INNOVATIVE SMALL HYDRO TECHNOLOGIES Upgrading & Refurbishments (Modernization) Niels M. Nielsen,...
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Transcript of INNOVATIVE SMALL HYDRO TECHNOLOGIES Upgrading & Refurbishments (Modernization) Niels M. Nielsen,...
INNOVATIVE SMALL HYDRO TECHNOLOGIES
Upgrading & Refurbishments (Modernization)
Niels M. Nielsen, P.Eng.
Manager, Sustainable Energy Solutions
BC Hydro Engineering
Waterpower XIII July 2003
Introduction
INTRODUCTION• Of the 30 hydroelectric sites (up to 2,700 MW)
operated by BChydro, 8 have a capacity < 20MW.• The total capacity of these projects is 53MW - roughly
0.5% of the BChydro Generating Capacity (10,008MW). Alternatively, the largest 5 projects contribute roughly 84% (8,383MW)
• Small hydro plants pose a special problem as part of a large utility: – Small revenue stream– High unit cost based on large scale utility
processes (Union effect vs. IPP approach)– Can have a high environmental/risk profile
Introduction
• These sites require special considerations when modernizing:– Must follow business practices to ensure
profitability and maximum value– Modern equipment (including automation and
remote control) is required. – Low Operation and Maintenance (O&M) costs– Minimal environmental / risk profile.
Innovative Approaches to Modernizing Small Hydro Plants
OUTLINE
• Modernization Drivers
• Process to select Modernization Plan
• Innovative Approaches (examples)
• Management Approaches (asset planning software, implementation, risk management training)
• Summary
Innovative Approaches to Modernizing Small Hydro Plants
• Small Hydro Asset Life Cycle
Acquire New Asset Operate
Maintain
MonitorDecision
Point
Replace Component
Modernize
Run toFailure
Age(years)
Effort
10 20 30 40 Stage of Diminishing Returns
Innovative Approaches to Modernizing Small Hydro Plants
• The Modernization Drivers– Modernization provides the best opportunity to
make changes; the drivers include:
• Licensing/regulatory requirements• Increased profitability (improved dependability)• Reduced labour and/or costs (reduced O&M)• Competition in the Electricity Market• New products (ancillary services)• New technology/existing equipment obsolete• Changing customer/stakeholder requirements• Risk reduction
Innovative Approaches to Modernizing Small Hydro Plants
Prioritizing Small Hydro Facilities– Core
• Does the plant provide system stability?
– Strategic • Does the facility increase supply in a supply constrained
region?• Does the facility belong to a river system?
– Non Strategic• Financial contributors
Innovative Approaches to Modernizing Small Hydro Plants
Establish Need for Capital Investment– Criterion used to establish value of each small hydro facility
Financial Contribution Health Condition Environmental
Role
Income/MWh Equivalent Age Fish
Capacity Known Failure Risk Air
Event Consequence Availability Water
Forced Outage Factor Recreation
Asset Management Process to Modernize Hydro Plants
Collate Contemporary Practice (Expert knowledge and Literature Review)
Support process with condition,performance and risk information
Populate model with technicaland financial information
Link engineering knowledgewith financial decision making
ModernizeHydroPlant
Asset ManagementDecision Support Tool
HydroMechanical
ElectroMechanical
AuxiliaryMechanical
AuxiliaryElectrical
Civil andother works
Automation,Protection& Control
Util
ity, A
ppro
ach
and
Bus
ines
sC
onsi
dera
tions
Scr
eeni
ng a
ndP
riorit
izat
ion
Life
Ext
ensi
onan
dM
oder
niza
tion
Pla
n
Inst
itutio
nal &
Reg
ulat
ory
Por
tfolio
Fea
sibi
lity
Pro
ject
Def
initi
on
and
Impl
emen
tatio
n
VOLUME 1
VOLUMES 2 TO 7
App
roa
ch f
or
Mu
lti
Pla
nt
Po
rtfo
lio
Innovative Approaches to Modernizing Small Hydro Plants
• Life Extension & Modernization Plan
4-2
4-8
4-9
4-10
4-1
4-5
4-6
4-7
Input utility'sbusiness objectives
(from Section 1.0)
4-11
Review Life Extension andModernization Plan (periodically)
Collect and analyze data onperformance and condition
Document Life Extension andModernization Plan
Inspect equipment andstructures
Identify needs and opportunities
Align needs and opportunities with plant strategies
Assign costs, benefits andtiming to selected needs and opportunities
Model financial parameters
Develop plant strategies
"PlantSurvey" 4-3
4-4 Identify risks
Plan Plant Survey
INFORMATION SOURCES
INSPECTION AND TESTS DATA AND INFORMATION IDENTIFICATION OF RISK
Operating logs
Walk around (overviewinspection) of equipment
Interview with site personnel foroperating and maintenancehistory and to complete genericequipment information sheets
Review of test results
Repair; frequency,duration, cost
Outage; frequency, type,cause and impact
Spare Parts; availability
Usage of plant
Maintenance reports
Original plant designreports
Drawings
Reservoir/dams
Water conveyances
Hydro plant structure
Hydro plant equipment
Needs and Opportunities Table
Major repair history
Reliability history
Upgrade/mod. Opportunities
Spare parts inventory
Description
ConditionRemaining service LifeMaintenance requirements
Innovative Approaches to Modernizing Small Hydro Plants
• Plant Survey Methodology for Assessing Needs & Opportunities
Innovative Approaches
CATEGORY ACTIVITYEquipment Improvements Upgrading and replacing
More efficient runners Automatic control of units Use of fish-friendly turbines Digital governors Reloading generator
Reducing Hydraulic Losses Trashracks Cleaning / replacing racks Debris management
Civil Reducing seepage losses Reshaping water passages Smoothing water passages Refurbishing flumes & canals
Increasing Hydraulic Head Raising dam (rubber dam, fusegates) or addingflashboardsLowering tailwater levels
Innovative Approaches
CATEGORY ACTIVITYAdditional Flows Diversions
Cooling water improvementsSealing gates & stoplogsReplacing worn seals
Improved Water Management Operational improvements (flexibility)Flow forecastingRemote control / automations
Knowledge Systems Asset management decision-supportOn-line PIOn-line flow measurement
Case Histories - Aberfeldie
• Status Quo– 5MW powerhouse built in 1922 (80 years old). – Requires $20M of investment to continue to
operate.– Original dam suffered severe deterioration due to
ice build-up and avalanches - rehabilitated in1953 and now meets all current dam safety standards.
– Penstock at end of life.
Case Histories - Aberfeldie
• Potential Solutions– Three Options:
• Redevelop to 30 MW with 120 GWh per annum (F2006).• Refurbish at 5MW• Run to failure
– Refurbishment is not economic– Redevelopment is more economic, but not as
economic as other BC generation development options.
– Recommend different operation. For example, contract out routine work.
Case Histories - Falls River
• Status Quo– Two unit powerhouse totaling 7MW - built in 1930– Requiring $13 M of investment to continue to
operate.– End of the line, isolated and difficult to access
(50km south of Prince Rupert)– Significant rehabilitation work completed in 1992:
• Dam stabilized with rock anchors• Plant automated (This is a remote plant and existing
operators were retiring)
Case Histories - Falls River
• Recommendation– Redevelop to 20 MW with 78 GWh per annum
(F2008).– Transmission lines capacity constraints may be an
issue - Brown lake (operated by IPP) is also on this line.
– Recommend different operation. For example, contract out routine work.
Case Histories - Shuswap
• Status Quo– 6MW powerhouse built in 1929.– Project comprises of Wilsey and Sugar Lake Dam
located at 35km and 55km east of Vernon
• Challenges– Downstream of the plant is a fish hatchery in
addition to a high value natural salmon stream– Deteriorating wood stave penstock and surge tank
on failing rock fill foundation (also rock-fall hazard at tunnel/penstock interface)
– Rehabilitation of low level outlet in dam was required
Case Histories - Shuswap
• Solutions– Bypass Valve installed for reliable water release at
facility if unit trips (low level outlets are not automated)
– In 1993, the facility was refurbished/rebuilt:• one penstock was rebuilt in steel. The surge tower was
eliminated - not required for steel penstock. • Generating unit refurbished during penstock rebuild.• Low level outlets refurbished
Case Histories - Woodfibre
• Woodfibre mill built in 1955 is located near Squamish, BC. The electricity needs of the mill are provided by a 2.5MW Pelton wheel impulse turbine.
• Age related efficiency losses– Reduced output 2.1 MW (1955) to 1.5 MW– Deteriorating penstock (16%)– Reduced turbine efficiency (1%)– Realigned penstock (additional 90 degree bends
and valves - following slide) (1%)– Increased mill use of high pressure water (10%)
Case Histories - Woodfibre
• Generation/water supply challenges– Long penstock for mill water supply - too
expensive to replace for turbine use only.– Penstock realignment is not cost effective.– New Pelton wheel marginally cost effective.
• Solutions– Benefits from improved management of the source
of high pressure mill water and adjustment to turbine operating point.
– Run until end of life. At this point, penstock replacement is justifiable.
Case Histories - Butlers Gorge
• Status Quo– 12.7MW powerhouse commissioned in 1951– Static Head of 50m (Butlers lake)– The water from the lake also supplies Tarraleah
power station via a tunnel then canal. Before entering the tunnel, energy is dissipated via an energy dissipater valve (next slide).
• Recommendations– Develop a mini hydro project to take advantage of
lost energy. Replace energy dissipater valve with a 2.5MW turbine.
Facility Asset Planning
Facility Asset Plan
1. General Facility and Contact Information
2. Strategic Intent of Facility•maintain status quo•upgrade / modernize•run to failure
3. Spending initiatives (OMA / Capital)
4. Performance Measures
5. Accountability Review
6. Risks
7. Mitigation Strategies
Sources of Information
•Condition Surveys•Plant Evaluations•Work Management Systems •Annual Operation, Maintenance & Administration Funding (OMA)•Reliability Centered Maintenance•Environmental•Dam Safety•Project Management Systems
APTUS
1 Annual Budgeting - Annual
Operating & Capital Dollars
2 Long Term Spending
3 Decision Support
4 Proforma Financial Statements
5 Capital Operating Project Analyses
6 Value Based Management Assessments
Asset Management
• APTUS Asset Planning System– APTUS APTUS is a software tool that streamlines the Asset Planning
process.
– APTUSAPTUS uses a discounted cash flow that recognizes economic and financial methods to provide decision support regarding capital and operating investment decisions. It also addresses non-financial issues using multiple account analysis.
– APTUSAPTUS has the ability to analyze the value of a portfolio of assets in a market context, and hence the value added from asset enhancements or risk reduction initiatives
– Information from engineering assessments is stored and used as input.
– Report provide a ranking of projects based on standard criteria; NPV, PV of EVA, B-C and value weighted non financial criteria.
– Model has flexibility to interact with enterprise software packages (PeopleSoft, SAP, JD Edwards etc.) It can also be used on a stand alone basis.
Aptus Financial Model Overview
Base Case Business
Model
SupplyForecast
FinancialPerformance
Goals
Risk Mitigation& Opportunity
Evaluation
DemandForecast
Framework
Scenario Planning
Model
© CopperLeaf Consulting Group Inc.
Aptus Base Case Forecasting
Base Case Business
Model
DemandForecast
SupplyForecast
Customer Classes
Peak/Load Profile
Growth Forecasts
Rate Forecasts
Market Prices
Asset Classes
Generation/Supply Profile
Expansion Forecasts
Variable Cost Forecasts
Other Production Costs
Base Case Pro-forma Statements
• Income Statement
• Balance Sheet
• Cash Flow
• Cost of Production Forecasts
Reporting flexibility:• Line of business, organizational
unit, generating station, etc.
• Spending forecasts by equipment components
• Consistent representation of forecasts and analysis
• Multi-year oriented
Report StructureCore
© CopperLeaf Consulting Group Inc.
Aptus Scenario Planning Model
Report Structure
Financial Return Goals
liquidity, activity, return, coverage
Supply Mix Objectives
% hydro, fossil, renewable, etc.
Other Triple Bottom Line Goals
Macro Variable Changes
demand, supply, growth, price, etc.
Micro Variables Changes
spending, discount rates, etc.
Sensitivity Analysis
What if?
What is the effect?
Financial Performance
Goals
Risk & Opportunity
Framework
Scenario Planning
Model
© CopperLeaf Consulting Group Inc.
Innovative Approaches to Modernizing Small Hydro Plants
• Investment Risk Minimized
Review Economic, Technical, Environmental &Social Viability
Contracting Strategy
Potential Partners
Scope of Work & Perf. Criteria
UpdateBusiness Case
EvaluationBuildDetailed Design
Business Case
2 Exit Ramps1
Concept’l Design, Est.’s, & Deliv’bles
Phase 1 Phase 2
Risk Management
• Strategic Objective (overall goal for each small hydro project)
• Project Objectives, covering safety, financial, power quality, dependability, compliance, etc.
• Risk Assessment of likelihood and consequences of plant not meeting objectives
• Risk Management includes measures to ensure objectives met.
Innovative Approaches to Modernizing Small Hydro Plants
Training
– The application of knowledge is a crucial part of a change process. To learn and benefit from new approaches to modernization, two initiatives are available:
- Through a management consulting arrangement with roll-out of a modernization plan on a specific plant and hands on training for future work.
- Classroom workshop & simulation training to promote understanding of the methodology.
Innovative Approaches to Modernizing Small Hydro Plants
Summary– Small Hydro plants age and eventually require
modernization– Present technical and business drivers can be
markedly different to original considerations.– Opportunities often available to increase value.– Systematic processes lead to greatest gains
(asset management).– Innovative and new approaches can improve
modernization outcomes.