Combined Cycle and CHP Operational Flexibility I Project CCPP Denizli

Transcription

1 Combined Cycle and CHP Operational Flexibility I Project CCPP Denizli Development, construction, commissioning and start-up of an 775 MW gas fired power plant in Turkey Ralf Bielack Project Manager - RWE Technology (Germany) Arkin Akbay Electric and Gas Group Managing Director - Turcas (Turkey) Powergen, Conrad Adenauer Saal, Messe Cologne, 04th June 2014 RWE Turcas Güney Elektrik Üretim A.S PAGE 1

2 1. The Partners: Turcas (Turkey) and RWE (Germany) Page 2

3 Two strong partners built one of Turkey s most modern power plants RWE & Turcas Güney Elektrik Üretim A.Ş. RWE RWE is one of Europe s leading energy companies owns 70% 800 MW Gas Power Plant owns 30% Turcas Elektrik Üretim A.Ş. Turcas is one of Turkey s leading oil & gas companies Page 3

4 RWE Today: One of the Top 5 Integrated European Utilities RWE Core Markets Leading Positions in Core Markets United Kingdom Poland Market *) Product Electricity Gas Netherlands Luxembourg Germany Austria Turkey Czech Republic Slovakia Hungary Germany No. 2 No. 3 UK No. 4 No. 4 NL No. 2 No. 1 Eastern Europe No. 2 in Hungary No. 3 in Slovakia Active in Poland No. 1 in the Czech Republic Leading position in Hungary Active in Slovakia Electricity Gas Water Total Europe No. 3 No. 7 We have leading positions in two of Europe s largest markets as well as in strongly growing CEE markets and own a large upstream position in both Europe and North Africa. *) Market positions of the RWE Group in terms of sales. Page 4

5 Construction projects undertaken by RWE Technology since 2008: 12,400 MW Pembroke Staythorpe Eemshaven Lingen Start-up: 2012 Fuel: natural gas Capacity: 2,188 MW Start-up: 2011 Fuel: natural gas Capacity: 1,650 MW Start-up: 2014 Fuel: hard coal/ biomass Capacity: 1,560 MW Start-up: 2010 Fuel: natural gas Capacity: 887 MW Claus C Start-up: 2012 Fuel: natural gas Capacity: 1,304 MW Moerdijk 2 Start-up: 2012 Fuel: natural gas Capacity: 426 MW BoA 2&3 Neurath Start-up: 2012 Fuel: lignite Capacity: 2,200 MW Westfalen Unit D/E Start-up: 2013 Fuel: hard coal Capacity: 1,528 MW Denizli Start-up: 2013 Fuel: natural gas Capacity: 775 MW Page 5

6 Project Support Project Development Technical Consultancy Project Realisation / Execution > Site analysis / evaluation / selection > Technical concept development / evaluation / selection > Health & Safety analyses > Due Diligence > QS/QA support / services > Technical services / rehabilitation / modernisation / Operation optimisation > Repowering / retrofit / new build > Engineering with operators mind set > Procurement > Environmental services > Experienced Project Management with a process-oriented organisation > Owners Engineer > Contract / Claim Management > Expediting Page 6

7 Turcas: An evolving integrated energy company > Founded in 1931 > Active in petroleum, gas, electricity and petrochemical fields. > Has activities in power sector by establishing new generation plants and joining electricity distribution privatizations. > Partnership with globally recognized companies like Shell, BP, Mobil, Castrol, Total, SOCAR, RWE with special focus and governance on environmental, social, regional and international standards. Page 7

8 2. Economics: The Turkish energy market Page 8

9 Further Expanding Private Participation and Investment, Liberalizing Markets, and Strengthening Regulation Electricity Market Natural Gas Market 9 Page 9

10 Forecast Installed Power Growth by Source Source: TEİAŞ, EMRA, Turcas Supply-Demand Forecast Coal Lignite Fuel-oil Diesel Many sources NG Hydro Geother. Wind Total , ,23 708,28 26, , , ,00 310, , , , ,23 754,28 26, , , ,65 489, , , , ,44 959,64 26, , , ,03 816, , , , ,44 959,64 26, , , ,23 885, , , , ,44 959,64 26, , , ,65 931, , , , ,44 959,64 26, , , ,69 931, , ,99 Page 10

11 Power Demand-DAM Price [PTF] vs. Generation Portfolio / Seasonality There are still imperfections in the Day-Ahead market pricing mechanism! Predictability gets better and better. Growing demand will not be met with economic hydroelectric sources. Source: TEİAŞ Page 11

12 Reliability and Sustainability of Sources of Supply Natural Gas Imports 2012 (m Sm 3 ) Algeria 10% Azerbaijan 8% Iran 19% Nigeria 3% Spot LNG 5% Russia 55% Russia Iran Azerbaijan Algeria Nigeria Spot LNG Turkey s Power Generation is mainly dependent of reliability of gas import sources. Further diversification of gas entry points («Southeast European Gas Corridor») is necessary. Source: BOTAS ,00 19,00 8,00 10, ,91 18,67 8,67 9, ,21 54,31 62,01 20,41 11,89 10,27 14,65 13,83 12,51 11,01 12,26 11,11 Russia Iran Azerbaijan Algeria ,51 16,89 11,73 Nigeria ,92 18,51 13,67 Spot LNG ,95 15,99 14,25 0% 20% 40% 60% 80% 100% Page 12

13 Natural Gas Supply vs. Demand Forecast Source: Accenture Market Analysis Report, September 2013 Page 13

14 The Southern Gas Corridor: Alternatives to supply Europe & Security of Supply for Turkey Source: BP Page 14

15 Turkish High Voltage Grid: Forward Planning OK, what about completion and funding? Source: TEİAŞ Turkey is a part of ENTSO-E Grid. Page 15

16 Day-Ahead Base Load Price Trends Source: TEİAŞ PMUM, Spot Market Operator Page 16

17 3. Site Selection Page 17

18 After screening of many sites all over Turkey, Denizli has been figured out as the most suitable site for the CCPP Denizli site Page 18

19 13/18 km distance to grid connection points 380 kv; gas access ensured by pipeline loop which boarders on Denizli site Project Information - Grid access - Distance to connection point: 2 x 13 km (to new HV-line Denizli & Afyon); 1 x 18 km to Denizli Denizli Afyon connection was looped through the switchyard of the power plant (40) Yatağan Denizli A B Site : 380 kv Connection Points : 380 kv Grid around Denizli : BOTAS Gas pipeline - Gas Supply - BOTAŞ gas pipeline directly boarders Denizli site High reliability in gas supply ensured by pipeline loop Distance to BOTAŞ pipeline (40, 50 bar): 250 m Page 19

20 Discreet location of the plant minimizes impacts on the direct neighbourhood Power Plant Kaklık Yokuşbaşı Neighbourhood protection Located in an existing small industrial area Away from settlements Low visual impact, e.g. no cooling towers Limited additional noise Operations with low emissions Prevention of flue gas concentration in the surrounding area, e.g. 60 m high stack Connection to nearby gas pipeline and high-voltage grid with very limited impacts Page 20

21 4. Project technology and execution Page 21

22 Plant Data CCPP Denizli Power output (net) 775 MW Efficiency >57% Full load hours approx h/y Fuel Natural gas Grid connection 380 kv Seismic Zone 1 (highest) Cooling system Air cooling (ACC) Operation mode Base load Plant design multi-shaft Gas turbine 2 x SGT5-4000F (Siemens) Steam turbine Siemens (SST5-5000) Generator Siemens Location: Region Denizli 540 m above sea level Power versus ambient temperature Gross power output at +15 C : 797 MW Gross power output at -10,5 C : 817 MW (Δ +20 MW) Gross power output at +42,4 C : 653 MW (Δ -144 MW) Page 22

23 Further particulars of the plant Little water supplies available, so: Cooling achieved through an Air Cooled Condenser (closed system). Water requirements are taken from local bore holes treated on site. Connection to 380 kv transmission system Scope includes a 380 kv substation, with three incoming lines and a bus coupler in addition to the three generator circuits. Scope includes the construction of the transmission lines on behalf of the Turkish transmission system operator. Fuel gas connection Natural gas only (no other fuels foreseen). Connection to the main gas line, operated by BOTAS/Kentgaz, approx. 500 m from the site. Scope includes this section of gas pipeline. Scope includes the Gas Receiving & Metering Station, including gas tariff metering, filtering, dew point heating and pressure reduction. Page 23

24 Plot plan Page 24

25 Contracting Strategy Major Part Turnkey EPC Scope to avoid interface risks EPC Contract for nearly whole plant, including Gas Receiving Metering Station, 380 kv Substation, access road (Greenfield) with: Metka Metal Constructions of Greece SA (part of the Mytilineos Group). Split on shore / off shore Due to tax reasons Metka provided the off shore (=outside of Turkey) part of the contract. Power Projects Ltd. (PPL) provided the on shore (=in Turkey) part of the contract. PPL is a 100% daughter of the Metka group. Non EPC Scope Work Packages outside the EPC Contract, like HV Grid connection, Gas Connections, and several small work packages and specialist consultancy services. Page 25

26 Project Highlights History Project Development Date Event 2007 Developing of the Denizli CCGT Project by a Joint Venture Company of E.ON Turkey and Turcas Elektrik Üretim A.S METKA S.A. selected as preferred bidder as EPC Contractor Project entry of RWE by taking over the shares from E.ON of the existing JV with TURCAS Signing of the EPC-Contract with METKA S.A First year of Project Execution Date Event Final Investment Decision (FID) Full Notice to Proceed (FNTP) given to METKA S.A Start of site mobilisation Start of main civil works Overhead line contract with company SA-RA signed Page 26

27 October 2010 Start of main civil works Page 27

28 Project History 2011 Date Event Erection of steelwork started Gas Turbine 1 on site Gas Turbine 2 on site Extreme weather event (flooding) Steam Turbine and Generator arrived on site Start of lifting of modules in first Heat Recovery Steam Generator (HRSG) HP / IP Steam Turbine on foundation Step-up transformers arrived on site as last remaining heavy loads Completion of lifting of modules in first HRSG Energization of 11 km main HV-line up to tower 3 Page 28

29 2011 Steel and civil works Page 29

30 2011 Main equipment installation Page 30

31 Project History 2012 Date Event EPC-trainings for operation started Successful energization of HV Switchyard First energization of unit 1 generator step-up (GSU) and auxiliary transformer MV switchgear unit 1 energized Gas connection pipeline erection started Mio hours without LTI on site ,0 Mio hours without LTI on site Unit 1 Step-up Transformer final energization All HRSG pressure tests completed Unit 2 Step-up Transformer final energization Design Approval by the Ministry of Energy achieved Gas pipeline filled with natural gas ,0 Mio hours without LTI on site First Firing of GT First synchronisation of GT1 to the grid First Firing of GT 2 Page 31

32 Page 32

33 Project History 2013 Hot Commissioning & Tests Date Event ,0 Mio hours without LTI First synchronisation of GT Successful completion of steam blow Plant restart after restoration works PAC Ministry achieved Start of Test Run Start of commercial operations 4.9 mio. hours without LTI March 2013 Page 33

34 June 2013 Page 34

35 Denizli Project Successfully delivered Excellent H&S track record Low local standards with 3 LTIs in the first worked hours overcome by implementing a clear Safety is first priority philosophy backed-up by management focus. Impressive worked hours without LTI accrued thereafter Completed within budget By implementing a strict no change philosophy the plant was built within original budget Over-achievement of performance guarantees Guaranteed output 1.8% over-achieved, plant efficiency 1.7% over-achieved Quality very high availability Since start of commercial operation on up to end of March 2014 less than 2% forced outage time recorded. Values of 10% and more typical for new-build combined cycle plants in this initial operation phase ( teething problems ) Page 35

36 Success factors and lessons learned during construction With dedicated work even the most challenging H&S targets can be achieved Implement no-change philosophy in project execution. The project must be defined in the development phase, than it has to be frozen New environments and suppliers require a strict and intensive project management Not having the manufacturer of the main rotating equipment as consortium partner is not recommended Page 36

37 5. O&M mobilization and business model Page 37

38 Market Maturity Project Sunrise Structural Development Non-competitive Market Transition Period Competitive Market Mature Market Intensive Growth Risk Management Market Making Immature Market First Entry Physical Balancing Transparency Phases of Pricing Mechanism 1. Cost-based 2. The escalation formula based on alternative fuels 3. Commodity Markets, Forward / Future based pricing Long-term Contracts Short-term Contracts Spot/Alivre Contracts Forwards / Futures / Options Time t Page 38

39 Energy Sales Mechanism Page 39

40 EPIAS will be an independent spot market operator and BIST «the Turkish energy derivatives market operator» Horizon Up to 5 years ahead 1 Day Ahead Intraday Real Time Derivatives Spot / Day ahead Intra-day Balancing Operator Borsa İstanbul EPİAŞ TEIAS Traded products time horizon 4-5 yrs/ Qrt 1 day Ahead Same day Same hour Settlement responsible Borsa İstanbul Physical Position and Financial Settlement TEIAS Clearing Central Counterparty Takasbank Regulatory body EMRA EMRA CMB Constituent law Not yet existent Energy market law Borsa İstanbul Turkish energy exchange (EPIAŞ) Page 40

41 Project Sunrise Structural Development Upstream Asset Management Denizli CCPP Midstream & Downstream Business Model IT concept Denizli CCPP 1.1 O&M Mobilization CCPP Denizli Training & Education Spare & Wear Parts Workshop Management Operation - IT Integration Maintenance Management & Contracts Technical Documentation & Data Management Auxiliary Service Contracts Infrastructure Management 2.1 Commodity management CCPP Denizli Gas Supply Source Analysis Contract Management Commercial Asset Optimization Short- and Long-Term Hedge Strategy Product Pricing Wholesale / OTC Deal Execution 2.2 Downstream Sales Functions Front Office / CRM Mid Office Risk Management Back Office Performance Measurement (KPI) Marketing & New Product Development 3.1 Denizli CCPP Operation & Maintenance 3.2 IT systems supporting commercial asset optimization incl. trade capture & settlement 3.3 IT systems for wholesale and retail portfolio management 3.4 IT systems for trading functions 3.5 IT systems for retail sales functions 2.3 Market development of Turkish Power and Gas Market Market Modelling: Supply & Demand Legal & Regulatory: Liberalization OTC Power & Gas Exchange Standardization of Products 6 Contracts Page 41

42 THANK YOU VERY MUCH FOR YOUR ATTENTION Page 42