’ It is critical, both in selecting and using a cleaner, that the cleaner doesn’t exacerbate the problem by leaving its own residue to add to the foulant build-up. This leads some to recommend not using detergents at all – just letting demineralized water do the job – for on-line washes. Labas says this is a fallacy, particularly for turbines that operate nearly continuously. ‘In some cases, the guy can’t shut down, so the only thing they can do to clean their engine is on-line washing,’ he says. ‘Some will tell you that water works as good as anything. I say, try telling that to your wife when she’s washing the dishes.’

Off-line, or crank washing, requires shutting down the turbine and letting it cool. Once the temperature has dropped sufficiently, water is again sprayed into the turbine inlet while the turbine slowly rotates. ‘Off-line washing is still the best way to completely clean the compressor and give maximum power recovery,’ says Meher-Homji. ‘Therefore, operators should perform off-line crank washing whenever convenient, during all scheduled outages.’ Detergent should be used for off-line washing, followed by a thorough rinse with clean water to ensure all the salts and grease get fully removed from the compressor casing. He recommends performing conductivity testing on the effluent water and continuing to rinse until those measurements stabilize. ‘Material that is not removed during the rinse cycle will be redistributed on the blading when the unit is started,’ he says.

‘Usually more than one rinse cycle is needed.’ Unlike on-line washing, you don’t have to worry about evaporation; but since the turbine is only spinning slowly, there isn’t enough air velocity to pull the water down into the later stages and clean them. ‘If you have a 16-stage compressor your off-line washing will not be very effective in the later stages,’ says Brun. ‘If you have a heavy dirt or salt deposit in the late stages of your compressor, you will have a hard time getting those out with offline washing.’ Finally, there is hand washing, sending in a team during a scheduled shutdown to wash the blades manually. ‘With most GTs, there is a way to reach in and hand-clean the inlet guide vanes,’ says Bromley. ‘Most fouling occurs in the early stages of the compressor, and hand cleaning is recommended in all cases.’ The rest of the blades should be hand cleaned any time the casing is opened.

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INVESTIGATING OPTIONS

Given the benefits obtained from regular cleaning of compressors, most GTs now come with some sort of cleaning system built in. Operators may, however, want to investigate other options. ‘The design and performance of these wash systems varies tremendously between the OEMs and between GT models,’ says Meher-Homji. ‘Many end-users have installed improved on-line wash systems as retrofits – but operators under a long-term service agreement are often prevented from doing these upgrades.’ There is currently broad agreement that cleaning should be done, but there are widely diverging opinions as to the best

The key to thorough cleaning lies in evenly distributing the right quantity and size of droplets across the entire air path approach. This includes the type of nozzles, how much water to use, when and whether to use detergents and so on. ‘Compressor washing has not been consistently handled by the OEMs over time,’ says Bromley. ‘The end result is that the end users get a bit confused and lose confidence in the subject.’ The key to thorough cleaning lies in evenly distributing the right quantity and size of droplets across the entire air path. If the droplets are too small, they will evaporate in the early stages

or are deflected by the air mass flow and so do not make an adequate job of cleaning. ‘Large droplets will tend to remove the deposits better than the small droplets, but very large ones have the potential to cause a little bit of erosion of the blades,’ says Brun, ‘especially if you have some really expensive coatings – you want to ponder this before you start throwing buckets of water in there.’ Most systems produce droplets in the 80–250 micron range, which is adequate for on-line washing. For off-line washing, large droplets are not a major issue since you are not concerned with impact caused by the high rotational velocities of the blades. Higher pressures, however, are usually used for off-line systems. Since you don’t have the high-speed air flow to pull the droplets into the turbine, you need to rely on the water pressure to do the job. There is some disagreement on whether you can use a single set of spray nozzles for both on-line and off-line washing. Gas Turbine Efficiency AB (GTE) of Stockholm, Sweden uses a single set. ‘GTE uses a high pressure system that, by atomization, produces a soft mist of water droplets just the correct size to travel with the airflow in order to penetrate the total gas path of the compressor and turbine,’ says GTE managing director Pär Krossling. ‘On- and off-line washing can be done with the same set of nozzles from one location.’ Most firms, however, say that separate arrays are needed. ‘Some people say you can use the off-line and on-line systems interchangeably, which we don’t agree with’, says Gregory Labas, president of Conntect, Inc. in Brookfield, Connecticut.

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Compressor washing

‘They are completely different applications.’ Engine Cleaning Technology, Inc. of Bridgeport, Pennsylvania, takes a middle approach. It uses a single nozzle array, but offers interchangeable nozzle tips – one set for on-line and the other for off-line washing. DOWN TO SPECIFICS

The bottom line, when selecting and operating a compressor washing system, is that there is no ‘one size fits all’ approach. This applies to nozzle design, placement, amount of water and use of cleaning fluids.

Modelling for one type of turbine doesn’t necessarily apply to others … it is wrong to

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show the nozzles should be placed far from where you would expect. ‘With an LM6000, the initial CFD we did using one manifold showed that all the water hit the cone,’ he says. ‘We determined that we had to have a second manifold outside to get coverage from the root to the tip of the blade.’ Once the modelling is done for one type of turbine, it doesn’t necessarily apply to others of that same model. He cites the case of a frame unit where, because of the inlet plenum arrangement, the nozzles had to be loaded on one side to get proper coverage. The same principle applies to issues such as whether to use detergents in on-line washing. Meher-Homji recommends using water only, when possible, but says that detergents should be used when grease and oil are present. ‘This decision can only be made at the specific power plant, by conducting comparative test programmes over an adequate time period,’ he says. ‘It is wrong and misleading to make blanket recommendations and pronouncements for all power plants.’

make blanket recommendations ‘Comparative tests can only be performed in the field on actual GT units operating under real, local environmental conditions,’ says Meher-Homji. ‘Field tests should run for a sufficient length of time and all collected performance data must be corrected to ISO conditions.’ Nozzle placement should start with using computational fluid dynamics (CFD) to model the air flow and water flow through the compressor. Labas says that the models sometimes

Drew Robb is a US-based writer on energy. Email: [email protected]


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PROJECT PROFILE

• CALIFORNIA

STATE UNIVERSITY NORTHRIDGE

A California University campus has added a fuel cell cogeneration plant California

to its existing solar and microturbine-based on-site energy systems. And, as Andy Skok reports, the university uses all the outputs from the fuel cell plant to supply heating, power, cooling, irrigation and even carbon dioxide to stimulate plant growth.

Fuel cell CHP unit completes suite of on-site energy technologies

S

tudents and staff at California State University Northridge (CSUN) have been building green energy solutions for much of the past fifteen years. This university is making a measurable impact on its surroundings while continuously increasing its commitment to clean, distributed power. And an ultra-clean fuel cell is now providing the next logical step. CSUN recently installed a 1 MW system comprising four DFC300MA power plants produced by Fuel Cell Energy, Inc., creating the world’s largest university-based fuel cell installation. The fuel cell plant is the latest addition to its showcase of alternative energy commitments, which includes solar panels, thermal energy storage and a high-tech greenhouse. Not only does the fuel cell allow the academic study of these efforts, it demonstrates the current commercial state-of-the-art by reducing reliance on the electrical grid, saving money and providing clean, quiet, 24/7 efficiency. Using readily available natural gas as its source fuel, it provides its power without combustion. Hydrogen is reformed from natural gas and used to power the plant, resulting in utility grade power and usable heat energy.

Because of their high operating temperatures, carbonate fuel cells are an excellent source of excess heat energy, which can be used for local heating and cooling needs. In addition to meeting 18% of the university’s baseload electrical requirements, the fuel cell’s cogeneration process provides cooling, space heating and hot water for several buildings. The university is making maximum use of the fuel cell’s additional by-products – CO2 and water. The biology department plans to use some of the CO 2 for carbon enrichment testing, and a ‘Subtropical Rainforest’ microclimate environment where CO2 and condensed water will be channeled into a Free Air Carbon Enrichment System, helping plants grow faster and providing partial carbon sequestration in the process. A HISTORY OF INNOVATIVE SOLUTIONS

Located on 356 acres (144 hectares) in the heart of the San Fernando Valley, CSUN has over 35,000 students, and is one of the largest and fastest growing schools in California’s 23-campus state university

system. Ever-increasing demands for new power have led to ever-more-innovative solutions by CSUN staff, students and distributed energy firms. In true California style, natural disaster has also helped to shape decisions at the university. The 1994 Northridge earthquake, which caused a great deal of damage to the campus, provided an opportunity to implement much-needed improvements. Tom Brown, executive director of physical plant management at CSUN, began an innovative energyefficiency programme, designed in conjunction with a new central power plant. Thermal storage

To complement the heating plant, three electric centrifugal chillers were installed. These generate chilled water at 39°F (4°C) during off-peak night-time hours, at much lower electrical rates. The chilled water is stored in a 2.3-million-gallon storage tank, then used for cooling during peak daytime hours, typically between 1 pm and 5 pm. This allows the chillers to be shut down during the part of the day when peak electric load is reached, and when higher rates would be paid.


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P R OJ E CT P R O FI L E

The chillers are a good example of the explosive growth at CSUN. When the tank was originally installed, a single coldwater filling met cooling needs for several days. That same tank is now usually depleted during four peak hours each day. So in an effort to accommodate newly planned buildings, two new highefficiency chillers will be added to help CSUN keep pace with burgeoning demand for additional cooling. A new chiller for the Biology Science building will start construction soon, while one for the Performance Arts building is being designed and will start construction within the next few years. Cogeneration with microturbines

CSUN’s first cogeneration effort was the addition of six natural gas-fired 30 kW Capstone microturbines. These were provided by the National Fuel Cell Research Center (NFCRC) at the University of California-Irvine, under a grant from the South Coast Air Quality Management District (SCAQMD). Under the agreement, NFCRC arranged for the installation and subsequent test of the microturbines’ performance. CSUN volunteered to be the host site, to pay for the fuel and to maintain the equipment. Operation began in December of 2001, and was monitored by NFCRC from May 2002 to December 2004. Running continuously between 10 am and 8 pm, these units perform effective peak shaving, and currently provide 3% of all electrical needs at the CSUN. All recovered waste heat is used to provide hot water across the campus system. According to SCAQMD, capacity and load factors were variable in 2002, but began achieving stability in 2003. By 2004, each microturbine was operating at capacity and load factors between 74% and 85%, and reliably producing between 10,000 and 19,300 kWh each month. Solar photovoltaic

CSUN then added solar photovoltaic (PV) capability in two steps. In each case, the solar collectors were located in parking lots and designed to double as daytime shade providers for parked cars. And in each case, a team of student engineers helped to complete the installation. Working together, the two solar systems supply 2% of all electricity used on campus. 54

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California State University’s 1 MW fuel cell installation provides approximately 18% o f total campus power needs

The first system was completed in 2003 and provides 225 kW of capacity, using pre-wired 75-W solar panels from Shell Solar. Although the total cost was an estimated US $2 million, Los Angeles Department of Water and Power (LADWP) and Southern California Gas Co. provided a total of $1.7 million in incentives. Using more densely configured 165-W Sharp solar PV panels, the second project, completed in 2005, produces more than twice as much power – 467 kW – from a similar ground area. This project came in at $3.4 million, with $2.3 million being provided in incentives from the same two utilities. For the second installation, CSUN engineers provided a chance for students to see the PV process in action. A large glass window within the structure allows viewing of the solar collector’s operation, and displays figures for the amount of electricity being generated by sunshine. Finally, fuel cells

Student growth from increased enrolments, and the resulting demand for more power, has outstripped even CSUN’s innovative energy efforts. Studies commissioned by the university suggested that its central power plant, just nine years old, was already reaching peak cooling capacity and could not support further expansion. New buildings would require their own heating and cooling capacity. A new distributed generation solution, particularly one with compelling cogeneration capabilities, seemed an obvious alternative. The new power plant, comprised of four DFC300MA natural gas-fired fuel cells, has been operating since February of 2007, and supplies 18% of the campus electricity

needs. (Combined, the four distributed energy systems provide 23% of all campus electricity.) Fuel Cell Energy provides operation and maintenance, and also trained the CSUN personnel. CSUN staff and engineering students not only wrote the specifications, they also constructed the plant – all in just one year. Although the total estimated cost of the fuel cell power plant is $5.3 million, some $3.2 million will be recovered in state and utility company incentives. Total projected cost savings, taking into account building design, maintenance and chiller operation, will amount to $14.5 million over the power plant’s 25 year life cycle. GREEN IN MORE WAYS THAN ONE

One of the main reasons for such incentivebased savings is the new plant’s reduced carbon footprint and significantly reduced pollution levels. Because fuel cells make their energy without combustion, they produce virtually zero emissions of nitrogen oxides (NOx), sulphur oxides (SOx), or particulate matter. Many states, including California, consider them as a form of renewable energy that can qualify for state grants and other incentives. As part of California’s Self-Generation Incentive Program (SGIP), Southern California Gas Company awarded CSUN $2.25 million in incentive funding, and the Los Angeles Department of Water and Power (LADWP) provided a $500,000 rebate. When the new chiller system is operational, LADWP will provide an additional $336,000. Flexibility in building design and construction is a key factor for this type of power. Project savings, when compared



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with costs to support individual building systems and when combined with the new chiller plant now under construction, are estimated to be $65,000 in annual campus maintenance and $235,000 in annual energy costs. There will also be a $7 million reduction in future capital construction costs and total estimated lifecycle savings of $14.5 million. To accommodate flexible siting, DFC fuel cell power plants are modular in design, containing separately configured

units for DC power, electrical balance of plant, heat recovery/oxidant supply, and fuel and water treatment. Each module is arranged on its own skid to provide efficient transport to the installation site and ease of access for future plant maintenance. And because it runs quietly as well as cleanly (a DFC 300 kW fuel cell produces a noise level of just 72 decibels at a mere 3 metres of distance) the fuel cell at CSUN can be located in the heart of the campus.

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CHILLING OUT WITH CHP

Long established as efficient generators of heat using CHP, carbonate fuel cells can be just as effective at addressing cooling needs in warmer-climate applications – see Figure 1. CSUN’s fuel cell plant is at the heart of an efficiency cycle of electrical generation, thermal recovery, and chilled water distribution. The fuel cell plant will provide electric power to two 1000-ton chillers, built in a satellite chiller plant directly beside the fuel cell stacks. With an electric efficiency of 47%, the fuel cells already surpass microturbines and other engine technologies. Adding an efficient CHP process tapped into the plant’s exhaust stream, overall efficiency is increased to an estimated 83%. CSUN’s physical plant staff helped design and construct the barometric thermal trap used to recover the multiple waste heat streams, which exit the heat recovery unit at temperatures between 650°F and 750°F (343°C–399°C). Once combined and drawn through the trap, the waste heat enters the first-stage heatrecovery coil, transfers most of its heat, and drops to 170°F (77°C). Currently used to heat campus buildings, this first stage heat will also provide thermal power for the new chiller system. A separate loop will be constructed to process second stage heat, which will pass over a latent heat-recovery coil, exit at 140°F (60°C), and be piped to the nearby student union to heat domestic hot water and a swimming pool. CO2 TO GO

Although most of the carbon dioxide reductions from the system are a result of the fuel cells’ non-combustion process and overall high efficiency, the exhaust stream still contains CO 2. At CSUN, this CO 2 is put to good use in a sustainable development project. After passing through the latent heatrecovery coil, exhaust heat still containing CO2 is directed into a recovery chamber and then exits to the atmosphere. As part of CSUN’s carbon-dioxide-enrichment research programme, a new distribution system is being built to collect side-stream flows of condensate from the recovery chamber and direct them to a greenhouse. There, the carbon-rich condensate will be used to boost plant growth.



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P R O JE C T P R OF I LE

This will form the basis for the university’s Subtropical Rain Forest, where a condensate diffusion system will help to create an artificial subtropical climate for basic education and research. And another valuable fuel cell by-product – water – will be used to irrigate the rain forest. Large plastic cooling towers, fuelled by the new chillers, will provide moisture for production of the rainforest plants. Thus the new system provides an educational resource for students from biology to bioengineering. While budding botanists are studying photosynthesis, students from the College of Science and Mathematics can help estimate a fuel cell’s carbon dioxide enrichment potential within that same controlled environment. But perhaps the biggest point of interest is for the engineering candidates – the fuel cell itself. Says Robert Ryan, a faculty member in CSUN’s College of Engineering & Computer Science: ‘Having a state-of-theart fuel cell plant right here on campus is a unique research opportunity for our mechanical and electrical engineering faculty, and an extraordinary opportunity for us to mentor our student engineers.’

AC Power Inverter

AIR

FUEL

WATER

DC Power Anode

650 to 750 F high quality waste heat for cogen/cooling applications ˚

Catalytic Oxidizer

Cathode

HRU

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Cathode Exit Gas is used for fuel preheat and water vaporization

Residual fuel in anode exhaust is used in catalytic oxidizer to preheat cathode air

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Figure 1. Combined heat and power from a fuel cell system

PART OF THE CAMPUS, PART OF THE SOLUTION

Thus the DFC power plant rounds out a series of solutions – for distributed power and environment friendliness – while maintaining a low profile within the CSUN community. In addition to providing highvalue electricity independent of an unreliable grid, each of the ‘by-products’ produced by the DFC300MA – heat, water, both hot and cold, and even carbon dioxide – are put to use providing value for faculty and students. Add in the education that the fuel cell technology

provides for both amateurs and professionals, and this investment should continue to pay dividends far into a cleaner, more efficient future.

Andy Skok is Executive Director of Strategic Marketing, FuelCell Energy, Inc., Danbury, Connecticut, US. e-mail: [email protected]

This article is on-line. Please visit www.cospp.com ____________

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Improved security via decentralized energy

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One major challenge facing many areas of the world is the insecurity of energy supply, whether this is caused by natural or man-made means. And while the considerable economic and environmental benefits of decentralized energy (DE) are well known, DE has considerable security benefits too, as Jeff Bell reports.


E

nergy security is an issue of increasing political 180 concern around the world, driven by surging 160 demand for energy; sharply rising international 140 prices for fuel, heat and electricity; increasing 120 dependency on energy imports in most regions of the world; and, an emerging sense of vulnerability from 100 the natural and malicious threats tied to climate 80 change and terrorism. Many governments are 60 struggling to address the problem of energy security 40 in their policies. 20 One solution that deserves a higher place on the 0 agendas of decision makers trying to grapple with the problem is decentralized energy (DE). DE includes a Gas Petroleum broad portfolio of energy technologies which share Coal Electricity- Hydro one thing in common: they all generate electricity Electricity- Nuclear Electricity- Renewable close to where it is needed. DE is defined as: Figure 1. Total historic global energy consumption by source electricity production at or near the point of use, (quadrillion Btu). Source: WADE based on the US Energy Information irrespective of size, technology or fuel used – both Administration, International Energy Annual 2005 off-grid and on-grid. It can include, on-site renewable energy, high efficiency cogeneration or combined heat and power (CHP) and industrial energy recycling and on-site most regions of the world. Arguably energy has not enjoyed such power. Evidence shows that one of the best ways of reducing risk a prominent spot in international debates since the first energy to fuel supply interruptions and energy infrastructure failure is by crisis of the 1970s. The main factors once again pushing the issue investing in DE. into the spotlight include: 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 0 0 0 0 0 0 8 8 8 8 8 8 8 8 8 8 9 9 9 9 9 9 9 9 9 9 0 0 0 0 0 0 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5

WHY NOW?

The recent convergence of several factors has placed the issue of energy, especially energy security, near the top of the agendas of

Record energy demand

Demand for energy commodities and services has never been higher – see Figure 1. According to the EIA 2007 World Energy Outlook, total world demand for primary energy was 446.7 Cogeneration and On-Site Power Production march–april 2008 | 59

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quadrillion Btu in 2004 and this is expected to increase to 607.0 by 2020. The apparent insatiable thirst for energy in OECD countries continues its upward march unquenched, even as new demand in important emerging economies such as India and China grows exponentially. Demand for all energy fuels and technologies is expected to grow. Rising prices

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2 0 0 0

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EU USA Japan Iran Brazil India China Qatar Russia

Prices are at record highs for oil, gas, uranium and many other energy commodities and services. The upward price pressure is partially due to tighter supplies, but also due to generally increased demand Figure 2. Net annual natural gas import dependence for select coupled with fiercer international competition for nations over time (billion cubic feet). Source: WADE 2007 scarce resources. Analysts expect prices for all fuels to continue to rise, with only the prices of emerging decentralized technologies such as solar and fuel cells to fall as Unsurprisingly, increased competition for scarce energy economies of scale are reached. resources is exacerbating existing geopolitical tensions and catalyzing new conflicts. Prominent conflicts around the world are often traced directly or indirectly to energy. High dependency on energy imports Increasing dependencies on energy imports to meet local demand Energy security has thus reemerged on the international are being witnessed in most of the world’s biggest energy political agenda. To say it has done so with a vengeance is, sadly, consuming countries – almost universally in OECD countries; see more than just a colourful phrase. Energy insecurity issues can Figure 2. For example, the EU as whole is expected to be depbe roughly divided into two distinct yet interrelated types of endent on imports for 75% of its natural gas requirements by 2020. vulnerability: the threat of energy/fuel supply interruptions and the threat of energy infrastructure failure. Even a cursory examination of these two types of threat quickly reveals the Emergence of environmental drivers The public is increasingly demanding a clean environment from significance of the issue and why energy insecurity is a problem its public and private sector leaders. A company’s or politician’s to which increasing numbers of politicians are turning their track record in reducing pollution, including climateattentions. destabilizing greenhouse gases, is more and more an indicator of how they will succeed and pollution in the power sector is often SUPPLY VULNERABILITY seen as contributing to energy insecurity. Nuclear is perhaps the most obvious example as it raises many questions in terms of Supply vulnerability refers to interruptions in the supply of fuel, contamination from used waste and concerns over malicious use electricity, heat etc. In cases where interruptions are caused by of nuclear materials. All centralized generation technologies, physical acts on pipes or electricity wires such interruptions however, raise security concerns. share much in common with infrastructure failure discussed in Climate change, for example, exacerbates energy insecurity the next section. Not all supply interruption need be physical in while at the same time the current highly inefficient centralized nature however. Supply interruptions can be as a result of energy system use aggravates climate change. Weather is by far scarcity due to high demand, temporal interruptions, economic the most common cause of power outages. Around the world sanctions from main fuel exporting countries or simply being minor power interruptions resulting from storms and routine outbid by a competitor for the resource. Threats of this type tend weather are a daily event. Winds knocking trees or branches in to to be trans-jurisdictional in scope and include things such as: power lines, rains eroding the foundation from under power lines, freezing rain and snow weighing down power lines and heat Labour disagreements causing cables to overheat – thereby increasing power losses – Domestic or inter-national labour strikes are one example of how are just some examples of phenomena that cause sporadic and the power sector is susceptible to energy price volatility. Striking unreliable energy availability. oil workers in Venezuela in 2002 had a global impact on oil It is extreme weather, however, such as heat waves or prices with noticeable upward trends in petroleum products as a hurricanes, that is most likely to cause power interruptions. result of tightened international supplies. Striking workers at Climate-polluting greenhouse gases are the main culprit. These power stations could result in similar interruptions of electricity. interrelationships between energy security and environmental In 2007 striking South African coal workers put the nation’s security are increasingly driving decision makers. power supply (based on centralized coal plants) at risk. ENERGY INSECURITY

All the above factors have the cumulative affect of increasing the collective sense of insecurity – especially as it relates to energy. 60

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Economically motivated supply interruptions

Various examples exist where energy supplies are interrupted either because the exporting nation, upon which a region is dependent for supplies, is offered a higher bidder or is unable to



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C A P A B I L I T Y

Gas driven generator set with jacket water heat exchanger

Engine driven chiller with jacket water and after cooler heat exchangers

Cogeneration Solutions With today’s growing concern for fuel efficiency, cogeneration and CHP (Combined Heat and Power) has been and will continue to be an effective means of increasing the efficiency of engine driven generation or engine driven mechanical assemblies. Heat energy for various purposes can be efficiently obtained from a single engine, without increasing operating costs. Recovered heat utilization applications can include: direct space heating, water heating, process heat, material drying/curing, steam or preheat for steam, and absorption chilling. Enercon’s custom packaging products are designed and built to more than meet your expectations for the highest quality and performance.We work closely with you from concept through design & build, and will provide 100% testing at our factory prior to delivery and installation. Fill your needs with Enercon cogeneration solutions.

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Malicious interruptions

Although a contentious issue and often difficult to prove, energy blackmail is another example of supply interruption risk. At a multilateral level various examples exist of economic sanctions affecting energy imports being levied against specific target countries. Unilaterally examples exist of those with political power denying electricity and other vital energy services within their own jurisdiction for political purposes. CRITICAL INFRASTRUCTURE VULNERABILITY

The more obvious pillar of energy security is that of the vulnerability of physical infrastructure. Infrastructure failure can be as a result of deliberate interruptions such as sabotage or terrorism, misuse of infrastructure, natural decay resulting from outdated equipment, natural disasters, evolving climate and dayto-day weather. Natural threats

A multitude of natural phenomena threaten infrastructure, from storms and floods to droughts and earthquakes. In 2003 an earthquake knocked out a 1000 MW gas-fired plant, and resulted in major blackouts in California. In the summer of 2005 a heat wave in France caused several major nuclear generating plants to be forced off-line due to chronic water shortages. Indeed there are many examples of water shortages resulting in insufficient supplies to fill hydro-power reservoirs or cool large thermal power stations. In 1999 freezing rain caused power interruptions for weeks in eastern Canada and great discomfort was caused as temperatures plunged. Grid infrastructure simply collapsed under the weight of the ice. The 2003 blackout in the United States, caused by a branch falling on a wire thousands of kilometres away, resulted, among other things, in 145 million gallons of raw sewage being released from a Manhattan pumping station into the East River. Hurricane Katrina knocked out a third of US refining capacity, which resulted in domestic US fuel reserves being drawn upon and corresponding upward motion for energy prices around the world.

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meet contracts for reasons outside its control. Of course the creation of OPEC in 1960 is the most obvious example of economically motivated manipulation of energy supplies, but there are also important contemporary examples. In 2006 Chile had the misfortune of experiencing gas supply interruptions when Argentina slowed export in order to meet domestic demand. Chile, whose power sector is largely dependent on Argentinean gas, was thereby forced to re-evaluate the security of its energy supply and has since passed a new energy law in response. A similar example in early 2006 continues to haunt western Europe. A price dispute resulted in Russia shutting down gas supplies to the Ukraine, thereby interrupting supplies to the western European countries dependent on Russian gas (because western European imports pass through Ukraine en route from Russia). Although in both these cases disruptions were not as serious as they could have been, they nevertheless underscore the vulnerabilities resultant from supply disruptions and highlight the strategic advantages of increasing use of domestic resources.

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Although none of the above examples can be tied indisputably to climate change, because climate change will lead to more and more such events these examples nevertheless illustrate how a changing climate will impact energy infrastructure. The consensus in the scientific community is that these types of climate related interruptions of the energy economy are likely to increase – both in frequency and in severity. Simple natural decay such as rust and corrosion of wires and other energy infrastructure is, however, perhaps the biggest threat to infrastructure failure. Damage from natural causes notwithstanding, the IEA expects that US $6.1 trillion will be required in power sector investment alone between now and 2020. Attack targets

A centralized power system, with major plants in prominent locations, and key infrastructure easily catalogued on a piece of paper, make for much more convenient targets for military, guerillas and terrorists than a highly decentralized network of generators. Large power stations and transmission infrastructure are among the first targets in military conflicts and are extremely vulnerable to attacks. Experts have identified energy infrastructure as the second most critical form of network for the safe functioning of society after only communication infrastructure. Disrupting power infrastructure can also be a means of displacing other trade, for example power shortages in Iraq have resulted in reduced oil production, and attacks on gas infrastructure in Mexico have resulted in major industries being shut down. Confirmed cases of attacks on energy infrastructure were reported recently in countries as diverse as Canada, Iraq, Pakistan, Mexico, Nigeria, Ukraine and China. Emerging threats

There are various emerging dimensions to the issue of energy security including specialized weapons designed for attacking the grid or virtual attacks being co-ordinated from distant computers. ‘Graphite bombs’, ‘blackout bombs’, ‘e-bombs’ ‘high power microwaves bombs’ (HPM e-bombs), flux compression generator bombs (FCGs), and nuclear e-bombs, are a few of the more frightening new words in the vocabulary of the malicious individual. Although the weapons in this arsenal are specifically designed to damage electrical infrastructure – not people – their use nevertheless poses very serious risk to health as critical services such as medical services, communications, water and sanitation, and so on would be imperiled. For some individuals the potential danger of ‘cyber threats’ is hard to imagine. Virtual threats, however, too often translate into physical damage. In 2007, Russian hackers shut down overnight the economy of neighbouring Estonia using a carefully designed and orchestrated cyber attack. The attacks shut down the major newspaper, electronic banking and automatic tellers as well as the internet. Although the electricity infrastructure was not targeted in this attack, it shows how a co-ordinated attack, in this case allegedly the work of ‘volunteer pranksters’, can have very real effects. In 2006 another, even more frightening, example emerged when a single US security expert, in an experiment designed to test US



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FEATURE

IMPROVING ENERGY SECURITY VIA DE

Given the danger imposed by the threats such as those outlined above it makes sense that decision makers explore all the options at their disposal for improving energy security. DE can increase the energy security outlook of the regions in which it is employed, both in terms of reduced infrastructure vulnerability and reduced fuel import dependence. Furthermore, DE provides the best way of improving energy security at the lowest cost. A fixed investment in DE will go much farther in making the energy systems more resilient than a similar investment in either exploring for new energy supplies or military forces to help secure existing foreign supplies.

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Centralized capacity spending

) h W G ( d n a m e D

Decentralized capacity investment

1

5 Year

10

Stranded surplus power capacity due to lumpy nature of central plant development cycle. Reduces incentive for conservation. Power shortage due to long lead times for central plants. Can result in rolling blackouts

Figure 3. Two-fold benefits of decentralized energy Source: WADE

DE FOR REDUCED SUPPLY VULNERABILITY

DE greatly reduces a region’s dependence on foreign supplies for a diversity of reasons. Reduced import dependence via efficiency

Centralized electricity plants, depending on the fuel and technology employed, are between 30% and 50% efficient – meaning that they waste between half and two thirds of the energy in each unit of fuel. Decentralized plants on the other hand, because they are sited near to where the electricity is used, can make use of the heat that is a natural product of combustion. Because DE plants can reach 90% efficiency, areas that rely on them require significantly less fuel to provide the same energy services. By investing on a large scale in decentralized energy technologies a jurisdiction can therefore reduce significantly its reliance on fuel imports (see box on Azerbaijan). If an area is 100% reliant on imports for its energy, a 25% increase in efficiency translates directly into 25% less fuel that needs to be imported. Improved efficiency of fossil-fired DE can thus make a very significant contribution to alleviating vulnerability from interruptions in fuel import delivery chains. DE technologies based on domestic fuels such as biomass, solar or wind reduce dependence on foreign supplies even more. Improved supply security by closely matching demand

Large nuclear, coal and hydro-power plants, by their very nature, require longer construction lead times because more stakeholders must be involved, they have larger impacts on the local area and there are more unforeseen contingencies. Lead times of 10–20 years or longer are typical. As a result central plants are seen as lumpy investment and they are not very well suited for meeting demand as it grows. DE on the other hand, because of its modular nature, is much more flexible and can meet changing demands very closely – being deployed in a matter of weeks or months rather than years (see Figure 3).

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infrastructure susceptibility to internet threats, in a few infrastructure hours successfully hacked into the control room of a major US nuclear power plant and seized control of the reactor core cooling.

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This means that the danger of rolling blackouts or brownouts due to supply shortages can be avoided with DE. Capacity can simply be deployed as demand grows (or indeed, unlike central plants, be easily taken down or moved due to its prepackaged nature). With DE the problem of grossly overshooting demand and being stuck with a sunken asset for which there is no demand is also avoided. DE assets in other words start translating into generous returns immediately compared to central plants where costs build up for years before the first kWh is generated. Many examples exist of DE stepping up to fill demand gaps when central plants fail. Capacity shortages from construction delays of the Comanche Peaks nuclear plant in Texas were met by contracting several CHP facilities to provide firm capacity in the meantime. DE FOR REDUCED VULNERABILITY TO INFRASTRUCTURE FAILURE

Investing in DE capacity greatly improves the ability of the grid to withstand accidents, extreme weather and even co-ordinated attacks. Reduced downtime and need for reserve capacity

A misplaced bolt found inside the generator at Koeberg nuclear power plant in South Africa in December 2005 required the replacement of much of the generator. However, long lead times for repairing the 900 MW unit (including difficulty finding spare parts), meant the incident resulted in rolling blackouts for much of 2006 until it was repaired in May. A system based on a diverse portfolio of smaller DE units is much less vulnerable to this type of supply interruption. As the case of Azerbaijan illustrates (see box) a nation can get more power, faster, by investing in DE rather than conventional centralized plants. DE has the added advantage of being more politically palatable (both internationally and within each nation – consider for example international concerns over Iran’ Iran’ss nuclear programme) because there are no public concerns surrounding



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                                                      

                                          

                                          

     ______________________ 

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Azerbaijan – five plants instead of one In 2005, upon examining the various options available to meet the anticipated demand, the government of Azerbaijan decided that a decentralized energy infrastructure was better able to meet requirements that building a large centralized power plant. It was therefore decided that five smaller plants would be built in strategic locations of high energy demand. Each plant was to be composed of 10 identical 9 MW gas engines making for a total addition of 5 x 10 x 9 or 450 MW. Because the plants were sited where the power was needed, no additional transmission capacity was required. And because power did not have to be moved large distances across the grid, 16% less generation capacity could be built in order to meet the same demand (i.e. additional power did not have to be generated to make up for grid losses). In February 2006, just 10 months after the original order was placed, the first of the five plants was up and running. Now all five of the plants are in operation, producing reliable electricity where it is needed. Furthermore, in three of the locations waste heat is being captured in the wintertime to heat greenhouses in order to produce value-added crops for export (a technique pioneered in the Netherlands). Using the power plants in such cogeneration applications greatly improves the fuel efficiency reducing the need for additional fuel imports. Currently the Azerbaijan engineers are looking at more ways to use waste heat at the remaining plants. The project has been so successful that a sixth and seventh plant have been commissioned

which plan to make further use of waste heat using absorption chillers for cooling in the summer time and heating of greenhouses in the winter. The decentralized model being employed in Azerbaijan has a multiplicity of security benefits. Data is not yet available on total fuel savings resultant from the approach, but using the conservative estimate that fuel efficiency has been improved by 25% would translate into 25% less gas that would hav e to imported for power generation, increasing significantly the bargaining power of Azerbaijan with the countries on which it relies for gas. Reduced imports also translated into significant economic savings and allowed scarce budgetary resources to be allocated elsewhere. Capital cost savings were also realized via the elimination of both the need to build extra capacity to meet peak demand and additional new grid capacity to move power to end users. In addition, the vulnerability of Azerbaijan’s power system to deliberate attack or natural disaster has been reduced considerably. In order for Azerbaijan to lose even 50 MW all ten engines at one of the plants would have to fail at once. In order for a larger act of sabotage to be effective terrorists would have to co-ordinate five simultaneous attacks and each attack would have to be successful – perhaps not impossible but considerably more challenging than targeting a single, larger, plant. Robustness of the system is similarly improved from a perspective of natural disasters and water shortages (which make cooling difficult).

safety, waste disposal or weapons proliferation. A shift to more DE on the grid reduces the relative importance of any single piece of grid infrastructure in supplying reliable power, because power is being generated on both sides of it.

systematic attack’ than central power systems. Iraq’s leading power sector experts, in reference to efforts to rebuild Iraq’s power sector after the US offensive, said: ‘Had the bulk of the funds allocated for electricity works been devoted to installing smaller plants dispersed nearer load centres, full load demand could well have been met.’ One reason identified for DE’s improved resilience to attack was that failure of DE systems can be brought back on-line much faster than systems heavily reliant on a single generator. Also the impacts of a single physical attack on a central power plant, could have a much more widespread impact. In order to cause similar havoc on a system based largely on the decentralized model, a co-ordinated attack on hundreds or thousands of individual plants would be required. Cyber attacks too would prove comparatively ineffective to a decentralized network. As explained above, shutting down a single multi-GW capacity coal, nuclear or hydro plant would affect millions of people. With a system of hundreds of smaller plants supplying the same people, hundreds of security systems of varying sophistication would have to be breached in tandem – a far more unlikely, and labour intensive possibility. This is to say nothing of the possible disastrous consequences of a

Islands of reliability

The benefit of the decentralized model in terms of resistance to natural disasters can be illustrated by a multitude of case studies. Wherever DE is employed experience shows that it remains operational during natural disasters. DE allows critical services such as police, fire service and health centres to remain operational during hurricanes and storms. Factories that have invested in DE enjoy an advantage over their competitors because they can remain fully operational during blackouts. Successful entrepreneurs in regions with infamously unreliable grids, such as India or China, stay ahead of the competition by investing in onsite or ‘captive’ power. More resilient to attack

A follow-up study after the 11 September attacks, suggested that ‘systems based more on gas-fired distributed generation plants may be up to five times less sensitive to the effects of 66

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successful attack on a nuclear power plant – risks that need not come into the equation in the case of distributed generation. Various empirical studies have concluded that DE is a safer approach to central generation. Reduced risk

An additional security benefit of DE is that smaller units are less susceptible to fuel spread risk compared with larger thermal plants. For example, as the cost of gas increases, decentralized generators show a considerable economic advantage over largescale power-only gas plants as spark spreads widen. As demand increases around the world for clean technology, market forces will put even greater pressure on investors to opt for CHP because of the efficiency gains it offers. The public will demand CHP over CCGT as a better understanding of energy issues seeps into the general consciousness. Local gas distribution companies can further reduce risk because most gas-fired on-site power projects flow through their meter, whereas larger gas power-generation projects (such as CCGT plants) flow through the meters of gas wholesalers. This means that by investing in DE, gas companies will be able to enter strategic new markets, while improving the security of general gas use.

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Decentralized energy technologies, including fuel cells, microturbines, reciprocating engines large and small, gas turbines large and small, plug-in hybrid vehicles, photovoltaics, on-site wind, biogas digesters and a host of other technologies offer enormous security benefits. By reducing a region’s vulnerability to energy supply interruptions and threats to critical electricity infrastructure, both natural and human, DE can offer great comfort at a low comparative cost. DE is a practical way of mitigating risks associated with energy and climate insecurity while simultaneously allowing communities to adapt to energy interruptions from disrupted supply chains and damaged infrastructure alike. As the cultural and natural climate of the earth continue to change in the coming decades DE is the logical means of ensuring safe, secure energy to people from around the world.

Jeff Bell is Program Director with the World Alliance for Decentralized Energy (WADE), and is based in Edmonton, Alberta, Canada. e-mail: jeff.bell@localpower [email protected] .org

CONCLUSIONS

As competition increases for increasingly scarce energy resources the importance of security is bound to increase.


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Where others think they’re seeing a mirage, we are quite cool in facing sizzling reality.

Durable and innovative like our alloys: 75 years VDM. Only very special creatures and plants can survive in the desert. And extremely resistant materials. Like our high-temperature Nicrofer alloys for gas turbines in power stations. And because they permit higher inlet temperatures, they optimize the use of fuels. Even in the desert, they ensure that vital energy can be provided: for example in sea water desalination plants producing drinking water. We don’t lose our cool, despite working at over 50 °C in the shade.

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A distributed utility model for Europe

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FEATURE

Europe’s utilities are under considerable pressure to change to more liberalized and sustainable models. Maybe this is an opportunity to transform Europe’s electricity markets, using a different business model, to incorporate not just distributed generation plants but ‘distributed utilities’, suggests Kurt Alen. Alen.

A d i s t r i b u t e d u t i l i t y model for Europe by remote operation of multiple on-site cogeneration plants

A

t Thenergo, we’ve developed a new business model, operating as a distributed utility using cogeneration plants. The plants p lants generate heat and power for local use, as well as providing exportable power. And because useable heat and electricity are generated simultaneously in the same unit, they provide a much greater energy yield than conventional power plants, where the heat is simply wasted. Compared with conventional energygenerating technologies, cogeneration enables a significant reduction in the use of primary energy supplies. Each of our plants is linked back to one central control centree – allo centr allowing wing the the company company to maximize maximize revenue revenue by allocating generated power to the point of demand, while at the same time ensuring no energy is wasted. This process means that Thenergo can provide utility scale output on a decentralized basis – while traditional utilities utilities may have one centralized centralized plant pumping out 100 MW, Thenergo could have 10 plants each generating 10 MW in a range of localities. This makes the system more responsive to local demand; it means that less power is lost in transmission; it uses local feedstock from local suppliers; and generation can be turned up and down as necessary. It is a responsive solution that can take advantage of peak demand in order to maximize revenues, but it is also environmentally sound, as it doesn’t waste energy and operates on a local, decentralized basis. We work closely with our partners, usually horticultural and agricultural clients – indeed our local partners are often shareholders in the plant. That means that we can guarantee our fuel supplies and off-take agreements. What makes our model unique is the way in which it combines this virtual management of power generation with

Commercial greenhouses need heat, power and carbon dioxide – and can thus be a fine fit for CHP

power trading. Commercial greenhouses need heat, power and CO2 on a regular basis – the heat from our power plants can be stored in heat tanks and the process can be halted if needed, for example if the price of electricity falls. Regional power demand can peak, for example at 10am and 5pm, and we can manage its sale and distribution from one point. With 13 plants and one control room, we can control how much power is produced, and generate it at the optimum time to trade. Most importantly of all, the process makes economic sense, with gains upward of 25%–30% per MWh becoming possible. Cogeneration and On-Site Power Production march–april 2008 | 69

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ELECTRICITY MARKETS HAVE TO CHANGE

There’s no question that the electricity market is going to have to change. Use of fossil fuel underpins most of our modern economy; our electricity is predominantly generated from fossil fuels, as is our home heating and power for our transport systems. It’s a given that we need to find ways of cutting the growing emissions of greenhouse gases (GHGs), and the increasing scarcity of fossil fuel is putting huge pressure on prices. Yet as fuel costs increase there is growing concern about whether the current framework can manage the investment required to keep the electricity market stable, secure and operational. The International Energy Agency’s ‘alternative scenario’, commissioned by the G8, pointed out that many OECD countries are at a critical point in their energy investment cycles. Many power plants, transmission cables and pipelines will soon reach the end of their lifetimes and will have to be either updated or replaced. To meet increasing demand growth, as well as replacing power plants, is going to require considerable investmen t over the coming decades. Europe is expected to need to spend around €2 trillion on upgrading networks over the next 25 years, while the pan-European electricity lobby group, Eurelectric, has said that the EU will need about 520 GW of new capacity by 2030.

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Co-gen new business at

For enquiries contact: Alan Sherrard Elmia AB, ph: +46 36-15 22 14 Fax: +46 36-16 46 92 e-mail: [email protected]

www.worldbioenergy.se

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We believe that we’re already providing an operational alternative to existing networks, and that the distributed utility model is the best way to manage the changing nature of power generation and distribution in the coming years.

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The World Energy Council (WEC) delivered a report to the European Commission (EC) warning that investment in energy infrastructure has slowed in recent years and that Europe could be 70% dependent on imports by 2030 without a change in policy. It warned that green legislation is one reason that power companies have been avoiding investment in replacement power plants, citing regulatory uncertainty. LIBERALIZING EU ELECTRICITY MARKETS

The European Commission believes there are two drivers behind lack of investment in new plants and grid networks – insufficient competition within Member States and the absence of a European-wide power market. It has favoured the break-up of integrated energy production and distribution businesses for some time, as the key means of encouraging competition, increasing decentralization and supporting fair access for all suppliers to the transmission grid. Historically, the EU markets have been dominated by state-owned monopolies, which have, to a great extent, evolved into privately-owned monopolies. They own everything from generation to retail and are focused on centralized generation and distribution. The Commission said it believed a well-functioning liberalized market would ensure sufficient investment in power plants and transmission networks, thereby helping avoid interruptions in power or gas supplies – and it was hoped that an integrated European electricity market would help simplify supply and demand issues across Europe. However, the unbundling of production and distribution has met with some opposition. A 2007 EU competition enquiry reported that utilities could still be characterized as national or regional monopolies, controlling electricity prices in the wholesale market, and accused them of blocking the market to new entrants. Quite a large number of network operators were said to discriminate against new users of the network in favour of incumbent supply and production com panies. Therefore, new companies that wish to enter the gas and electricity markets and have no choice but to use the existing networks, have had trouble gaining connections. Furthermore, national regulators were seen as having insufficient independence to carry out their duties. In September 2007 the EU suggested two alternatives, either the full separation of generation and transmission assets, or the creation of independent system operations (ISOs). While share ownership wouldn’t change, the ISOs would control investment in and access to transmission networks, allowing new market entrants access to transmission and ensuring increased competition. Even this has not sufficed. Eight Member States outlined a third option in February 2008, arguing that ‘unbundling’ vertically integrated energy firms would not achieve the desired results of higher grid investment combined with lower prices. The cost of renewable energy generation has traditionally been higher than that of fossil fuel, but the economics of renewable power are changing rapidly. Many factors may raise energy prices, as the cost of energy is a combination of the cost of production, transport, service and taxes. Replacing existing ageing infrastructure and developing new renewable plants will



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CHP for tomato grower Thenergo’s e-plant project at Groeikracht Boechout is a 5.5 hectare site dedicated to the cultivation of greenhouse-grown tomatoes. The installed system produces electricity that can be used for lighting, heating and CO2 enrichment. Any surplus electricity can be sold to the local grid. The electricity is produced by a natural gas motor, and gross installed power is 5.3 MWe for gross electricity production of 18.3 GWh/year. The plant also qualifies for grey cogeneration certificates that can be resold to other energy producers. Since natural gas is not a renewable energy, the operation of the plant does not qualify for green certificates. Biomass takes many forms

demand huge investment and the addition of the carbon cost of generation will only boost the price of fossil fuel, making increasingly efficient or renewable plants more economically attractive. Market conditions make investors choose the most cost-effective plants provided the price signals are right. And that means that we need to look at new ways of fulfilling the need for increased efficiency, renewable power generation and grid management. Aside from price, one concern about increasing the levels of renewable power sources is the intermittent nature of some

ARE STRAY ELECTRICAL CURRENTS DESTROYING YOUR MACHINERY?

technologies, which are seen as unreliable or simply too difficult and expensive to implement. Yet as we increase the levels of renewable power in our electricity system, there are different tactics for managing the problem. A key issue will be increasing the efficiency of power generation. One area where significant changes must be made lies in the utilization of heat. Traditional power stations typically waste up to 65% of their energy as heat. Such inefficiency is unacceptable in an energy-constrained world, so there is a strong case to be made for increasing use of CHP in both industrial and consumer environments. The conventional wisdom is that in order to keep a power grid stable with regard to frequency and voltage, flows of power into and out of the grid must always be equal. However, perhaps where we need to concentrate is on transforming the way in which we manage generation, through the decentralization of power generation with an ongoing upgrade of the existing grid – thus ensuring power is generated where it’s needed, with lower losses in transmission. Not everyone agrees that decentralization is entirely beneficial. Some proponents of the more centralized model suggest that supplying energy is a public service that should be shielded from unpredictable market forces. There are concerns that decentralized generation could lead to large price fluctuations or to potential supply disruptions as a result of a lack of centralized control. However, if such a process could be effectively managed, it could provide a great opportunity to reach both climate change and liberalization goals. DISTRIBUTED UTILITY MODEL

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One of the key technologies in developing an efficient network of distributed power plants is the use of cogeneration. Thenergo operates a string of decentralized power plants, which range from 1–20 MW, using natural gas CHP for the greenhouse industry to agri-waste and organic industrial waste-to-energy facilities. Some operations are majority owned, but rarely will Thenergo take full ownership. As many partners help us secure long term supply of primary fuels (from cattle dung and wood chippings to potato peelings and jatropha), their interest in the project is a necessary incentive. Thenergo holds between



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  __________________________________________

                                                   

                             

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liberalization and increasing the percentage of efficient renewable power generation in a fairly short period of time. PRIME DISTRIBUTED UTILITY MARKETS

Heating equipment for greenhouses

25%–100% of the 20 special purpose vehicles currently in operation – and of these holdings, 13 are majority stakes. At end December 2007, our operational portfolio stood at 63.3 MW, a three-fold increase over the previous year. And our development pipeline stands at 300 MW, up from 20 MW one year ago. Thenergo’s business model assures its partners that every step of the biomass-to-energy route is undertaken and controlled under the Thenergo umbrella. Core engineering concepts guarantee the separation of heat and power production and revenue is derived from the energy generated, by-products, and heat supplied to project partners. Som e projects have longterm electricity off-take agreements, but there are strong synergies generated between the different projects. Thenergo’s operational model involves the centralized management of decentralized units, with remote real-time monitoring of every unit. The power plants, and the electricity they generate, constitute a virtual power plant operated and commercialized remotely by a small team in Antwerp (the same team that oversees trading certificates and their resale). The fragmented nature of the European biomass market lends itself to the development of the distributed utility model. There are literally hundreds of small engineering SMEs (small and medium enterprises) building and operating projects of various sizes and with varying success – and this has helped Thenergo to enter new geographic and industrial areas. It has created opportunities to acquire companies that lack the financial capacity to grow or that offer specific engineering know-how, and to target acquisitions that offer strong project development potential. If the EC was to implement the idea of ISOs across Europe, with a network of distributed utilities across Europe, we could potentially reach both goals of European electricity 74

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Of course, markets where additional revenues can be derived from power generation will prove most attractive to a distributed utility. Cogeneration and bio-energy are two of the fastestgrowing power sectors, and they benefit from a range of fiscal and regulatory incentives. Renewably powered electricity provision has taken different paths across countries, underpinned by different policy frameworks. Although there has been a convergence to two main mechanisms, the feed-in tariff (FIT) and the renewable portfolio standard (RPS), much debate remains focused on the effectiveness of each for meeting the multiple objectives of energy security, emissions reduction and economic development. National and regional incentives take many forms, and include subsidies, tax credits and negotiable certificates. Belgium provides direct subsidies, while tax credits in the Netherlands can reach 44% of the investment cost. Certificates available for trading are green and gray certificates. The green certificate corresponds to 1 MWh produced by renewable sources, with market prices ranging from €80 to €125. Grey certificates (otherwise known as cogeneration certificates) are related to a saving of 1 MWh of primary energy by using cogeneration, and they have a market value of €29–45. This results in strong profitability for utilities operating on this model. In Benelux the price of power averages €36/MWh but with green and grey (heat) certificates, prices can rise to €120/MWh. In Germany, 20-year contracts can be bought to supply green power at a price of €80/MWh, as in France. Aside from the UK, with its early introduction of the Renewables Obligation (preceded by the Non-Fossil Fuel Obligation), the two countries which stand out in terms of renewable energy development and deployment are Denmark and Germany. They are closest to meeting their renewable energy targets and have been able to achieve several other objectives, especially industrial development and job creation, and in the case of Germany, carbon emission reductions. Germany accelerated the implementation of renewable energy through the use of feed-in tariffs (FITs). Unlike a quota based-incentive system, such as the UK’s Renewables Obligation, these place a legal obligation on utilities to purchase electricity from renewable energy installations, at above-market rates. The tariff rate utilities pay is guaranteed, usually over a long period. It can vary for different technologies, in order to ensure profitability of each renewables operation. This provides long-term certainty for investors and developers, as well as initiatives for innovation in new technologies. The new Certificates of Origin to be implemented through the EU’s proposed Directive will be of additional benefit to any utility looking to trade power throughout Europe. The creation of a tradable guarantee of origin regime will allow Member States to reach their own targets in the most cost-effective manner possible. If Member States are unable to develop sufficient local renewable energy sources, they will be able to



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buy guarantees of origin (certificates proving the renewable origin of energy) to meet their needs. Indeed, the implementation of the relevant directives should see increasing amounts of renewable energy generation in the developing markets of Central and Eastern Europe. The creation of a wide-ranging system of green certificates would make trading more liquid, leading to greater price stability. This could lower the cost of all renewable energy technologies once plants can sell their power in any market. Feed-in tariffs for electricity from renewables have already been introduced in the Czech Republic, Croatia, Estonia, Latvia, Lithuania, Slovenia, the Slovak Republic, the Ukraine and Bulgaria, although effective implementation rests on strong executive decisions about annual tariffs. Poland and Romania have, to date, focused on green certificates but the whole CEE region could prove an attractive market for distributed utilities.

Traditional utilities are vertically integrated in terms of generation and distribution of power, but it is the integration of generation with power trading in a European-wide electricity market, combined with priority access to the grid, that will allow new utilities companies to compete, especially in the renewables arena. Liberalization will enhance the ability to trade power to the point of need, but it’s the additional revenue generated by the renewables framework that supports this model so strongly. A

CHP

Kurt Alen is the Chief Executive, Thenergo, Antwerp, Belgium. www.thenergo.eu


• DECENTRALIZEDGENERATION • MICROPOWER • EFFICIENCY • CLIMATE CHANGE • POLICY • MARKETS

p p s o c

Cogeneration & On – Site Power

janua ry–f ebru ary 2008

C o g e n e r a t i o n a n d O n S i t e P o w e r P r o d u c t i o n

FEATURE

distributed utility can generate value from power, heat and green certificates, with a pricing mechanism that goes hand-inhand with an environmental benefit. The distributed utility model could transform the electricity markets, increasing efficiency and lowering emissions, but it will require full adoption of the EU Renewables Directive, especially in relation to establishing priority network access for renewables. There is a caveat within the Directive – ‘transmission system operators shall give priority to generating installations using renewable energy sources insofar as the security of the national electricity system permits’. This means that it will be possible for Member States to refuse to implement this aspect of the Directive. But with such clear benefits to be gained, both economically and environmentally, extension of the distributed utility model looks like the best means of meeting the needs of EU legislation regarding the liberalization of the electricity markets as well as the means of fighting climate change.

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BALCKE-DÜRR 1883–2008 I N G T R A I N I N G N E E R E N G I T S E P A R S P A R

125 YEARS OF COMPETENCE POWERED BY INNOVATION

: H I B I T IO N T T H E E X A S U E E P L EA S E S w, in Mo sco

r i l 2 0 0 8 15 –1 7 Ap s tand G 3 0

Balcke-Dürr GmbH, Ernst-Dietrich-Platz 2, 40822 Ratingen, Germany Phone: +49 (0) 2102 1669-0, Fax: +49 (0) 2102 1669- 617, [email protected], www.balcke-duerr.de A company of

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Rural electrification and renewables

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Remote rural electrification projects in the poorer parts of the world used to be achieved with the use of diesel engine generators. These are increasingly being replaced with decentralized, on-site stand alone and renewable energy-based hybrid power systems. Paula Llamas of the Alliance for Rural Electrification reports.

Rural electrification and renewables decentralized energy for remote communities

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oughly 1.3 billion people in rural areas, mainly within developing countries, live without electricity. Rural electrification is therefore an issue that should be high on rural development agendas. Renewable energy technologies (RETs) have an important role to play in rural areas in terms of the suitability and cost competitiveness of the existing technological solutions, and from an environmental point of view. Renewables are gaining widespread support, notably in the developing world. Climate change will affect everyone, but it is expected to have a greater impact on those living in poverty in developing countries as a result of changes in rainfall patterns, increased frequency and severity of floods, droughts, storms, heat waves, changes in water quality and quantity, sea level rise and glacial melt. On-grid and off-grid renewable applications are currently available to produce electricity, with off-grid being a flexible and easy-to-use solution to increase electrification rates in rural areas where, due to their remoteness and low levels of population, the extension of the grid is often economically unfeasible. OFF-GRID RURAL ELECTRIFICATION

Decentralized (off-grid) rural electrification is based on the installation of stand alone systems – photovoltaic (PV), wind, small-scale hydropower, biomass – in rural households, or the setting up of electricity distribution mini-grids fed either by renewables or mixed (renewables–LPG/diesel) systems. The off-grid technology options based on renewable energies are varied in terms of scale and services provided, but they all

have a number of important common features, which make them more attractive than the conventional options – systems based on diesel or the use of candles, oil, kerosene lamps and lanterns. Primarily, RETs allow for the optimization of the use of indigenous natural resources. The power is generated on site, thereby avoiding transmission losses and long distribution chains and satisfying energy demand directly. The standardization and modularity of the technology (for example PV systems) provides a high degree of flexibility to adapt to different locations and environments and at the same time allows the installed technology to be scaled up when demand increases. Furthermore, the simple installation and maintenance combined with minimal running costs, facilitate local training and income generation opportunities, which in turn guarantee the sustainability of the system. Another important feature to take into account is the cost competitiveness of RETs compared with the conventional options on a life cycle basis. When it comes to rural communities, the costs of electrifying small villages through the extension of the grid are frequently very high; the lack of critical mass, the distances to the grid and the type of terrain to be crossed are key factors in these costs. In addition, residential electricity prices on rural electricity grids require high levels of consumption in order to make electricity supply economically viable. To reach a high level of consumption requires that consumers have sufficient disposable income to afford appliances that use significant amounts of power, such as numerous light fittings, refrigerator, fridge freezer, TV, and so on. Where these levels of consumption are not found, electricity supply through the grid is economically unviable. Cogeneration and On-Site Power Production march–april 2008 | 77

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PV/diesel hybrid system – Morocco

Figure 1. The flows of energy go from the PV generator through the control unit to the pump. The flow of water goes from the well to the water tank and then to the distribution systems. Source: ISOFOTON

The village of Akane has a total of 38 households plus community services. The PV hybrid plant, which has been integrated into a community building, consists of a 5.8 kWp PV generator connected to a DC coupled system with a 72 kWh battery, a 7.2 kVA DC–AC inverter and a back-up diesel genset of 8.2 kVA. Four houses are away from the village centre and have been provided with individual PV generators. The micro-grid was set up in 2006 and provides electricity 24 hours a day to 27 households (approx. 120 inhabitants) and four community services (public lighting, school and community meeting hall and mosque). Each client has an electricity dispenser/meter to limit the demand to the contracted tariff, ie the tariff that the consumer has agreed to pay the operator. The sum of the nominal contracted demands for the village is 13 kWh/day. The technical performance is evaluated with an hourly data logger. The management of the system follows a community model. A community electricity service operator (users’ association) operates the service, collects fees and contracts external technical assistance when needed. The users’ association has operation and maintenance protocols, and signed service contracts with each user. The tariff is 50 DH/month (Moroccan Dirham/month) (�4.46/month) for the very low demand (275 Wh/day) and 100 DH/month ( �9/month) for the low demand (550 Wh/day). Source/Implementer: Trama TecnoAmbiental

Installation of PV water pump systems Source: ISOFOTON

Diesel fuel-based power systems are no longer an attractive option – their elevated operating costs and high maintenance, the geographical difficulties of delivering the fuel to rural areas and the environmental and noise pollution they cause all count against them. The low operation and maintenance costs, as well as the non-existent fuel expenses and the increased reliability, together with a longer expected useful life of renewable energy technologies, usually offset initial capital costs. The reality is that RETs are cost competitive for rural electrification, even without internalizing environmental costs. Many renewable energy technologies are used extensively within rural communities for different applications such as household and public lighting, telephone and internet, refrigeration of medicines, irrigation and water purification, drying and food preservation, crop processing and so on. Solar pumping and hybrid village electrification systems are two examples. SOLAR PUMPING TECHNOLOGY FOR WATER SUPPLY

According to the 2006 Human Development Report of the United Nations Development Programme (UNDP), 1.2 billion people have no access to safe water and 2.6 billion live without 78

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access to sanitation. Millions of women and young girls are forced to spend hours collecting and carrying water, restricting their opportunities and their choices. The effects are felt most in rural areas where access to drinking water as well as to irrigation services for agricultural purposes and livestock are a basic milestone that could improve quality of life and economic development. Direct solar pumping technology is one of the most suitable technologies that can be used to provide water supply in rural areas, where a steady fuel supply is problematic and skilled maintenance personnel are scarce. The modular nature of PV generators means that installations can be redesigned to meet an increase in demand; PV water systems can also be easily moved with little dismantling and low reinstallation costs – see Figure 1. This technology is also highly efficient – direct solar pumping technology covers applications ranging from 500–1500 m 3 /day – requires minimal maintenance and, of course, doesn’t use fossil fuels. Since 1994 around 24,000 solar pumping systems have been installed worldwide providing drinking water to several thousand households and community services (health clinics, schools and the like), as well as irrigation services.



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y l l a i t n e t o p a o t n i s n r u t t i e r o f e b t o p s t o h . r e o r t u a l r i a e f n c e i g h a p o r H t C s a T t A a C c

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) y e d e v v n i r e a u c e S e r r s u d l m n g e t a n . s s r i y t e h S r t s e s fi y p i r x g a a e l i e l r a i g x n o p t u i a r A h _ R o t i c_ ’ t t n n a__ i a n l c_ l o / t P m _ t ( a _ m _ R S r o _ o c S t ._ e A a e _ n P r _ O n _ / o r e _ E e e n . _ w e _ y w o g _ r r w _ a P u _ t . w e o n e f @ e S r S f o s i m A u l P a e n H o H p r C C m e T m T o w A o A c o r C f C a P


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Wind/diesel system – China The island fishing village of Xiaoqingdao, Rushan, Shandong is 4 km off the shore of the mainland and has a total of 125 families (375 people). The wind/diesel hybrid system dates from 2001 and consists of four 10 kW wind turbines made by BWC; a tower with a height of 36 metres; a 40 kVA 3 phase inverter; a battery bank (211 kWh); with a back up diesel of 30 kW. Source/Implementer: Bergey Windpower

Gambia, Tunisia and Algeria are some of the locations that have benefited from this technology. By the year 2010, the EU predicts that 150,000 photovoltaic pumps will have been installed. HYBRID POWER SYSTEMS FOR VILLAGE ELECTRIFICATION

A combination of different but complementary energy supply systems based on renewable energies or mixed (RET–LPG/diesel), is known as a hybrid system – see Figure 2. Hybrid systems capture the best features of each energy resource and can provide ‘grid-quality‘ electricity with a power range between several kilowatts and several hundred kilowatts. This combined technology can be use for a range of

Figure 2. A typical hybrid system combines two or more energy sources, from renewable energy technologies, such as photovoltaic panels, wind or small hydro turbines, and from conventional technologies, usually diesel or LPG generators (though biomass fed gensets are also a feasible option). In addition, it includes power electronics and electricity storage batteries. Source: SMA

applications, from village electrification to professional energy solutions such as telecommunication stations or emergency rooms at hospitals, and as a backup to the public grid in case of blackouts. Hybrid systems are integrated in small electricity distribution systems (mini-grids) and can be incorporated into both available and planned structures, as replacements for diesel mini-grid systems. Retrofitting hybrid power systems to the existing diesel-based plants will significantly minimize delivery and transport problems and will drastically reduce maintenance and emissions, representing a more advantageous solution for rural areas. (Even if such systems include a genset as a backup, renewable energy will still supply, at least, between 60%–90% of the energy, with gensets providing as little as 10% of the energy.) Technical, economic, financial, and socio-cultural considerations, including a feasibility study based on gathering field data for each specific site and a life cycle cost analysis, must all be integrated in the decision process to ensure the appropriate choice of renewable energy technologies for any given rural area. Hybrid systems have been successfully installed in several remote locations. The access to reliable and affordable electricity has allowed the provision of key services such as lighting, refrigeration, education, communication and health services, thereby enhancing rural societies. RENEWABLE OFF-GRID MARKETS FOR RURAL ELECTRIFICATION

Installation of PV water pump systems. Source: ISOFOTON

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Renewable energy sources are widely available throughout the developing world. For example, the East African region boasts enormous potential for wind energy generation due to its favourable climatic conditions. Africa and South East Asia have abundant unexploited potential for small hydropower systems which can



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supply rural energy demands from small rivers. Africa also has tremendous solar energy capabilities – there is real commercial potential for solar energy to provide rural electrification in remote areas of sub-Saharan Africa and North Africa. In fact, rural access is already being targeted by countries with a large number of unelectrified communities, such us China – the Township Electrification Programme was finished in 2005 and provided electricity to approximately 1.3 million rural people in 1000 townships w ith solar PV, small hydro, and a small amount of wind power. In 2005, Sri Lanka electrified 900 off-grid households with small hydro and 20,000 with solar PV. And in India in 2006, the Integrated Rural Energy Programme using renewable energy had electrified 2200 villages. India also has achieved 70 MW of small-scale biomass gasification systems for rural (off-grid) power generation. The Philippines now has some 130 PV-powered drinking water systems and 120 telecommunications systems, with an average capacity of about 1 kW each. There is significant potential in the off-grid electricity market. Recent estimates for PV alone establish a cumulative installed capacity of 161 MWp for residential off-grid systems, with a growth rate of 17% and 133 MWp for industrial off-grid systems, with a growth rate of 15% (according to Navigant Consulting in 2006), which in turn sets the potential market size at 30 times larger than today’s market! However, only a limited number of studies and databases are available and reliable when it comes to rural electrification. The lack of up-to-date socio-economic data prevents, among other things, the development of new frameworks for rural electrification and competitive markets, and also limits public and private investment. Additionally, there are still a number of challenges to face in order to reach a level playing field for rural electricity supply using renewable energies; distortion of prices as the result of public subsides to conventional energies; inappropriate taxation of imported energy equipment and the lack of appropriate financing instruments suited to the scale and the technology involved, among others, are potential blocks to the development of these markets. Some of the key drivers to encourage the private sector to make significant investments in rural decentralized energy markets will be changes in legislation and regulatory frameworks to favour renewable energies, both at local and national level. Alongside this, international financing institutions need to develop innovative financing options, such as commercial loans or credit schemes, that will assist with initial investment costs and will also permit rural users to afford their electricity.

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Appropriate support frameworks and financial instruments are needed to remove market distortions and permit long-term sustainability. Furthermore, the engagement of governments and the donor community, such as the World Bank, development banks and development aid from the EU, is crucial to increase the involvement of the private sector. This joining of forces will definitely increase the rates of rural electrification and development.

Paula Llamas is Secretary General of the Alliance for Rural Electrification (ARE), Brussels, Belgium. e-mail: [email protected]

The Alliance for Rural Electrification was founded in 2006 in response to the need to provide sustainable electricity to the developing world, and to facilitate the involvement of its members in the emerging rural energy markets. The strength of ARE is its robust industry-based approach, coupled with the ability to combine different renewable energy sources in order to provide more efficient and reliable solutions for rural electrification. ARE, together with its members promotes renewable energy technologies as the most suitable and cost-competitive solution to address the specific energy and water needs in rural areas and dedicates its efforts to generate the appropriate communication tools and materials to carry out this objective. ARE membership is open to all companies and institutions with an interest in the renewable energy field.


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e t T h M e e p e a n o r E u i s s i o n E m d a r d s S t a n

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CONCLUSIONS

Renewable energy technologies are ready to play a significant role in the electrification of rural areas, notably within developing countries. PV-powered water systems and hybrid systems are just two examples of a range of technologies that have been developed to increase modern electricity services in rural areas in an environmentally and socio-economically sound manner.

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3 – 5 JUNE 2008, FIERA MILANO - CITY CENTRE, MILAN, ITALY WWW.POWERGENEUROPE.COM ________________________

CONVERGE, COLLABORATE, CONNECT EUROPE’S CENTRE POINT FOR POWER POWER-GEN Europe, and sister events Renewable Energy Europe and POWERGRID Europe, puts you in the company of more than 11,000 power industry professionals from over 100 countries. It offers uniquely valuable opportunities to connect with high level decision makers. As convergence of traditional and emergent production and delivery methods becomes a focus for Europe’s energy business, POWER-GEN Europe, Renewable Energy Europe and POWERGRID Europe bring together these three fundamental facets of the power industry under one roof.

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Integrated on-site renewable energy system

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FEATURE

Denmark’s Nordic Folkecenter for Renewable Energy uses on-site wind power to heat water at times of excess power production. It also has CHP, biomass, solar photovoltaic power and a thermal store. And the organization sees the integrated system as a prototype for application at a larger scale, explains its Director Preben Maegaard.

Integrated on-site renewable energy system demonstrates a way forward for Denmark

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ecently, in order to fully utilize renewable energy generated on site, the Nordic Folkecenter for Renewable Energy (NFC) heating system was upgraded to show how wind, solar, wood pellet biomass and locally produced plant oil could be used to produce an integrated system unmatched in Denmark. The system incorporates multiple energy media to replace what was once supplied by conventional fuel oil. The new system not only provides a clean sustainable method for heating NFC well into the future, it provides a path that Denmark’s district heating systems, wind power producers and combined heat and power (CHP) operators can follow on a larger scale. The original heating system, installed 30 years ago, consisted of a fuel oil boiler (the most efficient available at that time), and solar thermal connected on a small district heating loop to provide thermal energy to four buildings. During the summer months an assortment of solar collectors supplies the majority of NFC’s heat by capturing low grade solar energy for domestic hot water. As winter approaches, the solar fraction becomes almost non-existent and the oil boiler had to be started in order to provide for heating and domestic hot water. When the original system was built in the 1970s we knew that we would one day use the wind as a heating source and installed additional lines and a 10,000 litre heat storage tank for future use. The two primary grid-tied wind turbines connected to this system are a 7.5 kW and a 75 kW machine. The wind turbines provide all of NFC’s power needs on an annualized basis and they produce in excess of 150,000 kWh per year (which is equivalent to 15,000 kg of oil). However, as the wind is not

Table 1. Energy price of various fuels in Denmark Price per kWh Energy

DKK

Euro

US$

Wind power sold to the grid

kr 0.22

€ 0.03

$ 0.04

Power bought from the grid

kr 1.75

€ 0.23

$ 0.34

Fuel oil for heating

kr 1.10

€ 0.15

$ 0.22

Cost of pellets

kr 0.45

€ 0.06

$ 0.09

1

2

always blowing there are times when NFC has to purchase electricity from the grid. We quickly recognized that we were paying far more to buy power from the grid and to purchase fuel oil (on a per kWh basis) than we were receiving from selling excess electricity. We started thinking about ways not only to reduce the cost of heating, but also how to provide more value for the wind energy that was being produced. As seen in Table 1, wind energy sold from NFC turbines receives a price of 0.22 DKK/kWh, while the cost for fuel oil is five times more (1.10 DKK/kWh with a boiler efficiency of 75%). Therefore, just by using the wind electricity for heating (and offsetting fuel oil costs) NFC can quadruple the value of the wind energy. Additionally, by using wood pellets in conjunction with the wind power for heat, NFC has a storable energy reserve for times when there is insufficient wind. The cost of pellets is less than half the cost of the fuel oil at 0.45 DKK/kWh. In order to complete the system and provide self reliance to NFC a combined heat and power unit was needed. This unit can provide electricity in times when there is no wind (so eliminates the need to purchase power from the grid) and the heat Cogeneration and On-Site Power Production march–april 2008 | 83

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CHP and district heating in Denmark In 1987 Denmark created a political framework that supported the establishment of local consumerowned and municipality-owned CHP plants. The ownership of power production is centralized power and heat production in the big cities while local, independent, not-for-profit energy supplies are found in the towns and villages. The majority of district heating loops in Denmark were installed from 1980–2001 and they were predominantly owned by the members of the community which they were supplying – anywhere from 500 to 200,000 people. 80% of all space heating in Denmark comes from heating loops and 60% is CHP. Smaller centres built CHP natural gas engines, small biomass combustors or heating plants, while the larger towns and cities employed gas turbines, or a combination of all of the technologies. Systems were designed based on the fuel available, the geography and the needs of the community. This change to decentralized CHP happened in parallel with the addition of 3200 MW of new wind power with 85% owned and used by community power co-operatives referred to as Independent Power Producers (IPPs). By 2001 about 45% of the 35 TWh of power used in Denmark was being produced by IPPs. Of the 45%, wind power accounted for 20% and CHP 25%. As a consequence, the central power utilities (Vattenfall, DONG Energy and E.ON) had t heir share of the power market reduced to about 55%. This transition took only 10 years to dramatically shift almost 50% of the power production from centralized, fossil fuel companies to local, municipal or consumer-owned companies. Coincidently this is the amount of time it takes to build one nuclear power plant, of roughly 1200 MW. This transition represented the single most important initiative to reduce CO2 emissions in Denmark. Advantages of community-based CHP units are vast, the main benefits being that stationary natural gas CHP boasts an electrical efficiency of up to 41% compared to the average efficiency of a thermal coal plant of 36%. With heat recovery of the jacket water, exhaust, lube oil and turbo charger, an overall thermal efficiency of over 85% can be achieved. This reduces both power and heating costs. In 2001 Denmark had the third lowest power prices (without taxes) in Europe, according to EUROSTAT – Sweden and Finland were lower due to high contributions from hydro. In contrast France, with 80% of its power coming from atomic energy, had a higher power price than Denmark.

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The Folkecenter stoker furnace is fuelled with wood pellets

generated is captured and used in the district heating system. A new control strategy now governs the allocation of wind power in the following order of preference:   

electricity to supply NFC’s electrical needs electricity for water heating, and if there is still surplus, electricity is sold to the grid.

The final upgraded system design that was implemented consisted of a wind ‘boiler’, plant oil CHP unit and wood pellet boiler in conjunction with the existing solar thermal and a 10,000 litre thermal storage tank. UP-SCALING THE SYSTEM CONCEPT

In addition to providing cost effective heating for NFC, we had a secondary agenda. It is well known that Denmark’s 5000 wind turbines produce approximately 20% of the country’s electrical load on an annualized basis. During times of high wind speeds the wind turbines can produce over 100% of the national consumption. Since the centralized coal plants provide base load and have limited turndown capability, a significant amount of electricity at very low spot market prices gets shipped off to Norway, Germany and Sweden. To compound this, numerous community-based CHP plants may continue running (and generating even more electricity onto the grid) to ensure adequate heat supply to their consumers. In fact, sometimes Denmark has to pay to get rid of its excess electricity. This is one reason Denmark has capped the national installed wind capacity and is currently not supporting increased growth. The new NFC heating system has been built to mimic, on a small scale, the Danish power and district heating systems. The district heating systems distributed across Denmark typically use CHP schemes (some are heating plants only) and use



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_____________

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FEATURE

various fuel sources including wood chips, straw, biogas, solid municipal waste, natural gas, coal and others. These fuels are essentially energy storage media comparable to the NFC wood pellets. The NFC system only uses wood pellets (for heating) and CHP (for heating and power) when renewable electricity and solar thermal cannot fulfill the heat and/or power requirements. With the system up and running, we are promoting the

  

  

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Electric boiler uses surplus electricity to heat water

  _  _    _  _   _  _         

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                             _________________

concept to be up-scaled to a regional and even national level, based on integrating the existing community-based CHP and district heating plants with electrical heating using excess renewable electricity. Once a secondary electric heating element is installed, these facilities can switch to electric heating in times of excess wind capacity. As the wind slows down and the supply spike dissipates, the heating plants will be required to restart their primary fuel systems in order to continue uninterrupted service. Since most district heating systems have relatively quick startup times as compared to coal or nuclear power plants, using the CHP and district heat systems as swing producers i.e able to generate energy to follow loads, makes sense. The basic capital cost of such a scheme would include the costs of installing secondary electric heating elements at all heating plants, in addition to a central control system with real time production data for wind power, CHP and heating plant loads, and national grid demand. It is anticipated that this would make economic sense, due to the low/negative price being received for power exports, although detailed economics have not been performed. Equally important is that this concept allows Denmark to increase the overall contribution of renewably-generated electricity, increase energy independence and further reduce CO 2 emissions. In addition, many of the existing CHP and heating plants already use renewable primary fuels such as biomass and biogas. With a strategy to slowly wean those CHP facilities using non-renewable fuels (such as natural gas) to renewable fuels (such as biogas) this scheme sets the stage for a future 100% renewable energy system for the whole of Denmark. THE NFC INTEGRATED SYSTEM

The NFC heating system employs 60 m 2 of solar thermal panels in parallel with three renewable energy heat appliances. The heating appliances include a 45 kW wind powered electric boiler, a 28 kW (8 kW electric, 20 kW heat) plant oil fuelled CHP, and a 50 kW wood pellet stoker boiler. The loop also employs a 10,000 litre thermal buffer tank. The system uses lowpressure hot water in a district heating loop in order to provide space heating and domestic hot water to 3000 m 2. The four heat appliances and buffer system work together using sophisticated control logic in order to maximize renewable wind and solar energy. When solar heat and wind power are not available, wood pellets or plant oil can be deployed. From May until September thermal solar provides the majority of the thermal requirements for NFC. Excess heat not used during the day is stored in domestic hot water heating tanks and the 10,000 litre buffer tank, ensuring that there is heat and hot water when the sun is not shining. The wind boiler is controlled by two criteria. Its main function is to convert excess power produced by the two NFC wind turbines to thermal energy. These criteria are: available power  boiler temperature set point. The power supplied to the boiler is calculated based on the power 



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Your OEM cannot repair your equipment and a replacement is expensive?


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Sulzer Turbo Services

Full restoration of all critical high speed rotating turbo equipment is the specialty of Sulzer Turbo Services. We provide a custom-built solution to meet your needs and keep your unit operational.

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being produced by the wind turbines minus what is required by the centre. Therefore if the centre is currently using 10 kW and the turbines are producing 30 kW then 20 kW is available to the wind boiler if the temperature set point is not achieved. The control system ensures that no power is purchased from the grid for the purpose of heating. Only w hen the wind turbines produce over 55 kW is there any power shipped to the grid. This is important because, when the power is used locally, NFC avoids contributing to the major power spikes during periods of high wind. The temperature set point of the wind boiler is set to 75°C in the winter and 50°C in the summer. The temperature needs to be set back in the summer in order to provide sufficient load to the solar system. If there is insufficient load in the summer a boiling condition may occur potentially causing damage to the panels. The plant oil CHP unit is set to start up only when there is both a power and heat requirement. This is important as the economics of burning plant oil for only power or only heat are negative. The final appliance in the system is the 50 kW pellet boiler which utilizes waste wood in the form of pellets. Above the pellet boiler is a 25 m 3 storage bunker. The pellet boiler supplies heat to NFC and is programmed to turn on when the supply temperature falls below 58°C. This occurs on colder, less sunny days when there is less than approximately 8 metres/second of wind. At this wind speed NFC’s electricity requirements are met but there is insufficient renewable electricity to supply the required heat.

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FUEL CELL DEVELOPMENT AND

The Folkecenter CHP unit is fuelled with rape seed oil

IN SUMMARY

As Denmark has led the world in the development of wind power it can now lead the world again by showcasing an ingenious approach to integrating an even higher percentage of renewable heat and power on a large scale. Integrating wind power with district heating systems is a powerful way to manage the variable nature of wind power as well as increase the overall contribution of renewably generated heat and power. Most importantly, setting up this foundation and then shifting to renewable primary fuels is a clever way to make the necessary transition to a 100% renewable energy system for the country or the whole world. As the NFC mandate is to highlight solutions in an energy constrained world this latest development shows that, despite lack of government support, innovation in heating, transport and renewable power production continues. We believe that the only way to fully integrate renewables into society is to look at integrating multiple renewable energies in a holistic approach. No renewable energy solution can stand alone and therefore all renewable technologies and resources have to be mobilized. If we look to nature as our inspiration we can see that diversity builds strength and resilience and has worked like this for millions of years. Moving forward we need to build our lives and systems around similar principles.

Preben Maegaard is the Director of the Nordic Folkecenter for Renewable Energy, Denmark. e-mail: [email protected]

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The Nordic Folkecenter for Renewable Energy is a non-profit, independent, organization established in 1983 and located in north-west Denmark. For over 20 years it searches and demonstrates small-scale wind power, biogas, hydrogen production/storage, plant oil fuel, integrated solar photovoltaic, solar air/water, and wave energy. www.folkecenter.net/gb

NOTES 1. Denmark has high fuel oil taxes 2. Pellet price based on 75% boiler efficiency




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. k r a m e d a r t d e r e t s i g e r a s i ® Ä L I S T R Ä W

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The Most Important Conference for Gas Turbine Professionals!

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June 9-13, 2008 | Berlin, Germany WHAT ATTENDEES ARE SAYING ABOUT TURBO EXPO

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The World Alliance for Decentralized Energy (WADE) was established in 1997 as a non-profit research and promotion organization whose mission is to accelerate the worldwide development of high efficiency cogeneration (CHP) and decentralized renewable energy systems that deliver substantial economic and environmental benefits.

Executive Director: David Sweet CONTACT: Jeff Bell WADE 10008 82nd Avenue, 2nd Floor Edmonton, Alberta Canada T6E 1Z3 Tel: +1 780 439 2254 Fax: +1 780 439 2254 e-mail: [email protected] web: www.localpower.org

WADE IN ACTION WADE co-hosts ‘Renewable energy’s role in global security’ event Side event at WIREC Conference explores security benefits of DE Washington DC, USA • In conjunction with the

developing nations. Efforts within the US Department recent Washington International Renewable Energy of Defense to deploy renewable energy technologies Conference (WIREC), WADE co-hosted a side event were also discussed. entitled: Renewable energy’s role in global security. The panelists included: Hon. James Woolsey, The event highlighted the role renewable energy can Former Director of the US Central Intelligence play in enhancing global security. Agency;Vice Admiral Dennis McGinn, US Navy; David Speakers discussed how renewable and decentral- Sweet, World Alliance for Decentralized Energy; Steve ized energy can contribute to global security; change Siegel, Energy and Security Group; Karen Baker, US the current geopolitics of energy; alleviate global Army Environmental Policy Institute; Gal Luft (Moderpoverty and contribute to sustainable growth of ator) Institute for the Analysis of Global Security.

WADE participates in inaugural World Future Energy Summit New Masdar City aims for zero carbon footprint Abu Dhabi, UAE • WADE participated in the inau-

gural World Future Energy Summit held January 21–23 in Abu Dhabi. This event brought together global leaders in energy education, research, finance and business looking to further clean energy technology, especially in the Gulf region. Over 11,000 visitors attended the event from all over the world. It was hosted by the Masdar Initiative, a global co-operative platform for energy sustainability developed by the Abu Dhabi Future Energy Company. The Masdar Initiative includes development of a ‘green community’ with a near zero carbon footprint.

The Masdar Carbon Free Community concept will be home to over 40,000 people and will generate all its own clean energy within the city limits.

WEC’s Cleaner Fossil Fuels Committee holds workshop DE key means of reducing fossil footprint Abu Dhabi, UAE • While in Abu Dhabi, WADE also

attended a workshop and meeting organized by the World Energy Council’s Cleaner Fossil Fuel Systems Committee. The workshop, Clean Technologies for Economic Growth and a Better Environment, featured highlevel speakers from government, industry and acad-

WADE joins Methane to Markets Partnership Consortium works to capture economic value from oft-wasted resource Washing ton DC, USA • Demonstrating its commitment to identifying and implementing cost-effective methane emission reduction opportunities, WADE has joined the Methane to Markets partnership as a registered member. The Methane to Markets Partnership was launched on 16th November 2004, at a Ministerial Meeting in Washington, D.C., when 14 national government s signed on as Partners. The new Partners made formal declarations to minimize methane emissions from key sources, stressing the importance of implementing methane capture and use projects in developing countries and countries with economies in transition. The four priority objectives of the partnership are reducing methane waste in agricultural, oil and gas, coal mining and solid waste management sectors. The goal of the Partnership is to reduce global methane emissions in order to enhance economic growth, strengthen energy security, improve air quality, improve industrial safety, and reduce emissions.

emia. Among the approaches discussed for cleaning up fossil fuels were cogeneration, district energy and carbon capture and storage. A keynote address, on t he Masdar Carbon Free Community, was supplied by Dr Russel Jones, President of the Masdar Institute of Science and Technology.


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WADE IN ACTION Building Energy Efficiency Forum invites WADE participation

EU’s Sustainable Energy Week puts DE high on agenda

DE potential in buildings highlighted Hyderabad, India • The recent ‘Energy Conservation Potential In Buildings’ meeting held in Hyderabad, India highlighted opportunities for ‘green’ building in India. DE was one of the many topics discussed at the meeting among others such as building materials, passive and active HVAC systems, efficient lighting and water conservation, etc. Among those who participated were Dr Ajay Mathur, Directo r General, Bureau of Energy Efficiency (India); Shri Raghupathy, Sr. Director, Confederation of Indian Industry Green Business Centre; and Shri Lingaraj Panigraha IAS, NEDCAP vice chairman, along with WADE Director South Asia, Sridhar Samudrala.

Brussels, Belgium • Under the

WADE contributes to proceedings holders concerned with sustainumbrella of the Sustainable able energy put together the Energy Europe Campaign (SEE), second EU Sustainable Energy the European Commission’s Week (EUSEW) between 28 Directorate-General for Energy January and 1 Februar y, 2008 in and Transport, and major stake- various European cities.

WADE was in Brussels to contribute to, among others, the session on ‘How to achieve the energy efficiency potential of cogeneration in the European Union’.

WADE participates in ‘Green Grid’ webcast WADE requests trigeneration be included in portfolio of energy efficiency options The Sustainable Energy Week brought stakeholders from across Europe to discuss energy challenges. San Francisco, USA • WADE Decentralized energy featured prominently on the agenda in many discussions was recently invited to participate in a webcast organized by the Green Grid, a consortium of computer companies dedicated Former US Gas Association Head provides keynote to advancing energy efficiency in data centres and business Washington, USA • On 22 February WADE helped Mr. Lawrence spoke in depth about the history of computing ecosystems. organize the first Natural Gas Roundtable meeting of the US gas industry, borrowing from his newly Members of the consortium 2008 featuring as a speaker Roundtable founder, and published book about the US natural gas industry, include companies such as former Director of the American Gas Association, Turnaround. The event also marked the 40th AnniverMicrosoft, Sun Microsystems, IBM, Bud Lawrence. sary of the founding of the Natural Gas Roundtable. Intel, HP and Dell. During the webcast WADE highlighted the potential of highly efficient distributed energy applications London Efficiency Finance and Investment Forum hears DE message for powering and cooling data centres. London, UK • On 29 January, WADE Executive tions and was joined for a discussion with others Director David Sweet spoke at the first Energy Effiincluding David Green, head of the UK Business ciency Finance and Investment Forum in London. Council for Sustainable Energy and Kateri His presentation discussed future market direcCallahan, head of the Alliance to Save Energy.

2008 Inaugural Roundtable hosted

WADE’s Director addresses finance forum

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WADE CONFERENCE WADE meets with Inter-American Development Bank Multilateral investment agencies express interest in DE for Latin America Lima, Peru • WADE recently me t with t he

Inter-American Development Bank (IADB) to discuss the role of decentralized energy for meeting clean energy goals throughout Latin America, with a special focus on Peru. The Asia Pacific Economic Co-operation’s Energy Minister Meeting was held in Iquitos,

Peru in March, 2008. Over 21 energy efficiency initiatives were on the agenda at the meeting and WADE will be organizing a follow-up cogeneration and energy efficiency conference in June 2008 in Lima. The IADB expressed its support for WADE and its activities in Peru, highlighting the rele-

vance that decentralized energy will play and its potential for development given that in recent years Peru has become an attractive market for investments in the energy sector. Both the IADB and the World Bank have recently granted financing for cogeneration and other energy efficiency projects in Peru.

New contract for WADE Canada Team gears up for project to build Western Canadian DE directory representatives Calgary, Canada • WADE Canada has been

The project is entitled ‘Building Western awarded a contract to develop a directory of Canadian Small Medium Enterprises Involved organizations operating in Western Canada with Clean Energy and Decentralized Energy with an interest in DE. Technology’. The project is scheduled to wrap

up in June 2008 and will include an event to launch the directory in the spring. If you are aware of companies that should be included in the directory please contact WADE.

CALLING WADE MEMBERS How can we help you?

In search of WADE research projects and proposals WADE has a long histor y of helping public and private sector institutions around the world to understand and realize decentralized energy (DE) benefits and opportunities through its tradition of thorough and comprehensive research. In addition to WADE’s regular publications, reports and market studies, WADE has participated in successful projects, conferences and educational campaigns, working with a range of governments, national and international organizations. WADE’s contrib ution to these projects includes: • WADE Economic Model – computer modeling of the economic and environmental impacts of DE in a specified area • DE Potential Analysis – assess-

Upcoming Events Call for Participation

WADE has a long history of planment of the potential for devel- ning timely and authoritative oping DE in a specified area conferences, strategy meetings • DE Policy Best Practice Review and events. If you have an idea for – international overview of an event related to decentralized energy that you would like to see policy mechanisms for DE • DE Technology Status Review organized WADE can help make it – overview of the performance a success. and market-readiness of DE Some of the events WADE is technologies currently organizing are high• DE Project Best Practice Case lighted below. Please contact us if Studies – overview of you require more information successful DE case study or would like to participrojects worldwide relevant to pate. a specified area • Education and Outreach • D e c e n t r a l i z e d Programs focusing on DE, Energy India environment and economic Roundtable – efficiency. New Delhi, India (April 4th 2008) Are you aware of any opportu- • Natural Gas and Climate Change – nities where WADE can bring its expertise to bear? Policy Solutions and Please contact WADE and let us Commercial Implicaknow how we can help your tions. company or organization. • An Earth Day Conference –

Washington DC, USA (April 22nd 2008) • Decentralized Energy: the Growth Potential in Canada – Calgary, Canada (late May or early June 2008) • Cogeneration and On-site Power Pavilion – Milan, Italy (35th June 2008)


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THE COSPP PAVILION AT POWER-GEN EUROPE 2008

3 – 5 June 2008 Fiera Milano Milan, Italy www.powergeneurope.com

BRINGING DECENTRALIZED ENERGY TO THE CENTRE STAGE POWER-GEN Europe 2008 in Milan, Italy, introduces the Cogeneration and Onsite Power Production (COSPP) Pavilion – an exciting new dedicated platform for the widening cogeneration and on-site power market through which operators and manufacturers will be able to secure new business opportunities in the broadening global power mix. The Pavilion will take centre stage at Europe’s foremost power industry gathering. 25% increased attendance coupled with 100% rebooking at the June 2007 event in Madrid has set the scene for POWER-GEN Europe 2008 in Italy: an extra hall has been added to meet phenomenal demand for exhibition space. The COSPP Pavilion will be supported by a greater role for decentralized energy solutions in the POWER-GEN Europe 2008 conference programme, and also has the full support of COSPP magazine and leading decentralized energy association WADE.

To discuss your presence in the COSPP Pavilion at POWER-GEN Europe 2008 in Milan, Italy, please contact: Gilbert Burton Exhibition Sales Manager PennWell Corporation Email: [email protected] Tel: +44 (0)1992 656 617 Fax: +44 (0)1992 656 700

Owned and produced by:

Flagship Media Sponsor:

Official Supporting Organization:

cospp www.cospp.com

CHP

• DECENTRALIZED

p p s o c

GENERATION

• MICROPOWER • EFFICIENCY• CLIMATE

CHANGE

• POLICY • MARKETS

Cogeneration& On– Site Power

july–august 2006

Production

CHP

• DECENTRALIZED GENERATION• MICROPOWER• EFFICIENCY• CLIMATE

p p s o c

september–october 2006

Whymultiple,decentralized powerplantsare better

inassociationwith

Review issue 2006–2007

CHANGE


Cogeneration& On– Site Power Production

CHP

• DECENTRALIZED

p p s o c

•

•

•

GENERATION MICROPOWER EFFICIENCY CLIMATE

CHANGE


Cogeneration& On– Site Power november–dece mber 2006

Production

www.localpower.org

CHP

• DECENTRALIZEDGENERATION • MICROPOWER • EFFICIENCY• CLIMATECHANGE• POLICY • MARKETS

p p s o c

Cogeneration& On– Site Power march–april2007

Production

CHP

• DECENTRALIZEDGENERATION • MICROPOWER • EFFICIENCY• CLIMATECHANGE• POLICY • MARKETS

p p s o c

Cogeneration & On– Site Power

january–f ebruary 2007

Enhancedenergy Enhancedenergysecurity security withdecentralizedenergy USstatesleadtheway USstatesleadtheway towardscarbonrestrictions

Anegawatt networkin actionintheUS

Politicaldecisionwillbecrucial Politicaldecisionwillbe crucial forCHPin Germany forCHPinGerma ny

How to increase the amount of DE in India India

Electricityco-operativesand distributedgeneration

Decentralizedenergyin Egypt andSriLanka

Thailandgivesthe go-aheadto distributedenergy

Contractual issues in energy service agreements

Towardsefficienttariffs for powernetworksand DG

Cuttingcarbonemissionsfrom buildingswithon-siteenergy

Gasturbinesfor cogeneration– efficiencyiseverything

Cogeneration in the Clean Clean DevelopmentMechanism

Promotingnewcogeneration capacityfor capacityforAfrica Africa

Safetymatters –the operation ofgasengineCHPunit s

BiomassCHPcoulddominatein theBalticstates

Transposition of the EU CogenerationDirective

CHPin CHPinEurope’s Europe’spulpand pulpand paperindustry

Strategiesfornatural gasprice stabilityinthe US

Integrating micro CHP into into smart electricity grids

in association with


Howtoreduce Europe’suseof fuelsfor heatingandcooling

inassociationwith

The case for decentralized energy in Canada

WORLDALLIANCEFORDECENTRALIZEDENERGY

WORLDALLIANCE FORDECENTRALIZEDENERGY

•

GENERATION MICROPOWER

• EFFICIENCY• CLIMATE

CHANGE


Cogeneration & On– Site Power may–june 2007

Production


EU CHP Directive enters the last lap Coal mine methane as fuel for cogeneration projects CHP opportunities in Russia and China On-site power for the world’s cement industry ‘Waste’ fuel energy projects in Spain and Ecuador inassociationwith

in association with

WORLD ALLIANCE FORDECENTRALIZEDENERGY WORLD ALLIANCE FOR DECENTRALIZED ENERGY


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• DECENTRALIZED

p p s o c

Asia-PacificPartnership and distributed generation

Enhancingtheinternational CHPskillsbase

in association with

Production

CHP

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DIARY

DIARY

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DIARY

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DIARY

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Send details of your event to Cogeneration and On-Site Power Production: e-mail: [email protected]

2008

Fax: +44 1992 656 700

COGEN Europe Annual

Renewable Energy Europe

e-mail: [email protected]

Conference

Milan, Italy

web: www.russia-power.org

Brussels, Belgium

3–5 June 2008

22–23 May 2008

Crispin Coulson, PennWell Corp., Horseshoe

POWER-GEN India & Central Asia

Hannover Messe

COGEN Europe, Gulledelle 98, B-1200

Hill, Upshire, Essex EN9 3SR, UK

Pragati Maidan, New Delhi, India

Hannover, Germany

Brussels, Belgium

Tel: +44 1992 656 646

3–5 April 2008

21–25 April 2008

Tel: +32 2 772 82 90

Fax: +44 1992 656 700

Jane Sounes, PennWell Corp., Horseshoe Hill,

Deutsche Messe , Messegelände, 30521

Fax: +32 2 772 50 44


Upshire, Essex EN9 3SR, UK

Hannover, Germany


web: www.renewableenergy.com

Tel: +44 1992 656 635

Tel: +49 511 89 0

web: www.cogen.org

Fax: +44 1992 656 700

Fax: +49 511 89 32626


web: www.hannovermesse.de

POWERGRID Europe World Bioenergy 2008

Milan, Italy

Jönköping, Sweden

3–5 June 2008

Carbon Expo

27–29 May 2008


Western Turbine Users Group

Cologne, Germany

Elmia AB, PO Box 6066, SE-550 06,


Conference 2008

7–9 May 2008

Jönköping, Sweden

Tel: +44 1992 656 646

San Diego, CA, USA

Eva Mund, IETA

Tel: +46 36 15 20 00

Fax: +44 1992 656 700

6–9 April 2008

Tel: +41 22 737 0503

Fax: +46 36 16 46 92


Gae Dow, 8835 Balboa Ave. Ste. D, San

Fax: +41 22 737 0508


web: www.powergrideurope.com

Diego, CA 92123, USA


web: www.elmia.se/worldbioenergy

Tel: +1 619 460 8314

web: www.ieta.org

web: www.power-genindia.com

ASME Turbo Expo 2008 POWER-GEN Europe

Berlin, Germany

All Energy 2008

Milan, Italy

9–13 June 2008

Aberdeen, UK

3–5 June 2008

Kristin Barranger, ASME Int’l Gas Turbine

Russia Power

21–22 May 2008

Jane Sounes, PennWell Corp., Horseshoe Hill,

Institute, 5775 Glenridge Drive NE, Ste C115,

Moscow, Russia

Judith Patten, JPPR, 34 Ellerker Gardens,

Upshire, Essex EN9 3SR, UK

Atlanta, GA 30328, USA

15–17 April 2008

Richmond, Surrey, TW10 6AA, UK

Tel: +44 1992 656 635

Tel: +1 404 419 1646


Tel: +44 20 8241 1912

Fax: +44 1992 656 700

Fax: +1 404 847 0151


Fax: +44 20 8940 6211



Tel: +44 1992 656 646


web: www.powergeneurope.com

web: www.turboexpo.org

e-mail: [email protected] web: www.wtui.com

web: www.all-energy.co.uk


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