Hydro Power - fundamental Energy for life

Size: px

Start display at page:

Download "Hydro Power - fundamental Energy for life"

Christian Griffin
7 years ago
Views:

1 Hydro Power - fundamental Energy for life Dr. Olaf Heil Head of Hydro Power & New Applications Gelsenkirchen, November 5 th, 2008 RWE Innogy RH-I Page 1

RWE Group RWE Group key performance indicators January June million 2008 2007 1 change in % External revenue 24,721 21,841 +13.2 Cash flows from operating activities 1,383 2,551-45.

2 RWE Group RWE Group key performance indicators January June million change in % External revenue 24,721 21, Cash flows from operating activities 1,383 2, EBITDA 4,628 4, Operating result 3,933 4, Non-operating result Financial result Income from discontinued operations Net income 1,156 2, Recurrent net income 2,131 2, Average number of shares (million) Earnings per share (EPS) ( ) Employees approx approx Adjusted figures: see Interim Report page 13. RWE Innogy RH-I Page 2

RWE Innogy focus on wind, hydro and biomass while also supporting new technologies RWE Innogy Overview Business Area Established in February 2008 Bundling renewables activities and competencies

3 RWE Innogy focus on wind, hydro and biomass while also supporting new technologies RWE Innogy Overview Business Area Established in February 2008 Bundling renewables activities and competencies across RWE Group Focus on capacity growth in commercially mature renewable technologies, i.e. wind, biomass and hydro Research & Development and ventures to drive the development of emerging technologies, e.g. solar, geothermal, marine EU focus, international activities opportunistically Initial asset portfolio of 1.1 GW capacity in operation and 0.2 GW under construction mainly located in United Kingdom, Germany, Spain and France Wind onshore Wind offshore Hydro Biomass New technologies Focus and Strategy Key technology for capacity growth Focus on organic growth Focus markets include UK, Spain, Germany, France, Central-Eastern Europe Key technology for capacity growth Organic growth strategy leveraging strong position in UK Focus markets include UK, Spain, Germany, France Run-of-river projects Development of hydro power projects Focus areas are Centraland South-Eastern Europe Development of biomass plants (>5MW) Regional focus on RWE core markets and South- Eastern Europe Ventures and R&D Emerging technologies Carbon neutral generation Efficient energy storage RWE Innogy RH-I Page 3

Investment Opportunities in Production Hydro-Turkey-Overview In Turkey, there is significant water resources with 665,000 ha of inland water excluding rivers and the exploitable water potential

4 Investment Opportunities in Production Hydro-Turkey-Overview In Turkey, there is significant water resources with 665,000 ha of inland water excluding rivers and the exploitable water potential amounts to app. 110 km³/year. With 216 TWh/yr, Turkey has one of the highest technically feasible hydro power potential in Europe and with 129 TWh/yr the sixed highest economically feasible potential after Norway. Turkey s economic hydro potential amounts to 17% in Europe and 2% in the world. Establishment of hydro power plants in Turkey dates back to early 1900 s and current installed capacity is 13 GW. Hydro power meets 20% of the electricity demand in Turkey. However, with existing installed capacity, only 35% of the economic hydro power is utilized. RWE Innogy RH-I Page 4

Investment Opportunities in Production Hydro-Turkey-Potential The economically feaside hydro power potential in Turkey according to DSI (State Hydraulic Works) is 129 TWh/year (app. 36.

5 Investment Opportunities in Production Hydro-Turkey-Potential The economically feaside hydro power potential in Turkey according to DSI (State Hydraulic Works) is 129 TWh/year (app GW) Currently, there are 142 HHP s in operation with 13 GW installed capacity and 41 under construction with 4.4 GW capacity. In addition, there are 589 projects under design for the remaining 19.4 GW capacity. If fully developed, this potential can meet up to 46% of electricity demand in Turkey by However, DSI calculations ignore the benefits of peak load generation (current hydro reservoir capacity can store 6 month of electricity production) & overvalue thermal power benefits by ignoring its environmental costs. Including these effects, as per the newly developed criteria (by Bakir, 2005), the eon. feasible hydropower potential can go up to 188 TWh/yr (53 GW). RWE Innogy RH-I Page 5

6 Investment Opportunities in Production PEP: Potential Electricity Production PIPC: Potential Installed Power Capacity RWE Innogy RH-I Page 6

7 Investment Opportunities in Production Hydro-Turkey-Conclusion Turkey, despite its vast economically feasible hydro power potential, has only developed installed capacity of 13 GW corresponding to 35% of its potential. Hydro power plants are crucial for sustainable energy growth due to low operation costs (in Turkey 0.2 cent / kwh for hydro compared to cent / kwh for thermal plants), long economic life, low environmental impacts and peak load generation capacities. In Turkey, average investment costs for hydro power plants ($1,440 / kwh on avr.) are higher compared to thermal power plants, especially NG combined cycle plants. This has been one of the reasons for slow growth of installed hydro power compared to thermal power. However, as part of the sustainable energy growth policy of Turkey, a new RES law was enacted to promote energy generation from RES. Initial Investment Cost Comparision Hydro Power Plant Thermal Power Plant Size Costs ($/kw) Type Costs ($/kw) > 10 MW 1,271 NG MW 1,588 Coal < 50 MW 1,443 Nuclear Source:BE, Istanbul Technical University As a result, significant investments in new hydro power plants are underway, with 6.9 GW additional capacity expected by 2012, if all licensed projects are completed. Nevertheless, for sustainable energy supply based on energy demand projections by EMRA, a minimum of 3.9 GW additional hydro power capacity is needed on top of the 6.9 GW capacity for licensed projects by This translates into USD 15 billion investment requirement in hydro power until RWE Innogy RH-I Page 7

RWE is continuous concentrate to extend their position in Turkey Ankara Founding RWE s Turkish Headquarter in Istanbul Dedication a further RWE Office in Ankara Market

8 RWE is continuous concentrate to extend their position in Turkey Ankara Founding RWE s Turkish Headquarter in Istanbul Dedication a further RWE Office in Ankara Market entrance Turkey Short Term: Renewable Hydro Power Wind Power Geothermal CSP Technologies Bio fuels Medium Term: Thermal Distribution / Retail Istanbul RWE Innogy RH-I Page 8

9 Do you have any questions? Thank you very much for your Attention Dr. Olaf Heil, RWE Innogy GmbH RWE Innogy RH-I Page 9

10 Run of River (sample) Neef Power Plant (Moselle, Germany) Installed Capacity 16,4 MW Annual Generation: 75 GWh/a RWE Innogy RH-I Page 10

11 Pump Storage Plant (scheme) Herdecke Power Station (Germany) Installed Capacity 153 MW Annual Generation: 180 GWh/a RWE Innogy RH-I Page 11

12 Pump Storage Plant (sample) You will see the Herdecke Pump Storage Plant tomorrow afternoon Herdecke Power Station (Germany) Installed Capacity 153 MW Annual Generation: 180 GWh/a RWE Innogy RH-I Page 12

The main biggest HEPPs world wide Itaipu (Brasilien/Paraguay): 12.

13 The main biggest HEPPs world wide Itaipu (Brasilien/Paraguay): MW Three Gorges (China): MW im Bau MW nach Ausbau RWE Innogy RH-I Page 13

International Solar Energy Arena January 23rd, 2009, Istanbul STEAM (Strategic Technical Economic Research Center)

International Solar Energy Arena January 23rd, 2009, Istanbul STEAM (Strategic Technical Economic Research Center) Good morning. Sayin Bakanım. Members of Parliament. Ladies and Gentlemen. Slide 1: Opening