Fortum Power Solutions Hydro services

Transcription

1 Fortum Power Solutions Hydro services Nordic way to increase the efficiency of hydro power production, Tokyo, Japan, Nordic Green Japan 2013 Maximize your return!

2 Hydro power producer since 1932 Key figures 2012 Sales EUR 6.2 bn Operating profit EUR 1.9 bn Balance sheet EUR 25 bn Personnel 10,400 Established in 1932 Fortum s hydro power 2012 Annual production 25,2 TWh Capacity MW Power plants 160 Employees in hydro 450 2

3 Leading energy producer in Nordic markets Nr 1 Nr 1 Nr 2 Heat Distribution Power generation Nordic countries Power generation 51.6 TWh Heat sales 14.5 TWh Distribution customers 1.6 million Electricity customers 1.2 million Russia OAO Fortum Power generation 19.2 TWh Heat sales 26.4 TWh TGC-1 (~25%) Power generation ~7 TWh Heat sales ~8 TWh Nr 2 Electricity sales Great Britain Power generation 1.1 TWh Heat sales 1.8 TWh Poland Power generation 0.8 TWh Heat sales 4.3 TWh Baltic countries Power generation Heat sales 0.4 TWh 0.9 TWh 3

4 Fortum s strategy relies strongly in Green hydro Strategy Build on the strong Nordic core Create solid earnings growth in Russia Build a platform for future growth Strong competence in CO 2 -free hydro and nuclear, efficient CHP production and energy markets Values ACCOUNTABILITY CREATIVITY RESPECT HONESTY 4

5 Fortum has strong competence in hydro asset optimization Refurbishing costs Investment calculations (NPV, RI, failure probability ) Technical parameters Optimized investments produce new profitable Green power from existing hydro power plants Power plant specific parameters Optimized investment strategy Economical parameters (wacc, inflation ) Electricity tariffs and price forecasts 5

6 Balanced river management increases life-time value Hydro production management Safety cornerstone Long-term investment program World class O&M processes Optimization of production Respect for nature and all uses of water Nature Recreation Economic river activities Environmentally friendly technologies Welfare of local community Local development Employment Municipal co-operation 6

7 Fortum Power Solutions generates Client value by providing world class O&M management services for hydro plants Effective troubleshooting, quick repairs and timely shutdowns Remote operation, cascade and plant optimization, smart power sales Lean organisation, smart outsourcing, good maintenance planning, effective projects Long term planning and condition based life time analysis 2 %-pts higher availability 5% -pts higher efficiency 20 % reduced O&M costs Postponed reinvestments by 5 years or/and improved technical scope Standard O&M operator (Base case) Availability Operational efficiency O&M cost efficiency Reinvestment CAPEX spend First-class O&M operator NPV impact ~4 MEUR ~4 MEUR ~4 MEUR ~5-10 MEUR ~ 20 MEUR *Assumptions: Plant type Hydro 100 MW; 4000 h/year; electricity price 50 EUR/MWh; O&M costs 5 EUR/MWh; WACC 10%; remaining life-time 60 years Revenue impact Cost impact 7

8 Long term planning of hydro investment projects ensures continuous operational efficiency and new Green energy Maintenance need (risk assessment) Productivity potential Continuous long term investment plan Legal & safety requirements Resources & other projects Market outlook, financing, etc. 8

9 Fortum Hydro Services to improve owners value Smart Investments Successful Projects Maximum Return Results and Growth Evaluation studies Condition assessment Market fit Operational performance Due diligence Improvement & investment planning Productivity Growth Safety Feasibility studies Pre-engineering Tender process EPC Refurbishments EPCM New builds Refurbishments Owner s and lender s engineering Project management and site services Supply chain management Commissioning Performance tests Training Smooth handover Market price driven production optimization Cascades Processes Tools Applications Remote operation O&M management Maintenance programs Training Co-Investing Improved operational KPI:s Availability Lost production Efficiency Costs and profit Revenues Safety Growth New capacity Increased production

10 You hold one of the jewels, a hydropower plant? We do, too. For more information: Fortum Power Solutions Hydro Miko.olkkonen@fortum.com solution->hydropower services