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NUCLEAR SAFETYDEVELOPING A STRATEGY

GAS TURBINESINCREASING EFFICIENCY AND FLEXIBILITY

WIND TURBINESOPTIONS FOR LUBRICATION AND MAINTENANCE

the magazine of power generation

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117YEARS

1305pe_C1 C1 5/7/13 8:56 AM

March 2013 www.power-eng.com

EMISSIONS CONTROL UNDERSTANDING YOUR OPTIONS

HYDROPOWER THE POWER OF REHABILITATION

PRB COAL CHALLENGES AND SOLUTIONS


Wind Turbine TECHNOLOGY CHOICES

NHA S

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5-47

117YEARS



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www.power-eng.com 1

OPINION

BY RUSSELL RAY, MANAGING EDITOR

COAL:An Important Option

The outlook for coal-f red

power production in the U.S.

is not as ominous as most

people think. Predictions of the death

of coal-f red power are based on hype

from enthusiastic idealists and unwit-

ting journalists caught in a popular

campaign against coal.

The transition to gas-f red generation

will continue, which is a good thing.

Increasing the use of this nations large

supply of shale gas will lead to fewer

emissions, better eff ciency and more

diversity.

But coal will continue to be the

backbone of the nations power

sector because of its reliability and

affordability. The natural gas industry,

for a number of reasons, is not ready to

take the lead in providing most of the

nations power supplies. Most power

producers acknowledge this risk. There

are too many questions about reserves,

pipeline capacity and pricing. Whats

more, the increasing use of natural

gas as a transportation fuel and the

opportunity to sell U.S. gas supplies

overseas at higher prices creates a large

amount of risk, which means power

producers will need signif cant coal

capacity to mitigate that risk. After all,

the nations grid was built around coal,

which makes coal largely more reliable

than gas.

Coal will remain the dominant

source of power generation in the

U.S. for the next 27 years, according

to the Department of Energys Annual

Energy Outlook, which was released

last month. Coal will account for 35

percent of the nations power in 2040,

down from 42 percent in 2011, the

report showed. Gas will be used to

produce 30 percent of the countrys

power supplies in 2040, up from 24

percent in 2011. The amount of power

produced from renewable resources

will grow from 13 percent in 2011 to

just 16 percent in 2040.

The lions share of future demand

will be met with whats left of the

nations existing f eet of coal-f red

plants, upgraded at great cost with

emission control technologies.

However, its not enough. In the

name of reliability and affordability,

power producers should be given the

option of building new generation

fueled with coal. Right now, they dont

have that option. It was eliminated

under a new greenhouse gas rule that

essentially bars the construction of

a coal-f red plant in the U.S. It is one

of the most ill-conceived rules ever

proposed by the EPA.

But the book on new emission stan-

dards for coal-f red plants is still be-

ing written. Just last month, the EPA

delayed the release of its greenhouse

gas standard for new plants. The agen-

cy said it needs more time to review

more than 2 million comments on the

rule. Industry observ-

ers say the delay

means the agency

may revamp the

rule in a way that

returns to power

producers the op-

tion of construct-

ing new genera-

tion f red by coal.

Given that op-

tion, I believe

U.S. power

producers will

bear the added cost of pollution con-

trols and pursue new coal projects as a

tool to mitigate the enormous risk and

vulnerability posed by natural gas.

Meanwhile, the market is telling us

that coal should play a starring role

in this nations plan to meet demand

with reliable and affordable energy.

In March, the use of coal-f red

generation was 21 percent higher

than the same month last year,

according to Genscapes Generation

Fuel Monitoring Service. The use of

gas-f red generation and renewable

power fell 11 percent and 14 percent,

respectively.

Natural gas prices are rising much

faster than coal prices, prompting

power producers to use more coal to

meet demand. Gas prices have risen

60 percent in the last year, while coal

prices have increased just 2 percent

during the same period.

Giving power producers the option

to pursue new coal projects by

establishing a reasonable GHG limit for

coal is a compromise that achieves the

right balance between environmental

concerns and economic concerns. Lets

hope the EPA is listening.

If you have a question or a com-

ment, please contact me at russellr@

pennwell.com.

1305pe_1 1 5/7/13 9:05 AM

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CORPORATE HEADQUARTERSPennWell Corp.1421 South Sheridan Road Tulsa, OK 74112

P.O. Box 1260, Tulsa, OK 74101Telephone: (918) 835-3161 Fax: (918) 831-9834

E-mail: [email protected] Wide Web: http://www.power-eng.com

MANAGING EDITOR Russell Ray

(918) 832-9368 [email protected]

ASSOCIATE EDITOR Denver Nicks


ASSOCIATE EDITOR Justin Martino


ON-LINE EDITOR Sharryn Dotson


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DEPARTMENTS

1 Opinion

4 Industry News

8 Clearing the Air

10 Gas Generation

12 View On Renewables

14 Demand Response

16 Nuclear Reactions

18 What Works

70 Products

72 Generating Buzz

FEATURES No. 5, May 2013

26 SPECIAL REPORTNatural GasExecutive Roundtable

Executives from the fastest growing sector of U.S. power generation sit down with Power Engineering to discuss issues currently affecting gas power generation, including EPA regulation and cost issues.

117VOLUME

38 Gas TurbinesWith an increased amount of U.S. power generation coming from

both renewable energy and natural gas, Power Engineering examines

the latest innovations in gas-turbine technology that can

accommodate the variability of wind and solar power.

52 Nuclear Safety in 2013:An Overview

Associate Editor Denver Nicks gives an overview of where the nuclear

industry currently stands on safety as plant operators deal with increased

concern and scrutiny in the aftermath of the Fukushima incident.

46 SteamTurbine Rehabs

Learn about the challenges and possible outcomes of

steam turbine rehabilitation, which can allow a power

producer a chance to optimize an entire turbine design.

60 Wind Turbine Lubrication and Maintenance

Wind turbines represent a large investment to their owners

and may present unique challenges when it comes to

lubrication and maintenance.

1305pe_2 2 5/7/13 9:05 AM

HITACHI POWER SYSTEMS AMERICA, LTD.645 Martinsville Road, Basking Ridge, NJ 07920

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upgrading/replacing existing simple cycle and combined cycle combustion turbines. Nominal

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turbine in 1x1 or 2x1 plant arrangements. Learn more from Hitachi Power Systems America.

HITACH GAS TURBINE PRODUCT LINE 60 HZ

ITEM UNIT H-15 H-25 H-80

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Exhaust Flow lb/h 420,000 767,000 2,262,000

Exhaust Temp F 1,047 1,042 986

ISO Conditions (Sea Level, 59F, 60% RH), Natural Gas Firing


1305pe_3 3 5/7/13 9:06 AM

www.power-eng.com4

INDUSTRY NEWS

Coalition of states threaten EPA with suit over NSPS delayTen states, the District of Columbia

and New York City have sent a letter to

the U.S. Environmental Protection Agen-

cy threatening to sue over the delay in

f nalizing the New Source Performance

Standard.

The notice provided EPA 60 days be-

fore the lawsuit is f led. EPAs deadline

to f nalize the NSPS rule was April 13.

The other states joining the action are

Connecticut, Delaware, Maine, Massa-

chusetts, New Mexico, Oregon, Rhode

Island, Vermont and Washington.

The rule was originally introduced in

March 2012 while Lisa Jackson was EPA

administrator. Gina McCarthy has been

nominated to take her place.

NRG Energy proposes three gas-f red projects in New YorkNRG Energy is proposing at least one

new natural gas-f red power plant and

possibly two others to replace the loss of

generation from the 2,037 MW Indian

Point nuclear power plant in New York if

it is shut down.

NRG is proposing a combined-cycle

natural gas-f red power plant that would

replace oil- and gas-f red units at the 580

MW Astoria plant in New York City. That

plant would cost up to $1.5 billion and

produce between 520 MW and 1,040

MW.

NRG is also proposing a new plant at

the site of the closed Lovett coal-f red

power plant. Reports have said closing

the plant could cost electricity customers

as much as $800 million.

In January 2012, a main generator out-

put breaker failed, and the missing in-

sulation caused a startup transformer to

short circuit, causing a loss of offsite pow-

er. The NRC said during an augmented

inspection the following September that

plant owners did not properly supervise

contractors and that they missed improp-

erly connected wires that led to the elec-

trical short.

Mississippi Power requests $540mn more for the Kemper County IGCC plantMississippi Power asked state regula-

tors for an additional $540 million to

build the 582 MW Kemper County inte-

grated gasif cation combined-cycle power

plant. The cost to build the plant is now at

$3.42 billion.

Due to a settlement agreement with

the state Public Service Commission, the

utility cannot recover the overruns from

customers. Instead, Mississippi Power is

reporting a $540 million loss for the f rst

quarter. The plant is expected to begin

operations in May 2014.

DOE announces nuclear fuel storage research The U.S. Department of Energy an-

nounced a new dry storage research and

development project to be led by the Elec-

tric Power Research Institute.

The project will design and demon-

strate dry storage cask technology for

high burn-up spent nuclear fuels that

have been removed from commer-

cial nuclear power plants. Burn up

Five-year uprate project completed at Turkey PointFlorida Light & Powers Turkey Point

nuclear power plant came back online

April 17 after a f ve-year uprate project in-

creased the output.

The $3 billion project was originally es-

timated to cost half as much. It was pro-

posed in 2007, but construction did not

begin until 2010. Unit 4 was upgraded

and connected to the grid on April 17.

Unit 3 was completed in 2012. Unit 4

will gradually be scaled up to 100 percent

output, at which point, the plant will be

capable of producing an extra 525 MW, or

15 percent above its pre-uprate capacity.

U.S. solar industryputs people to workin all 50 statesThe Solar Foundations interactive map

shows that California leads the nation in

the number of workers employed in the

solar industry. Arizona, New Jersey, Mas-

sachusetts, Pennsylvania, Colorado, New

York, Texas, Michigan and Ohio round

out the top ten states for solar jobs.

The maps also break down jobs by sub-

sector in each state, compiling data on in-

stallation jobs, manufacturing jobs, sales

and distribution jobs and project devel-

opment jobs.

ABB sued over nuclear plant shutdownKansas City Power & Light and other

co-owners of the Wolf Creek nuclear

power plant in Kansas are suing ABB for

more than $25 million in damages for

claims that ABB did not perform proper

repairs on a startup transformer that led

to a 10-week shutdown at the plant in

2012.

The repairs involved electrical path-

ways for redundant offsite power sources

that keep safety systems running without

interruption. An April 2011 inspection

showed that the replacements were not

properly insulated.

1305pe_4 4 5/7/13 9:06 AM

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the world. Bechtel operates through five global

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www.power-eng.com6

INDUSTRY NEWS

hydroelectric plant near Great Falls.

The single, 60 MW unit replaced

smaller units with a combined capac-

ity of 35 MW that were installed be-

tween 1910 and 1930, which increased

the output by 70 percent. The new unit

began commercial operation on April

22.

The overhaul also included a new

turbine with wider f ow passages and

fewer rotating surfaces for increased

f sh safety and a $38 million, 100 kV

interconnection project that will con-

nect the f ve hydropower plants to

NorthWestern Energys grid.

Fluor to continue nuclearO&M work with PG&EPacif c Gas & Electric (PG&E) ex-

tended a contract with Fluor Corp. for

operations and maintenance work at

the Diablo Canyon units 1 and 2 in

California.

The initial contract was awarded in

May 2010. Fluor will continue to pro-

vide ongoing maintenance, modif ca-

tion and outage services for the units.

Wind power projectin Ontario breaks groundSamsung Renewable Energy Inc. and

Pattern Energy Group broke ground on

the 270 MW South Kent wind project

in Ontario on April 30.

The project will use 124 turbines

made up of Siemens blades and CS

Wind towers.

There will be approximately 300

workers on-site during construction,

with 500 workers expected during

peak construction periods. The proj-

ect is scheduled to be completed in the

spring of 2014.

power from the Navajo Generating Sta-

tion in Arizona and the Intermountain

Power Plant in Utah.

LADWP is selling its share of the Na-

vajo plant to the Salt River Project by the

end of the year, and has already approved

an amendment to its contract with the

Intermountain plant to switch to receive

the output from a smaller gas-f red power

plant in southern California.

The ratepayer advocate also said end-

ing the contract with the Navajo plant

three years ahead of the termination date

could cost between $150 million and

$200 million.

Construction beginson 579 MW solar projectin CaliforniaMidAmerican Solar and SunPower

Corp. started major construction at the

579 MW Antelope Valley solar projects

in California. SunPower is designing and

developing the projects, while MidAmer-

ican Solar owns them. SunPower is also

the engineering, procurement and con-

struction contractor and will provide op-

erations and maintenance services under

a multi-year agreement. Southern Cali-

fornia Edison has two power purchase

agreements for the output

The plant is expected to be completed

by the end of 2015.

Overhaul completed at Montana hydroelectricpower plantPPL Montana completed a three-

and-a-half year, $209 million ex-

pansion at the now 60 MW Rainbow

relates to the power extracted from

reactor fuels. The work builds on the

steps the DOE is taking in FY 2013,

and has proposed for FY 2014, to sup-

port a new strategy for the back end of

the nuclear fuel cycle.

Gas plant relocation could cost Canadian taxpayers $275mnA decision to end construction on a

280 Mw natural gas-f red power plant

in Mississauga, Ontario, and relocate

it to Sarnia will likely cost taxpayers

$275 million, according to the Ontario

Auditor General.

Construction on the plant began in

June 2011, but after the general elec-

tion the following October, the Liberal

Party said it would cancel construction

of the plant. At the time, the party said

the costs would be around $190 mil-

lion once a litigation settlement was

included. However, a special report

said total costs are about $351 million,

but that is offset by an estimated sav-

ings of about $76 million.

LAs move from coalcould cost $600mnLos Angeles Mayor Antonio Villarai-

gosas plan to end the use of coal-f red

generation could cost the city more than

$600 million, according to the LA Times.

The ratepayer advocate for the Los An-

geles Department of Water and Power

(LADWP) said he was not sure what that

effect would have on electric bills. Cur-

rently, the city receives 39 percent of its

1305pe_6 6 5/7/13 9:06 AM

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CLEARING THE AIR

costs by installing a solution today

that will only be regretted later as it

may be too costly to operate because

of the increase in costs for intangibles

required. Some more expensive solu-

tions upfront may offer certainty of

outcome for many years to come by

eliminating the need for externalities

such as sorbents or other chemical

additions. These running costs could

rise due to supply and demand issues,

transportation, etc. But you can say the

cost of money is more pressing now.

We all know the pay me now or pay me

later routine, just keep these factors in

front of you.

Many decisions face our coal f eet

today. Retrof t, retirement, gas conver-

sions all come with various costs, risks

and yes uncertainty. And, there are

more regulations that are coming that

will most certainly play a signif cant

role in making these decisions even

more diff cult. The National Ambient

Air Quality Standards (NAAQS) and

Green House Gas (GHG) regulations

are just two more giant gorillas in the

waiting room, not to mention water

eff uent guidelines, 316(b) and coal

combustion residue. Will your MATS

solutions add complications to your

wastewater streams or solid byprod-

ucts? Will they contribute to GHG /

CO2 emissions?

These daunting facts may favor

the consideration of shutting down a

coal asset. We wouldnt say that the

decision to shut down a plant is easy,

as we know many factors come into

play. Each plant has its own set of

Utilities have until April 2015 to

comply with the Mercury and

Air Toxics Standard, otherwise

known as MATS. If you do the math in

regards to evaluating your options in-

cluding bidding and procuring a solu-

tion, the time is running short to pull the

trigger on deciding the fate of your plant.

In some cases, depending upon your spe-

cif c needs, time may be too short to im-

plement the necessary technologies and

avoiding generation interruption (GI).

You (Joe) may be forced to take a unit off

line while the changes are being installed

and commissioned.

Many solutions to meet MATS

may be less onerous then you think.

Companies supplying technology

solutions are willing to provide proven

options that could be implemented in

stages. Remember not to paint yourself

into a corner by electing a solution that

will get you into compliance now but

force you into other issues down the

road. Economical heartburn can result

from having to rip out equipment

that was installed in a location that is

needed for future upgrades.

Drill a step deeper and remember

when making plans or decisions now

to consider what will be implemented

next. Always think smart and do not

overlook something obvious like

layouts with future upgrade potentials,

auxiliary transformer sizing or draft

system sizing when making decisions

about a technology solution.

There are many cases where there is

more than one solution for meeting

MATS. It could be attractive to save

specif c factors to evaluate including

the impacts on the local economy. Re-

powering is in some cases possible,

but nothing can justify an outcome

that leaves our nation with voids

of depleted energy and a less than

dependable grid. Natural gas prices

have made this even more complex

and at the same time easier for some to

determine their path ahead for MATS

compliance.

Logically, it would make sense to

have a balanced portfolio of energy

sources and fuel mix which will include

coal. Clean coal technology is real and

available today. Dont leave your coal

plant behind without considering all

of the available options.

This write-up would be incomplete

without mentioning MATS for new

units, although few in the U.S. are

building or planning new coal-f red

plants at this moment. We do not see

good reasons for new units to have

so much more stringent limits than

existing ones. After all, the same state-

of- the-art pollution control equipment

is used for retrof t and new build units.

Limits too low to measure accurately

and repeatedly present tremendous

uncertainties to owners and suppliers

alike and yet contribute little to protect

the environment.

It may take some time for these

newer rules to impact specif c utility

units, but the clock is ticking, and the

pressure is on. Fasten your seat belts

and lets giddy up.

Think Smart, Act Fast and Enjoy the

ride.

MATS Its Timeto Giddy Up or GIJoeBOB NICOLO, DIRECTOR, AQCS, HITACHI POWER SYSTEMS AMERICA, LTD.

1305pe_8 8 5/7/13 9:06 AM

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GAS GENERATION

gas emissions since 1992.

Natural gas combined-cycle tur-

bines are also far more eff cient than

boilers or other forms of combustion

about 40 percent more power comes

from each unit of energy input.

Perhaps most importantly, utilities

are responding to the broad scientif c

consensus of our nations prolonged

abundance of natural gas and the low,

steady prices that will accompany con-

tinued development.

ABUNDANT BY ANY

ESTIMATE

This game-changing abundance and

the potential for consumer savings

have become key factors in the energy

choices of some of our biggest custom-

ers. As representatives of the nations

largest independent natural gas pro-

ducers, Americas Natural Gas Alliance

(ANGA) has been working with utili-

ties, independent generators, regula-

tors, organized markets and legisla-

tors to ensure conf dence in the ability

of natural gas to fulf ll the major and

growing role it now plays in U.S. power

generation.

Thanks to the shale gas revolution,

North Americas recoverable resource

base is projected to last for generations.

Todays expectations of natural gas

production in the lower 48 states are

dramatically higher than they were

in 2007, the year before shale-driven

abundance was truly recognized. Nat-

ural gas productivity has led to dra-

matic decreases in price, resulting in

impressive consumer savings. Conser-

vatively, U.S. utility consumers are sav-

ing more than $50 billion per year, and

by some measures more than twice

The promise of shale gas has

been dominating the energy

debate for several years now.

But the conversation is shifting from

the potential to the practical in the

choices utilities are making, in the fa-

cilities and pipelines being built and in

the real, tangible progress being made

in reducing our greenhouse gas emis-

sions. In other words, shale gas has ar-

rived, and its here to stay.

TURNING IT ON

In the last decade, natural gas-f red

power generation has accounted for

the lions share of electricity additions

in the U.S., making up 73 percent of

new capacity. Together with wind,

the two have captured 99 percent of

all new generation capacity. Until just

recently, however, many of these ad-

ditions were sitting dormant, under-

utilized and passed over for coal-f red

generation.

The tide is changing. In April 2012,

for the f rst time in history, actual gen-

eration produced from natural gas-

f red plants equaled that produced

from coal-f red plants, at 96 million

MWh apiece. Market share still de-

pends on relative prices, but this was

an important landmark.

Why the change? For one, natural

gas is our cleanest conventional fuel,

emitting far less NOx, SOx, and CO2

and none of the particulates or mer-

cury. This means cleaner air and, more

practically, fewer hurdles to construc-

tion. It is precisely this use of more

natural gas in power generation that,

according to the U.S. Energy Informa-

tion Administration, last year helped

us reach our lowest level of greenhouse

that, thanks to the drop in natural gas

prices.

TO MARKET TO MARKET

There is little credible debate about

the fact that abundant natural gas sup-

plies are available and could be used

virtually anywhere in the U.S. Today,

we have over 2.4 million miles of natu-

ral gas pipelines. On a national level,

16,000 miles of interstate pipeline

have been approved in the last decade,

the largest amount in 40 years. By con-

trast, only 900 miles of electric trans-

mission lines have been approved.

Our role has been to assure all par-

ties of the large supplies that now are

produced, often right in the market

area. The distance natural gas now

has to travel to market has dropped

dramatically, thanks to shale gas pro-

duction in 30 states. Take for example

the Marcellus and Utica shales: two

impressive resources that are being

produced near major industrial and

population areas precluding our his-

toric reliance on long pipelines to get

gas where it needs to go.

A PROMISE FULFILLED

As the shale gas revolution has come

of age, we have seen the enormous

promise of this resource fulf lled; as a

base load- capable fuel that is cleaner,

available at stable prices and vastly

abundant. Our air quality has seen its

greatest improvement in 20 years, ca-

pacity additions and actual generation

are up dramatically, and this f exible

resource is being delivered to market

via a rapidly expanding pipeline in-

frastructure. Shale has indeed arrived,

and its here to stay.

Shale Gas Comes of AgeMICHELLE BLOODWORTH, VICE PRESIDENT OF STATE AFFAIRS AND BUSINESS DEVELOPMENT, AMERICAS NATURAL GAS ALLIANCE

Author

Michelle works with

ANGAs State Affairs

Committees, as well

as utilities, regulators,

legislators and other

business-to-business

stakeholders to

communicate the

economic and envi-

ronmental benef ts

of the increased use

of clean, abundant,

domestic natural gas.

Prior to off cially join-

ing the ANGA team in

2010, Michelle was

extensively involved

in its creation through

her previous position

with ANGA member

company Energen,

where she spent

more than 20 years.

Michelle served as

the f rst co-chair of

ANGAs Communica-

tions Committee and

has made signif cant

contributions to the

organizations devel-

opment.

1305pe_10 10 5/7/13 9:06 AM


1305pe_11 11 5/7/13 9:06 AM

www.power-eng.com12

VIEW ON RENEWABLES

BY TOM LEVY, MANAGER, TECHNICAL & UTILITY AFFAIRS, CANADIAN WIND ENERGY ASSOCIATION

Wind energys contributions of

clean power in North Ameri-

ca in 2012 grew signif cantly.

The U.S. installed over 13 GW of new

wind capacity. In Canada, utilities con-

nected nearly 1 GW of new wind capacity.

The cumulative global capacity of wind

energy is now approaching 300 GW. This

growth is not by accident it has been

driven by forward thinking policy, and

has been enabled through sophisticated

design, tools and technologies.

There are many widely known and

accepted benef ts that wind energy de-

velopment brings to communities the

overwhelming positive environmental

attributes, increased taxes, revenue and

job creation. What is less well known are

the positive attributes that wind energy

brings to the bulk power grid. The pri-

mary purpose of the electrical system is

to deliver electricity on demand, when

needed reliably, safely and affordably.

The introduction of wind energy on the

electrical grid must not cannot com-

promise these underlying principles. The

modern power grid was designed based

on one-way f ow of electricity from a

centralized power source to a distributed

customer. Wind energy does not neces-

sarily f t this mould, and power engineers

have gone to great lengths to ensure that

wind energy can be interconnected with

the power grid without compromising

system reliability. In fact, wind farm and

system operators have sophisticated tools

that allow this f exible source of electric-

ity to provide clean electricity to the trans-

mission system in a reliable manner if it

could not accomplish this, all of the ben-

ef ts that wind has would be lost.

In Ontario, wind energy now repre-

sents an increasing portion of the prov-

inces generation f eet. Centralized Fore-

casting will be implemented to more

accurately predict variable wind and solar

generation output, and is an essential

tool for the Independent Electricity Sys-

tem Operator (IESO) to maintain system

reliability and market eff ciency. This

Centralized Forecasting service is similar

to services implemented in most jurisdic-

tions with comparable amounts of wind

generation.

Let us back up just a bit. Humans have

been harnessing energy from the wind

for literally thousands of years. The late

1800s saw the f rst documented use of

wind energy to create electricity. Prior to

this, wind energy was used for produc-

tion of mechanical power that pumped

water or ground grain. During the oil

embargos of the 1970s, engineers saw the

potential of an unlimited fuel source to

create electricity. The wind generators of

the 1970s were rudimentary in their de-

sign relative to the sleek and modern ma-

chines that are being built today. These

earlier models produced limited amounts

of electricity, and they did not have so-

phisticated power electronics to eff cient-

ly manage their operation. These were the

early designs; they were a squirrel cage

induction motor that had to disconnect

from the electrical grid when there was a

fault or a blackout. But they opened the

eyes of engineers and planners, and while

the industry faced a few hills and valleys,

varying policies and the like, those early

wind energy pioneers continued to see a

limitless energy potential.

Fast forward thirty years. Engineers

have advanced wind energy technology

from these early designs into the present

day sophisticated doubly fed induction

motors or Type 4 full converters. These

are marvels of engineering. They bring

with them SCADA systems that permit re-

mote operation and fault detection; they

contain advanced controls, sensors and

state-of-the-art power electronics. Mod-

ern wind turbines now have the capacity

to contribute to the reliable operation of

the bulk power transmission system.

The 2011 IEEE Special Edition (Vol. 9,

No. 6, Nov/Dec 2011) reports that mod-

ern wind turbines have a myriad of offer-

ings voltage and var control/regulation;

fault ride-through capabilities; real power

control, ramping and curtailment; prima-

ry frequency regulation; inertia response;

short-circuit duty control. This evolution

in wind energy technology is not by ac-

cident the need to ensure that the mod-

ern wind turbine is a good citizen on the

grid has been driven by an overarching

need to invest in our electrical system,

which is in part being driven by demands

of society for cleaner, less impactful elec-

tricity sources. The demand that we clean

up our act is not at the expense of reliable

and affordable electricity wind energy

more than f ts this role, and has clearly

risen to the challenge just ask Texas,

California, Iowa, Denmark, Ontario - or

even a little Canadian province called

Prince Edward Island.

North American Utilities Commit to Reliable, Affordable Wind Energy

1305pe_12 12 5/7/13 9:06 AM

Powerful Player in PowerTIC is one of the leading industrial contractors serving todays Power industry. With over 44,000 MW of installed capacity, TIC is consistently ranked in Engineering News-Record (ENR) as one of the Top 10 contractors for Power and/or Cogeneration installations.

TICs extensive power experience spans a variety of technologies, fuel types and confgurations, including Gas/Combustion Turbine installations in both combined and simple cycle operation; large Coal-Fired and other fossil fueled plants including both sub-critical boilers and supercritical steam generators, Integrated Gasifcation Combined Cycle (IGCC) projects, and Renewable Energy including Wind, Geothermal, Solar and Hydroelectric facilities, plus Alternative Fuels plants.

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1305pe_13 13 5/7/13 9:06 AM

www.power-eng.com14

DEMAND RESPONSE

optimization of DR resources across pro-

grams or geography; Device technologies

not using or supporting open standards

for communications protocols and mes-

sages; No performance measurement ca-

pabilities or settlements ; Very little inte-

gration into back off ce systems; No data

sync across disconnected systems

STAGE 4: DEMAND RESPONSE

MANAGEMENT SYSTEMS (DRMS)

When DR challenges reach a level of

complexity, frustration, and operational

risk at which tools are not being effec-

tively used, or when the cost of operating

many disparate systems in parallel is sig-

nif cant enough, or when the lack of in-

tegration and automation investment in

large-scale harmonization, there is a cost

effective solution implement a DRMS.

A DRMS is an integrated command and

control system that manages the entire

lifecycle of DR programs and resources

across customer segments, device types,

and communications technologies. It

also acts as the integration hub managing

all DR related data f ows between opera-

tional and back off ce systems.

The Market for DR is maturing at every

level. Utilities like Nevada Energy have

proven the value and shown that DRMS

is the ultimate command and control

tool for forecasting and eff ciently using

DR so control rooms can preserve reli-

ability, energy traders can hedge against

high prices, and network planning en-

gineers can push out infrastructure up-

grade projects and direct capital to more

pressing needs.

Whether you are just beginning your

DR journey, in the middle of it, or at

Maturity Level 4, it is never too soon to

consider the savings and f exibility of DR,

and of implementing a DRMS.

Demand Response (DR) is a

proven alternative to adding

new generation with an ap-

proach that is zero-carbon, cost-effective

and environmentally-friendly.

DR technologies deliver a temporary

adjustment in energy consumption

usually due to a severe network reliability

issue or extremely high price in the real

time energy market. It is an effective tool

for postponing capital expenditures in re-

lieving network reliability constraints, or

avoiding spikes in energy prices and en-

ergy consumption. But what is the path to

implementing a successful DR strategy?

This article examines the traditional

4-stage Demand Response (DR) Maturity

Model. There are points along the DR ma-

turity path when a utility fully embraces

and implements DR such that it becomes

a real and reliable resource, but there can

be challenges in f elding successful DR

programs.

The market for DR is heating up. Utili-

ties of all sizes with multiple DR programs

in place are growing their portfolios.

Much of the industry is not implement-

ing its f rst DR program, but perhaps its

eighth or tenth.

THE UTILITY DR

MATURITY LIFECYCLE

STAGE 1: GETTING STARTED

Most utilities use some form of DR

perhaps just a phone call to a few large

industrial customers to reduce energy

consumption during a network reliability

emergency, or a legacy residential hot wa-

ter heater cycling program.

These f rst load reduction programs

usually were launched to preserve reli-

ability. They reduce overall network

outages and provide either time for a

network upgrade or replace the need for

network upgrades all together. For Retail-

ers, Coops, and Munis in Texas and oth-

er markets where scarcity pricing allows

peak energy prices to reach $5,000 per

MW this year and up to $7,000 in 2014,

it is not hard to justify DR. The measur-

able success of these programs usually

prompts utilities to extend DR deploy-

ment until the targeted network segment

or audience is saturated.

STAGE 2: SCALE & LEARN

Whether the f rst program was a suc-

cess or failure, need often arises for an-

other program, possibly due to network

capacity issues, avoiding peak energy

prices, or the unfavorable economics of

building high cost peaker plants.

Usually, the latest available device

technology is studied and deployed in a

new program with different rules often

targeted at new customer segments or

load prof les. A DR Aggregator is some-

times hired to handle part of, or most of

the DR management recruiting cus-

tomers, installing devices, scheduling DR

events when needed and signaling the

devices to reduce energy consumption.

In either case, a new program is created

with new rules, incentives, device tech-

nology and even new communications

infrastructure.

STAGE 3: DR CHALLENGES EMERGE

Multiple DR programs, device technol-

ogies, and communications paths man-

aged by multiple systems can quickly

become unmanageable.

Typical challenges faced by utilities

include: No single system for register-

ing customers and devices; No single

view or forecast of DR availability by

network segment; No ability to forecast

device response prof les or snap back; No

The Market for Demand Response

the DR MaturityModel Perspective

BY MARK TRIPLETT, MANAGING DIRECTOR, DRMS, ALSTOM GRID

1305pe_14 14 5/7/13 9:06 AM


1305pe_15 15 5/7/13 9:06 AM

www.power-eng.com16

NUCLEAR REACTIONS

Blind Squirrels and ChinaBY BRIAN SCHIMMOLLER, CONTRIBUTING EDITOR

I cant say I put much stock in the

adage that posits, Even a blind

squirrel f nds a nut once in a

while. Seems to me that the squirrel

would encounter some other predator,

or the front tire of a passing car, long

before f nding that nut. I may have to

re-evaluate my lack of faith in that say-

ing, however, in light of a crystal ball

prognostication I made a few years ago

in this column.

Back in early 2011, I offered f ve

Lead-Pipe Cinch Predictions, one of

which concerned Chinas burgeoning

nuclear program. I boldly predicted

that China would offer a nuclear plant

design for export within f ve years. Not

only was this blind squirrel right, but I

was right three years ahead of schedule

(maybe that means I was wrong).

In early February, an executive at

Chinas state nuclear corporation,

SNPTC, said that the reactor being

built for export the CAP1400

would be ready the end of 2013. The

exploration of business opportuni-

ties on the world market will begin in

2013, Gu Jun was cited as saying in

the China Daily newspaper. The third-

generation CAP1400 reactor, which is

based on the AP1000 design, was de-

veloped through a 2008 agreement be-

tween SNPTC and Westinghouse, and

there are reportedly plans in place for

a larger, more advanced version called

the CAP1700.

While the Westinghouse association

will certainly add some validity to the

technical viability of the Chinese reac-

tor on the world market, commercial

success outside China will likely take

some time. Global familiarity with the

Chinese design and with the track re-

cord of Chinas operating nuclear f eet

is limited.

Still, I hesitate to hazard a guess as

to how long that some time might

be. Whatever the guess, export suc-

cess will probably come sooner than

expected. With 18 operating reactors,

China currently breaks into the top

10 in terms of countries with the most

number of operating reactors, but with

28 more under construction, and doz-

ens more in the planning and develop-

ment stages, China will soon be rival-

ing the United States for the top spot.

And no one can say that China is sat-

isf ed with older designs. China is the

only country where two of the worlds

most advanced designs the Westing-

house AP1000 (at Sanmen) and the

Areva EPR (at Taishan) are being

built. Beyond the CAP1400, China has

a memorandum of understanding in

place with Areva and EDF to develop a

new 1,000 MW Generation III reactor

that would be common to EDF, Areva,

and the China Guangdong Nuclear

Power Corp. (CGNPC).

Operationally, China is also deploy-

ing modern technology to standardize

and improve eff ciency. CGNPC, for

example, recently completed an ambi-

tious three-year effort to implement

f nancial and enterprise asset manage-

ment software from SAP at Daya Bay,

which will help the plant coordinate

daily operations, maintenance, supply

chain, and f nancials. CGNPC plans to

use this as the foundation for manag-

ing a nuclear f eet that will exceed 20

units in the next decade.

So whos on the list of potential early

buyers of Chinese nuclear technology?

South Africa is one possibility, based

on its plan to build six new nuclear

power stations by 2030 to deal with

that countrys energy supply challeng-

es. Turkey is another, with plans for a

5,000 MW nuclear facility in the Black

Sea province of Sinop. China is report-

edly on Turkeys short list along with a

Japanese-French consortium.

Even if China doesnt win either of

these awards, there are a few elements

in Chinas favor that will ultimately

convince someone to take the chance.

One is money. Financing a large mod-

ern nuclear plant is a roughly $10 bil-

lion investment, and China has the

deep pockets to support a given coun-

try in turning nuclear ambitions into

commercial reality. Another is time. As

more countries consider embarking on

commercial nuclear programs, China

will continue gaining experience from

the construction and operation of the

newest generation of nuclear reactors

in the world. Theyll be ready.

So keep your eyes on China. The day

is coming when a Chinese reactor will

be nearer to you than the provinces

of Guangdong and Guangxi. For now,

Ill bask in the glory of a prediction

come true.

Just dont ask me about one of the

other prognostications I made back in

2011that the U.S. Congress would

pass legislation allocating signif cant-

ly more money to the loan guarantee

program. Apparently, this squirrel was

too blind to f nd that nut.

1305pe_16 16 5/7/13 9:07 AM


1305pe_17 17 5/7/13 9:07 AM

www.power-eng.com18

WHAT WORKS

part of the VRT offering, the AE Utility

inverters can perform Zero Voltage Ride-

Through (ZVRT), High Voltage Ride-

Through (HVRT) and LVRT. The AE Util-

ity inverters followed the utility required

timing prof le and quickly ramp back up

after an event has cleared. VRT allows

the inverters to ride through disturbance

events and enables the generation station

to stay online, and limit the revenue lost

to the investors while helping to stabilize

the grid. This event successfully demon-

strated the LVRT capabilities of the AE

Utility PV Inverters. The Solar Stations

graphs provide data for PG&E to better

understand the impacts of inverters with

LVRT capabilities to support the grid in

areas with a high penetration of distrib-

uted generation.

Figure 2 displays the voltage and cur-

rent waveforms captured by the SEL re-

lay at Westside Solar Station during the

February LVRT event. It can be seen that

the current temporarily increases for ap-

proximately 2 cycles at the inception of

the fault. This is expected behavior as

the units are operating at less than 50%

of their nameplate rating. When the line

voltage began to drop, the units attempt-

ed to maintain a constant output power

The 30 Advanced Energy (AE) 500

kW 1kV DC Utility PV Inverters

at PG&Es 15MW Westside Solar

Station successfully passed multiple low

voltage sag events. This sites inverters

are equipped with Voltage Ride-Through

(VRT) capabilities and are connected to a

Pacif c Gas & Electric substation outside

of Fresno, Calif.

AE 500kW 1kV Inverters at PG&Es

Westside Solar Station

On March 17, 2012, there were a to-

tal of 4 low voltage events caused by

momentary phase to phase faults on an

adjacent 12 kV circuit which is fed from

the same substation where this Solar

Station is connected. The Solar Station

is equipped with a Schweitzer Engineer-

ing Laboratories (SEL) relay at the 12kV

switchgear. The oscillography traces from

the SEL relay at Westside Solar Station

showed close to a 50% voltage depression

at the 12 kV bus for approximately 7 cy-

cles. During each of these events the units

were between 20 percent and 80 percent

of full-power. All the inverters remained

online, demonstrating the Low Voltage

Ride-Through (LVRT) capability of AEs

Utility inverters.

A similar event occurred on Feb. 7,

2012, when the adjacent feeder experi-

enced a short circuit condition causing

both A and B phases at the connected

substation to experience a 50 percent

voltage sag which activated the inverters

LVRT capabilities. The protective relays

on the faulted 12 kV circuit detected

the short circuit and cleared the fault in

approximately 7 cycles. The inverters

successfully rode through the event and

returned to normal operation upon clear-

ance of the short circuit condition. The

SEL graphs were collected and reviewed

by PG&Es Renewable Resource Develop-

ment department.

VRT timing prof les are features of-

fered in the AE Utility inverters. They

provide the inverter the ability to stay

connected with the grid under these ex-

ternal fault conditions. While there are

no specif c VRT requirements imposed

by the existing interconnection require-

ments at this time, PG&E voluntarily

implemented the VRT feature at this

solar site to demonstrate the benef ts of

having these features.

VRT enables inverters to stay online

during grid disturbances and produce

reactive power to stabilize the grid. As

Advanced EnergyPV InvertersRide-Through PG&E Low Voltage EventsBY ANASTASIOS HIONIS, PE, UTILITY APPLICATIONS ENGINEER, AE SOLAR ENERGY & STEVEN NG, PE, MANAGER, ENGINEERING RENEWABLE RESOURCE DEVELOPMENT, PACIFIC GAS & ELECTRIC

AEVRT & Utility Profles 1p. u. Volta

ge

1.2

1

0.8

0.6

0.4

0.2

01 0 1 2 3 4

SecondsThe VRT profle for the AE Utility PV Inverters is programmable to multiple regional profles

such as for FERC 661, NERC, & ERCOT, shown above.

FERC 661

ERCOT

NERC

AEVRT

1305pe_18 18 5/7/13 9:07 AM

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100,000. That means our tests arent just rehearsals theyre as real as it gets.

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1305pe_19 19 5/7/13 9:07 AM

www.power-eng.com20


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and the AC current increased up to the

AC current limit before the LVRT features

were activated.

The February and March LVRT

events at Westside Solar Station pro-

vided PG&E with the actual data to

demonstrate the effect of successful

LVRT. It is expected that large PV Solar

Stations, such as Westside Solar Sta-

tion, will be required to be equipped

with VRT features in the near future.

The following are the two guiding doc-

uments that utilities and the system

operators are using to develop the VRT

requirement for large PV generating

stations:

NERC Standard PRC-024

The Technical Justif cation for the

New WECC Voltage Ride-Through

(VRT) Standard, A White Paper De-

veloped by the Wind Generation

Task Force (WGTF), dated June 13,

2007, a guideline approved by WECC

Technical Studies Subcommittee.

As utilities connect more large PV

projects onto the grid, it becomes more

important that these large PV projects be

equipped with VRT capabilities to stay

online during grid disturbances.

Voltage and current plot from the SEL

relay at Westside Solar Station2

This plot confrms that the Advanced Energy Utility PV inverters successfully rode throughthe February low voltage event.

VA(kVVB(kV

)VC(kV) IA IB

IC

50

0

50

5

0

5

IA IB IC VA(kV) VB(kV) VC(kV)

2.5 5.0 7.5 10.0 12.5 15.0

Cycles

1305pe_20 20 5/7/13 9:07 AM

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ora

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www.power-eng.com22For info. http://powereng.hotims.com RS# 12

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1305pe_22 22 5/7/13 9:07 AM

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www.power-eng.com26 www.power-eng.com26

The discussion centered on the future of

gas-f red generation, the sustainability

of todays low gas prices and the poten-

tial impact of increasing environmental

regulation.

The participants were: Tom Alley,

vice president of generation for EPRI;

Scott Austin, manager business devel-

opment for Bechtels thermal business

line; Amy Ericson, vice president gas

product platform for Alstom Power;

and Toby Thomas, vice president gen-

erating assets for AEP.

What follows is a transcript, edited for

length and style, of that discussion.

POWER ENGINEERING: With the re-

cent increase in the price of natural

gas, do you see power plants con-

tinuing to turn to it as the preferred

fuel choice as they have for the past

several years?

AMY ERICSON: Theres one thing that

we know for certain, and thats that fossil

fuel prices are uncertain and will remain

uncertain. Its interesting particularly

Power Engineering sat down with four executives to discuss the future of gas-f red generation in the U.S. and the potential impact of increasing environmental regulation.BY JUSTIN MARTINO, ASSOCIATE EDITOR

Natural gas is becom-

ing more important

in the power gen-

eration industry each

year. With increas-

ingly strict regulations on emissions

controls and growing concerns about the

environment, more companies are look-

ing to natural-gas f red generation as a

reliable, clean source of energy.

Natural gas-f red plants can also quick-

ly increase to peak load, making the fuel

a good complement to renewable energy

sources, and are also faster and less ex-

pensive to build than many other power

sources. With the growing use of natural

gas, however, many questions remain to

be answered about the fuel sources cost,

the increasing reliance on natural gas over

other fuel sources and upgrading natural

gas pipelines to cover the increased usage,

among other issues.

I recently moderated a roundtable

discussion with executives from Ameri-

can Electric Power, Electric Power Re-

search Institute, Alstom and Bechtel.

over the past several years that weve seen,

not just in the US but globally, an obvious

connection between coal and gas usage

and pricing. Weve seen gas generation

go up in the US on the heels of the low

prices, and weve seen that usage temper

while there has been a comeback a bit in

coal. I think these f uctuations are what

were going to continue to see. In fact,

we hear from our customers that at this

point, theyre taking a long-term view.

Theres no doubt that their interest in us-

ing natural gas for electricity has grown

steadily for the reasons that arent likely

1305pe_26 26 5/7/13 9:07 AM

www.power-eng.com 27

Alstom Power, which is working to create new technology for the power industry,

recently delivered GT24 natural gas turbines to the El Sauz Plant in Mexico. Photo

courtesy of Alstom.

1305pe_27 27 5/7/13 9:07 AM

www.power-eng.com28

of a coal plant, so when folks are trying to

plan and build, gas is certainly one of the

least cost options. Smaller staff, easier to

site gas is just an easy decision, and it re-

ally concerns me that the industry doesnt

have the f exibility to provide more diver-

sity. Again, I think everybody is kind of

being led in that direction.

ERICSON: I can tell you from a tech-

nology development perspective that

we preach diversity. We invest in diverse

technologies, and its exactly for this pur-

pose, and for the protection of supply and

price and policy and even public atti-

tudes because they change in time. But

I would have to say that the prospect of all

gas and renewables in the future is prob-

ably not the optimal prospect for the U.S.

and for the industry, and I think people

probably agree with that.

AUSTIN: From a Bechtel perspective,

weve been around for about 115 years.

Weve seen the peaks and the valleys of

gas pricing over that time and the desire

to move forward with gas in the current

environment. I would concur with Amys

comment that maintaining diversity from

a capability perspective is an important

to go away, which would be the match-

ing of renewables and the speed with

which they can be constructed and com-

missioned. Personally, from an Alstom

perspective, we def nitely see the trend

toward natural gas continuing.

TOM ALLEY: I think that the pricing

change we see here for units that are op-

erating on the margin, the coal units that

are operating right on the margin, may

come back into play, but for a regulated

utility, I dont see that impacting their

business very much. For the unregulated

generators out there, it may open up a

little opportunity for a highly-eff cient,

environmentally-controlled coal plant

to come back into play, because theyve

been under a lot of pressure with the low

gas prices. I dont see this pricing change

really inf uencing the industry much.

SCOTT AUSTIN: Based on the informa-

tion that weve received and interaction

were having with our customers, I would

echo Toms comments that what were

seeing here in the U.S. is a lean toward

new builds from a natural gas perspec-

tive. Given the outlook of the relatively

stable $5 to $7 range in the long term, we

would see the gas-f red generation being

the mid-term selection.

POWER ENGINEERING: EPA regula-

tions are making it more expensive to

operate coal-f red power plants. With

some of the rules coming out, it may

be almost impossible to build new

coal-f red plants. With more com-

panies building natural gas-f red fa-

cilities to compensate for that, does

that raise concerns about maintain-

ing f eet diversity?

TOBY THOMAS: We certainly do have

concerns from a fuel diversity perspec-

tive. In any long term view, if you focus

too much on one fuel or one technology,

youre going to potentially have problems

long term. You def nitely want to be di-

versif ed. The other side of it is that the

more power plants you have relaying on

gas pipelines, the more potential risk you

have to grid reliability. On those warm

summer days, youre starting to get close

to peak f ows on gas pipelines, similar

to what you see with the winter heating

load, and sooner or later somebodys go-

ing to have to get cut. You can build a

gas-f red power plant, but you do have to

line up the fuel supply not necessarily

the commodity but the transportation to

make sure you can get gas when you need

it. Also, if the pressure on that gas pipe-

line goes too low, all those gas plants are

coming off.

ALLEY: I would say Im def nitely con-

cerned about diversity. I think the indus-

try is being led down a path toward natu-

ral gas as a destination fuel source. We

hear it in the presidents recent State of the

Union Address. We see the EPA rulings for

Mercury and Air Toxic Standards putting

extra pressure on the coal plants and coal

plants closing. We see the EPA proposed

rulings for greenhouse gas emissions for

the New Source Performance Standard,

which put a lot of pressure on coal. I think

the very eff cient natural gas combined

cycle plants can meet that standard at

least as its proposed, but not coal plants.

Plus, a gas plant is about one-third the

cost of a nuclear plant and half the cost

Toby Thomas

Scott Austin

Amy Ericson

Tom Alley

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manage that situation pretty well. I dont

foresee that EPA rulings are going to

heavily impact the business. I dont think

you can say there will be no impact, but

I just dont see a heavy impact. Im more

concerned, when it comes to gas pricing,

with the demand side of the equation,

with as many industries as we see moving

toward gas. Its not just the electric sector.

Its transportation. Weve seen some an-

nouncements recently on locomotives

being converted to natural gas. The au-

tomobile industry is looking at it. The

chemical industry is looking at it. There

is a lot of discussion about whether the

U.S. ends up being a exporter of natural

gas. I see all of this having a much greater

impact on the pricing than I would EPA

regulations.

POWER ENGINEERING: One thing

it seems people are concerned

about on the volatility of natural

gas is so many other places uses

natural gas as well, while coal

is predominately used for power

generation. How much does that

factor into the equation?

THOMAS: There are a lot of petro-

chemical ref neries and others that can

use natural gas, and you could potentially

increase demand quite a bit. On the pow-

er generation side, weve spent hundreds

element that we strive for, to be able to

facilitate the diversity thats needed in

our energy mix as a nation. We look to

our customers to make those decisions as

demand warrants, and we stand ready to

implement those technology solutions as

theyre appropriate.

POWER ENGINEERING: The EPA is

starting to look at the affects of hy-

draulic fracturing on the environ-

ment. Is there a concern the EPA

may make rules that make fracking

an uneconomical source for obtain-

ing natural gas and cut down on the

current gas reserves?

ALLEY: The EPA and other government

agencies are all sorting out the jurisdic-

tion over fracking and everything associ-

ated with it. Weve seen a lot of discussion

about the water use and cleaning up wa-

ter from fracking were sitting at a wa-

ter conference right now in Atlanta and

some of the technologies were looking

at are actually coming out of that indus-

try so I think the industry is trying to

The 550-megawatt combined cycle natural gas-f red

J. Lamar Stall Unit at AEPs Arsenal Hill Power Plant in

Louisiana went into commercial operation in June 2010.

Photo courtesy of AEP.

1305pe_30 30 5/7/13 9:07 AM

www.power-eng.comFor info. http://powereng.hotims.com RS# 18

of millions, if not billions, to build a pow-

er plant, youre kind of stuck with it for a

while, so its certainly a concern to add to

the volatility. We have a lot more supply

now, but it wasnt that long ago we had

double digit gas prices because the mar-

ket thought supply/demand was tight. It

doesnt take too many traders and others

that feel things are tightening up to really

start pushing the market. Will it happen?

I certainly dont know. Im not an expert

on that, but its a concern.

POWER ENGINEERING: What ben-

ef ts do you receive from a natural

gas-f red plant as opposed to a

coal-f red plant using state of the art

technology that would cut down its

emissions, or a power project using

renewable resources?

ERICSON: Many plants are operating

with daily starts and stops or on a season-

al basis, and this operating is changing

throughout the lifetime of these plants,

which are coming up on their 10-year

or 12-year installation date. The reasons

that are driving that are the renewables

penetration and, again, the f uctuation of

fossil prices. Those arent likely to change,

and the beauty of natural gas is that its

always available. Not just that its always

available, because certainly so are nuclear

and coal, but that it can actually deliver

large amounts of electricity directly onto

the grid in a short period of time for ex-

ample, 450 MW in 10 minutes. And so I

do think that given the changing market

conditions and the need for f exibility,

natural gas generation is being chosen

because it can respond when it needs to

respond. It can be f exible.

AUSTIN: I would concur with Amys re-

marks there. From a general perspective,

it was alluded to earlier that the initial

capital cost of a combined cycle plant is

much lower than a coal plant. The time

frame to implement the construction is

probably on the order of magnitude of

half of the schedule. The obvious envi-

ronmental benef t weve spoken about

and the operability f exible that Amy just

described, I think, are very important

variables when you speak about natural

gas. At Bechtel, were currently build-

ing several combined cycle plants. Were

building three signif cant plants in Texas

for Panda Power Funds, which are good

examples of this technology in operation

or in deployment. These projects have

state of the art environmental controls

and will be some of the cleanest plants

in the nation when theyre built. One of

the things theyre able to do is respond

to f uctuations in the grid. For example,

within 10 minutes the plants will be to

50 percent capability, and within 30 min-

utes be at base load. When the wind stops

blowing in west Texas, there are plants

that are going to be able to support the

grid and provide an opportunity for more

deployment of renewable resources.

THOMAS: The number of people it

takes to run a comparably sized com-

bined cycle natural gas plant are far less,

so my f xed costs are lower. Most of my

bigger costs are variable costs, so if Im

not running the plant Im not incurring

those costs. Operational f exibility is

probably the biggest piece of it, meaning

that when Im not making money I can

shut down. Whether youre in the regu-

lated or competitive power business, you

still try to dispatch your units economi-

cally to either save customers money on

the regulated side or maximize prof tabil-

ity on the competitive side. Having a low-

er f xed cost is a big

Power Engineering May 2013

Documents

Transcript of Power Engineering May 2013