Alstom Grid Analyst Day docu… · Alstom Grid Analyst Day ... Loose Products Turnkey & Service...
-
Upload
dinhkhuong -
Category
Documents
-
view
221 -
download
4
Transcript of Alstom Grid Analyst Day docu… · Alstom Grid Analyst Day ... Loose Products Turnkey & Service...
GRID
Alstom GridAnalyst Day
Nantes28th February 2013
Grégoire Poux-Guillaume
2
Agenda
I. Grid within Alstom
IV. Focus on HVDC
V. Focus on Smart Grid
II. Growing but challenging market
VI. Conclusion
III. Grid 3 strategic priorities
P 2
3
• Overheads cost synergies
• Use of Global Power Sales network
• ALSTOM Group a Top 5 customer
Grid successfully integrated within ALSTOM
THERMAL POWER
RENEWABLEPOWER
• Boost local presence of Grid Services leveraging Thermal Services sites
• GCB and e Bop offering to connect power plants
• Automation & control technologies synergies
• Optimised AC and DC solutions for wind farms
• Smart Grid solutions for renewable power generation
• Energy storage for solar & wind through power conversion
GRID
P 3
4
Alstom Grid Scope
What we do• Transformers and Switchgear for HV, and associated service• Automation and Network Management for HV, MV and Smart Cities• Power Electronics (HVDC, FACTS)• EPC to sell products
What we don’t do• Transformers and Switchgear for MV• LV products• EPC for the sake of EPC
P 4
5* Consolidated for 10 months (from June 2010 to March 2011)
Orders progressing – Book to Bill > 1
• Good dynamics on order intake
• H1 Book to Bill of 1.2
• 2 HVDC projects booked LTM− ca. €250m South West Link in Dec ‘11 − ca. €400m Champa in Aug ‘12
• Well balanced by region
• Customers slowing down projects, impacting sales
+18%
H1 2012/13
2,180
FY 2010/11*
3,434
FY 2011/12
1,853
H1 2011/12
4,003
H1 2012/13
1,8631,844
FY 2010/11*
3,653
H1 2011/12
4,013+1%
FY 2011/12
Orders (€ million)
Sales (€ million)
P 5
6
Margin resilient despite difficult market conditions
• Performance driven by strongexecution and cost optimisation
• Ramp-up of sales key to support performance improvement
218 248
107 113
H12012/13
+6%
6.1%
H12011/12
5.8%
FY2011/12
6.2%
FY*2010/11
6.0%
* Consolidated for 10 months (from June 2010 to March 2011)
Income From Operation (€ million and % of sales)
P 6
7
Orders mix shifting towards more HVDC and Smart Grid
Loose Products Turnkey & Service HVDC & FACTS Smart Grid (c)
1.31.4 1.4
10/11 (a) 11/12 12/13 (b)
1.61.7
1.9
10/11 (a) 11/12 12/13 (b)
0.2
0.50.7
10/11 (a) 11/12 12/13 (b)
0.30.5 0.5
10/11 (a) 11/12 12/13 (b)
• Significant HVDC and Smart Grid increase• Products flat, in line with market trend• Turnkey mix moving towards more Power Generation, Industry and Oil & Gas
(a) Consolidated for 10 months (from June 2010 to March 2011)(b) 12/13 values are April – Dec 12 linearised over 12 months(c) Automation and Network management
-1%
+10%
+31%+7%
P 7
8
Europe 40 Manufacturing & Engineering sites 3 R&D Technology centres 30% of global order intake
Europe 40 Manufacturing & Engineering sites 3 R&D Technology centres 30% of global order intake
Middle East & Africa 13 Manufacturing & Engineering sites 20% of global order intake
Middle East & Africa 13 Manufacturing & Engineering sites 20% of global order intake
Asia 22 Manufacturing & Engineering sites 1 R&D Technology centre 30% of global order intake
Asia 22 Manufacturing & Engineering sites 1 R&D Technology centre 30% of global order intake
Industrial footprint and orders balanced
Americas 13 Manufacturing & Engineering sites 1 R&D Technology centre 20% of global order intake
Americas 13 Manufacturing & Engineering sites 1 R&D Technology centre 20% of global order intake
P 8
9
Agenda
I. Grid within Alstom
IV. Focus on HVDC
V. Focus on Smart Grid
II. Growing but challenging market
VI. Conclusion
III. Grid 3 strategic priorities
P 9
10
Solid long term market fundamentals
Increase of Renewables
within Energy mix
Electricity Consumption &
Generation
Ageing of the installed
infrastructure
Long term Drivers Impact on Grid Market
Medium LowHighImpact of driver on segment
Global Importance
• Main driver for Grid expansion, new substations and related HV products
• Challenge to improve Energy efficiency across the value chain
• Challenge to maintain Grid stability• Impact on HVDC for interconnections
and offshore wind tie-in• Impact on Smart Grid for renewable
energy management systems
HV Products
Segment
Smart Grid Power Electronics Service
• Challenge to maintain Grid reliability• Driver for Replacement market
Source: AlstomP 10
11
50
40
30
20
60
FY15/16eFY14/15eFY12/13e
Alstom Grid Scope
FY13/14eFY11/12
Conventional AC
HVDC
Service
Smart Grid
€40 billion market with 3% CAGR• Growth driven by HVDC and Smart Grid
• Conventional AC flat
• Service and Industrial growing faster
CAGR12/13 – 15/16
1%
28 %
4 %
11 %
In € billion
Smart Grid not addressed by ALSTOM: Meters, Telecomfor Distribution, MDMS, Secondary Distribution Automation
Smart Grid addressed by ALSTOM: Network management systems, Telecom for Transmission, HV and Primary Distribution Automation
HVDC and Smart Grid as key market growth drivers
P 11 Source: Alstom
12
65
70
75
80
85
90
95
100
• Price erosion stabilizing at low level
• Price pressure maintained by
− Over-capacity in AC products − EPC contractors packaging
third party equipment
• Some disparities between regions
− Anti-dumping in USA for Power Transformers: price increase?
− Slight uptick in China− Price erosion continuing in India
Last 8 awarded
Sources: Alstom, market data
2009 2010 2011 2012
6065707580859095
100
Project 1(Aug
2008)
Project 2(Aug
2008)
Project 3(Oct
2010)
Project 4(Dec
2010)
Project 5(Mar2011)
Project 6(Aug
2011)
Project 7(Sept2011)
Project 8(Dec
2012)
AC price stabilising - at low level
Grid market price evolution
Example: Koweit 400kV GIS S/S
P 12
13
Agenda
I. Grid within Alstom
IV. Focus on HVDC
V. Focus on Smart Grid
II. Growing but challenging market
VI. Conclusion
III. Grid 3 strategic priorities
P 13
14
Strategic prioritiesFocus on high value segments and growth drivers1
HVDC• Growing market with high barriers to entry• 2 key technologies: LCC and VSC• Major recent commercial successes in 800kV LCC and VSC• More to come?
Smart Grid• 3 priorities
− Control Rooms (market leader)− Smart Power Electronics− Substation Automation
• 30 commercial projects, 30 ongoing demonstrators
P 14
15
Strategic prioritiesFocus on high value segments and growth drivers1
Service• Achieve double digit growth without sacrificing margins• 4 key axes:
− geographical coverage− Industry & Power generation− third party services− asset management
Industry / Oil & Gas• Reinforce our positioning• Develop Smart Grid offering and Services• Comprehensive offer through targeted MV partnerships• Acquisition of O&G SCADA company
P 15
16
2012Commercial successes
• Abu Dhabi –TRANSCO: 2 GIS substations of 220 kV and 400 kV
• India – Power Grid: world’s first 1,200 kV optical instrument transformer and disconnector
• USA – Florida Power & Light: fleet managementfor 350 transformers
• Chile – Transelec: first contract for 550 kV GIS substation
• Germany – Tennet and TransnetBW: MSCDN system and switchgear panels for TransnetBW
• Australia – Chevron: substations for Oil & Gas Wheat Stone project
• Portfolio extended with GIS 420 kV Single chamber and AIS dead tank 362 kV
• World’s largest special Industrial transformerbuilt by Gebze factory for German Railways
• Green offering strengthened with VL 109 72.5 kV Vacuum Circuit Breaker
• First sales of new Resin Impregnated Paper (RIP) 245kV bushing technology
• Digital substations in France and Russia
• DC Circuit Breaker prototype successful tests with RTE
2012R&D successes
… while remaining a key player on AC business
P 16
17
Strategic prioritiesKey partnerships to support and expand growth focus
• China: commercial and technology partnership with Shandong (SGCC) for 800/1,100 kV DC Transformers
• Korea: 49/51 JV with KEPCO to serve local HVDC market (Oct 2012)
• Russia: 50/50 JV with KER to serve local HVDC market
• France: DC converter solutions with CEA (July 2012) and industry initiative for Supergrid (IEED)
• Cisco (USA): communications and data protection solutions for digital substations (Sept 2012)
• Toshiba / Landis & Gyr (Japan): smart grid solutions for distribution systems (Sept 2012)
• Cap Gemini: cloud-based solutions and control room IT integration (Jan 2013)
• Itron: smart metering integration
• Saft: battery storage
• Bouygues: smart buildings
2
P 17
HVDC Smart Grid
18
Strategic prioritiesCost optimisation to offset price pressure in AC
• Double digit % cost reduction– Redesign-to-cost on HV Products– New product introduction– Major quality initiative
• Drive down S&A– HQ downsized– Sales efficiency programme– Organisation simplification
• Sourcing Transformation – Sourcing in R&D and tender stages– Supplier panel rationalisation
3
• Adapt to market – 4 sites being closed
(Mexico, Australia, China x 2)– Rationalisation in Europe
Site redeployments Product Cost Optimisation
Sourcing leverage Overhead reduction
P 18
19
Agenda
I. Grid within Alstom
IV. Focus on HVDC
V. Focus on Smart Grid
II. Growing but challenging market
VI. Conclusion
III. Grid 3 strategic priorities
P 19
20
9
3
2011/12 2020/21e
• Market divided into 2 technologies− Line-commutated converters (LCC) − Voltage-sourced converters (VSC)
• Solid key drivers: bulk power transfers, renewable energy integration, Supergrid development
• Increased country interconnections in specific markets (Europe, Middle-East, North America)
• Race for higher voltages (800kV+) in Chinaand India
• Offshore wind essentially in EuropeVSC
LCC
Source: Alstom
In € billion
HVDC market to triple in 10 years
HVDC market Market Trends
Technology breakdown next 3 years
P 20
21
LCC Back-to-back
LCC Point-to-point
VSC
McNeill: 150 MWNelson River OHL: 3,000 MW
Dürnrohr: 380 MWIFA2000 (Fra/UK): 2,000 MWKonti-Skan 1: 380 MWSACOI: 380 MWSouth West VSC: 2x720 MW
China-Russia: 750 MWLingbao II: 750 MW3G-Shanghai II: 3,000 MWNindong-Shandong: 4,000 MWCheju-Haenam: 300 MWCheju-Jindo: 400 MW
GCCIA: 3x600 MWCahora Bassa: 1,920 MW
Chandrapur: 2x500 MWVizag: 500 MWSasaram: 500 MWChampa: 3,000 MW
Rivera: 70 MWMelo: 500 MWRio Madeira: 3,150 MW
Alstom Grid HVDC> 30 GW installed, 50 years of experience
Source: AlstomP 21
22
Porto Velho
AraraquaraSao
Paulo
Kurukshetra
Champa
• Rio Madeira (Brazil): the longest DC line in the world (2,375 km)− Technology: LCC− 600 kV - 3,150 MW− Contract award: 2009 – Completion 2013
• Champa (India): a reference in 800 kV− Technology: LCC− 800 kV - 3,000 MW− Contract award: August 2012 – Completion 2015
• South West Link (Sweden): world’s first multi-terminal VSC− Technology: VSC− 300 kV - 1,440 MW− Contract award: December 2011 – Completion 2015
Phase 2
Phase 1
Alstom Grid HVDCMain projects in execution
P 22
23
• Target ~€2.5 billion orders over the next 3 years− Break into offshore wind (Germany, Baltic Sea)− Leverage partnerships for entry in Korea, China and Russia− Build talent base: R&D, Engineering, Project Management
• Be at the edge of innovation in both technologies
• Integrated offering up to 1,100 kV (valves + converter transformers+ bushings)
• Stafford Centre (UK): HVDC / UHVDC equipment up to 1,100 kV
• 4 Transformer units qualified to 800 kV
• Create world-class referencewith Svenska Kraftnät (Sweden)
• VSC 2nd Generation under development
• Controlled development in offshore
LCC VSC
Alstom Grid HVDCAmbition: sustainable 20+% market share
P 23
24
Agenda
I. Grid within Alstom
IV. Focus on HVDC
V. Focus on Smart Grid
II. Growing but challenging market
VI. Conclusion
III. Grid 3 strategic priorities
P 24
25
39
20
• € 20 billion market with T&D contributing to the bulk of it
• Market driven by− Renewable integration (intermittency)− Need to reduce consumption peaks− Increasing distributed generation− EV integration− Requirements for more cyber security
Source: Alstom
Smart Grid market to double in 10 years
Global Smart Grid market (in € billion)
2012 2020e
HomesBuildings
T&D
Generation
P 25
26
Segment ALSTOM GridPresence
Control Rooms
Telecom
SAS-DA
Smart Meters
Power Electronics
2012 2020e
9%
4%
4%
16%
Power Electronics
SAS-DA
Control Rooms
Telecom
7%
12%Smart Meters
21
10
Full ALSTOM offering No ALSTOM offering
Alstom Grid SmartgridPresent across the value chain
Smart Grid T&D market (in € billion)
CAGR
Source: AlstomP 26
27
Alstom Grid SmartgridLeader in Control Room applications
• # 1 in Control Rooms• Over €40 billion transactions per
year on our systems• > 70% of USA deregulated markets
Online Stability Renewable Integration Integrated DMS / Demand Response
Smart-Cities
Continuous integration of new control room applications
P 27
28
Alstom Grid SmartgridDeploying its solutions all across the Grid
Digital substation Distribution AutomationEnergy Storage
• Leading innovator in automation and storage for the grid
• > 1,000 HV substations equipped
Extension towards new distribution automation and storage
P 28
29
EU
DERMS (Grid4EU)
Alstom Grid SmartgridJoint innovation through strategic demonstrations
ERDF
DERMS (Vendée)
ERDF
DERMS (NiceGrid)
Veolia
DERMS (Reflexe)
GDF Suez
EMBIX (Greenlys)
GDF Suez
DERMS (smart campus)
Pilots
IssyLes Moulineaux
EMBIX (IssyGrid)
Duke Energy
DERMS (DOE)
RTE
Digital Substation
WPD
Distribution Automation (Falcon)
UKPN
Distribution Automation (FPP)
SNCF / Econoving
Program Gare
CEA
Meshed DC (Winpower)
ESB
Fast Charging DC (Green e-motion)
EU
DC breakers, WAMS (Twenties1)
MEW - Kuwait
DRMS
MEW - Kuwait
On-line Asset
Innovation, Prototype
Philadelphia
DERMS (Navy yard)
Strategy, Early Concept
BOUYGUES
EMBIX (Eco2charge)
EDF
DRMS B2C
Twenties +(WP2013)
EU
EMBIX (Cooperate)
Infrax
DERMS (Slim)
BPA
DRMS (DOE)
ELIA
Online Stability (AFTER)
ELIA
DERMS (e-storage)
P 29
30
Alstom Grid SmartgridAmbition: double digit growth
• End-to-end offering for Transmission & Distribution• Transform our 30 R&D demonstrators into large scale commercial projects
• Consolidate key markets− USA: Demand Response, integration of renewable energies− Europe: integration of renewable energies, Smart Cities
• Roll-out of new systems − Digital Substations (Russia, France)− Smart control rooms: distributed
generation & storage management
• Co-developments on plant flexibility + offshore connections (Alstom Thermal & Renewable)
• Commercial focus: Distribution Automation (Demand Response)
• R&D: converters for renewables and storage, Demand Response IEDs
• Partnerships in Smart Buildings & Cities and public transport (Alstom Transport)
Transmission Distribution
P 30
31
Agenda
I. Grid within Alstom
IV. Focus on HVDC
V. Focus on Smart Grid
II. Growing but challenging market
VI. Conclusion
III. Grid 3 strategic priorities
P 31
32
Conclusion
Well positioned to capture growth• Strong technology offering• Significant R&D spending• Key partnerships in place
Focus on operational excellence• Optimise footprint• Cut overheads• Competitiveness through new or re-designed products• Extract cost savings in sourcing, quality, project execution
Still targeting 8% operating margin• Current market tension will delay but ambition unchanged
P 32