Power 2012-12
Power 2012-12
Power 2012-12
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Vol. 156 No. 12 December 2012
Top Plants: Six Innovative
Renewable Plants
BUYERS GUI DE 2013
Is Shale Gas Shallow?
Distributed Solar Rules
Chinas Renewables Strategy
A compact powerhouse for reliable generation of electricity and heat. The newly developed 6-cylinder
220 kW gas engine sets standards that are nothing short of revolutionary. Its combination of four-valve
technology and new combustion chamber geometry boosts specic performance, optimises cost
efciency and also reduces emissions. The novel engine concept features an overhead camshaft
cylinder head that additionally increase the life and service friendliness of the engine. Find out more
about MAN Power at www.man-engines.com
M
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MAN Engines
A Division of MAN Truck & Bus
NEW POWER BOOST.
EXPERIENCE THE PREMIERE OF A NEW GAS ENGINE.
11234 200x273 motiv191c_e.indd 1 05.11.12 11:11
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POWER www.powermag.com 1
ON THE COVER
The 30-MW Alamosa Solar Project in southern Colorados San Luis Valley uses 504 dual-axis
concentrating photovoltaic (CPV) solar trackers, each topped with a CPV solar cell panel as-
sembly mounted on a support column. The largest solar plant of its type in the world is pro-
jected to produce about 76,000 MWh each year. Courtesy: Daniel OConnor Photography
COVER STORY: RENEWABLE TOP PLANTS
26 Alamosa Solar Project, San Luis Valley, Colorado
Currently the largest concentrating photovoltaic (CPV) installation in the world, this
pioneering plant is built for high performance and future flexibility. Industry watch-
ers hope it will also pave the way for the financing of future CPV systems.
28 Coca-Cola/Mas Energy Trigeneration Facility, Atlanta, Georgia
Its the first U.S. trigeneration plant fueled by landfill gas. And although its fun to
have bragging rights to such titles, the long-term energy cost reduction for this Co-
ca-Cola plant is what makes it a winner for the long haul.
32 Gujarat Solar Park, State of Gujarat, India
This renewable power development is on target to reach nearly 1 GW of capacity
when it is completed next year. A major key to its success is providing shared com-
mon infrastructure for multiple projects and owners.
34 Stillwater Solar-Geothermal Hybrid Plant, Churchill County, Nevada
Pairing generation technologies has become a trend, but this is the first facility to
partner geothermal with solar power. The combination enhances thermal efficiency,
stabilizes production, and reduces investment risk.
38 Three Gorges Dam, Yangtze River, Hubei Province, China
After nearly two decades of construction, controversy, challenges, and innovations,
the worlds largest hydroelectric plant has been completed and is providing clean
power to a country still struggling to keep up with demand.
42 Walney Offshore Windfarms, Irish Sea, UK
Boasting the largest wind turbine foundations ever made and the largest offshore
capacity at the time of installation, this pair of wind farms is helping the UK meet its
aggressive goals for renewable power.
SPECIAL REPORTS
RENEWABLES
44 Distributed Solar Challenges Utilities, Markets, and Regulation
Rooftop solar installations may represent minute generation amounts in the U.S.,
but utilities are finding that, especially as these and other distributed resources grow
in number, they are creating increasingly significant operational changes that distri-
bution companies and regulators must adapt to.
A compact powerhouse for reliable generation of electricity and heat. The newly developed 6-cylinder
220 kW gas engine sets standards that are nothing short of revolutionary. Its combination of four-valve
technology and new combustion chamber geometry boosts specic performance, optimises cost
efciency and also reduces emissions. The novel engine concept features an overhead camshaft
cylinder head that additionally increase the life and service friendliness of the engine. Find out more
about MAN Power at www.man-engines.com
MAN Engines
A Division of MAN Truck & Bus
NEW POWER BOOST.
EXPERIENCE THE PREMIERE OF A NEW GAS ENGINE.
11234 200x273 motiv191c_e.indd 1 05.11.12 11:11
Established 1882 Vol. 156 No. 12 December 2012
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December 2012 2
POWER IN CHINA
54 Renewable Energy Development Thrives During Chinas 12th Five-Year Plan
Renewable energy is now an important part of Chinas national energy development
strategy. However, significant challenges remain before the nation can reach its renew-
able energy goals, explain the authors from North China Electric Power University.
THE FUTURE OF NATURAL GAS
66 Is Shale Gas Shallow or the Real Deal?
The majority of recent power industry business decisions have been predicated on the
assumption of huge U.S. natural gas reserves. There are, however, dissenting voices.
FEATURES
NUCLEAR FUEL
69 MOX Fuel Fabrication Facility: Turning Swords into Plowshares
The Mixed Oxide (MOX) Fuel Fabrication Facility at the DOEs Savannah River Site
should be producing fuel assemblies for U.S. power plants by 2018. We look at the fa-
cility and the process of turning weapons-grade fissionable materials into fuel stock.
MERCURY EMISSIONS
73 Mercury Regulations Up in the Air
The history of federal regulation of mercury from power plants suggests that nothing
is ever truly settledwhich can be unsettling for power generators.
PLANT DESIGN
78 LIDAR and 3D Modeling Produce Precise Designs
Laser scanning techniques used in conjunction with 3D modeling can do more than
make the design and construction of retrofit jobs faster, easier, and cheaper. They can
also facilitate better designs and provide valuable templates for future projects.
CLEAN COAL
83 China Leads the Global Race to Cleaner Coal
Truly clean coal generationfree of all environmental pollutants, including greenhouse
gasesis still in the future. But among those traveling the road to cleaner coal power,
China is in the lead, thanks to prioritizing the most efficient available technologies.
DEPARTMENTS
SPEAKING OF POWER
6 Under Siege
GLOBAL MONITOR
8 Vanadium Flow Battery Juices Onion Plant
10 THE BIG PICTURE: A Renewables Quest
11 Largest Wastewater Treatment Fuel Cell Plant Goes Online
12 Of Giant Turbines and Rotor Blades
13 Modernization of Century-Old Hydro Facility Yields Rich History
14 14-MW Solar PV Plant Completed at Naval Station
16 POWER Digest
FOCUS ON O&M
18 Conference Report: 12th ICS Cyber Security Conference
20 Users Return to Fogging on Frame 7FAs
LEGAL & REGULATORY
24 CleanPowerSF: Political Correctness Trumps Energy Policy
By Steven F. Greenwald and Jeffrey P. Gray, Davis Wright Tremaine
86 NEW PRODUCTS
COMMENTARY
160 Navigating a Sea of New Regulations
By Thomas Higgins, PE, PhD, CH2M HILL
Flightless Birds and Flying Elephants
The Devil Flies Nukes Flatulence in
Space. You guessed it: Weve got more
installments of Kennedy Maizes history of
nuclear power in the U.S. for you. Look for
the web-exclusive Too Dumb to Meter,
Part 6 under the Features heading on our
homepage, www.powermag.com, during
the month of December or in our Archives
any time.
And remember to check our Whats
New? segment on the homepage regularly
for just-posted news stories covering all
fuels and technologies.
Get More POWER on the Web
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Help keep maintenance costs down and send productivity soaring with the complete range of Mobil SHC synthetic
lubricants and greases. Each one is formulated to offer outstanding all-around performance, including equipment protection,
keep-clean characteristics, and oil life. Take Mobilgear SHC XMP. Used in more than 40,000 wind turbine gearboxes
worldwide, its trusted by builders, proven in the eld, and supported by exceptional application expertise. Just a few of the
reasons we dont simply make things run. We make them y. Visit mobilindustrial.com for more.
We can take wind turbines to new heights.
2012 Exxon Mobil Corporation
All trademarks used herein are trademarks or registered trademarks of Exxon Mobil Corporation or one of its subsidiaries.
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December 2012 4
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implemented by engineers with deep domain expertise. Performance. Using localized empirical
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combination of Advanced Pattern Recognition (APR) and Thermodynamic modeling technologies
implemented by engineers with deep domain expertise. Performance. Using localized empirical
models integrated with first principle models, EtaPRO detects anomalies and quantifies their effect
preventing a potentially catastrophic event. Impact. Learn how you can reduce forced outages,
protect your plant, and reduce emissions at www.etaproefficiency.com.
2012 GP Strategies Corporation. All rights reserved. GP Strategies and GP Strategies with logo design are trademarks of GP Strategies
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December 2012 8
Vanadium Flow Battery
Juices Onion Plant
An emerging flow battery technology got
a major boost earlier this year when Gills
Onions, one of the largest fresh-cut onion
processing plants in the worldbegan op-
erating a 3.6-MWh vanadium redox battery
(VRB) energy storage system (ESS). The 14-
acre processing facility in Oxnard, Calif.,
was already converting 100% of its daily
onion wasteup to 300,000 pounds
into a combination of renewable energy
and cattle feed using an advanced energy
recovery system (AERS) that extracts juice
from onion peels and treats it in a high-
rate anaerobic reactor to produce biogas
that powers two 300-kW fuel cells. But
Gills Onions thought it necessary to add
energy storage to its AERS to improve the
efficiency of the system and further reduce
electric costs, citing their main motivation
as wanting to shift electricity generation
from off-peak to on-peak periods while
warding off pricey demand spikes.
Encouraged by state cash rebates for
certain types of energy storage, Gills On-
ions says it opted for the VRB-ESS that
consists of three 200-kW modules with
enough electrolyte to provide six hours
of storage capacity (Figure 1). Not only
can the VRB change from fully charging
to fully discharging in seconds so that the
full 600 kW are available 24 hours a day,
Gills Onions says the system also can pulse
an additional 50%to 750 kWfor 10
minutes each hour, providing additional
capacity for motor starts or other spikes.
The project was built and is owned
and operated by Prudent Energy Corp.
subsidiary Prudent Energy Services. The
Bethesda, Md.based company gets an
undisclosed share of the energy savings
resulting from the project in return, cal-
culated as avoided charges, costs, and
fees that would otherwise be paid by
Gills to the local utility.
As Prudent Energy describes it, the VRB-
ESS consists of cell stacks, allowing modu-
lar systems to be assembled in large parallel
and series configurationswith no special
site requirements other than a substantial
footprint. The cell stacks themselves are
10-kW sealed devices that consist of many
cells, each of which contains two half-cells
separated by a membrane. Electrochemical
reactions occur in the half cells on inert
carbon felt electrodes, creating a current
used to charge or discharge the battery.
When charged electrolyte fluids [from sep-
arate storage tanks] pass through the cell
stack, different ionic forms of vanadium re-
act, resulting in a balancing electron flow
into an external DC circuitthus complet-
ing an electrochemical path for discharge,
the company says. Forcing current into
the stack from an external source recharges
electrolyte in the stack, with fluids then
pumped back into the reservoirs. This
re-dox process is reversible, allowing the
battery to be charged and discharged re-
peatedly, the company explains.
In its most basic sense, the system
stores energy chemically in different forms
of a single elementvanadium, which the
company has dubbed a miracle metal
in a proprietary electrolytic mixture. The
minerals marvels lie in its unique attri-
butes, particularly as a chemical catalyst
for electrolytes, the company says. It is
a transition metal, which means it has the
typical properties of metals, but in addi-
tion, high melting and boiling points, and
high density, it explains. And, as Prudent
Energy highlights: Vanadium forms sta-
ble, concentrated electrolytic solutions in
four neighboring oxidations states.
A selling point extolled by Gills Onions
is the life of the system. The technology
reportedly can produce more than 10,000
full-depth charge/discharge cycles with
no degradation in performance. Mean-
while, the electrolyte never degrades and
can be fully recycled.
VFB solutions have long been recog-
nized for their edge over lithium-ion bat-
tery storage, primarily because VFBs have
a practical advantage with their storage
duration limit of 10 hourscompared to a
1- to 2-hour range for lithium-ion storage
systems (though lithium-ion wins in terms
of round-trip efficiency).
Prudents energy storage system isnt
unique. Several companiesincluding
U.S.-based Ashlawn Energy, Austria-based
Cellstrom GmbH, and Thailand-based Celle-
niumhave entered the fray, competing for
global VFB market share. VFBs are already
being used in the European Union, China,
Japan, South Korea, and Australiathough
most are in the 100-kWh range. Billed as
the largest of its kind, the 3.6-MWh Gills
Onions installation compares only with an-
other Prudent Energy project completed in
March 2011 involving a 1-MWh VFB at the
China Electric Power Research Institute in
Zhangbei, Hebei Province.
Meanwhile, industry analysts foresee
tremendous growth of VFBs in the short
term. A March 2012 study by Lux Research
predicts that VFBs could capture about
17% of the energy grid storage market
by 2017assuming that developers can
reach a target of $750/kWh for a fully
installed system by then. The most sig-
nificant factor that could determine the
technologys success is availability and
pricing of vanadium, which is already see-
ing heightened demand for its traditional
use: strengthening steel.
Vanadium is not scarce, says Prudent
Energy, claiming that it not only can be
mined naturally as an ore but can also be
recovered as a by-product of steel manu-
facturing, coal-fired power generation,
and oil shale production. But analysts pre-
dict a supply shortage, driven by increas-
ing consumption by China, which produces
40% of the worlds vanadium supply (oth-
erwise dominated by Russia and South Af-
rica), as a result of a new rule that only
vanadium-containing reinforced steel bars
can be used for infrastructure and other
construction projects. Increased demand
for the mineral pegged to its use in flow
batteries will strain global supplies.
Compounding pricing concerns is the
quirk that, unlike many commodities, va-
nadium does not trade on the open mar-
ket; deals are negotiated privately and
tend to surge when steel demand is high
and plunge during economic downturns.
This price volatility is a major deterrent
for battery producers, which require large
amounts of high-purity (greater than
98.4%) vanadium, analysts point out.
1. Storing onion juice. One of the
worlds largest vanadium flow battery energy
storage systems began operation earlier this
year at Gills Onions, an Oxnard, Calif., fresh-
cut onions processing plant. The tennis court
sized system consists of cell stack modules
that are connected in parallel configurations. It
stores electricity during lower-cost nighttime
hours and allows the Gills facility to rely on the
flow battery to generate 600 kW for as long as
six hours during higher-cost peak hours. Cour-
tesy: Gills Onions
TWO GREAT
COMPANIES.
ONE BRIGHT
FUTURE.
How do you create a global company built
for the future? By combining two powerful
histories in pursuit of a bold visionto help
companies around the world contribute to
healthier, safer environments.
Building on the achievements of Pentair and Tycos Flow Control
businesses, comprised of Valves & Controls, Thermal Controls
and Water & Environmental Systems, the new Pentair delivers
exceptional depth and expertise in filtration and processing, flow
management, equipment protection and thermal management.
From water to power
From energy to construction
From food service to residential
Were 30,000 employees strong, combining inventive thinking
with disciplined execution to deploy solutions that help better
manage and utilize precious resources and ensure operational
success for our customers worldwide. Pentair stands ready
to solve a full range of residential, commercial, municipal and
industrial needs.
PENTAIR.COM
TWO GREAT
COMPANIES.
ONE BRIGHT
FUTURE.
How do you create a global company built
for the future? By combining two powerful
histories in pursuit of a bold visionto help
companies around the world contribute to
healthier, safer environments.
Building on the achievements of Pentair and Tycos Flow Control
businesses, comprised of Valves & Controls, Thermal Controls
and Water & Environmental Systems, the new Pentair delivers
exceptional depth and expertise in filtration and processing, flow
management, equipment protection and thermal management.
From water to power
From energy to construction
From food service to residential
Were 30,000 employees strong, combining inventive thinking
with disciplined execution to deploy solutions that help better
manage and utilize precious resources and ensure operational
success for our customers worldwide. Pentair stands ready
to solve a full range of residential, commercial, municipal and
industrial needs.
PENTAIR.COM
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December 2012 10
THE BIG PICTURE: A Renewables Quest
ARIZ.
CALIF.
COLO.
MAINE
VT.
N.H.
MASS.
N.Y.
PA.
N.J.
DEL.
MD.
VA.
W.VA.
OHIO
MICH.
WISC.
ILL.
IND.
MINN.
IOWA
MO.
N.D.
S.D.
KAN.
OKLA.
TEXAS
N.M.
MONT.
WASH.
ORE.
NEV.
UTAH
N.C.
HAWAII
Conventional hydro*
(*may not be eligible toward RPS)
Other renewables
(Eligible renewables vary;
includes wind, CSP, PV,
biomass, geothermal, landll
gas, and marine power)
CONN.
27%
by
2020
0.6%
1.8%
30%
by
2020
24.8%
by
2025
3.6%
5.7%
22.1%
by
2020
1.1%
2.8%
16%
by
2019
1.3%
20.4%
by
2021
1.5%
%%%
25%
by
2026
1.3%
20%
by
2022
0.9%
1.6%
17.1%
28.8%
R.I.
15%
by
2025
0.9%
2.3% 12.5%
by
2021
1.7%
1.4%
FLA.
S.C.
GA.
ALA.
MISS.
TENN.
KY.
ARK.
LA.
1%
1.2%
5.9 GW
by
2015
5.2%
0.8%
6.5%
15%
by
2015
20%
by
2020
0.9%
4.4%
7.3% 20%
by
2020
30%
by
2020
4.2%
6.6%
15%
by
2025
5.9%
1.2%
33%
by
2020
25%
by
2025
6.6%
7.8%
IDAHO
WYO.
NEB.
20%
by
2025
2.7%
2.2%
25%
by
2025
15%
by
2020
15%
by
2015
56.4%
2.9%
10%
by
2015
10%
by
2015
25%
by
2025
1.9%
9.3%
~10%
by
2025
3.6%
2.5% 10%
by
2015
1.5%
2.2%
0.2%
0.7%
25%
by
2025
12.5%
by
2024
20%
by
2017
13.4%
7.8%
29%
by
2015
12.5%
2.2%
~18%
by
2021
0.4%
1.4%
25%
by
2025
1.9%
10%
by
2025
111111111
15%
by
2021
104
MW
11.4% 1111111111
40%
by
2030
1.3%
10.2%
Other
renewables
Hydro
Required to meet
RPS/goal
Note: Figures represent percentage of states total generation
(MWh) in July 2012
0.3%
1.2%
555
0.3%
0.7%
50.6%
14.4%
5
11111
7.9%
8.4% 88888
84.5%
5%
73.2%
14.1%
17.2%
15%
AROUND THE WORLD
As of October 2012, 29 states had mandatory renewable portfolio standards (dark green), while eight states had volun-
tary goals (light green). Heres how each was faring as of July 2012. (The outer circle represents 100% of the
target/goal; blue and yellow segments show the percentage of total generation by source.) Sources: EIA Electric Power
Monthly, DSIREUSA Copy and artwork by Sonal Patel, senior writer
Worldwide, the share of renewables in power generation slightly exceeded 20% in 2011. The outer circle represents
100% of the goal; dark purple represents the renewables percentage of total electricity consumption in 2011
(including hydro). Sources: REN21, IRENA, Enerdata, Danish Energy Agency
AUSTRALIA
(45 TWh by 2020)
6.9%
20%
by
2020
BRAZIL
88.2%
70%
by
2020
CHINA
(*as share of primary energy)
10.3%
15%
by
2020*
40.7%
DENMARK
100%
by
2035
EGYPT
10.2%
20%
by
2020
FINLAND
(*as share of primary energy)
28.8%
GERMANY
22.3%
INDONESIA
15.5%
17%
by
2025
JAPAN
10.3%
MEXICO
16%
76.1%
NEW ZEALAND
47.4%
55.3%
by
2020
PORTUGAL
29.3%
SPAIN
55.3%
SWEDEN
10%
UK
30%
by
2040
38%
by
2020*
35%
by
2020
35%
by
2025
15%
by
2020
62.8%
by
2020
40%
by
2020
90%
by
2025
December 2012
|
POWER www.powermag.com 11
Largest Wastewater
Treatment Fuel Cell Plant
Goes Online
In October, Canadian biogas power produc-
er Anaergia opened a 2.8-MW fuel cell sys-
tem powered by cleaned and conditioned
wastewater biosolids at a municipal water
treatment facility in Ontario, Calif. The
RP-1 Water Recycling Facility treats up to
44 million gallons a day of wastewater,
and the new renewable energy facility in-
stalled onsite will offset about 60% of the
grid power previously used by the facility
to treat wastewater, Anaergia said.
Power from the DFC3000 stationary fuel
cell power plant recently purchased from
FuelCell Energy is being sold to the waste-
water treatment facilitys owner, Inland
Empire Utilities Agency (IEUA), a munici-
pal water district located in western San
Bernardino County, under a 20-year power
purchase agreement. Environmental rules
prohibit the utility from releasing methane-
rich biogas generated by the wastewater
treatment process directly into the atmo-
sphere. Because flaring the gas emits pol-
lutants, IEUA has been using digester gas
to provide a fuel for cogeneration engines
that provide energy to other processes
within the facility.
The fuel cell plant requires only mini-
mal cleaning of the biogas, says its man-
ufacturer FuelCell Energy. Biogas contains
humidity, sulfur and CO
2
. Prior to being
used as a fuel source for the Direct Fuel-
Cell, the humidity and sulfur must be re-
moved, but the DFC technology does not
require the removal of the CO
2
. This is a
cost advantage as pipeline quality biogas,
also termed directed biogas, must have
the CO
2
removed prior to being injected
in the gas pipeline, which is an energy-
intensive process and adds cost.
Essentially, the fuel cell plant uses an
electrochemical process to efficiently gener-
ate electricity and heat suitable for generat-
ing steam. According to FuelCell Energy, fuel
cells are highly efficient and can achieve
efficiencies up to 90% when byproduct heat
is utilized. The byproduct heat from this
power plant will be used to help create the
renewable biogas by heating the anaerobic
digesters that produce the biogas. High
efficiency decreases energy costs and pro-
vides more electrical output from the same
amount of biogas than less efficient alterna-
tives, the company says.
The IEUA lauds the project as a major
development that will bring it closer to its
goal of going Gridless by 2020, allowing
it to operate completely off the grid during
peak energy usage periods.
A renewable mode of generation promot-
ed less fiercely than solar, wind, and hydro,
fuel cell power plants have been gathering
2. Fuel cell frenzy. A 60-MW fuel cell
park (shown in this rendering) is under de-
velopment by POSCO Energy along with
partners Korea Hydro Nuclear Power Co. and
Samchully Gas Co. The fuel cell park will con-
sist of a series of FuelCell Energy DFC3000
power plants located in an industrial complex
in Whasung City. Electricity generated by the
fuel cells starting in 2013 will be supplied to
the grid and assists the partners with compli-
ance under the South Korean Renewable Port-
folio Standard. Courtesy: FuelCell Energy
Scan the QR Code for more information
877-4SI-POWER
or go to
www.structint.com/power
Structural Integrity works hard and believes in our expertise to help nuclear, fossil and
combined cycle power plants and gas transmission and distribution solve problems.
As Experts in the prevention and control of structural and mechanical failures, our
engineering experts help with:
Comprehensive Turbine Generator Assessment
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Condition and Failure Assessment
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Our expertise encompasses many other plant components and systems, as well as
comprehensive, innovative solutions including Guided Wave Testing, Direct Assessment,
Root Cause Analyses, Welding Engineering, Linear Phased Array NDE and more.
Call us today at 877-474-7693 for a quote or for help preventing future problems.
Were experts who will work hard for you.
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|
December 2012 12
clout over the past decade. Cost and tech-
nology are still hurdles, and the industry,
hard-hit by the economic downturn, has
struggled to achieve pricing parity with
other technologies. Meanwhile, current fed-
eral tax credits provided to fuel cell makers
($3,000/kW or 30% of the capital cost) are
set to expire in 2016.
Around the world, however, fuel cell
power is making strides. South Korea leads
the charge in many respects: The nations
capital, Seoul City, has plans to support in-
stallation of 230 MW of stationary fuel cell
power plantspart of its plan to replace
the capacity of one nuclear power plant
a project that could see 29 fuel cell parks
totaling 190 MW and 102 commercial build-
ing installations totaling 40 MW by 2014.
This November, FuelCell Energy an-
nounced it had received an order for 121.8
MW of fuel cell kits and other services from
its South Korean partner POSCO. POSCO
and FuelCell are already under contract to
build the worlds largest fuel cell parka
58.8-MW project located in Whasung City,
Gyeonggi Province, South Koreastarting
in early 2013 (Figure 2). The projectco-
owned by Korea Hydro & Nuclear Power Co.
Ltd., Samchully Co., and other financial
investorsstems from an ambitious re-
newable portfolio standard adopted by the
country in 2012. The heat generated by the
fuel cell power plants will be supplied to a
district heating system for local use.
Of Giant Turbines and
Rotor Blades
Offshore wind turbine technology experi-
enced a brief gust in October as Siemens
Energy began field testing of its new
154-meter (m) rotor for the 6-MW offshore
wind turbine, and Norwegian technology
company Sway Turbine unveiled a 10-MW
offshore turbine.
Siemens began field testing of what it
claims is the worlds largest rotor blade,
the 154-m B75, in sterild, Denmark, on its
SWT-6.0-154 direct-drive wind turbine (Fig-
ure 3). The first Siemens 6-MW turbine was
installed in May 2011 at the Hvsore test
site in Denmark, but due to height restric-
tions, a 120-m rotor was used on the proto-
type. The serial version of the 6-MW turbine
will use the 154-m rotor and is expected to
become the new benchmark in the offshore
wind industry, Siemens said.
The company has so far procured an
agreement with Denmarks DONG Energy for
300 of the 6-MW turbines for use in projects
off the coast of the UK. Siemens is expected
to install two more SWT-6.0 prototypes in
the UK Gunfleet Sands project, marking the
first time that the Siemens 6-MW wind tur-
bine will be tested offshore. Both turbines
for that project will be equipped with the
120-m rotor.
In October, meanwhile, Sway Turbine
unveiled its much-awaited ST10, a 10-MW
model that offers an estimated 1520%
reduction in turbine cost compared to cur-
rent state of the art, conventional design
offshore wind turbines, and a considerable
reduction in cost per kWh produced on wind
park level, the company said in a recent
presentation.
To meet the challenges of scaling up the
turbine, Sway said it embarked on several
unusual design solutions (Figure 4). De-
signed for harsh conditions, basic specifica-
tions include a 164-m rotor diameter with
three rotor blade supports, a 13 m/s rated
wind speed, and 12 rpm nominal speed. The
turbine does not have a rotor hub; it instead
features an open generator, which looks like
a bicycle wheel. Each of the three pitching
blades is mounted to an A-frame blade
support structure that straddles the genera-
tor. The support structure legs terminate on
two independent hubs, which also function
as the hubs for the generator rotor. The out-
er rim of the generator rotor is connected
to the blade support structure, providing the
means of transferring torque between the
turbine rotor and the generator. Designed to
operate upwind on a fixed tower, the turbine
has a design life of 20 years.
According to the company, the new
combination of components results in a
system that has a significant decrease in
weight over conventional designs, and a
net lower cost of energy. Sway Turbine is
now in the process of identifying the best
industrial partner to bring the product to
the market, it said.
3. Size matters. Siemens began field testing of what it claims is the worlds largest rotor
blade, the 154-meter B75, on its SWT-6.0-154 direct-drive wind turbine in sterild, Denmark,
this October. Courtesy: Siemens
4. A turbine titan. Norwegian company Sway Turbine in October unveiled details about
its 10-MW wind turbine, a machine that features a 164-m rotor diameter with three rotor blade
supports. The turbine does not have a rotor hub; it instead features an open generator, which
looks like a bicycle wheel. Courtesy: Sway Turbine
December 2012
|
POWER www.powermag.com 13
The two project developments are especially welcome af-
ter a period in which production of new offshore turbines has
lapsed. After brisk progress that saw as many as 1,503 fully
grid-connected offshore wind turbinesa total of more than 4
GWinstalled worldwide as of June 2012, development of new
offshore wind farms has been caught in headwinds, reportedly
owing to a crunch on investment in the sector. After receiving
the major order in July for 300 6-MW turbines from Denmarks
DONG Energy, Siemens hasnt taken another order.
Meanwhile, neither Denmarks Vestas nor Repower Systems, a
German subsidiary of Indias Suzlon, has reportedly had an order
since October 2011, reported the Financial Times in November.
At the same time, the Danish government moved to push back
power production from two offshore wind farms with a joint ca-
pacity of 1 GW by one year, to 2018, and DONG Energy shelved a
project for 96 turbines on a North Sea wind farm off the coast of
Germany, cancelling an order for 97 Siemens turbines.
The European Wind Energy Association told POWER that the
pipeline of future deals [for offshore wind power] continues to
be strong, with further transactions standing a good chance of
closing before the end of the year. New projects include the com-
pleted Walney project in the UK (see p. 42) as well as Butendiek in
Germany, and others anticipated in 2013, such as the Gode Wind
and Nordergrunde in Germany.
Modernization of Century-Old Hydro
Facility Yields Rich History
When the Boulder Canyon Hydroelectric Facility was built in
the steep, forested mountains between Boulder and Nederland,
Colo., in 1910, it was the highest head hydroelectric facility
in the western U.S. It consisted of two 5-MW turbine genera-
tors, both of which were upgraded in the 1930s to double the
plants capacity. The units ran until 2000, when one generator
failed and was never replaced.
The second unit was recently replaced with a 5-MW turbine
generator to modernize the century-old hydroelectric facil-
5. An artifact. The City of Boulder, Colo., preserved equipment,
like this turbine that is more than 100 years old, when it modernized
the Boulder Canyon Hydroelectric Plant earlier this year. Courtesy: City
of Boulder
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www.powermag.com POWER
|
December 2012 14
ity and keep it operational for 50 more years. Its developers
say that though it is smaller, it produces 30% more power
because it is more efficient.
For the City of Boulder, refurbishing the plant also has deep,
historical significance. The city contracted URS Corp. and Na-
tive Cultural Services to complete detailed records of the histor-
ical equipment prior to removal in order to preserve the design,
construction, and operational history of the original facility.
As well as preparing a narrative history of the project, the city
has preserved historical equipment in place for educational and
display purposes (Figures 5 and 6). The research has yielded
several interesting facts about the facility, including that it was
the first structure in which acetylene welding in conjunction
with the ball-peen welding procedure was useda method that
significantly advanced penstock technology.
The project is one of seven hydropower projects selected by
the Department of Energy (DOE) for a total of up to $30.6 mil-
lion in funding through the 2009 American Recovery and Re-
investment Act. These were cost-shared projects that upgraded
existing hydropower facilities without requiring significant civil
works modifications to dams. Like the Boulder project, several
call for upgrading antiquated turbines: replacing 1940s and
1960s vintage turbines with stainless steel turbines and run-
ners at four Alabama Power Co. hydro plants on the Coosa River,
for example, or replacing four 90-year-old Francis turbines with
stainless steel turbines (and increasing annual generation by
23%) at Alcoas Tapoco Cheoah plant in Robbinsville, N.C. The
Boulder project received $1.18 million from the DOE toward an
estimated project cost of $5.155 million.
This project, though small, has garnered wide attention, in-
cluding a mention from the National Hydropower Association.
The industry group said in October that similar upgrades could
add nearly 9 GW of capacity across the country.
14-MW Solar PV Plant Completed at
Naval Station
The U.S. Navy in late October saw the completion of its largest
solar generation system, a 13.78-MW (DC) solar photovoltaic
6. A new lease on life. Modernization of the Boulder Canyon
Hydroelectric Facility left one failed 10-MW turbine in place and re-
placed the other 10-MW turbine with a new, highly efficient 5-MW tur-
bine that has increased generation by 30%. Courtesy: City of Boulder
Note on the Oconee Top Plant
Some of our readers may have been confused by the word-
ing of a press release about our November issues nuclear
Top Plants, the table of contents blurb about Dukes Oconee
plant, or a sentence in the cover story about that plant.
In the interest of brevity, it seems we sacrificed clarity.
We did not mean to imply that this was the first of any
digital control systems upgrades in the U.S. In fact, POWER
has written about such upgrades at Oconee and elsewhere
in the past. The award this year was for a specific safety-
related system digital upgrade.
Derek Halverson, a Nuclear Regulatory Commission spokes-
man, told POWER on November 8 that what Oconee installed
was the first complete integrated digital reactor protection
and engineered safeguards system of any U.S. commercial
nuclear power plant. Halverson further clarified: Many NRC-
licensed plants have at least partially upgraded their control
systems, both safety related and non-safety related, from
analog to digital technology. For example, many plants have
installed digital technology in at least a small portion of their
safety-related I&C systems, even if only to support operator
indications. However, there are still safety-related I&C sys-
tems at Oconee and the other NRC licensed nuclear power
plants that remain analog.
CIRCLE 8 ON READER SERVICE CARD
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jobdo the whole job with Fluke.
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|
December 2012 16
(PV) power system at Naval Air Weapons
Station China Lake (NAWS China Lake)
in California. The plant, which is report-
edly generating more than 30% of China
Lakes annual energy load, is uniquely
the first federal agency project to be fi-
nanced through a 20-year solar power
purchase agreement (PPA) and could be-
come a template for future large-scale
solar projects.
The project is owned by a MetLife
Inc. subsidiary, but it was built and will
be operated and maintained by Califor-
nia firm SunPower. NAWS China Lake is
reportedly buying power from the in-
stallation at up to 30% below the rate
available through 10-year PPAs, which
provides the Navy with a long-term
hedge against rising power prices and
required no initial capital investment,
the San Joseheadquartered company
said. The PPA, secured under a long-term
energy procurement authority requires
no obligations from the Navy.
The plant features SunPowers Oasis
power plant (Figure 7), a modular solar
power block that is engineered to optimize
land use. Each power block integrates the
SunPower T0 Tracker with SunPowers high-
efficiency solar panels, pre-manufactured
system cabling, the Oasis smart inverter,
and the Oasis operating system.
POWER Digest
Georgia Power Completes 2,500-MW
Coal-to-Gas Conversion. Southern
Co. subsidiary Georgia Power on Oct.
28 put online the third and final 840-
MW natural gas combined cycle unit at
Plant McDonough-Atkinson in Smyrna,
Ga. The first gas plant went online in
December 2011 and the second on April
26. Bringing the plants capacity to
2,500 MW, the three units are capable
of producing more than five times the
electricity of the coal units that were
replaced, the company claims. Georgia
Power retired the two coal units at Plant
McDonough-Atkinson on Sept. 30, 2011,
and Feb. 29, 2012. Removal of the his-
toric stack at the plant has begun and
will be complete by June 2013.
GDF Suez Starts Operations at 860-
MW Singapore Gas Plant. GDF Suez
on Oct. 29 began commercial operation
of two combined cycle gas turbine units,
each with a capacity of 430 MW. The two
new units are part of Senoko Energys
Repowering Project, announced in 2008,
which aims to convert two 30-year-old
oil-fired units into combined cycle units.
Senoko Energy is the largest power gen-
eration company in Singapore, operat-
ing a 3,300-MW portfolio and providing
around 25% of the countrys electricity
needs. Electricity demand growth in Sin-
gapore has averaged 4% per annum over
the past 10 years.
Vattenfall Powers Up 675-MW
Coal Unit in Germany. Swedish util-
ity Vattenfall started up a new 675-MW
coal-fired unit at its 1971-built Boxberg
power plant in the German eastern state
of Saxony on Oct. 11. The new Boxberg
R block brings the Boxberg plants to-
tal power capacity to 2,575 MW. Vat-
tenfall says the new unit uses advanced
technology that incorporates materials
research, boiler, and turbine technol-
ogy. It will need up to 30% less coal
than power plants on a worldwide aver-
age and feature an efficiency of close to
44%. The plant receives lignite from the
nearby Nochten and Reichwalde open-
cast (pit) mine.
Bruce Power Completes Refur-
bishment Program in Ontario. Bruce
Power has completed a refurbishment
program at its Bruce Power nuclear
plant, starting commercial operations of
Bruce Power Unit 1 on Oct. 22 and put-
ting the Bruce Power Unit 2 online on
Nov. 2. Bruce Power, owned by Canadian
companies TransCanada and Cameco,
Bruce Power employees, and the Power
Workers Union, among others, began
its revitalization program at the nu-
clear plant in Tiverton, Ontario, almost a
decade ago. Bruce Power consists of two
generating stations (Bruce A & B) with
each station housing four CANDU reac-
tors. Completion of the project, one of
Canadas largest infrastructure projects,
means that all eight operating units will
be capable of providing more than 6,200
MW, or about 25% of Ontarios power. It
also makes the facility one of the worlds
largest nuclear stations.
Tri-Fuel Plant Takes Shape in Jor-
dan. A Wrtsil-led consortium that
includes South Koreas Lotte Engineer-
ing & Construction on Oct. 11 signed
a $552 million contract with Jordanian
utility Amman Asia Electric Power Co.
for the supply of a 573-MW power plant
to Jordan. The plant, to be built in Al
Manakher near the countrys capital,
Amman, will be capable of using natural
gas, heavy fuel oil, and light fuel oil.
It will be powered by 38 Wrtsil 50DF
multi-fuel engines and fitted with a NO
x
control system for emissions abatement.
The plant will be delivered in three
phases, the first of which will be com-
pleted in February 2014 and the final by
September 2014.
Navys Plan to Deploy Marine
Power Takes Shape. A plan to develop
a utility-scale marine energy project
that will enable the U.S. Naval Facili-
ties Engineering Command (NAVFAC) to
harness the power of ocean currents is
making strides. Contracts have already
been awarded to privately held marine
service providers Eclipse Group Inc.,
which will lead underwater construction
efforts, and Triton Energy Systems,
which will spearhead underwater gen-
eration engineering efforts. In October,
industrial manufacturer Eaton Corp.
said it had won a contract to support
the projects land-based engineering,
including development of high-voltage
electrical distribution. For the project,
Eaton has been designated as an Eclipse
qualified partner on a Naval Sea Systems
Command (NAVSEA) SEAPORT-E five year
contract with a possible capacity in ex-
cess of $19 billion.
Sonal Patel is POWERs senior writer.
7. Model solar. The U.S. Navys largest solar installationa 13.78-MW solar photovoltaic pow-
er system at Naval Air Weapons Station China Lakewas completed in October. The plant features
SunPowers Oasis power plant, which is engineered to optimize land use. Courtesy: SunPower
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December2012 18
Conference Report: 12th ICS Cyber
Security Conference
The 12th ICS Cyber Security Conference was held at Old Domin-
ion Universitys Virginia Modeling Analysis and Simulation Center
(VMASC) October 2225, 2012. There were approximately 150 at-
tendees from multiple industries, universities, government, and ven-
dors as well as consultants from the U.S., South America, Europe,
and Asia. The conference used the remote video conferencing capa-
bilities available at VMASC to enable a few speakers to participate
from as far away as Europe and Asia.
The conference addressed multiple aspects of the vulnerabilities
that affect industrial control systems (ICSs). These are the program-
mable logic controllers (PLCs), distributed control systems (DCSs),
SCADA, and other systems that make our modern world function
smoothly every minute of every day by controlling physical processes
in power and water utilities, oil and gas pipelines, chemical and
manufacturing plants, transportation, and defense. These are the
same types of systems that were compromised by Stuxnet.
Conference participants studied case histories and discussed the
progress of standardization and interoperability. No press represen-
tatives were allowed into the conference, and a non-attribution
policy was rigorously enforced, hence the lack of names and affilia-
tions in this report.
No Consistent Definition
Showing the diversity of interests of those working on cyber se-
curity threats, conference participants could not agree on a single
definition of what constitutes a cyber incident, particularly an un-
intentional incident. One very useful outcome of the conference was
developing a better appreciation of the breadth and depth of critical
infrastructure protection (CIP) security required, the wide range of
skills required to solve cyber security problems, and the importance
of sharing information, particularly about unintentional incidents.
ICS cyber incidents caused without intentfailures stemming from
the processing, storage, or transmission of datacan have disas-
trous consequences and serve as roadmaps for ICS system hacks.
(For more on ICS protection failures and their consequences, see
Ensuring the Cybersecurity of Plant Industrial Control Systems in
the June 2012 issue of POWER, available at www.powermag.com.)
Another key conference finding was that there are few (being
generous) technologies actually developed for ICS that are not recy-
cled IT solutions. One emerging technology solution was discussed
that could be a game changer because it improves control system
performance and appears not to be susceptible to cyber threats.
However, it is still in the research and development phase, and de-
tails were sparse. Additionally, progress is being made on device
authentication at the protocol level, and some chipmakers are trans-
ferring their know-how to control systems for authenticating end
devices. Protecting product information is becoming much more
common these days (see sidebar).
Many Are Unaware
An international survey performed for CIGRE (the International
Council on Large Electric Systems) identified the lack of cyber under-
standing by the control and protective relay community as another
area of work that is currently lagging. This is particularly important
as CIGRE did not address the impact of the Aurora testa cyber at-
tack on power generating equipment staged by the U.S. Department
Legal Fears Stifle Public Discussion of
Cyber Security Threats
Discussions about technologies used and responses by firms en-
gaged in securing their cyber systems went in an unexpected
direction at one point during the 12th ICS Cyber Security Con-
ference. In fact, three events that came to light at the event
demonstrate what appear to be parochial responses to reported
vulnerabilities. Intentionally inhibiting the free interaction and
flow of information between cyber security professionals, particu-
larly by vendors and the federal government, will only slow future
advances in state-of-the-art ICS security.
In the first situation, two presentations focusing on a nuclear
plants potential cyber security vulnerabilities were abruptly can-
celled when an equipment supplier threatened to sue the plant
owner. The subject of both talks was the results of a security re-
view conducted for a foreign nuclear utility, an above-and-beyond
review not required by regulators, but one that the utility volun-
tarily pursued. One presentation was to be by utility representa-
tives and the other was to be by a representative of the utility that
conducted the review. The result of the review identified new and
previously unknown vulnerabilities. Even though the utility had ap-
proved the presentations, the vendor complained it would violate
their nondisclosure agreement.
What the conference participants did learn was that this interna-
tional utilitys assessment and analysis program is more comprehen-
sive than what existing U.S. Nuclear Regulatory Commission (NRC)
guidance requires. This raises questions concerning the adequacy
of NRC cyber security guidance and therefore the adequacy of cyber
security programs at all U.S. nuclear plants. It should be mentioned
that representatives of the NRC attended the conference.
In the second case, a firm engaged in cyber security that, ac-
cording to an Oct. 29 Reuters report, uncovered thousands of
pieces of control equipment exposed to online attacks did not tell
U.S. authorities where they were installed because it feared being
sued by the equipment owners. This quashing of important infor-
mation sharing based on the fear of lawsuits brought by vendors is
having significant repercussions across many industries.
Finally, attendees learned that the U.S. government has kept a
technique it discovered for attacking electricity generation equip-
ment secret for five years, according to the same Reuters report,
leaving known vulnerabilities of many electricity generators with-
out protection. Ironically, U.S. Defense Secretary Leon Panetta,
also in October, said that terrorists could use cyber attacks to con-
taminate the water supply in major cities or shut down the power
grid across large parts of the country.
The U.S. government is also adding to the difficulty of devising
responses to new threats by routinely classifying critical informa-
tion as secret and by failing to develop appropriate cyber security
regulations for utilities, according to Kevin McDonald, executive
vice president at security service provider Alvaka Networks in Irvine,
Calif., who says, If we dont do something as a community, really
bad things are going to happen and people are going to die.
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|
December2012 20
of Homeland Security (DHS) in 2007 at the Idaho National Labora-
tory (INL)even though it concerned a protective relay issue.
The conference included the first public discussions of the Aurora
vulnerability, including a discussion of the facts surrounding the INL
test. Somewhat disconcerting was the fact that more than five years
after the Aurora test, very few of the critical infrastructure attendees
understood the technical issues surrounding the test and why its
results directly apply to their facilities. (See http://bit.ly/VAnxat for
a description and video of the Aurora test plus a technical discussion
of its importance to cyber security.)
This lack of awareness was demonstrated by one question from
the floor. The individual asked why the electric industry should care
about every substation since there are so many substationslosing
some should not be cause for concern. The answer is that exploit-
ing the Aurora vulnerability effectively makes the substation an at-
tacker. Consequently, any unsecured (for Aurora) substation can be
a threat to any commercial or industrial facility with rotating equip-
ment served by that substation, including power plants, refineries,
ships, hospitals, data centers, and the like. Because so few utilities
are addressing Aurora, a representative from the Department of De-
fense questioned if they should take matters into their own hands by
installing mitigation at their facilities, effectively protecting them-
selves from their own utilities!
Information Sharing Is Vital
There are pockets of end users who are willing to share ICS informa-
tion with their peers in industry. Utility control system engineers
from two different utilities discussed their actual recent ICS cyber
case histories. In both instances, the cause was unclear, making
solutions difficult to identify. In one case, the utility lost view and
control of the plant and was unable to restore the view even with
the vendor on site. In the other, the utility experienced several in-
stances of complete loss of control and view with plants at power!
Another utility discussed its legacy control system cyber security
test bed. The utility made a plea to establish an informal informa-
tion-sharing program to share industry practices. This involves shar-
ing of real information, not literature searches of solutions.
There was discussion of a project using Shodan (a cyber secu-
rity search engine) with selected key words that found more than
500,000 Internet-facing control system devices all the way to device
IP addresses. This information was recently provided to the DHS and
resulted in a nationwide vulnerability notice in late October. Even
today, the researcher is concerned about his liability because he
found the actual Internet addresses. The researcher provided this
example of the lack of understanding about ICS vulnerabilities: He
contacted a water utility when he found it had ICSs that were re-
motely accessible to anyone with an Internet connection, but the
end user appeared to not understand the importance of the informa-
tion and essentially ignored the warning.
A water utility described a disgruntled insider compromise. It
took an inordinately long period of time to get the FBI to respond.
When the FBI finally responded, they took the utilitys hard drive,
and the replacement hard drive did not work. Fortunately, the utility
had mirrored hard drives and was thus able to continue operation
despite the loss of the one hard drive.
Real-World Demonstrations
There were two ICS hacking demos that proved the differences
between a knowledgeable attacker and hacker with minimal ICS
understanding. The knowledgeable attacker showed with less than
$60 of Radio Shack equipment that he was able to compromise
Zigbee wireless networks. The second demonstration was by a mal-
ware researcher with minimal understanding of ICSs. By simply
starting with a vulnerability notification about the technology on
which the SCADA system was built, he was able to take control of
the vendors SCADA software.
On the post-conference press call, I was asked what I considered
the most important need for ICS cyber security. I believe it is se-
nior management buy-inthat is, understanding the possibility and
consequences of an incident, the talent required to mitigate it, and
prioritizing resources for ICS cyber security.
The 12th ICS Cyber Security Conference provided attendees
with a valuable venue for information sharing about ICS practic-
es and incident descriptions, plus networking opportunities that
cant be replicated. For information about the 2013 conference,
visit www.icscybersecurityconference.com.
Contributed by Joe Weiss, PE, CISM, CRISC, ISA Fellow, and
IEEE Senior Member. Weiss is the principal of Applied Control Solu-
tions and the author of Protecting Industrial Control Systems from
Electronic Threats, published by Momentum Press. Follow Weiss
Unfettered Blog at community.controlglobal.com/unfettered for the
inside story on the latest cybersecurity news.
Users Return to Fogging on Frame 7FAs
It has been a decade since an R0 compressor blade was liberated on
one of the eight Frame 9FA combustion turbines at CLP Power Hong
Kongs Black Point Power Station. This catastrophic failure eventual-
ly led to GEs recommendation that operators severely limit or cease
using online water wash (OLWW), inlet fogging, wet compression,
and evaporative coolers on F-Class turbines.
Now fogging is making a comeback on the GE 7FA. With greater
understanding of the underlying issues, and new blade designs from
GE and other aftermarket suppliers that are less prone to erosion,
7FA operators are once again starting up their foggers as a means of
achieving a low-cost performance boost.
Fogging is one of the least expensive ways to get extra power
out of your machine, says Jim Sellers, director of operations for the
West Region at Entegra Power Group LLC, which recently restarted
fogging on two 7FAs at its Gila River Plant after a several-year break
(Figure 1). Fogging helps the turbine to maintain a good heat rate
and does not have the permanent pressure loss that an evaporative
cooler causes.
Shutting Off the Water
Although the earliest instances of using water to cool turbines date
back to pointing a hose at the inlet, fogging took off in the 1990s
with the use of high-pressure fogging systems. With turbine manu-
facturers even starting to offer it as an option on new units, it was
widely accepted as a safe and cost-effective way to get more power
1. Fogging for power. Fogging nozzles, such as the one shown
in the inset, are mounted in the air inlet into the combustion turbine.
The evaporative effect of the fog is to reduce the air inlet temperature.
Courtesy: Mee Industries
December2012
|
POWER www.powermag.com 21
for less fuel, especially on hot summer days
when electricity prices were highest and
fogging produced its greatest benefits.
Then came the Hong Kong incident and
GEs repeated efforts to identify the cause
and a permanent solution. GE inspected all
the 9FAs and determined that CLPs daily use
of OLWW had led to R0 blade erosion and
subsequent failure. In the summer of 2001,
GE issued the first of a series of Technical
Information Letters (TIL) covering the topic.
TIL 1303, Compressor Rotor R-0 Blade Erosion,
described what GE found in Hong Kong and
recommended that blades be inspected af-
ter 100 hours of OLWW. Next came TIL 1323
in which GE advocated using only the outer
OLWW manifold and lowering the water pres-
sure to 40 psig because The erosion appears
to be caused by water stratification on the
bell mouth struts wall, which then impacts
the root of the R0 blade.
Later, GE extended the restriction to in-
clude use of fogging and evaporative coolers,
but following additional study, field experi-
ence, and an R0 blade redesign, GE eased its
fogging restrictions, although clearance for
operation of third-party fogging systems
was so limited that most operators con-
tinued not to use them. Not everyone was
convinced. Blade erosion is not a problem
for properly designed fogging systems, says
John Kraft, president of Caldwell Energy.
It has gotten blown out of proportion by
the 7FA issues, but I have never had any
problem on a 7FA. Bottom line: With the
introduction of R0 blade designs that are
less prone to cracking that can be caused by
erosion, operation of OLWW and fogging was
no longer restricted.
Other turbine manufacturers were still
allowing OLWW and fogging on their units
without problem, so further research was
done on how to improve the lifespan of the
GE R0 blades. The U.S. Department of Energy
funded work by MDS Coating Technologies
Corp. into use of nanotech coatings to re-
duce blade wear. Preliminary tests showed
that the coatings reduced the amount of
fluid erosion on turbine blades by at least
a factor of 10.
Fogging at Gila River
Entegra is one of the companies that in-
stalled new R0 blades so it could reinstate
inlet fogging. The company, headquartered
in Tampa, Florida, operates several plants,
including the Gila River Power Station in Gila
Bend, Arizona, about 70 miles southwest of
Phoenix. The 2,200-MW Gila River plant con-
sists of four combined cycle power blocks,
each with two Frame 7FA combustion tur-
bines (CTs), two Alstom heat recovery steam
generators with supplemental duct firing,
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December2012 22
and a GE single-case, single-flow, axial ex-
haust steam turbine.
At Gila River, Entegra currently owns and
operates two of the four power blocks. The
other two are owned by Sundevil Power Hold-
ings LLC. All the CTs burn natural gas deliv-
ered through a 30-inch-diameter pipeline
connected to both the El Paso and TransWest-
ern natural gas mainlines. The site connects
to the grid via two 500 kV lines and one 230
kV line. One of the Entegra units, Block 4
is under contract to Arizona Public Service
(APS), the states largest electric utility.
All eight CTs originally included GE-sup-
plied fogging units. Fogging did produce a
significant power boost, about 15 MW to 20
MW per CT, along with a better heat rate.
However, in addition to blade erosion prob-
lems, the fogging units proved unreliable
and were shut down after a few years. The
fogging skids had lots of pump failures and
had very small filters at the pump discharge
that needed changing almost daily, says
Sellers of Entegra. It was just an incredibly
high-maintenance arrangement.
One of the biggest problem areas with fog-
ging was caused by a mismatch between the
pump size and the amount of water needed
by the nozzle array for fogging. The pumps
did not have variable-speed drives to adjust
output to water demand but would recircu-
late the excess water. As long as it was in
recirculation mode, the recirculation valve
would continuously cavitate, would self-de-
struct, and need to be replaced, says Sellers.
It was just a maintenance headache.
Bob Stone, the Gila River plant manager,
says that the GE fogging units went through
three revisions before they were eventu-
ally secured from use. Because the water
was constantly recirculating, it would over-
heat. Each of the fogging nozzles contained
a plastic filter, and the water would reach
temperatures where it would melt the filter
into the nozzle, so it would have to be re-
placed (Figure 2).
Blade Upgrade
The final revision to the system included
changing the piping to bring the water
temperature down to avoid melting plastic
parts, but by that time blade erosion issues
required shutting the foggers down anyway.
The R0 blade that GE was using at the
time was prone to a crack initiated from
erosion pits, says Sellers. Most operators
did not want to risk a cracked R0 blade that
could wipe out the whole compressor sec-
tion, so they stopped fogging for fear of los-
ing R0 blades.
The R0 blades at Gila River were show-
ing the same erosion problems that GE had
found on other 7FAs, and repeated reblend-
ing of the blades was not an option.
Some 7FA users will rotate the R0 blades
and send them out to be reblended, says
Stone. The first year, we had GE do an in
situ blending on all eight units, but it gets
to a point where you cant do the resurfac-
ing. Since we did not have spare sets, we
decided not to fog.
That changed, however, in 2011. By that
time, GE and others had come out with ero-
sion-resistant blade designs and users were
eager to restart their fogging systems. In the
case of APS, fogging was needed to ensure
Block 4 met performance guarantees. Rather
than going with the new GE blades, how-
ever, Entegra went with blades from Power
Systems Manufacturing (PSM). PSM used a
different material than GE, which would be
more erosion tolerant and would not lead to
cracking, says Sellers. GE had redesigned
its blade, but continued to use the same
material. Granted, they beefed it up, but we
werent sure it could still crack again.
Back to Fogging
With the new PSM R0 blades in place, last
year Entegra decided to restart fogging on
Block 4. The block is under contract with
performance guarantees for output and heat
rate, Sellers says. With the decommis-
sioning of the foggers, we were right at the
threshold of missing the performance guar-
antee and possibly suffering a penalty, so we
needed to get that performance back.
Rather than restarting the troublesome
GE foggers, however, they went with a Mee-
Fog system from Mee Industries. From the
research we did, Mee was the biggest fogger
company out there and had the most expe-
rience, so we figured they would have the
more reliable system design, Sellers says.
According to Thomas Mee, CEO of Mee
Industries, There are about 80 MeeFog sys-
tems in use on GE F-class gas turbines and
a total of more than 850 MeeFog systems
have been installed on gas turbines around
the world.
After pouring the slabs and running the
piping, installing the skids and nozzle arrays
took about two weeks during the spring out-
age. The MeeFog design used 11 pumps on
two skids to provide cooling for both CTs. The
pumps come on one at a time, depending on
the amount of fogging required at that time,
but the control system cycles through the
pumps to ensure that they all have the same
number of operating hours. Since the Mark V
plant control system had been set up for the
GE foggers, the control engineer had to add
logic on the control panel for the operators
to turn the foggers on and off (Figure 3).
In the first summer, the fogging units op-
erated about 900 hours, and Stone reports
that the MeeFog units operated smoothly
without the need for the daily attention
that the earlier foggers required. Sellers has
no concerns about blade erosion issues with
this new setup due to the fact that the sys-
tem only provides tiny droplets, so the root
cause of blade erosion is minimized. Be-
cause of the difference in the blade mate-
rial, we arent worried about the R0 blades
cracking and breaking off, says Sellers.
After successfully testing the new blades
and fogging system in Arizona, Entegra will
look at repeating those actions on its other
units, depending on the market conditions
and economics at each site.
Contributed by Joe Zwers, a Glendale,
California-based freelance writer specializing
in power and high tech.
2. Quick power increase. Nozzles
mounted in the duct produce billions of tiny
fog droplets that quickly evaporate and cool
the incoming air down to near the wet bulb
temperature. Interest in fog cooling is strong
because the reduction in air inlet temperature
increases the power output of the combus-
tion turbine for relatively little cost. Courtesy:
Mee Industries
3. Control the flow. Water flow control
skids used with combustion turbine fogging
systems can be preassembled and tested in
the manufacturers shop to reduce the cost of
field installation. Courtesy: Mee Industries
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|
December 2012 24
Steven F. Greenwald Jeffrey P. Gray
CleanPowerSF:
Political Correctness
Trumps Energy Policy
I
n 2002, California enacted legislation authorizing municipalities
to establish Community Choice Aggregation (CCA) programs. In
September 2012, the San Francisco Board of Supervisors adopted
CleanPowerSF to be the CCA program available for city residents.
Its supporters describe CleanPowerSF as a 100% renewable energy
alternative. Supervisor David Campos exalted that CleanPowerSF
will stimulate the local economy, create jobs and most impor-
tantly secure our independent, clean energy future.
CleanPowerSF represents yet another Balkanizing, politically mo-
tivated misadventure in energy policy. The global complexities and
challenging tradeoffs driving energy realities demand that energy
policy be developed on a regional basis and respect the fundamentals
of economics and physics. CleanPowerSF is premised on San Francisco
being an energy island, political rhetoric, and exploitation of the
unpopularity of the local utility, Pacific Gas and Electric Co. (PG&E).
Background
As part of its deregulation experiment, in 1998, California offered
electric consumers a direct access option to select among energy
providers. The local utility would remain the wires company, de-
livering the electricity, but consumers could choose an alternative
commodity supplier. Direct access providers competed by promis-
ing better rates and preferable products (renewable and nuclear-
free supply). In response to its energy crisis in 2001, California
suspended the entering of any new direct access arrangements.
However, by the next year, the legislature decided that Cali-
fornians should retain some opportunity to replace the local util-
ity and be able to select from a more preferred supply portfolio.
The resulting CCA program replicates direct access, but with the
distinction that a municipal entity (in this case, CleanPowerSF)
serves as an intermediary between the power provider and the cus-
tomer. CCA can be categorized as muni-lightthe city procures
the electric commodity, but without ownership or operation of any
transmission or distribution facilities.
Promised Beneits Are Illusory and Unachievable
CleanPowerSF will create jobsthe positions necessary to admin-
ister the program. It may also stimulate the local economy: Law-
yers and consultants will thrive.
In other respects, Supervisor Campos vision for CleanPowerSF is
illusory and destined to be an expensive failure. The promise of 100%
renewable power is neither achievable nor necessary. Desired in-
creases in the amount of intermittent wind and solar sources require
some amount of natural gas generation to back up the system.
Moreover, any notion that CleanPowerSF will secure for San
Francisco electric consumers energy independence is misguided.
The independence CleanPowerSF offers is simply the ability to
say no to PG&Es portfolio. CleanPowerSF does not make San
Francisco independent from the California grid; the city remains
subject to blackouts caused by regional supply shortages, transmis-
sion outages, or any malfunction of PG&Es distribution facilities.
Local initiatives designed to achieve energy independence should
better focus on rooftop solar installations and energy efficiency.
One possible attraction of CleanPowerSF is to enable customers,
on an energy accounting basis, theoretically to bar PG&E from
delivering nuclear power into their homes. But even if all of San
Francisco opts for CleanPowerSF, PG&E will continue to maximize
its nuclear generation and that nuclear power will flow over its
wires and physically into San Francisco homes.
CleanPowerSFs marketing will likely depict PG&E as an energy
Neanderthal blocking greater renewable development. This thesis
ignores utility economics: PG&E is financially indifferent whether
it purchases wind or natural gas power; its economic interest is
to increase ratebase by owning generation. Conversely, PG&E is
agnostic whether increases in its ratebase reflect expenditures for
solar or nuclear facilities.
Besides economics, resource availability, and physics, the inhibit-
ing factors in the development of renewable resources in California
are permitting and regulatory policies that extend development, in-
crease costs, disqualify viable sites, and delay construction of nec-
essary transmission lines. CleanPowerSF offers no solutions to these
impediments. It is unlikely to purchase renewable power better at a
lower cost than PG&E, and there is no basis to suggest it can devel-
op renewable resources better than experienced and well-financed
private entities. Moreover, California law already obligates PG&E to
achieve 33% renewables, and Governor Jerry Brown would support
an increase to 40%. The business case that CleanPowerSF will ac-
celerate renewable development has not been made.
Real Costs Outweigh Psychic Beneits
The energy independence CleanPowerSF promises is not without cost.
Appreciable amounts have already been incurred to create the pro-
grams legal infrastructure. CleanPowerSF has been authorized almost
$20 million to commence business; $6 million is to study options to
produce solar power, generate local power, and deploy energy effi-
ciency strategies. The logic that local studies will generate options
more viable than comparable studies conducted by state, federal, and
private entities can only be rationalized as local politics.
CleanPowerSF acknowledges its inability to decrease costs for
customers. The price to participate in CleanPowerSF will be a
monthly increase ranging between just under $10 and almost $80,
depending on the customers consumption level.
This nation has sought to achieve energy independence since
the first oil embargo. The lessons of the past half-century should
be that political gimmicksthe proverbial rearranging the deck
chairs on the Titanicdo increase costs, but they advance nei-
ther energy reliability nor independence. CleanPowerSF may enable
some San Franciscans to feel better, but it will not create mean-
ingful green jobs, will not advance development of renewable
power, and will not promote real energy independence.
Steven F. Greenwald (stevegreenwald@dwt.com) and
Jeffrey P. Gray (jeffgray@dwt.com) are partners in Davis Wright
Tremaines Energy Practice Group. Davis Wright Tremaine does
not represent Pacific Gas and Electric Co.
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CIRCLE 14 ON READER SERVICE CARD
www.powermag.com POWER
|
December 2012 26
Alamosa Solar Project,
San Luis Valley, Colorado
Owner/operator: Cogentrix of Alamosa LLC
T
he Alamosa Solar Projects site on 225
acres in southern Colorados San Luis
Valley was chosen specifically for its
outstanding sunlight characteristics, which
are necessary for concentrating photovoltaic
(CPV) technologies. Among the positive at-
tributes of the location are its high elevation
(7,800 feet above sea level)which means
there is less atmosphere for the rays to pass
through and, hence, greater insolationand
the presence of an existing 115-kV transmis-
sion line for interconnection.
The Alamosa Solar Project consists of 504
dual-axis, pedestal-mounted trackers sup-
porting modules that produce approximately
60 kW each, providing enough power for
about 6,500 Colorado homes. The facility,
commissioned in May, provides electricity to
customers of Xcel Energys subsidiary, Pub-
lic Service Company of Colorado.
The project is projected to generate ap-
proximately 76,000 MWh per year, which
displaces approximately 249 million cubic
feet of natural gas that would have been used
by a comparable conventional natural gas
fired power plant. This eliminates the genera-
tion of approximately 43,250 tons per year
of carbon dioxide (CO
2
) emissions, based on
the U.S. Environmental Protection Agencys
estimate of 1,135 pounds of CO
2
generated
per MWh. In addition, the CPV facility has
very minimal water needs.
Facility Overview
J.E. (Jef) Freeman, Jr., vice president of devel-
opment at Cogentrix Energy Power Manage-
ment, the projects developer, told POWER
in September that a hydraulic system rotates
and tilts the assemblies throughout the day so
the surface of each panel maintains an opti-
mal angle with the sun.
Another functional benefit of this design
is that the CPV system makes efficient use
of the available land, Freeman said. One
MW of rated capacity is installed on 7 acres,
compared to the approximately 8 to 10 acres
typically needed for other solar technologies.
The CPV technology is also easier to permit
and install, with no special grading, water
use, or other site treatment, minimizing the
impact on the local natural environment.
The CPV solar trackers are Amonix 7700
models, each featuring the companys pro-
prietary module assembly mounted on a sup-
port column, Each tracker assembly is 70
feet wide by 50 feet high and contains 7,560
Fresnel lenses that concentrate sunlight ap-
proximately 500 times onto multi-junction
solar cells manufactured by Boeing-Spec-
trolab. A hydraulic system supplied by Hawe
Hydraulics North America rotates and tilts
the assembly throughout the day so the sur-
face of each panel maintains an optimal angle
with the sun. Each tracker has its own invert-
er (manufactured by Solectria Renewables)
that converts DC power output from the solar
cells to AC power. As an added bonus, the as-
semblys modular design will easily accom-
modate future cell technology updates.
Major contractors for the project were
Mortenson Construction (general contrac-
tor/construction manager), Stantec (lead
design firm), and Ampirical Solutions
(electrical switchyard engineering, pro-
curement, and construction contractor).
As the largest solar plant of its type in the world, the 30-MW Alamosa Solar
Project is currently enjoying its place in the sun. The innovative project consists
of 504 concentrating photovoltaic (CPV) solar trackers, each featuring a CPV so-
lar cell panel assembly mounted on a support column. The modular design of
the assembly allows the project to easily accommodate future improvements
in cell technology.
By Angela Neville, JD
TOP PLANTS
Courtesy: Daniel OConnor Photography
TOP PLANTS
December 2012
|
POWER www.powermag.com 27
The Alamosa Solar Project has a number
of interesting design features, according to
Freeman:
Each 70-foot by 50-foot tracker assembly
moves around a pivot point that is approxi-
mately 20 feet above site grade (Figure 1).
Approximately 16,000 cubic feet of con-
crete, requiring more than 1,800 batch
trucks, was used for site construction.
The facility has more than 28 miles of
grounding cable throughout the site and
more than 52 miles of underground elec-
tric cable for transferring power from the
field to the transmission grid.
The advanced Ethernet network on site
connects more than 2,500 unique devices,
utilizing over 20 miles of fiber optic cable
and 548 network switches.
Currently, the Alamosa Solar Project has a
site staff of five; an additional lens-cleaning
staff of typically four workers is under con-
tract and employed when needed.
Dealing with Project Obstacles
The biggest challenge was the project scale
itself, Freeman said. Each tracker assem-
bly contains 7,560 Fresnel lenses and multi-
junction solar cells. For the total project, this
equates to approximately 3.8 million of each
of these components.
An additional hurdle for the project was
the physical location. The high desert plateau
required the engineering designers to account
for extreme temperature variations (from 45F
to over 95F), a frost line of 42 inches below
the site grade, a relatively high water table, and
the presence of invasive rodents. Freeman said
that overcoming these challenges required
that the selection of materials and equipment
met the functional needs of the project while
also tolerating extreme conditions.
The project also had to take into account
strong seasonal winds that scour the San Luis
Valley floor, Freeman said. Winds have histori-
cally blown from the San Juan Mountains to
the west, across the valley floor, and up against
the Sangre de Cristo Mountains to the east. The
Great Sand Dunes National Park and Reserve is
along the eastern range and largely results from
the valley sediment being deposited there.
To protect the equipment from wind
damage, each tracker assembly has its own
anemometer to measure wind speed to en-
able the assemblies to be moved into a flat,
face-up, stowed position when winds are
over 28 mph, Freeman explained. Addition-
ally, a centralized control system provides
backup wind speed measurements from three
meteorological stations on site and will put
the entire field into stow position when wind
speeds exceed 30 mph.
The project encountered some challeng-
es related to obtaining state and Alamosa
County variances and permits. For example,
to obtain the necessary water rights for po-
table and lens-cleaning water, the project
team had to work closely with county con-
servancy officials to develop a program of
water augmentation for the San Luis Valley
groundwater system.
Another challenge was due to the fact that
the projects solar tracker assemblies have a
maximum height of over 50 feet, which ex-
ceeds county height limitations, Freeman said.
Once again the project team worked with the
county, through the state-delegated 1041 Permit
process, to successfully secure all needed per-
mits for construction, inclusive of a height vari-
ance to enable the project to move forward.
Securing Financial Backing
The Alamosa project will be vital to the
eventual commercialization of CPV technol-
ogy by representing the first utility-scale im-
plementation, Freeman said. The first hurdle
for the project team was to find financing.
Because the project is the first of its kind,
conventional financing was not available.
Traditional financial institutions required at
least two years of operating performance data
in order to adequately gauge the risk profile
of the project before they would offer financ-
ing terms for review.
The project team ultimately secured a low-
interest loan from the Federal Finance Bank
under the U.S. Department of Energys Loan
Guarantee Program. In order to meet commer-
cial operation deadlines, the project went into
construction well in advance of securing the
loan, which required significant upfront equity
from the project developer until it was refund-
ed from loan proceeds once financing finally
closed. Construction was completed in approx-
imately 12 months, and the facility successfully
achieved commercial operation in April.
A Model for Future Solar Energy
Projects
The ultimate success of the Alamosa Solar
Project may have a significant impact on the
financing of similar projects in the future. In
order for the conventional commercial lend-
ing community to get comfortable with risks
associated with innovative projects, an operat-
ing track record is needed. Freeman added that
the Alamosa Solar project is well on its way to
establishing such an operating track record.
By their very nature, pioneering projects
such as the Alamosa Solar Project often
encounter equipment supply, construction,
and operational obstacles. Each occurred at
some point during construction and startup
of the Alamosa project. It was imperative
to have quality ownership, engineering,
construction, and operational personnel in-
volved to ensure the projects ultimate suc-
cess, Freeman explained.
The combination of engineering talent at
Cogentrix with the complementary talent at
Stantec and Mortenson enabled the Alamosa
Solar Project to address all challenges and
become what is now the largest facility of
its type in the world, Freeman said. As a
result, it is the ideal role model for similar
projects going forward.
Angela Neville, JD is POWERs
senior editor.
1. Preparing for sunny days. The Alamosa Solar Project consists of 504 concentrating
photovoltaic solar trackers. A solar panel support column is shown with the drive assembly be-
ing positioned at the top. Each tracker has its own inverter that converts DC power output from
the solar cells into AC power. Courtesy: Daniel OConnor Photography
www.powermag.com POWER
|
December 2012 28
Coca-Cola/Mas Energy
Trigeneration Facility,
Atlanta, Georgia
Owner/operator: Mas Energy
By taking a waste product and converting it into a fuel source, the 6.5-MW Co-
ca-Cola/Mas Energy Facility became the first U.S. operational trigeneration proj-
ect fueled by landfill gas. Since March, the new system has provided electricity,
steam, and chilled water to the adjacent Coca-Cola Syrup Plant, satisfying most of
the plants energy requirements and reducing its long-term energy costs.
By Angela Neville, JD
I
ts the real thing. The Coca-Cola/Mas
Energy Trigeneration Facility in Atlanta
is a genuine renewable energy leader
that uses treated landfill gas as an energy
source for its operations. Using a trigenera-
tion or CCHP (combined cooling, heat, and
power) system, the new facility is projected
to generate at least 48 million kWh of on-
site renewable energy annually. The project
also provides Coca-Cola (the offtaker or
energy user) with the additional economic
benefit of leveling its energy costs over an
extended period of time.
Landfill gas from Republic Services
Hickory Ridge Landfill in nearby Conley,
Ga., is the primary fuel source for the trigen-
eration plant. We anticipate that the plant
will use landfill gas as its primary fuel source
for the life of the project, Jason Byars, vice
president of business & project development
at Mas Energy, told POWER in October.
The plant also was designed and installed
with the ability to blend natural gas or use
it as a backup fuel when landfill gas is inter-
rupted to ensure relatively constant fuel input
to the plant.
The new facility is gaining attention. For
example, the U.S. Environmental Protection
Agencys Green Power Partnership recently
recognized the Coca-Cola Co. as the third-
largest on-site green power generator in the
U.S., and the trigeneration facility was a key
factor in that ranking.
Operational Overview
The system achieved commercial operation
on March 31, 2012, after approximately 15
months of construction and related activi-
ties. This is the first trigen plant built at the
offtakers site. A significant challenge during
the construction phase was coordinating all
the construction activities so as not to inter-
fere with or interrupt the offtakers existing
operations. Coordination of tie-ins to existing
site utilities and the controls modifications
required to integrate new systems into the
existing schemes had to be done with careful
attention to detail, Byars said.
The trigeneration plant has three GE Jen-
bacher J616 reciprocating engine generators,
each rated at 2,175 kW for a gross output of
6,525 kW. The engines use selective catalytic
reduction (urea) and selective noncatalytic
reduction control technologies to mitigate the
plants total emissions and thereby keep them
below major source thresholds. Fuel gas con-
ditioning equipment (used at the landfill site)
was provided by Venture Engineering for
removal of siloxane (a chemical potentially
harmful to the engines and post-combustion
emissions control devices), as were polishing
skids. Unison Solutions provided the com-
pression and dehydration equipment. The si-
Courtesy: Mas Energy
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December 2012 30
loxane regeneration skid was purchased from
Abutec.
The engines exhaust into individual heat
recovery steam generators (HRSGs) that
can each produce up to 3,500 lb/hr of steam
at 125 psig, for a total rated steam output
of 10,500 lb/hr. The HRSGs have bypass
dampers that enable full electrical output to
be achieved even when the offtakers ther-
mal requirements are relatively low. When
in full steam-generation mode, the HRSGs
steam is dispatched to the offtakers facility,
where it is primarily used to drive a 1,065-
ton steam turbinedriven York YST MaxE
chiller. The steam can also be used to offset
steam production from the offtakers facility
boilers via a 125-to-15 psig reducing station.
The condensed steam (condensate) produced
from each point of use is sent to the facilitys
existing feedwater deaerator before being re-
turned to the HRSGs.
Byars explained that the project is unique
because it involves landfill treatment and
combustion at two different sites intercon-
nected via a dedicated 6-mile pipeline. He
said that this project configuration added
significant complexity to the scheme required
to automate, monitor, and control the sys-
tem. Approximately 2,200 scfm of landfill
gas is first processed at the landfill via dehy-
dration, compression, and siloxane removal
equipment (Figure 1). Then it is transported
to the offtakers facility via the pipeline oper-
ated and maintained by AGL Resources.
The trigeneration plants generators oper-
ate in parallel with the Georgia Power dis-
tribution grid. And because the project has
obtained Qualifying Facility status, the
offtaker is able sell any excess electricity
generated by the trigeneration plant and not
consumed by the offtakers facility back to
Georgia Power at avoided cost or better. As a
result, Georgia Power gets the benefit of in-
cluding some incremental renewable genera-
tion in their system fleet, Byars said.
Preparing Landfill Gas for Fuel Use
In order to protect the integrity of the post-
combustion environmental controls installed
at the offtakers site, it was necessary to de-
sign and install landfill gas conditioning and
cleaning systems at the landfill. Prior to de-
velopment of this project, all of the gas pro-
duced at the landfill (approximately 2,200
scfm) was combusted via an open flare. Now
it is delivered from the landfills collection
system to the treatment system at the land-
fill. The landfills existing flare has remained
in service and is available for use when op-
eration of the trigeneration plant is upset or
curtailed.
After it is collected in the landfill col-
lection system, the landfill gas is cooled in
a heat exchanger to prevent condensation in
the oil system. The gas is then compressed to
approximately 50 psig and cooled in a gas-
to-air heat exchanger. It then flows through
a glycol chiller and is cooled to 40F. Next, it
passes through a moisture knock-out pot and
reenters a regenerative heat exchanger, where
it is reheated to 80F. At this point, the landfill
gas passes to a siloxane removal skid.
The siloxane removal skid comprises two
trains of siloxane removal beds and carbon
polishers, each train capable of processing
100% of the landfill gas flow. Only one train
operates at any given time while the other side
is either in regeneration or standby mode. An
auxiliary flare was permitted and installed
to accommodate the siloxane removal skid
regeneration process. The siloxane removal
skid is generally in regeneration mode for six
hours each day, during which it regenerates
the off-line bed.
Byars explained that during regeneration,
a blower and electric heater mix approxi-
mately 1,000 scfm of heated ambient air with
a slipstream of approximately 120 scfm of
landfill gas, which flows in reverse through
the regenerating bed before being routed to
the auxiliary flare. The two siloxane removal
beds operate on an alternating 24-hour ad-
sorption/desorption cycle.
After being in the siloxane removal bed,
the gas then flows through a carbon polisher
that further removes trace levels of siloxane.
The siloxane removal skids outlet connects
to the inlet of the dedicated landfill gas pipe-
line, which transports the gas to the trigen-
eration plant site at the Coca-Cola facility.
Lining up Project Funding
Mas Energy used a combination of debt
and equity to fund construction of the proj-
ect. One related challenge was the sourcing
of debt for a relatively small project such as
this. Ultimately, project financing was pro-
vided via a bond issuance through the Fulton
County Development Authority, Byars said.
During the planning phase, Mas Energy
which develops, owns, and operates energy
systems around the worldspent several
weeks analyzing its air permitting options for
the trigeneration plant. From one perspective,
the permitting process could have taken sev-
eral months given that the new plant would
be a major source of air emissions and the
greater Atlanta region is a severe non-attain-
ment area for ozone. From another perspec-
tive, the project stood to benefit substantially
from the U.S. Treasurys Section 1603 grant
program as more fully described in the
American Recovery and Reinvestment Act of
2009, provided that it achieved commercial
operation prior to the end of 2011 (a deadline
since extended by an act of Congress).
To expedite the permitting process and
give the project the best chance of achieving
commercial operation prior to the deadline,
Mas Energy elected to install post-combus-
tion treatment at the plant and permit the
project as a synthetic minor source. By
working collaboratively with regulators, we
were able to shorten what could have been a
several months process to one that took ap-
proximately 100 days from the date of the air
permit application by Mas Energy to the date
of air permit issuance by the Georgia Envi-
ronmental Protection Division, Byars said.
Angela Neville, JD is POWERs
senior editor.
1. The big squeeze. The gas-conditioning skid dehumidifies and compresses the landfill
gas prior to removal of siloxanes. The treated landfill gas is then used as fuel at the Coca-Cola/
Mas Energy Trigeneration Facility. Courtesy: Mas Energy
Because
Experience
Matters
Since Bechtels founding in 1898 weve
measured success against our ability to
repeatedly exceed customers expectations
and deliver innovative solutions for unique
challenges. With over 65 years of experience in
the power industry, we are continuing to help
customers provide power for the 21st century.
We have an unrivaled standard for performance
in the industry, having developed a diversied
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power projects, no one offers greater teamwork,
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Bechtel.
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December 2012 32
T
his project has the ability to tackle
both energy security and water se-
curity, thus leaving behind a green
footprint for future generations, said Gujarat
Chief Minister Narendra Modi in April at the
dedication of the 214-MW Charanka Solar
Park, one of the solar parks that is part of the
Gujarat Solar Park group. The new Charanka
park is larger than the 200-MW Golmud Solar
Park in China, which previously had been clas-
sified as Asias largest solar energy facility.
In April, several Gujarat Solar Park fa-
cilities that were already operational and
had a combined total of 605 MW received
certificates of completion. In June, the proj-
ects solar parks reached a combined total of
689.8 MW. The entire group of solar parks
is predicted to avoid 8 million tons of carbon
dioxide emissions and save 900,000 tons of
natural gas annually, according to the Guja-
rat government.
Indias Electric Power Sector
With a population of approximately 1.2
billion (July 2012 estimate), India is the
second most populous nation in the world,
behind China. Indias electric power sector
had an installed capacity of 207.85 GW as
of September 2012, the worlds fifth larg-
est, according to a recent report issued by
the Central Electricity Authority, Ministry
of Power, Government of India. Captive
power plants (those used for in-house power
generation, typically by industrial entities)
generate an additional 31.5 GW. Thermal
power plants constitute 66% of the installed
capacity, hydroelectric about 19%, and the
rest is a combination of wind, small hydro,
biomass, waste-to-electricity, nuclear, and
solar. India generated 855 TWh of electric-
ity during the 20112012 fiscal year.
The worlds fourth-largest energy con-
sumer after the U.S., China, and Russia,
India currently suffers from a major elec-
tricity generation shortage. The Interna-
tional Energy Agency (IEA) estimates that
the country needs to invest at least $135
billion to provide its population with uni-
versal electrical access. In December 2011,
more than 300 million Indian citizens had
no access to electricity. More than one-third
of Indias rural population lacked electric-
ity, as did 6% of the urban population. Of
those who did have access to electricity, the
supply was often intermittent and unreli-
ablesometimes subject to blackouts such
as the massive grid collapses that occurred
in July. Fortunately, Gujarat, which actu-
ally enjoys an electricity surplus, was re-
inforced by the Western Grid and escaped
those summer blackouts.
At an energy summit held in India in
March, IEA Executive Director Maria van
der Hoeven said, Sufficient power provi-
sion is key to sustaining economic growth
and development. The rapid growth of
emerging economies like India therefore
require significant power demand increases.
According to our analysis, in India, electric-
ity demand is projected to more than triple
to over 3,200 TWh by 2035. This would im-
ply that over 650 GW of new capacity will
have to be built. The technologies and fuel
sources that India adopts as it adds this ad-
ditional capacity may significantly impact
global resource usage and have potentially
negative environmental effects, according to
the IEA.
Van der Hoeven made the following pre-
dictions for Indias electric power sector be-
tween 2012 and 2035:
Courtesy: IANS/Daily News
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POWER www.powermag.com 33
Natural gas is expected to be the second-
largest source of fuel for power genera-
tion, but still modest compared to coal.
Coal use in the power sector will almost
triple over the forecast period.
Nuclear power generation will grow al-
most 10-fold.
The most impressive increase will take
place with renewable energy sources as
their contribution increases 20-fold over
the projection period.
Achieving such growth rates will not be
easy, according to the IEA. Indeed, while
coal will remain Indias generation back-
bone during the whole period, coals ability
to keep pace with such enormous power de-
mand increases is uncertain. This is largely
due to logistical challenges and constraints
on domestic coal production and the rising
price of imported coal. Diversifying into gas
and other alternatives is therefore not mere-
ly a matter of protecting the environment
but also of promoting energy security.
Gujarats Policies Promoting
Solar Energy
India has solar irradiation that ranges from 4
to 7 kWh/square meter/day across the coun-
try, with western and southern regions hav-
ing higher insolation. (For comparison, the
average Phoenix, Ariz., insolation ranges
from 6 to 7 kWh/square meter/day during
the summer.) Located in Indias western
part, Gujarat is one of the most industrial-
ized Indian states. It has annual power gen-
eration capacity of more than 14,000 MW
with 2,000 MW of surplus power, according
to government sources. Its not surprising
that Gujarat, with its plentiful solar resourc-
es, is heavily promoting solar park develop-
ment (Figure 1).
As part of the national solar energy ini-
tiative, the Gujarat government launched its
Solar Power Policy in 2009. The state utility,
Gujarat Urja Vikas Nigam Ltd., entered into
long-term power purchase agreements with
84 solar power project investors to commis-
sion approximately 968.5 MW of generation
capacity by the end of 2013, with the possi-
bility of signing on additional companies in
the future. The solar parks are being placed
in sparsely populated flat areas in the north-
ern part of the state.
The projects range in size from 1 MW
to 40 MW. For example, the Charanka So-
lar Park consists of a group of 17 thin-film
photovoltaic (PV) power systems located
on a 4,900-acre site in Patan, a Gujarat dis-
trict. A total of 17 national and international
companies contributed power systems to the
grid-connected park. When fully built out
by the end of 2014, the park will host 500
MW of solar power systems. The Charanka
park, estimated to cost approximately $280
million, was built in 16 monthsfaster than
a conventional fossil-fueled plant.
The governmental development of solar
parks has at least two main advantages:
It streamlines the project development
timeline by letting government agencies
undertake land acquisition and neces-
sary permits.
It provides dedicated common infrastruc-
ture for setting up solar power generation
plants funded by individual companies.
This approach has promoted the accelerated
installation of private-sector solar power gen-
eration capacity and thereby cut many costs
that would be faced by stand-alone projects.
Common solar park infrastructure includes
site preparation and leveling, water availabil-
ity, access roads, and security services.
In parallel with the central governments
initiative, the Gujarat Electricity Regulatory
Commission announced a feed-in tariff to
mainstream solar power generation, which
will be applied to solar power generation
plants in the park. Gujarat Power Corp. Ltd.
is the agency that has been responsible for
developing the Gujarat Solar Park and leas-
ing land to project developers. Gujarat En-
ergy Transmission Corp. Ltd. is responsible
for developing the transmission capabilities
for the park. The Asian Development Bank
has provided some support for the project.
Renewable Energy Education
Initiatives
While we want to make Gujarat a solar hub,
we also want our youth to conduct pioneer-
ing research and provide effective energy so-
lutions for future generations, Modi said in
April at the Charanka Solar Park dedication
ceremony. In 2008, Pandit Deendayal Petro-
leum University, located in Gujarat, launched
its School of Solar Energy, which was a first-
of-its-kind training facility in India. The gov-
ernment also is actively supporting research
by Gujarat Energy Research & Management
Institute and other solar energy groups.
Will we be able to manage so many so-
lar power plants without having a skilled lo-
cal workforce? Absolutely not! Modi said.
Major training initiatives through industrial
training institutes (ITIs) will take research and
training in this field to another level. Six solar
photovoltaic ITI labs have been established
and students are already signing up to learn.
Sunny Forecast for Solar Energy
Under its Solar Power Policy, the state gov-
ernment has signed memoranda of under-
standing for future projects to be developed
in Anand, Banaskantha, Jamnangar, Juna-
gadh, Kutch, Porbandar, Rajkot, Surat, and
Surendranagar.
By 2013, India aims for solar power to
account for 3% of total national capacity,
according to Gujarat Solar Park sources. In
addition, the nation wants renewable sourc-
es of energy to rise from the current 6% of
all capacity to a whopping 15% by 2020.
Angela Neville, JD is POWERs
senior editor.
1. Going for a record. Known as one the most business-friendly states in India, Gujarat
has launched the Gujarat Solar Park project, which is destined to be worlds largest solar-pow-
ered generation installation when it is completed in 2013. The park provides dedicated common
infrastructure for PV-powered projects owned and operated by individual companies. Courtesy:
IANS/Daily News
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December 2012 34
Stillwater Solar-Geothermal
Hybrid Plant, Churchill County,
Nevada
Owner/operator: Enel Green Power North America
The Stillwater hybrid facility is the worlds first renewable energy project that
pairs geothermal powers baseload generation capacity with solar powers peak
capacity. Inaugurated in May, the 26-MW solar plant is integrated with the ad-
jacent 33-MW geothermal plant, which began operations in 2009, and provides
energy to run the geothermal plants auxiliary loads.
By Angela Neville, JD
C
ombining the best of two renewable
energy technologies, the Stillwater hy-
brid facility balances the continuous
generation capacity of geothermal energy
with the peak capacity of solar energy. The
new solar plants photovoltaic (PV) panels
cover 240 acres next to a geothermal plant in
Churchill County, Nevada.
The Stillwater geothermal project, which
received $40 million in tax support under the
American Recovery and Reinvestment Act of
2009, harnessed innovative technologies to add
solar energy to the facility and now provides
59 MW of combined capacity to power about
45,000 local homes. NV Energy has a contract
to buy all the power generated by the plant.
As the first of its kind in the world, this
project demonstrates how we can tap renew-
able energy sources to provide clean power
for American families and businesses and
deploy every available source of American
energy, Steven Chu, secretary of the U.S.
Department of Energy, said in May. Sup-
ported in part by the Recovery Act, the Fallon
facility is expanding domestic renewable en-
ergy sources and helping to build the infra-
structure we need to stay competitive in the
global race for clean energy technologies.
How Geothermal Power Works
Geothermal energy is the only nonhydro re-
newable energy source able to provide basel-
oad power because it relies on the continuous
flow of heat from underground water sources
rather than depending on the availability of
wind or sun. In many geothermal reservoirs,
however, the water temperatures are moderate
(below 400F) and not hot enough to produce
steam with the force needed to efficiently
turn a turbine. Nonetheless, such moderate
temperature reservoirs can generate electric-
ity using a binary system.
Francesco Venturini, Enel Green Power
North Americas (EGP NA) president and
CEO, told POWER in October about the Still-
water geothermal plants medium enthalpy
binary system. He explained that the facility
uses the system because of the moderate tem-
perature of the nearby geothermal reservoir.
The plants binary system uses two fluids: hot
water from underground wells heats isobutane
and causes it to flash into vapor, which then
turns the turbines to generate electricity.
In addition, the facility uses proprietary
technology that increases efficiency by mini-
mizing the parasitic loadenergy losses that
occur from operating the various pumps and
fans required in the power generation cycle.
The plant has a closed-loop system that con-
tinually replenishes the geothermal resource.
Once the geothermal fluid has passed through
the plant, it is pumped back into the ground.
Therefore, there are zero intentional emis-
sions from the process and virtually nothing
is emitted to the atmosphere.
Venturini added that his company has
strong expertise in the geothermal energy
sector. EGP NA is the first company in the
world to produce electricity from geothermal
sources dating back to 1904 in Larderello,
Italy. The company has over 700 MW of geo-
thermal capacity in full operation and uses in-
novative operational and drilling techniques
to optimize its projects output, he said.
An Electric Combination: Geother-
mal and Solar Technologies
Adding the solar component to the Stillwa-
Courtesy: Enel Green Power North America
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December 2012 36
ter facility was something that occurred to
EGP NA management after building the geo-
thermal component, Venturini said. He also
explained his companys goals related to de-
veloping new synergies between geothermal
and solar energy.
Having succeeded in proving the concept
in a commercial-scale application, EGP NA
Green Powers Stillwater Solar project paves
the way to address key drawbacks for both
geothermal and solar technologies: resource
risk/parasitic load and generation intermit-
tency, respectively, Venturini said. The geo-
thermal plant also provides auxiliary power to
the solar plant when there is no sunlight, thus
eliminating the need for backfeeding power
from the utility, according to Venturini.
Currently, a number of utilities use renew-
able energy sources like solar power during
hours of peak consumer demand and combine
it with a baseload coal or natural gas plant to
ensure a steady power supply. In contrast, the
Stillwater facility combines two renewable
energy technologies to produce electricity at
the same location and thereby increases the
generation of zero-emission electricity.
Combining geothermal and solar energy
at the Stillwater plant also makes it possible
to use the same infrastructure, further reduc-
ing environmental impacts. That integra-
tion includes the control system, electrical
protection and island mode capability, fire
detection/protection schemes, electrical in-
terconnection, and the use of a common op-
erations and maintenance staff.
It has to be said that since this geother-
mal-solar project is a first of its kind, it met
the regular challenges of everything new in
terms of combining two advanced technolo-
gies, as well as challenges of a regulatory and
administrative nature, Venturini said.
This innovative hybrid power plant dem-
onstrates that the strengths of these different
renewable technologies combine to create a
better whole. Together, they:
Enhance the thermal efficiency in the geo-
thermal unit when it is lowest, typically
during the hottest and sunniest times of
the day or year.
Stabilize production during the day, en-
abling a more load-following production
profile.
Reduce investment risk due to the uncertainty
of the geothermal resource and compensate
for geothermal reservoir temperature deple-
tion without reducing production.
Plant Profile
The solar power component at the Stillwa-
ter facility consists of more than 89,000
polycrystalline premium photovoltaic (PV)
CNPV-295P modules on fixed mounts
(Figure 1). They were manufactured by
CNPV Solar Power SA, an integrated man-
ufacturer of solar PV products. Las Vegas
based Bombard Renewable Energy was the
general contractor for the solar project.
The benefit of adding solar to the Stillwater
facilitys production capacity has been con-
firmed in generation measurements to date.
Average daily generation in the peak hours
is significantly enhanced by the PV system,
while the geothermal plant begins to reach
optimal generation levels when solar genera-
tion ramps down, Venturini explained.
From a source point of view, there were
no development difficulties, as the geother-
mal plant (operational since 2009) was al-
ready positioned in an area with good solar
irradiation levels, so EGP NA just had to
install the PV facility and connect it to the
grid, Venturini said. It also helped that Enel
Green Power was finishing construction of its
pilot project in Italy integrating a solar ther-
mal system to boost efficiency of a combined
cycle natural gas power plant.
EGP NA employs approximately 50 staff
members in the state of Nevada. The com-
pany has roughly 30 employees who operate
and maintain the Stillwater Solar Geothermal
Hybrid Plant and EGP NAs Salt Wells Geo-
thermal Plant (which also became operational
in Nevada in 2009).
Venturini noted that the projects success
derives from a number of factors:
The hard work and commitment of the en-
gineers and staff at EGP NA.
The collaboration with and support of NV
Energy, state and local government agen-
cies, and the local communitiesall of
which were essential in completing the
project.
Federal and state energy policies support-
ing renewable energy that were critical in
EGP NAs decision to commit to this suc-
cessful investment.
Looking Ahead
The Stillwater hybrid plant is already being
recognized as a trendsetter in the renewable
energy sector that will probably encourage
future hybrid projects. On June 28, 2012,
the Geothermal Energy Association (GEA)
recognized the Stillwater Solar-Geothermal
Hybrid Project for advancing geothermal
technology. The GEA singled out the Still-
water facility for being the first hybrid power
plant of its kind. The association pointed out
that this technology may help to allow fu-
ture projects that would otherwise have been
unfeasible as stand-alone geothermal or solar
projects to be more economically and tech-
nologically viable.
In his remarks at the dedication ceremony
for the Stillwater Solar Plant in May, Nevada
Governor Brian Sandoval praised EGP NA
for its innovation and leadership and looked
forward to future growth in the Nevada renew-
able energy sector. Clean energy is a key sec-
tor for Nevada. It provides energy from local
sources, drives innovation, and most impor-
tantly, brings high-quality jobs and economic
growth to the local communities. Enel Green
Powers first-of-a-kind solar geothermal hy-
brid project is a living example of these ben-
efits and I support the further growth of this
industry in Nevada, Sandoval said.
Angela Neville, JD is POWERs
senior editor.
1. Some like it hot. The Stillwater facility integrates 26 MW of photovoltaic solar generat-
ing capacity with 33 MW of baseload geothermal power. In the geothermal plants binary sys-
tem, hot water from underground wells heats isobutane and causes it to flash into vapor, which
then turns the turbines to generate electricity. Courtesy: Enel Green Power North America
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December 2012 38
Three Gorges Dam, Yangtze River,
Hubei Province, China
Owner/operator: China Yangtze Power Co., Ltd.
After nine years of construction, installation, and testing, the Three Gorges Dam
is now complete. On May 23, 2012, the last main generator finished its final test,
increasing the facilitys capacity to 22.5 GW and making it the worlds largest ca-
pacity hydroelectric power plant.
By Angela Neville, JD
I
ts fitting that the Three Gorges Dam
(TGD) achieved full commercial op-
eration in 2012, the Year of the Dragon,
based on the Chinese zodiac. The dragon sign
represents accelerated risk-taking and break-
ing through outmoded paradigms. Through
hard work and tenacity, the pioneering TGD
developers and their staff overcame many
obstacles to create an immense hydroelectric
facility. Since the TGD was started almost a
decade ago, it has set several world records in
hydropower construction and achieved a se-
ries of technology breakthroughs, thanks to
continuous scientific and technical advances.
Located in the Xilingxia Gorge area, one
of the three gorges of the Yangtze River, the
dam controls a drainage area of 1 million
square kilometers (km
2
), with an average an-
nual runoff of 451 billion cubic meters (m
3
).
The TGD is made of 14.86 million m
3
of
concrete, is the biggest structure of its type in
the world, and is visible to astronauts in the
International Space Station.
The Projects Construction History
As the legal entity in charge of the TGD,
the China Three Gorges Corp. (CTGC) has
had full responsibility for the TGDs financ-
ing, construction, and operation, according
to CTGC sources. The CTGC was set up
as a state-authorized investment institution,
which was allowed to use Chinese state
funding for the project. In September 2002,
the CTGC established the subsidiary China
Yangtze Power Co., Ltd. (CYPC), which
was assigned to manage both the TGD and
the Gezhouba hydropower plants. The $30
billion cost of the TGD project will be re-
paid by revenues received from the sale of
electricity.
On Dec. 14, 1994, TGD construction
formally started. On Nov. 8, 1997, the river
closure was completed as part of Phase 1.
In 1998, Phase II construction of the TGD
went in full swing, and six years later, on
June 1, 2003, the TGDs reservoir started
storing water. Next, on June 16, 2003, the
TGDs double-lane five-step shiplock was
put into service. Then on July 10, 2003, the
first 700-MW generator was connected to
the grid and began to generate electricity.
The last unit entered service in May 2011.
Facility Highlights
Now fully operational, the TGD has a total of
34 generators: 32 main generators, each with
a capacity of 700 MW, and two plant power
generators, each with capacity of 50 MW, for
a total capacity of 22.5 GW. Of those 32 main
generators, 14 are installed in the north side
of the dam, 12 in the south side, and the re-
maining six in the underground power plant
in a mountain south of the dam.
The first units were manufactured through
two joint ventures (JVs) followed by units
manufactured by Chinese companies based
on extensive technology transfer require-
ments. The first JV consists of Alstom, ABB
Group, Kvaerner (which supplied eight
units), and the Chinese company Harbin
Electric Machinery Co. Ltd. (HEC). The
other JV includes Voith, General Electric,
and Siemens (abbreviated as VGS and which
supplied six units) plus the Chinese company
Dongfang Electrical Machinery Co. Ltd. The
technology transfer agreements were signed
together with the equipment supply con-
tracts. For example, as part of their agree-
ment, HEC produced 14 units in all (eight
Courtesy: Le Grand Portage
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|
December 2012 40
on the projects left bank, four on right bank,
and two underground), with the final two
units produced almost completely in China.
CTGC later contracted with Alstom for the
supply of four additional units.
The TGD uses Francis turbines with a
diameter that is 9.7 m or 10.4 m (VGS de-
sign/Alstom design) and a rotation speed
of 75 revolutions per minute. The turbine
generators rated power is 778 MVA, with
a maximum of 840 MVA and a power fac-
tor of 0.9. Most of the TGDs generators
are water-cooled. Some newer ones are
air-cooled, which are simpler in design and
easier to maintain.
Several technology breakthroughs were
made during generator installations: auto-
matic welding on the large stator assembly,
lamination stacking of a large stator in the
field, welding and measurement of rotor
roundness, and controlling the roundness of
rotor rim and plate.
The speed of the units installation was
impressive. For example, in 2003, the proj-
ect team installed and put into operation six
700-MW units, which set a new world record
for yearly installation of large-size turbine
generators. Monitoring data showed that all
the units that had been put into operation
worked steadily and met the design require-
ment of various technical parameters.
During the annual dry season that occurs
from November to May, power output is lim-
ited by the rivers flow rate. On the flip side,
when there is enough water flow, power out-
put is limited by plant generating capacity.
The TGD reached its design-maximum res-
ervoir water level of 175 m for the first time
on Oct. 26, 2010, when generation capacity
of 84.7 TWh was realized.
By Aug. 16, 2011, the plant had gener-
ated approximately 500 TWh of electricity.
Now that the TGD is fully operational, an-
nual generation is projected to be more than
100 TWh. Currently, the facilitys electricity
is sent to Central China, East China, Guang-
dong, and Chongqing with a maximum trans-
mission range of 1,000 km. Nine provinces
and two cities consume power generated by
the TGD (Figure 1).
Originally, the TGD was intended to meet
10% of Chinas power needs. However, de-
mand has increased more quickly than the
Chinese government initially projected. For
example, the TGD supported only about
1.7% of the countrys electricity demand in
2011, when demand reached 4,692.8 TWh.
Environmental Effects
Compared to coal-fired power stations pro-
ducing the equivalent level of generation, the
TGD will avoid creating the following pollut-
ant amounts, according to CTGC sources:
100 million tons of carbon dioxide
Two million tons of sulfur dioxide
0.37 million tons of nitrogen oxide
Large quantities of wastewater and solid
waste such as coal ash
The TGD will improve Chinas air quality
by not creating contaminants that cause acid
rain and greenhouse effects in East and Cen-
tral China. In addition, hydropower saves the
energy needed to mine, wash, and transport
coal from northern China.
Despite such accomplishments, some crit-
ics assert that the huge hydroelectric facility
is having the following negative impacts on
the environment:
Wastewater collection increased. More
than one billion tons of wastewater are
released annually into the Yangtze River,
which in the past was moved downstream
before the river was dammed and the res-
ervoir was created. Now the water in the
reservoir appears stagnant and polluted.
Decrease in forest cover. The Three
Gorges, especially in the Yangtze Basin
upstream from the Three Gorges Dam,
currently has 10% forestation, down from
20% in the 1950s.
Loss of wildlife. The region provides habi-
tats for hundreds of freshwater and terres-
trial animal species. Some of the species
that have been negatively impacted by
the TGD include Chinese (Baiji) river
dolphins, Siberian cranes, and Yangtze
sturgeon. Freshwater fish are especially
affected by dams due to changes in the
water temperature and flow regime. Many
fish are injured in the turbine blades of
hydroelectric plants as well.
Increased erosion and sedimentation.
At current levels, 80% of the land in the
area is experiencing erosion, depositing
about 40 million tons of sediment into
the Yangtze River annually because the
flow is slower above the dam. Much of
the sediment will now settle there instead
of flowing downstream, and there will be
less sediment downstream.
Controlling Floods
The Three Gorges Dam project is designed
to adjust the Yangtze Rivers upstream flood,
which will ensure successful flood control of
the Jingjiang section, CTGC sources say. The
projects goal is to prevent 10-year floods
and control 100-year floods of the Yangtze
River. Even in the rare case of a 1,000-year
flood, mass damages or injuries can be pre-
vented, according to the CTGC.
At the same time, serious problems
such as environmental degradation and dis-
ease epidemics related to floods or flood
diversionwill also be avoided. Thus, the
project will protect 1.5 million hectares of
farmland and towns and 15 million people
from flood damage in the Jianghan Plain and
the Dongting Lake area.
Angela Neville, JD is POWERs
senior editor.
1. Dealing with a deluge. On July 24, 2012, flood water was released from the Three
Gorges Dam, the 22.5-GW hydropower project on the Yangtze River in central China. Because of
heavy rains in the upper reaches of the river, the facility experienced its largest flood peak during
2012 with a peak flow of 70,000 cubic meters of water per second. Courtesy: Xinhuanet
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December 2012 42
Walney Offshore Windfarms,
Irish Sea, UK
Owners/operator: DONG Energy and Partners/DONG Energy
Officially commissioned in February 2012, the two Walney
Offshore WindfarmsWalney 1 and Walney 2together have
102 wind turbines with a total capacity of 367.2 MW. With
their combined capacity, the windfarms qualify as one of the
worlds largest offshore wind energy facilities and provide
clean electricity to approximately 320,000 UK households.
By Angela Neville, JD
L
ong a seafaring nation, the United
Kingdom (UK) is now in the forefront
of nations embracing offshore wind
power. In fact, the scale of offshore wind
power currently being planned by the UK
renewable energy industry is larger than in
any other country.
When commissioned in February 2012,
the 367-MW Walney Offshore Windfarms
(Walney 1 and Walney 2) became the
worlds largest offshore wind energy instal-
lation. Then in September 2012, construc-
tion of the even larger 500-MW Greater
Gabbard Offshore Wind Farm off the Suf-
folk Coast was completed. Upping the ante,
the 630-MW London Array offshore wind
project is currently under construction.
Looking farther down the road, other UK
offshore wind farms in the pipeline will be
even larger; these include Dogger Bank at
9,000 MW, Norfolk Bank at 7,200 MW,
and Irish Sea at 4,200 MW.
Constructed in two phases during 2010
and 2011, the Walney Offshore Windfarms
are located approximately 15 kilometers (km)
off Walney Island in the Irish Sea. DONG
Energy (50.1%), Scottish and Southern En-
ergy (25.1%), and OPW (24.8%), a company
jointly owned by Dutch pension administrator
PGGM and Ampre Equity Fund (managed
by Triodos Investment Management), are be-
hind Walney (UK) Offshore Windfarms Ltd.
DONG Energy served as the lead partner in
the Walney Offshore Windfarms construc-
tion phase and is also the operator.
Construction Overview
The Walney facility was constructed accord-
ing to the multi-contract model, working in
close cooperation with all the contractors and
suppliers, Jens Hansen, project manager with
DONG Energy, told POWER in September.
The project also optimized the installation
time through parallel installation (Figure 1).
We installed the largest wind turbine foun-
dations ever madealmost 70 meters (m) long
and weighing more than 800 tonnes. In addi-
tion, our project was one of the first wind farms
to use the new Siemens 120-m rotor diameter
turbine with blade improvements, Hansen said.
The entire Walney facility has a combined to-
tal of 102 3.6-MW Siemens wind turbines.
The offshore logistics for Walney 2 was
a big challenge, but due to good planning
it was all done according to the plan, said
Hansen. He explained that by approaching
the Walney project via a multi-contracting
strategy, project managers were able to miti-
gate and handle risks and uncertainties quick-
ly. Consequently, project management had a
high awareness of the dangers and potential
upsides in the project and thereby increased
their ability to do parallel installation with
controlled risk exposure.
DONG Energy coordinated all the ac-
tivities in the multi-contracting project. A
Courtesy: DONG Energy
TOP PLANTS
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December 2012
|
POWER www.powermag.com 43
number of subcontractors performed the
following duties:
Seajacks from the UK installed the wind
turbines.
Geosea and Ballast Nedam handled the
foundation installation.
VSMC and Prysmian installed the cables.
Scaldis installed the offshore substation.
Tideway handled the scour protection.
Facility Operations
The Walney Offshore Windfarms are located
in the Irish Sea, which is characterized by
high tides and waves, and windy weather.
The difference between high tide and low
tide is approximately 8 m. The wind speed is
estimated to average approximately 9.3 m/s
at 80 m. Even though the wind farms cover
an area of roughly 73 km
2
, they are located
far enough from the coast that their visual
impact is minimal.
Each of the 102 turbines generates elec-
tricity at a voltage of 33 kV. Offshore sub-
stations collect electricity from the wind
turbines and step up the voltage to 132 kV
for the local grid. The Walney 1 offshore
substation is connected to the national grid
by a 44-km-long buried export cable at the
substation in Heysham, whereas the Wal-
ney 2 offshore substation is connected to
the national grid at Cleveleys near Black-
pool, via a 43-km-long buried export ca-
ble, Hansen explained.
The Operation and Maintenance (O&M)
Base in the new purpose-built premises at
Barrows Ramsden Docks consists of an
office for administration, welfare, and ca-
tering for personnel and a warehouse for
storing equipment for maintenance of the
offshore wind farms. Two new purpose-
built service vessels and a new service
pontoon are in place to enable the transport
of service technicians to and from the wind
farms. From the O&M Base, turbine opera-
tions can be monitored 24 hours a day and
a local crew of approximately 60 people
will ensure that the Walney Offshore Wind-
farms are in operation for the next 25 years,
according to Hansen.
The wind conditions are very good and
the area also has very good grid connection
possibilities; hence, we have other wind farms
in the area and therefore gain a certain syner-
gy, Hansen said. When we have more activ-
ities in the area, DONG Energy as a company
gains a better opportunity to work with the
local community (like we have done with the
Walney Fun Run) and to be an attractive em-
ployer for the skilled labor in the area.
Monitoring for Possible
Environmental Impacts
The marine environment and bird life in
and around the facility were carefully
studied before the wind farms construc-
tion was authorized. During the two years
of construction, additional work was done
to ensure that construction activities re-
mained within acceptable limits for noise
and other disturbances, according to Mike
Robson, senior environmental advisor on
the Walney facility team. In fact, as Hansen
explained, During the Walney Offshore
Windfarms construction, we were not al-
lowed to install the monopole foundation
during the period from February until April
7 due to the spawning season for the sole.
Wind farm personnel are now conducting
post-construction environmental surveys.
Now that the wind farms are completed,
a series of surveys will be carried out dur-
ing the next few years to keep an eye on any
possible impact the wind farms may have,
Robson said. Only minor impacts are ex-
pected on the seabed sediments and the
marine fauna, including fish and shellfish,
encountered in and around the wind farms.
Starting in late April 2012, survey ves-
sels began taking samples to study marine
organisms in and on the seabed, and a spe-
cially chartered fishing vessel is taking
trial catches of fish using a scientific beam
trawl. Also in 2012, a series of bird surveys
will be made from a boat to count birds in
and around the wind farms.
The surveys results will be presented
to scientific advisors at the Centre for
Environment, Fisheries, and Aquaculture
Science, an executive agency of the UKs
Department for Environment, Food, and
Rural Affairs. The surveys will help to
improve our knowledge of the sea and its
resources in the Walney Offshore Wind-
farms area, Robson said.
Powering the Future
With their projected annual production of
approximately 1,400 GWh, the Walney
Offshore Windfarms are set up to benefit
from the UK Renewables Obligation Cer-
tificate regime, which will create value for
the facility owners, explained Hansen.
He noted that the wind farms also ben-
efit the local economy: They will create
jobs and business opportunities. A lot of
persons have had direct and, maybe more
importantly, indirect benefits from the wind
farms construction activities and will also
benefit for many years to come from their
operations.
Currently, the UK offshore wind energy
sector appears to have the wind at its back.
In 2011, Renewable UK, a leading UK re-
newable energy association, conducted a
study of deployment trends that analyzed
the existing pipeline of future UK offshore
wind projects. The study projects that by
2016 there will be about 8 GW of installed
capacity and a total of approximately 18
GW by 2020.
In terms of its contribution to net UK
electricity production, offshore wind en-
ergy supplied around 1.5% in 2011. This
amount will grow to between 7% and 8%
by 2016 and to approximately 17% by
2020, according to Renewable UK.
Angela Neville, JD is POWERs
senior editor.
1. Uplifting work. During construction of the Walney Offshore Windfarms, which was
handled in two phasesWalney 1 and Walney 2crane barges, jack-up vessels, and tugs
worked out of ports in the East Irish Sea, primarily Barrow and Mostyn Harbors. Courtesy:
DONG Energy
www.powermag.com POWER
|
December 2012 44
RENEWABLES
Distributed Solar Challenges
Utilities, Markets, and Regulation
Electricity produced from solar energy is being added to the gridbefore and
after the meterin greater amounts each year. The uniqueness of this re-
source is pushing utilities, developers, users, and regulators to develop
new and innovative interconnection rules and to rewrite some old rules
that balance the costs and rewards among stakeholders.
By David Wagman
T
he amount of installed solar generating
capacity in the U.S. is almost laughably
small.
According to a report released in mid-Sep-
tember by the Solar Energy Industries Asso-
ciation (SEIA), the U.S. solar industry added
742 MW of new capacity in the second quarter
of 2012, its second-best quarter ever. Utility
installations hit 477 MW during the quarter.
And eight states posted utility solar installa-
tions of 10 MW or more: California, Arizona,
Nevada, Texas, Illinois, North Carolina, New
Mexico, and New Jersey. In total, the U.S. now
has 5,700 MW of installed solar capacity.
Remember, however, that the U.S. had
319,000 MW of installed coal capacity and
413,000 MW of natural gas capacity in 2011.
For many utilities, the 742 MW of solar capac-
ity added between April and June is less than a
single good-sized power plant. Solars growth
still may be exponential, but that growth is
from such a small number that it cant hold a
candle to the installed fossil base.
But in much the same way as a handful of
fleas can drive a dog mad, distributed forms
of generation in general are causing anxiety
for many big-dog utilities from their nose
to their tail. Voltage fluctuations, ramping
episodes, and unpredictable availability
and output are common challenges facing
system operators tasked with dispatching
distributed resources alongside traditional
forms of generation. Roof-mounted, cus-
tomer-owned solar also poses something of
an existential threat to incumbent utilities
by slicing away part of their load and a por-
tion of their revenue.
Companies such as SolarCity and Light-
house Solar operate on business models that
typically dont involve incumbent utilities;
but should a cloudy day cut a residential roof-
top solar systems output to zero, those same
utilities are expected to keep the lights on.
Faced with a reduction in load and revenues
caused in part by distributed solar, efforts are
under way in some places to rethink utility
business models to address problems such as
how best to compensate utilities for provid-
ing what amounts to a safety net to back up
growing amounts of distributed generation
(DG). And, given the power industrys his-
tory of regulation, reform of the regulatory
model also may be necessary to integrate still
more distributed generation into the grid.
For example, Georgia state legislators this
year let die a proposal that challenged Georgia
Powers monopoly on the sale of power to and
from utilities by allowing companies to lease
rooftop space for solar panels and then sell the
electricity to the property owner. Current law
allows power to be sold only to utilities, and
only utilities can sell to retail customers. The
bill is expected to be revived in 2013.
And in Texas, Pedernales Electric Coop-
erative finalized agreements in October for
two DG pilot programs with NRG SolarLife
and CommunitySun to bring additional solar
resources to members of one of the nations
largest co-ops. NRG SolarLife offers resi-
dential solar array leasing, and Communi-
tySun offers a SolarCondo concept in which
participants buy shares in a large-scale
solar facility. Pilot programs are still in de-
velopment; Pedernales plans to introduce the
SolarLife pilot early next year.
Some utilities say solar sucks and oth-
ers are constructive, said Angiolo Laviziano,
CEO of Mainstream Energy/REC Solar dur-
ing a Department of Energysponsored so-
lar conference in Denver last June. Culture
clash is one problem. Some solar companies
believe they are in business to change the
world, not simply generate electricity, Lavi-
ziano said. [Solar companies] dont under-
stand that utilities are not structured that way.
We show up and speak different languages.
Jared Schoch, managing director of utility
sales at SunEdison, said the solar industry gen-
erally lacks an understanding of most utilities
business models. Solar guys dont understand
that right now [solar energy] costs too much.
Two challenges for the solar industry are to
show that solar provides value for utility inves-
tors and that it can offer reliable service.
But Patrick Dinkel, vice president of Power
Marketing, Resource Planning and Acquisi-
tions for Arizona Public Service, told the DOE
conference that distributed solar photovoltaic
(PV) installations are now a part of his util-
itys generation portfolio. Although he saw no
legitimate long-term conflicts as a result of
integrating more PV into the utilitys system,
he said work still must be done when it comes
to utility business models and regulation.
Learning New Tricks
That notion was echoed by others in the in-
dustry. Often, technology is the smaller part
of the problem, said Karl Rbago in a recent
interview with POWER. Rbago, a consultant
and former Texas state utility regulator, DOE
official, and executive with Austin Energy,
said he agrees that although renewable inte-
gration issues have been debated for decades,
the topic remains timely. And indications are
that the flea-irritated electric industry dog
may be learning a few new tricks.
Those tricks include new approaches to
address operational, business, and regulatory
challenges posed by DG. Its worth starting
with a look at how Public Service Electric &
Gas (PSE&G) in New Jersey has coped op-
erationally with large amounts of distributed
solar generation resources.
New Jersey ranks medium in terms of so-
lar resource quality but high when it comes
to incentives and public policies aimed at
promoting solar generation and expanding
solar jobs in the state. Although the Beach
Boys may never write a song praising New
Jerseys sun, for the last couple of years the
state has ranked second only to California in
terms of new solar generation connections.
As recently as the first quarter of 2012, New
Jersey ranked first in the nation for new solar
December 2012
|
POWER www.powermag.com 45
RENEWABLES
connections, with projects brought online by
15 different developers, including PSE&G.
Indeed, since July 2009, PSE&G has in-
vested $515 million to develop around 80
MW of solar energy resource, spending the
equivalent of around $6,400/kW. That total
includes 40 MW of capacity installed on va-
cant lots and brownfield industrial sites and
40 MW of capacity from around 150,000 5
x 2.5-foot, 235-W panels attached to utility
poles across the companys service territory
(Figure 1). Finding a U.S. utility with more
distributed solar generation may be difficult.
But for all this distributed capacity, the ill
effects on operations are almost nil for the
11,000-MW, summer-peaking utility.
We are seeing no real impacts, said Bill
Labos, PSE&G director of asset reliability.
Currently, PSE&G has about 358 MW of so-
lar installed in its service territory, including
80 MW of utility-owned capacity; the rest
consists of customer- and developer-owned
capacity. Indeed, the utility expects little im-
pact on its system until as much as 500 MW
of solar are installed, a threshold the util-
ity could approach in the next several years
following its request to state regulators this
summer for permission to add another 137
MW of solar capacity.
One reason for PSE&Gs ease in adding so-
lar resourcesand a key reason why utilities
elsewhere may have integration problems
is that the utilitys distribution feeders have
enough stiffness to accommodate the volt-
age fluctuations common with an intermittent
solar resource. Labos said many of the utilitys
feeders are 3 to 5 miles long and stiff enough
to accommodate anywhere from 2 MW to 5
MW of distributed solar with little trouble.
The exceptions that prove the rule lie in
rural southern New Jersey. There, solar farms
larger than 5 MW are on feeder circuits that
average 7 miles in length. In some places,
high voltage fluctuationsthe bane of grid
operators elsewhere in the countryare
large enough that the utility is taking advan-
tage of advanced inverter technology, which
can absorb volt-amps reactive (VAR). Invert-
ers on the tail end of long feeders are set up to
absorb VARs, thereby balancing the current
flows and correcting the circuit voltage pro-
file. Inverters are relatively straightforward
1. Pole-mounted PV panels. Since
mid-2009, PSE&G has invested $515 million
to develop around 80 MW of solar energy
resource, spending about $6,400/kW. The
total includes 40 MW of capacity from some
150,000 5 x 2.5-foot, 235-W panels attached
to utility poles. Courtesy: PSE&G
2. Roof-top generation. Workers for
Lighthouse Solar install microcrystalline PV
modules on a residential rooftop last Decem-
ber. Projects such as these can present an ex-
istential challenge to incumbent utilities and
are sparking a rethinking of existing business
models. Source: Dennis Schroeder, National
Renewable Energy Laboratory
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December 2012
|
POWER www.powermag.com 47
RENEWABLES
these ramps can challenge system opera-
tors, particularly if down ramps occur as
demand increases, and vice versa. These
challenges can be intensified if the rest
of the bulk power system lacks sufficient
generating resources that can be dispatched
quickly, whether that takes the form of a
pumped hydro facility or a fast-start gas-
fired machine.
Aidan Tuohy, senior project engineer
with EPRI, told POWER that multiple is-
sues must be addressed to successfully in-
tegrate large amounts of distributed energy
resources.
First is the need for system flexibil-
ity as intermittent resources such as wind
and solar ramp up and down. Flexibility
to accommodate these fluctuations can be
accomplished by dispatching generation
resources such as combined cycle and com-
bustion turbine units, pumped hydro stor-
age resources, and even battery storage.
Second, forecasting tools are necessary
to help system operators anticipate the
amount of intermittent resource that may
be available. Although accurate day-ahead
forecasts can be difficult for solar and wind
resources, even an hours-ahead forecast can
help operators more efficiently utilize the
generation system. For example, the Elec-
tric Reliability Council of Texas (ERCOT),
among other balancing authorities, has inte-
grated forecasting methods into its market
operations, and accurate forecasting is prov-
ing important for Xcel Energys Colorado
operations, where more than 50% of over-
all generation has been provided by wind a
number of times.
Third, grid stability issues have grown
in importance over the past 20 years as
diminishing amounts of inertia from con-
ventional power plants have impeded
somewhat the grids ability to offer fre-
quency response. Tuohy speculated that the
grids frequency response ability has been
declining and could be due in part to mar-
ket design issues in which generators are
sometimes disincentivized from providing
frequency response services. The problem
may be exacerbated as inverter-based ener-
gy from solar and wind resources displaces
system inertia provided by conventional
power plants. Thats because while large
conventional generators spin at 60 Hz,
inverter-based power sources dont. While
wind can provide what Tuohy called emu-
lated inertia, the result is a decline in the
systems naturally occurring inertia, which
may be a factor in grid stability.
Fourth, because most distributed PV
systems are connected to the grid using
standards spelled out under IEEE 1547
guidelines to prevent islanding, it can be
difficult to control system ride-throughs
when voltages drop. Tuohy said efforts are
under way to reconcile IEEE standard with
bulk system needs.
Fifth, wind resources in particular can
increase conventional generator cycling,
which can have long-term effects on opera-
tions and maintenance costs, outages, and
lifetime efficiency.
Market Rules and Regulations
Operational issues are only one part of the
story. Its sometimes easy to forget just how
regulated and controlled the electric power
market is. Both state and federal regulators
guide power market functions through pol-
icy mandates and incentives. Deregulation
took hold in around half of the states during
its high water mark in the late 1990s and led
to a patchwork quilt of regulatory structures.
Public policy makerswhether elected or
appointedapply a sometimes bewildering
array of incentives, directives, and Band-
Aids to achieve a variety of goals.
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December 2012 48
RENEWABLES
Many policy actions in recent years have
focused on creating, supporting, and nur-
turing opportunities for renewable energy.
The table highlights policy initiatives un-
dertaken by the Federal Energy Regulatory
Commission (FERC) since the 1980s to
open transmission markets, cope with in-
termittent resources, and facilitate renew-
able energys integration into the grid.
Many federal and state policies seek to
remedy the fact that wind and solar projects
can be at an economic disadvantage with
conventional generation resources, at least
initially. In states where renewable resources
are valued as a matter of public policy, the
effort has been to pursue business and market
reforms intended to open market opportuni-
ties for renewable energy. Those efforts are
by no means simple.
Revising Net Metering
Take net metering, for example, which al-
lows solar system owners to roll their meters
backward as they generate electricity and sell
excess output into the grid. Solar generation
owners are paid retail rates for the electricity
they feed into the grid. But they also may end
up at the end of the month with a zero balance
on their utility bill. In other words, net meter-
ing can enable solar owners to avoid paying
the underlying cost of transmission and dis-
tribution that they themselves used to send
self-generated power to the grid. Not surpris-
ingly, many utilitiesand perhaps even a few
customersfind the arrangement inequitable.
Former Austin Energy executive Rbago
said that one flaw behind net metering is that it
is directly tied to consumption; its an incen-
tive not to conserve energy. Austin Energys
experience shows that many solar customers
respond by using more energy on the mistaken
assumption that their consumption is free
once a solar system is installed.
The Texas-based utility earlier this year
introduced what it hopes will be a fix to the
problem: a distributed PV value calculator
known as the Value of Solar rate. Beginning
this fall, solar owners in Austin will be billed
the same 1.8 cents to 11.4 cents per kWh that
non-solar customers are billed, plus the same
$10 monthly customer charge. Solar owners
also will be credited with 12.8 cents for every
kilowatt-hour they send to the utility. If the
rate works, it may ensure the utilitys ability
to recover the cost of providing ancillary and
partial requirements services to solar custom-
ers, enable those costs to be more equitably
spread among customers, and reassure solar
owners that they will continue to receive a fi-
nancial incentive for their investment.
Rethinking Dispatch Markets
Region-wide market reforms also are proving
critical to integrating large amounts of DG
into the generation mix. Both the Southwest
Power Pool and the California Independent
System Operator (CAISO) have proposed
creating an energy imbalance market (EIM)
in the Western Interconnect that would com-
press dispatch market intervals from 1 hour at
present to 5 minutes. The market would pay
generators for making power available on this
more rapid timetable. Creating an effective
EIM would require increasing the regions
footprint to include a larger number of gen-
erating units with the flexibility to respond
rapidly to changing loads and intermittent re-
sources. Putting such a market mechanism in
place would require significant upgrades so
that power producers could communicate with
a centralized dispatch authority, said Thomas
Veselka, a researcher with Argonne National
Laboratory, who is working on the initiative.
Moving to larger balancing areas for dis-
patch purposes means that even more re-
sources are available, lessening the overall
variability effects of an individual wind farm
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|
December 2012 50
RENEWABLES
or solar array, said Charlie Smith, execu-
tive director of the Utility Wind Integration
Group. Moving to this sort of model is not
cost-free, however, as transmission improve-
ments to tie together far-flung generating
units likely will be required. Transmission
is the critical issue, Smith said. You cant
have well-functioning markets with conges-
tion, which results from inadequate trans-
mission resources. Whats more, efforts to
move to a sub-hourly and even 5-minute mar-
ket will likely require enhanced communica-
tion capabilities between regional dispatch
authorities and generating resources.
CAISO views market rules as critical to de-
veloping products and services that incentivize
efforts to balance the bulk power system as re-
newable resources are added. The system in
California and across the entire industry is very
much in flux, said Mark Rothleder, executive
director of Market Analysis and Development
for CAISO. In an interview with POWER,
Rothleder outlined market mechanisms critical
to keeping Californias grid in balance.
First, CAISO introduced incentives intend-
ed to compensate entities that provide ramp-
ing services, a condition that Rothleder said
poses significant challenges for CAISO.
The idea is to allow resources to bid into the
market to provide both up and down ramping
services as loads and resources change.
Second, because CAISO expects too much
generation to be available at times, it set a bid
floor equal to $30. That negative price floor
has proven inadequate given that wind and
solar resources often operate with tax credits
and power purchase agreements that make it
economically rational for them to continue to
produce power even after prices go negative.
To correct that, CAISO wants the bid floor
reduced to $150 to incentivize a price-based
reduction in supply.
If the system is in an over-generating
condition and at a point where we still have
too much energy, we want an incentive for re-
newable resources to offer bids to back down
to the minimum, Rothleder said.
Revising Rule 21
Grid-balancing authorities and regional dis-
patch areas are not the only places where
reform is under way to cope with increasing
amounts of DG resources. State utility regu-
lators also play an important role.
For example, the California Public Utilities
Commission (CPUC) in September approved
a deal involving the states major utilities and
renewable energy advocates that is aimed at
streamlining the process for connecting DG
resources to the grid. The CPUCs action will
make it easier for small amounts of distrib-
uted resourcessuch as rooftop solar PV
systemsto connect. The agreement also
revises upward the amount of DG that can be
connected to a specific power line segment
without the need for supplemental studies.
The agreement revises the CPUCs 13-year-
old Rule 21, itself a landmark. Rule 21 set a
threshold for instances where the amount of
DG on a line section exceeds 15% of that
lines annual peak load. The so-called 15%
threshold was later adopted by FERC and by
most states as a model for developing inter-
connection rules. The CPUCs action revised
Californias standard to allow aggregate in-
terconnected DG capacity equal to 100% of
minimum load on a distribution line section.
The settlement agreement was filed with
the CPUC on March 16 and involved 14 par-
ties, including Pacific Gas and Electric Co.,
San Diego Gas & Electric Co., Southern Cali-
fornia Edison, Sierra Club, and the SEIA. The
SEIAs vice president of regulatory affairs,
Don Adamson, told POWER his organization
filed a motion in February with FERC (Docket
No. RM 12-10), urging it to replace the federal
15% threshold with a standard equal to 100%
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|
December 2012 52
RENEWABLES
of minimum daylight load. SEIA said that so-
lar developers believed for years that the 15%
screen for fast-track interconnection was more
restrictive than necessary to maintain distribu-
tion system safety and reliability. This view
was supported by a January 2012 report, titled
Updating Interconnection Screens for PV
System Integration, by the National Renew-
able Energy Laboratory, Sandia National Lab-
oratory, and EPRI. The report suggests that an
alternative fast-track screennamely 100%
of minimum daytime loadcan be used when
the 15% threshold is crossed.
SEIA said that should FERC adopt its pro-
posed revision, the amount of solar wholesale
DG capacity eligible for fast-track intercon-
nection would roughly double and make in-
terconnection faster and less costly for many
solar projects.
Three Models
Traditional cost-of-service regulation re-
mains a mainstay of public utility commis-
sions in states that retain full regulatory
authority over electric service. But that regu-
latory model may be impeding utilities from
meeting some of the challenges posed by
DG, said Ron Binz, a former Colorado pub-
lic utility regulator and consultant at work on
the Utilities 2020 project with funding from
the Energy Foundation. He said critical con-
cerns include the loss of load and revenue by
incumbent utilities as a result of DG, similar
to what Austin Energy faced. Utilities have
to decide in the face of some percentage of
profitable customers going away how to ad-
just to that, Binz said.
Three models are gaining attention as a
way to cope with the challenges posed by
DGs ascendency.
The first is a model based on efforts in the
United Kingdom to regulate utility prices
without considering the utilitys underlying
rate of return or profitability. By contrast,
the typical U.S. regulatory model seeks to
set prices that may be charged along with an
allowable rate of return. In the UK model,
regulators set a price ceiling and then allow
the utility to figure out how to maximize its
profitability. Binz said this model has the ad-
vantage of encouraging utilities to embrace
operating efficiencies and pursue business
decisions that improve the bottom line. Cus-
tomers benefit because the price they pay for
electricity cant rise above a certain ceiling.
The approach is intended to help utilities be
more entrepreneuriala potential benefit
when it comes to working with customers
with rooftop solar, for example. Both Nation-
al Grid and Mid-American Energy have ex-
perience with the UK model through various
business units, and Binz said their reaction so
far has been positive.
The second approach, known as the Iowa
Model, involves Mid-American and spanned
the years from 1995 to 2012. Under a regula-
tory experiment, the utility went 17 years with-
out changing the price of electricity (which
included no fuel clauses, no adjustment mech-
anisms, and no formal rate case). The model
set up a system in which Mid-American oper-
ated like a price-capped company. Prices re-
mained steady, but the utilitys earnings were
ignored by regulators. This approach relies on
the utility turning inward to generate income
growth andaccording to Binzresulted in
rates of return for the utility in the high teens.
Binz called the third model the Grand
Bargain and said that under this approach,
regulators tell the utility and intervenors
(everyone from industrial power users to
consumer advocacy groups) to work out a
multi-year deal that achieves specific goals.
From the outset, regulators specify that not
everyone needs to agree with the final bargain
for it to be approved. This approach takes a
lot more work than typically is done, Binz
said, but it can lead to a positive outcome for
most if not all of the involved parties.
Regulatory reform often requires statu-
tory changes by state legislatures. But Binz
said the three models he outlined can be em-
ployed by most regulatory authorities under
legal structures already in place.
Tackling Tough Issues
Distributed generationand distributed so-
lar in particularis making inroads into the
generation mix. Even if its total installed
capacity remains flea-like compared with
big dogs coal and natural gas, distributed
solars impact is magnified by the multiple
operational, business, and regulatory chal-
lenges it poses.
Though utilities such as PSE&G and Aus-
tin Energy have done a good job accepting
DG into their systems, market and regulatory
challenges remain to be solved in many parts
of the country, and efforts are under way
to tackle even the thorniest of those issues.
More difficult could be closing the cultural
gap that exists between incumbent utilities
and solar advocates. As Mainstream Energys
Laviziano noted, utilities and solar advocates
often speak different languages.
Many utilities continue to approach DG
warily, an understandable reaction given the size
of their infrastructure investment, their cautious
nature as engineering-based businesses, and
their responsibility to keep the lights on. They
seek concrete proof that the bulk generation and
distribution systems will remain intact. After all,
all utilities are from Missouri, said Rbago.
Their approach is show me first.
David Wagman is
executive editor of POWER.
CIRCLE 28 ON READER SERVICE CARD
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December2012 54
POWER IN CHINA
Renewable Energy Development
Thrives During Chinas 12th
Five-Year Plan
Chinas 12th Five-Year Plan calls for expanding the use of renewable energy in
all forms throughout the country. From solar and wind to biomass gas and
briquettes, China has a true all of the above renewable energy policy.
By Zeng Ming, L Chunquan, Ma Mingjuan, Peng Lilin, Yan Binjie, Li Na, and Xue Song, North China Electric Power
University, Beijing
R
enewable energy, in all its forms, is an
important part of Chinas sustainable
electricity system development. Accel-
erating the development and use of renewable
energy has become an effective and efficient
way for China to respond to the increasingly
serious problems of increasing energy supply
while minimizing environmental impact.
This article examines the renewable energy
portion of Chinas 12th Five-Year Plan, from
development to implementation over the pe-
riod 2011 to 2015 and provides an update on
renewable energy accomplishments made dur-
ing the 11th Five-Year Plan (20062010). For
each renewable technology, practical sugges-
tions are provided that would further strength-
en the plans goal of bringing electricity to all
while reducing Chinas use of fossil fuels.
Chinas Renewable Program
Renewable energy plays an important part in
Chinas overall energy plan. Its use has many
favorable outcomes, such as wide resource
distribution, high exploitation potential, re-
duced environmental impact, and sustainable
use. Chinas rapid economic and social de-
velopment has made energy demand growth,
resource depletion, and environment pollu-
tion increasingly serious. The development
and use of renewable energy has become an
important means for China to guarantee its
energy security and to strengthen environ-
mental protection. Therefore, accelerating
the development and use of renewable energy
is a necessary way for China to simultane-
ously address the serious problems of energy
supply and environmental protection.
The renewable energy goals set for the
12th Five-Year Plan are substantial, as was
discussed in an earlier article (Chinas 12th
Five-Year Plan Pushes Power Industry in New
Directions, January 2012, available in the
POWER archives at www.powermag.com).
Renewable energy development is key to
China achieving its goal of 11.4% of primary
energy consumption from non-fossil sources
in 2015 and 15% in 2020. Its also necessary
to speed up renewable energy policy changes
and to promote the sustainable development
of its renewable energy industry. The current
plan builds on the success of the 11th Five-
Year Plan, during which the 2005 Renewable
Energy Law was made effective, renewable
energy markets were established, renewable
resource evaluations were completed, and
many renewable projects began construction
(Table 1). Today, many renewable energy
technologies have been commercialized, and
the markets for their use are quickly expand-
ing. Chinas renewable energy industry has
now entered the next stage of development:
comprehensive, fast, and large scale.
Technology and Market Challenges
Renewable energy, in its many forms, is now
an important part of Chinas national energy
development strategy. However, significant
challenges remain before China can reach its
renewable energy goals.
Technical and economic problems of re-
newable energy development are still Chinas
most fundamental problems. In recent years,
renewable energy technology has improved
rapidly, but most renewable energy industries
Energy source
11th Five-Year
Plan (2005)
11th Five-Year Plan
target (end of 2010)
11th Five-Year
Plan (actual)
Average annual
growth (%)
Generation (GW)
Hydropower 117.93 190.00 216.06 13.0
Small hydropower 38.50 50.00 58.40 8.7
Wind power 1.26 10.00 31.00 89.7
Photovoltaic 0.07 0.30 0.80 62.8
Biomass 2.00 5.50 5.50 22.4
Gas supply
Biogas (10
9
m
3
) 80 190 140 31.8
Rural biogas users
(10
5
households )
1.8 4 4 17.3
Heating
Solar water heaters (105 m
2
) 8,000 15,000 16,800 16
Geothermal systems 200 400 460 18.1
Fuel (10
5
tons)
Ethanol 102 200 180 12
Biodiesel 5 20 50 58.5
Total utilization
(million tons of coal/year)
16,600 NA 28,600 11.5
NA = not applicable.
Table 1. Major indicators of renewable energy development during the
11th Five-Year Plan. Source: State Council (www.gov.cn)
DetailedDesignEPCCM
StudiesOwner&Bank
Engineering
UtilitiesIPPsIndustry
UniversitiesOEMs
Banks/Investors
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OwnersEngineerNowfora900MWCombined
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PrelimDesignNowfora1.2MGPDIndustrial
WastewaterDesalinationPlant
CompletedDesignandStartupofa300MW
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Banks/Investors
PROJECTS (New, Retrot & Modications):
BiomassSolar(Thermal&PV)Simple&CombinedCycle
WindFluidizedBed/PC/StokerBoilersBiofuelsMSW
GasiicationLandillGasPyrolysisPlantImprovements
AirPollutionControlCHP/CogenerationEnergySavings
Engine-GeneratorsFacilities/Buildings&Systems
FiveBiomassPowerplantsNowinDetailedDesign
OwnersEngineerNowfora900MWCombined
CycleRepoweringProject
PrelimDesignNowfora1.2MGPDIndustrial
WastewaterDesalinationPlant
CompletedDesignandStartupofa300MW
CombinedCycleRepoweringProject
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A Few Examples of Our Recent Experience
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CIRCLE 30 ON READER SERVICE CARD
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December2012 56
POWER IN CHINA
are still in a growth phase, except hydropower
and solar water heaters. The growing markets
have experienced uneven distribution of prod-
ucts and many manufacturing disruptions. The
cost of development and use of the products
also remains high. Renewable energy still lacks
competitiveness under current market circum-
stances, so it is necessary for China to rely on
policy support to sustain development.
Furthermore, management systems and
market mechanisms are having difficulty
adapting to full-scale development of renew-
able energy. The operational characteristics
of large, conventional energy resources are
much different than those of relatively small
and distributed renewable energy resources
now operating. Also, the effect of intermit-
tent operation of renewable energy sources
has become more apparent as the use of re-
newable sources grows. Consequently, China
has found it necessary to establish new power
management systems, market mechanisms,
and technical support systems to handle large
amounts of renewable electricity.
Additionally, China is working to develop
a system of basic research, technological in-
novation, and competitivenessalthough that
effort is still in process. A large gap remains
between China and developed countries when
it comes to key technologies for renewable
energy. However, China is constantly improv-
ing the training of those who will work in the
countrys renewable energy industry.
Renewable Goals During the 12th
Five-Year Plan
According to the 12th Five-Year Plan, renew-
able energy use of all forms will expand con-
siderably. In addition, the plan promotes the
fusion of renewable energy and conventional
energy systems, invests in technology inno-
vation and core technologies, and establishes
a strong, fully functioning renewable energy
industry (Table 2).
The measure chosen to track accomplish-
ments is equivalent tons standard coal usage
that is offset by renewables. For example, by
2015, annual utilization of renewable energy
resources is expected to reach 0.47 billion
tons standard coal, of which 0.4 billion tons
are commercialized renewable resources or
about 9.5% of Chinas energy consumption.
Renewable energy generation is expected
to reach over 20% of total generation by
2015. New installed renewable energy capac-
ity is planned to be 1,600 GW, of which 610
GW will be from conventional hydropower,
700 GW from wind power, and 75 GW from
biological mass-energy (biomass).
By 2015, annual renewable energy resourc-
es to replace fossil energy for heating and civil
fuels (fuels used to heat and/or power govern-
ment and other buildings) will be equivalent
to about 100 million tons standard coal. Ex-
pansion in the use of solar thermal energy,
promoting the direct use of medium- and
low-temperature geothermal energy and heat
pump technology, increasing the use of bio-
mass briquettes, expanding the use of biomass
combined heat and power generation, and
speeding up the development of biogas and
other biomass gases are all very important for
China to achieve its renewable energy goals.
China must expand its power grid hardware
and management systems to handle the power
produced by large-scale renewable projects.
While that work continues, the 12th Five-Year
Plan adds more, including the construction
of 30 new energy microgrid demonstration
projects, 100 new energy demonstration cit-
ies, and 200 green energy demonstration
counties (each discussed in more detail later
in this article). These projects will integrate
diverse renewable energy technologies, such
as distributed power generation and renewable
energy heating and fuel utilization. The target
penetration of distributed renewable energy in
rural areas is above 50%.
Large-scale renewable projects and the
policy systems required to support renewable
energy development remain a large part of the
renewable energy portion of the 12th Five-Year
Plan. In fact, the plan calls out eight specific
renewable energy categories for development.
Each is described in the following sections.
Hydropower Flourishes
By 2020, the total installed hydropower capacity
in China will reach 420 GW, with conventional
hydropower at 350 GW and pumped-storage
power stations at 70 GW, according to the Na-
tional Energy Administration.
The key goals for developing new hydropow-
er should include close government coordina-
tion to improve the well-being of those relocated
to make way for a new hydropower project, as
well as the stated goals of environment protec-
tion, local economic and social development,
and strengthening hydropower planning.
During the 12th Five-Year period, the total
installed capacity of all hydropower projects
is planned to increase by 160 GW, with 40
GW of new pumped-storage power stations.
Of that 160-GW increase, 74 GW will be new
hydropower installationsof which small hy-
dropower plants would provide 10 GW plus 13
GW of pumped-storage capacity. By 2015, total
installed hydropower capacity will reach 290
GW, 260 GW of which will be from conven-
Energy source
Installed
capacity (GW)
Annual
production (MWh)
Equivalant coal use
(million tons of coal/year)
Generation
Hydropower 260 910 29,580
Grid 100 190 6,180
Solar power 21 25 810
All biological mass-energy:
Agricultural and biomass energy 8 48 1,500
Methane power generation 2 12 370
Garbage power 3 18 560
Gas supply
Biogas user (10
5
households) 5,000 215 1,700
Industrial organic wastewater biogas 1,000 5 50
Heating and cooling:
Solar water heater (10
5
m
2
) 40,000 4,550
Solar cooker (10
5
sets) 200 NA
Geothermal systems
Heating and cooling (10
5
m
2
) 58,000 1,500
Hot water supply (10
5
sets) 120 NA
Fuel (10
5
tons)
Biomass fuel 1,000 500
Ethanol 400 350
Biodiesel 100 150
Total 47,800
NA = not applicable.
Table 2. Major renewable energy development is planned during the
12th Five-Year Plan. Significant reduction in the amounts of equivalent fossil fuels result.
Source: State Council
December2012
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POWER www.powermag.com 57
POWER IN CHINA
tional hydropower and 30 GW from pumped-
storage power stations. By then the installed
capacity of existing conventional hydropower
projects will account for 48% of national tech-
nically exploitable capacity (TEC), according
to the National Energy Administration.
By 2015, conventional hydropower capac-
ity installation in the western region alone
will reach 167 GW, accounting for 64% of
Chinas total installed capacity, with a devel-
opment level of 38% TEC. In central China,
conventional hydropower capacity installa-
tion will reach 59 GW, accounting for 23%
TEC, and in eastern China it will reach 34
GW, accounting for 13% TEC. At the same
time, the National Energy Administration
predicts the national installed capacity of
pumped-storage power stations will reach 40
GW, mainly distributed in eastern and cen-
tral parts of China, of which 20.7 GW will be
from eastern regions, 8 GW from the central
areas, and 1.3 GW from western areas.
River Basin Hydropower. The central
government must strengthen preliminary
work such as river hydropower planning
and continue to support the demonstration
of Longtou reservoirs construction in the
middle reaches of the Jinsha River, and con-
duct strategic planning for developing hydro-
power in southeastern Tibet. The government
CIRCLE 31 ON READER SERVICE CARD
1. Many hydro plants. This map shows the location of Chinas 13 largest hydropower
plants. Source: China Electricity Council (www.cec.org.cn)
Northeast China
18,690 MW
North-Mainstream of the
Yellow River 6,408 MW
Upstream of the Yellow River
20,032 MW
Yalong River
25,310 MW
Jinsa River
58,580 MW
Nu River
21,420 MW
Mainstream of the Lancang River
25,605 MW
Nanpan River-Honghe River
14,313 MW
Fujian-Zhejiang-
Jiangxi area
10,925 MW
Western Hunan
5,902 MW
Upstream of the
Yangtze River
33,197 MW
Dadu River
24,596 MW
Wu River
10,795 MW
www.powermag.com POWER
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December2012 58
POWER IN CHINA
should put priority on the Three Rivers
(Jinsha, Lancang, and Nujiang) and the basic
research work on the West-East electricity
transmission project. Priority should be given
to continuing hydropower planning work on
the Yalong River Up Reaches and Brahmapu-
tra River Lower Reaches and the completion of
hydropower planning for the Jinsha River Up
Reaches, Lancang River Up Reaches, Yellow
River Up Reaches, Brahmaputra River Middle
Reaches, Nujiang River and Tongtianhe River,
among others.
Large Hydropower. It is necessary to
accelerate the construction of large hydro-
power stations by concentrating on those
regions with abundant hydropower resources
and on better construction conditions, such
as the middle and lower reaches of the Jin-
sha River, Yalong River, and Dadu River; the
middle and lower reaches of Lancang River;
Yellow River Up Reaches; and Brahmaputra
River Middle Reachesamong others. The
government must continue to implement ca-
pacity enlargement and upgrade hydropower
resources in central and eastern regions.
The distribution of Chinas 13 largest hy-
dropower projects is shown in Figure 1.
Small Hydropower. The central govern-
ment must strengthen the comprehensive
management of small and medium-sized river
basin projects, promote hydropower capac-
ity enlargement and efficiency increases, and
improve the development and utilization of
small hydropower in poor areas with abundant
resources. By 2015, the construction of small
hydropower projects in large provinces worth
3 GW and small hydropower in five small
provinces worth 5 GW will be completed.
Pumped Storage. In accordance with
the principle of integrated planning, rational
distribution, the construction of pumped-
storage power stations will be accelerated
moderately. In regions where the proportion
of new energy (that is, non-hydro renewable)
systems is high, the government should con-
struct pumped-storage power stations to in-
crease the flexibility and reliability of power
system operation.
In eastern coastal areas that import most
of their electricity, the government should ra-
tionally arrange a number of pumped-storage
power stations to ensure the security and sta-
bility of the electrical network. Chinas ma-
jor hydropower stations and pumped-storage
projects under construction during the 12th
Five-Year Plan are shown in Tables 3 and 4.
Wind Power Increases
By 2015, the cumulative grid-connected
wind power capacity will reach 100 GW, and
the annual generated energy will surpass 190
billion kWh. Offshore wind power capacity
will reach 5 GW, according to the National
Development and Reform Commission. A
complete wind power equipment manufac-
turing industry that will compete in the in-
ternational market also will be formed. By
2020, the cumulative grid-connected wind
power capacity will reach 200 GW, and the
Major basins Major projects (selected)
Jinsha River Baihetan, Wudongde, Longpan, Liyuan, Ahai, Longkaikou, Ludila, Guanyinyan,Yebatan,
Lawa, Suwalong, Changbo, Xulong, and others
Lancang River Cege, Kagong, Rumei, Guxue, Gushui, Wunonglong, Heidi, Tuoba, Huangdeng, Dahuaq-
iao, Miaowei, Nuozhadu, Ganlanba, and others
Dadu River Shuangjiangkou, Jinchuan, Anning, Badi, Danba, Houziyan, Huangjinping, Yingliang-
bao, Zhentouba, Shaping, Angu, and others
Upper reaches of the
Yellow River Mentang, Ningmute, Maerdang, Cihaxia, Yangqu, Banduo, and others
Yalong River Lianghekou, Yagen, Mengdigo, Yangfanggou, Kala, and others
Nujiang River main-
stream Songta, Maji, Yabiluo, Liuku, Saige, and others
Middle reaches of the
Yarlung Zangbo River Dagu, Jiepi, Jiacha, and others
Other rivers Small South Sea of Yangtze River, Xunyang of Hanjiang River, Xinji, Xiaoxuan of Block-
ing River, Songhua River, Wujiang River White Horse, Red River Longtan 2, Palong-
zangbu Zhong Yu, and others
Table 3. Hydro plans. China will have started or will continue construction of many ma-
jor hydropower stations and pumped-storage projects during the 12th Five-Year Plan. Source:
China Electricity Council
Regional power grid Region Major projects Installed capacity (MW)
Northeast Power Grid Heilongjiang Huanggou 1,200
Jilin Dunhua 1,400
Liaoning Hengren 800
North China Power Grid
Hebei
Fengning 1 1,800
Fengning 2 1,800
Shandong Wendeng 1,800
Northwest Power Grid Ningxia Zhongning 600
Xinjiang Fukang 1,200
Gansu Sunan 1,200
Shanxi Zhenan 1,400
East China Power Grid
Jiangsu
Mashan 700
Jurong 1,350
Zhejiang
Ninghai 1,400
Tianhuangping 2 2,100
Anhui Jixi 1,800
Fujian Xiamen 1,400
Central China Power Grid
Henan
Tianchi 1,200
Wuyue 800
Chongqing Panlong 1,200
Hubei Shangjinshan 1,200
West Inner Mongolia Power Grid Inner Mongolia Xilinhot 800
Southern Power Grid
Guangdong
Shenzhen 1,200
Meizhou 1,200
Yangjiang 1,200
Hainan Qiongzhong 600
Total 31,350
Table 4. Pumped storage. China has many major pumped-storage projects under con-
struction during the 12th Five-Year Plan. Source: China Electricity Council
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www.powermag.com POWER
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December2012 60
POWER IN CHINA
annual generated energy will surpass 390 bil-
lion kWh. Offshore wind will reach 30 GW.
By 2020, wind power will have become an
essential part of Chinas power system.
The government should continue to pro-
mote the large-scale development of wind
power, although development must be equal-
ly split between centralized and decentralized
projects. Wind power resource distribution,
power transmission, and electricity consump-
tion must be carefully coordinated. At the
same time, it is necessary to optimize wind
power development and distribution, estab-
lish suitable dispatching and operating meth-
ods to improve utilization efficiency, enhance
the global competitiveness of equipment, and
improve the wind power service system. The
development pace of wind power will in-
crease during the 12th Five-Year Plan.
By 2015, several concentrated develop-
ment areas with a capacity of more than 5
GW will be completed, such as Jiuquan,
Zhangjiakou, Ulanqab, Xilin Gol, Tongliao,
Chifeng, and Baicheng. There will also be
a couple of concentrated development areas
with a capacity of more than 2 GW, such
as Chengde, Bayannur, Baotou, Xingan,
Matsubara, Tangshan, Minqin, Daqing, and
Qiqihar. Chinas eight planned wind power
sites with a capacity of more than 10 GW are
shown in Figure 2.
The central government should strengthen
the wind energy resource assessment of in-
land areas, except the Three-North region,
as well as development and construction in
those areas. It should also accelerate wind
power development in regions with richer
resources and better grid access conditions,
such as Shanxi, Liaoning, Ningxia, and Yun-
nan, among others, and encourage construct-
ing small and medium-sized wind power
projects connected to the grid, as local con-
ditions allow. This allows local wind energy
resources to be consumed locally, which re-
duces the new grid capacity needed.
Transformer substations with voltages
below 110 kV are widely distributed and
near load centers. The central government
will connect wind turbines with appropriate
capacity to the nearby grid but should also
explore the option of combining wind power
with other distributed energy sources to sat-
isfy local electricity needs.
The government should accelerate the re-
source assessment of offshore wind energy,
geological surveys, construction, and other
work preparations. It should also actively
coordinate the relationship between offshore
wind power construction and marine envi-
ronmental protection. Offshore wind power
should be focused on coastal provinces such
as Jiangsu, Shanghai, Hebei, Shandong,
Liaoning, Guangdong, Fujian, Zhejiang,
Guangxi, Hainan, among others. Overall
planning and construction should be sensi-
tive to local conditions. Also, the government
should explore the development of offshore
wind power demonstration projects in deep-
er waters or waters distant from shore. The
distribution of wind power development and
construction is shown in Table 5.
Solar Energy Spreads
By 2015, the annual utilization of solar energy
will be equal to 500,000 tons standard coal.
The installed capacity of solar power genera-
tion will reach 21 GW, of which 10 GW will
be from photovoltaic (PV) power plants, 1
GW from solar thermal power generation, and
10 GW from grid and off-grid distributed PV
Category
Development
region
New capacity
(GW)
2015 target
(GW)
2020 target
(GW)
The area of large-scale projects Hebei 7.2 11 16
Mengdong 4.2 8 20
Mengxi 6.7 13 38
Gansu 9.5 11 20
Xinjiang 9.0 10 20
Jilin 4.0 6 15
Jiangsu coast 4.5 6 10
Shandong coast 6.0 8 15
Heilongjiang 4.0 6 15
Subtotal 55.1 79 169
Other major development regions Shanxi 4.5 5 8
Liaoning 2.7 6 8
Ningxia 2.3 3 4
Other provinces 4.2 7 11
Subtotal 13.7 21 31
Total 68.8 100 200
Table 5. Rapidly rising wind. China has many very large wind projects under develop-
ment or under construction during the 12th Five-Year Plan. Source: National Development and
Reform Commission
2. Many large wind projects. China is planning eight wind power sites with a total
capacity of more than 10 GW that will be constructed by 2015. Source: National Development
and Reform Commission (www.sdpc.gov.cn)
Big wind power base
in Xinjiang, Hami
Big wind power base
in Gansu, Jiuquan
Big wind power base
in Mengdong
Big wind power
base in Jinlin
Big wind power
base in Shandong
Big wind power
base in Jiangsu
Big wind power
base in Hebei
Big wind power
base in Mengxi
December2012
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POWER www.powermag.com 61
POWER IN CHINA
systems (Table 6). The total cumulative area
used for solar thermal generation will be 400
million square meters. By 2020, the installed
capacity of solar power generation will reach
50 GW, and the total cumulative area for solar
thermal will be 800 million square meters, ac-
cording to the National Development and Re-
form Commission.
The government should begin solar ther-
mal power industrial demonstrations. The
government should also promote the diversi-
fied utilization of solar energy and encourage
construction of PV power plants in regions
with rich solar resources and excess land that
has no other use.
Solar energy plants (perhaps combined
with wind power plants) should be combined
with hydropower development to simplify
grid access, such as in Qinghai, Gansu, Xin-
jiang, and other regions.
Distributed PV. The government should
support the construction of distributed PV
power plants to solve electricity shortages in
remote areas. In addition, the central govern-
ment should speed up the use of solar wa-
ter heaters and expand their use in civil and
public buildings in urban and rural areas, and
promote the building of solar houses and use
of solar cookers in rural areas.
Distributed PV power systems in areas
with abundant solar resources could be con-
structed as a microgrid system with other
new energy supplies, such as biomass en-
ergy, and energy storage technologies. The
government should promote household PV
systems or small PV power stations in remote
areas without electricity or in power-shortage
areas. It also should encourage the use of
distributed PV power for communications,
transportation, and lighting.
Solar Thermal. The government should
construct demonstration projects of solar
thermal power generation and improve sys-
tem integration of high-temperature solar
collector tubes, condensers, and other key
technologies and equipment manufacturing
capacity. The government should choose
suitable locations in regions such as In-
ner Mongolia Erdos Heights, the flat desert
along the Yellow River, the Hexi Corridor in
Gansu Province, the Turpan Basin and Tarim
Basin region, Lhasa Tibet, Qinghai, Ningxia,
and similar locations.
Biomass Energy Multiplies
According to the National Development
and Reform Commission, by 2015, annual
biomass energy utilization in China will be
equivalent to 50 million tons of standard coal.
The installed capacity of biomass power will
reach 13 GW, annual biogas utilization will
be 22 billion cubic meters, 10 million tons of
biomass briquettes will be used, 350 million
to 400 million tons of biomass alcohol will
be used, and 1 million tons of biodiesel and
aviation biofuel will be used.
Various types of biomass resources should
be coordinated to maximize efficiency of use.
Based on local economic conditions, the best
biomass technology and market-oriented ap-
proaches to development should be selected.
Biomass technology used also should promote
rural economic development, improve farm-
ers income, and improve the environment.
In regions producing grain and cotton, the
government should optimize the distribu-
tion of the construction of biomass power
generation projects using crops, straw, food
processing residues, cane bagasse, and so
on as fuel. In major forested areas, logging
slash, bucking residues, processing residues,
tending thinning resources, and fast-growing
forest resources should be combined with
forestry ecological construction. The govern-
ment also should encourage biomass-fueled
poly-generation projects that can produce
gas, liquid fuels, chemical products, power
generation, and space heating.
Biomass Gas. The government should
take full advantage of rural straw, solid waste,
forestry residues, and livestock waste by ac-
tively promoting the construction of small-,
medium-, and large-scale biogas and bio-
mass gasification gas projects. It also should
encourage biomass gas (biogas) purification
and compression to commercialize the use of
biomass gas. By 2015, the number of users
supplied by biomass concentrated gas is tar-
geted to reach 300 million.
Biomass Briquettes. Central heating us-
ing biomass briquettes should be promoted in
urban areas and biomass briquettes should be
widely used in rural areas as a clean cooking
and heating fuel. A system involving biomass
briquettes production supply, transportation,
storage, and use should be established in both
urban and rural areas.
Biomass Liquid Fuel. The central gov-
ernment should develop marginal land, such
as saline land, grassland, and mountain
slopes, to construct non-grain biomass re-
source supply bases followed by develop-
ment of bio-liquid fuel.
Rural Renewable Energy Develops
By 2015, the number of national biogas users
will be up to 50 million, and more than 50%
of suitable farmers will get access to biogas.
Meanwhile, the coverage area for solar water
heater use in rural areas will be more than
80 million square meters, and the number of
solar cookers will be up to 2 million units.
Most importantly, everyone will have access
to electricity.
The government should be focused on
meeting the unique energy needs of rural
areas for cooking, heating, production, and
essential electricity uses. Rural renewable
energy development is an important part of
new rural construction.
Electricity for Rural Areas. The gov-
ernment should promote the construction of
power generation centers in regions without
electricity: Inner Mongolia, Yunnan, Sichuan,
Tibet, Qinghai, Xinjiang, and other provinc-
es (or autonomous regions). In remote areas
where the grid is difficult to extend in a short
amount of time, it is urgent to take advantage
of local renewable energy resources, accord-
ing to local conditions, such as by construct-
ing small hydropower, small wind power
generation, solar PV systems, and so on. In
this way, all administrative villages will have
access to electricity and the problem of elec-
tricity shortage will be solved.
Rural Clean Energy Development. For-
estry residues, livestock waste, rural garbage,
Power
generation
category
Power generation
(MW)
Key areas of work 2015 2020
Solar power plants
(total)
1,100 2,300 Photovoltaic (PV) and solar thermal power systems.
PV power
facilities
1,000 2,000 Construct solar power generation facilities in Qinghai, Gansu, Xin-
jiang and other regions to explore the complementary operation of
solar power stations with the hydropower and wind power.
Solar thermal
power facilities
100 300 Carry out solar thermal power industrial demonstrations in the re-
gions with rich solar resource, water resource, and available land.
Distributed PV
power
1,000 2,700 Construct grid-connected PV power systems in roof concentrated
areas such as the industrial park, Economic Development Zone,
large public facilities. Solve power shortage in Tibet, Qinghai,
Gansu, Shaanxi, Xinjiang, Yunnan, Sichuan, and other remote ar-
eas and islands. Expand applications in city lighting engineering.
Total 2,100 5,000
Table 6. Solar systems. Solar power systems of all types will greatly expand during
Chinas 12th Five-Year Plan. Source: China Electricity Council
www.powermag.com POWER
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December2012 62
POWER IN CHINA
and other renewable energy resources should
be used, according to local conditions, to
construct household biogas, small and medi-
um-sized biogas plants, and larger biomass
gasification projects. The central govern-
ment should promote biomass briquettes to
provide clean biomass fuels for farmers and
advance clean energy consumption in rural
households for cooking and heating.
Geothermal Energy Gains
The National Development and Reform
Commission predicts that by 2015, the total
amount of various types of geothermal ener-
gy development will reach 100 MW and uti-
lization will amount to the equivalent of 15
million tons standard coal. Buildings heated
and cooled using shallow geothermal energy
(heat pump technology) will amount to 500
million square meters.
The government should accelerate the
geothermal resources survey, strengthen the
planning and management of geothermal de-
velopment, and increase the amount of geo-
thermal energy development and utilization.
The direct use of geothermal energy should
be encouraged, particularly the development
of shallow geothermal energy used in build-
ing heating and cooling.
Geothermal Power Generation. The
government should construct several mega-
watt-class geothermal power stations along
the Qinghai-Tibet Railway in southwestern
Yunnan and other high-temperature resource
regions to provide power to meet the needs
of western development. Small and medium-
sized distributed geothermal power genera-
tion projects should be developed along the
eastern coast and the northern piedmonts of
Tianshan and other medium- and low-tem-
perature resource regions.
Shallow Geothermal Energy Use.
The central government should encour-
age the accelerated development of shallow
geothermal energy heating in the northeast,
northwest, and other extremely cold regions.
Shallow geothermal energy heating and
cooling should be encouraged in hot summer
and cold winter regions, such as the Huang-
Huai-Hai River Basin, Fen River Basin, and
Weihe Basin; middle and lower reaches of
the Yangtze River, Chengdu, and Chongqing;
and regions such as Guangdong, Guangxi,
southeastern Fujian and Hainan, as well as
the Yunnan-Guizhou Plateau.
Marine Energy Industry Launches
The government should actively carry out the
construction of marine energy demonstration
projects, promote the technical progress of
marine energy use, and invest in improve-
ments to the marine energy equipment indus-
try. These improvements are required for the
marine energy industry to grow.
The government should construct inde-
pendent demonstration power stations near
islands with electricity demand, where there
are rich marine energy resources, and locate
them near where offshore wind projects are
planned to reduce electricity transmission
problems. The government also should invest
in energy storage technologies to solve the
electricity supply problems of some islands
with power shortages.
Tidal energy technology and equipment
is available. Therefore, one or two 10-MW-
class tidal power stations should be installed
in qualified areas, as well as several tidal cur-
rent energy grid-connected demonstration
power stations. By 2015, various types of
marine energy power plants with a total ca-
pacity of 50 MW could be completed, laying
the foundation for future development.
Demonstration Projects Required
Some technologies are in the early develop-
ment stage and are deserving of further full-
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CIRCLE 33 ON READER SERVICE CARD
December2012
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POWER www.powermag.com 63
POWER IN CHINA
scale testing. The following are suggestions
about which technologies should be given
field trials.
Renewable Demonstration Counties.
By 2015, 200 green energy demonstration
counties and 1,000 solar model villages
should be completed. In regions with rich
renewable energy resources, the central gov-
ernment should establish renewable energy
demonstration counties, where full-scale
renewable technologies of all types work
together. In addition, the government should
support the development of small and me-
dium-sized renewable energy facilities for
small towns to meet their specific electricity,
gas, heating, and other energy needs.
New Energy Model City. By 2015, 100
new energy demonstration cities and 1,000
new energy demonstration parks should be
completed. The government should support
the promotion of the comprehensive applica-
tion of solar energy, biomass, geothermal,
and other new energy technologies in cities
and industrial parks. The government should
also accelerate the applications of renewable
energy in buildings, form new energy utiliza-
tion areas, and replace coal-fired and other
old technology energy systems.
The program should be focused on pub-
lic institutions, schools, hospitals, hotels,
concentrated residential areas, solar water
heating systems, distributed PV power gen-
eration, ground source heat pump technol-
ogy, and biomass briquette use. In addition,
the government should support carrying out
a wide range of new energy technology dem-
onstrations as part of this new construction
and renovation of various industrial parks, to
meet electricity, heating, cooling, and other
energy needs.
New Energy Microgrid Demonstration
Projects. By 2015, 30 new energy microgrid
demonstration projects should be completed,
supported by smart grid and energy storage
technologies in which the new energy tech-
nologies discussed in previous sections of
this article play an important role.
Policy Outlook
The following policies and measures should
be taken during the 12th Five-Year Plan pe-
riod in order to fully meet these technology
development and construction tasks and to
meet the target of a fully developed renew-
able energy industry:
Develop an appraisal system for renew-
able energy development. In accordance
with the requirements established by the
Renewable Energy Law, a comprehensive
project appraisal system must be devel-
oped that will help guide the development
of future renewable energy projects. The
criteria should consider the regions re-
newable energy needs, as each region is
very different in the types of renewable
energy available, distribution infrastruc-
ture, and energy use patterns.
Establish a quota system for renewable
energy power. The demand for non-
hydro renewable energy will require each
province, region, and municipality to set
power development, electricity market,
grid structure, and power transmission
system goals. Governments at all levels
will assume administrative management
responsibility for the task, while power
grid enterprises will remain responsible
for their systems in their service areas.
Introduce renewable energy subsidies and
financial and tax policies. China needs to
further improve renewable energy subsi-
dies and its financial and tax policies to
support renewable energy development.
For example, the government should im-
plement a credit policy that will promote
clean energy development and improve
the loan support mechanism for small-
scale renewable energy projects.
Final Thoughts
Generally speaking, there are more advan-
tages than disadvantages to the environment
and society with the development and utiliza-
tion of renewable energy. China places con-
siderable importance on its renewable energy
development program, which also benefits
the countrys sustainable development and
environment-friendly policies. Simultane-
ously, renewable energy is an important part
of an emerging strategic industry, and pro-
moting renewable energy development will
bring comprehensive economic and social
benefits.
Zeng Ming, L Chunquan
(mamingjuan2009@163.com), Ma Mingjuan,
Peng Lilin, Yan Binjie, Li Na, and Xue Song,
North China Electric Power University, Bei-
jing, China. The Energy Foundation supported
the work described in this article
(G-1006-12630).
By 2015, 100 new energy demonstration
cities and 1,000 new energy demonstra-
tion parks should be completed.
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December 2012 66
THE FUTURE OF NATURAL GAS
Is Shale Gas Shallow or the
Real Deal?
The de facto U.S. energy policy is to burn more gas, much of it produced us-
ing fracking technology. Huge volumes of low-priced natural gas have
caused coal plant shutdowns, slowed renewable development, and un-
dercut new nuclear plant development. Using more gas has also sent the
nations carbon dioxide emissions into a downward spiral. Is the glut of
natural gas too good to be true?
By Kennedy Maize
N
ow that an abundance of natural gas
has become a seeming fact of everyday
life, its time for the contrarian view to
appear. Is the optimism over shale gas cock-
eyed and bound for a crash? Or is the methane
ebullience an accurate reflection of new en-
ergy realities? There are no simple answers.
Recently, an arcane dispute among geolo-
gists became public, revealing an important
rift over views about the future of natural gas.
The geological flap raises questions about just
how durable the shale gas boom will be and
whether a long regime of low-cost gas can
continue to fuel a dash to gas among electric
generators that is clobbering coal, wrecking
renewables, and negating the long-awaited
nuclear renaissance. Unlike the earlier dis-
putes over environmental issues related to hy-
draulic fracturing or fracking, which largely
proved marginal and manageable, the current
kerfuffle is over the performance of the wells
themselves in delivering natural gas. Experi-
enced geologists are wrangling over the rate
at which wells in shale formations, created by
horizontal drilling and fracking the gas-rich
strata, run out of methane.
Some experts argue that shale gas wells
decline rapidly, producing copious amounts of
natural gas early and then quickly drying out,
suggesting that the current glut of gas will de-
cline just as steeply as it rose (Figure 1). Oth-
ers respond that shale gas wells decline rates
are nothing special and that fears of the gas
running out are overblown. There is so much
gas available, they argue, and the horizontal
wells deliver for so long, that low-cost fossil
fuel is guaranteed far into the future.
Gas Skeptic
One major voice on the skeptical side of the
emerging debate is that of Arthur Berman, a
Houston-based petroleum geologist who is
also a leading figure in the Peak Oil posse,
a group of analysts who argue the U.S. has
reached the bottom of its crude oil bucket and
the rest of the world will soon follow. Ber-
man writes frequently for The Oil Drum, a
leading peak oil publication. Looking at U.S.
shale gas, Berman says he sees a precipitous
production decline coming as the need to
drill new gas wells to replace rapidly declin-
ing production vastly outpaces the capacity
of industry to deploy the rigs needed to drill.
In an interview with POWER, Berman ar-
gued that the boom in drilling shale gas wells
has obscured a long-term decline in conven-
tional gas supply. But a coming rapid decline in
shale production, he said, will soon reveal the
overall limits to the gas boom, and volatility and
upward pressure could return to natural gas pric-
es. Its not a problem for today or tomorrow,
Berman said, but it is coming. Once we work
through the current oversupply, if capital is not
forthcoming, prices will spike. The gas supply
bubble will burst.
Because of the current gas glut, with long
prices in the range of $3 per million cubic feet
(mcf), drilling shale gas wells has tanked, noted
Berman. Chesapeake Energy, the most bullish of
the shale gas players, is selling assets and shift-
ing rigs to drilling for oil because the company
just cant make money on $3 gas. I can see a
time not too many months away when we could
see gas supply in rather serious decline, Ber-
1. Steep well decline rates. Average production profiles for shale gas wells in major
U.S. shale plays by years of operation. Source: Fig 54 EIA Annual Energy Outlook 2012, released
June 25, 2012
M
i
l
l
i
o
n
c
u
b
i
c
f
e
e
t
p
e
r
y
e
a
r
1,800
1,600
1,400
1,200
1,000
800
600
400
200
0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Years
Marcellus Haynesville Eagle Ford Fayetteville Woodford
December 2012
|
POWER www.powermag.com 67
THE FUTURE OF NATURAL GAS
man said, noting that there is plenty of gas, but
it takes a long time to shift momentum back to
gas drilling. At a 2010 meeting in Washington,
as low gas prices were resulting in a decline in
new drilling, Berman commented, Shale plays
are marginally commercial at best.
Greatly complicating the supply equation,
said Berman, is the nature of shale gas wells.
Shale wells decline 30 to 40% per year, he
said. Conventional wells decline 20 to 25%.
What most dont grasp is how many wells it
takes just to keep supply flat.
In the Barnett Shale in Texas, where Berman
is most familiar with the geology, he calculates
that the annual decline in the gas resource is 1.7
bcf/day. In order to add to the net Barnett pro-
duction, Berman says, companies would have
to drill 3,880 wells, at a cost of $12 billion.
We are setting ourselves up for a poten-
tial reduction in supply and price will go up,
said Berman. I dont know how much it will
go up, and there is a check-and-balance with
coal. There will be gas-coal switching if pric-
es do go much higher than now.
Meet Dr. Marcellus
Nobody knows the Marcellus Shalepoten-
tially the second-largest natural gas field in
the worldbetter than Terry Engelder (Fig-
ure 2). The energetic Penn State geology
professor has been studying the massive
black shale formation that stretches across
Appalachia for 35 years.
As a young structural geologist (Texas
A&M PhD 73) working at Columbia Uni-
versitys Lamont-Doherty Geological Ob-
servatory in New York in the mid-1970s,
Engelder came to the attention of the U.S.
Nuclear Regulatory Commission (NRC). The
nuclear agency was looking at earthquake
risks at U.S. atomic power plants. With an
NRC grant in hand, Engelder began studying
earth stresses and fracture development in
rock strata in the Mid-Atlantic region.
In 1978, Engelder recalled in an inter-
view with POWER, he organized a field ex-
pedition to the Indian Point reactor site,
some 40 miles north of New York City on
the Hudson River. Among the rock units we
studied were the black shales of the Appa-
lachian basin, he said, because they were
so beautifully fractured. In the mid-1980s,
having returned to his undergraduate alma
mater, Penn State (BS 68), Engelder began
detailed examinations of Devonian shales,
publishing a number of important papers
on stresses and fractures in shale forma-
tions, including natural hydraulic fractures.
In the 1990s, Engelder said, he realized
that the natural fractures he was seeing in
the dense Devonian black shales (Figure
3) were driven by very high pressures from
methane during the formation of the sedi-
mentary rocks. Thats what makes the Mar-
cellus what it is, he said. Engelder added
that he soon was following what petroleum
pioneer George Mitchell was doing in the
Barnett Shale in Texas. Engelder also fol-
lowed the work of Range Resources, a Texas
oil and gas company with Pennsylvania
connections, which drilled its first Marcel-
lus well in 2004. By 2007, Range Resources
combined two known technologies, hydrau-
lic fracturing and horizontal drilling, in the
Marcellus and got results that tracked what
Devon Energy, which had acquired George
Mitchells company, was getting in the Bar-
nett formation in Texas.
In the fall of 2007, Engelder recalled,
I asked myself, Just how much gas is there,
anyway? He worked with Gary Lash, then a
geoscientist at the State University of New
York Fredonia and now at Lehigh Univer-
sity, to make the first estimate of the gas
resources in the Marcellus Shale. It was
almost an out-of-body experience to realize
that there may be something here that was
a real game changer in terms of Americas
energy portfolio, Engelder told the Pitts-
burgh Post-Gazette in an article last year.
In January 2008, Penn State put out
a press release disclosing the estimates
of Engelder and Lash. The numbers were
mind-boggling: conservatively at 168
trillion cubic feet (tcf) and optimistically
as high as 516 tcf. The U.S. could recover
50 tcf a year from just the Marcellus for-
mation, compared to total U.S. gas pro-
duction of 30 tcf.
The shale gas boom was on. A sign of
how the shale revolution gripped the U.S.
was the April 11, 2011, cover of Time mag-
azine, featuring a photo of a shard of Mar-
cellus shale and a headline reading This
Rock Could Power the World. One of Terry
Engelders prized possessions is a copy of
that issue, with the cover autographed by
some of the giants in the shale gas boom
(Figure 4). In its December 2011 issue, For-
eign Policy magazine named Engelder, Lash,
and Mitchell among its top 100 global
thinkers. The citation read, For upending
the geopolitics of energy.
2. Terry Engelder. Courtesy: Depart-
ment of Geosciences, Penn State
3. Broken shale. Shale is cracked us-
ing principally water plus chemicals and
additives to release trapped natural gas.
Courtesy: Terry Engelder
4. Shale gas giants. Signatures,
clockwise from top left: Terry Engelder, for-
mer Texas Gov. Clayton Williams, current
Pennsylvania Gov. Tom Corbett, former
Pennsylvania Gov. Tom Ridge, Chesapeake
Energy executive Aubrey McClendon, nat-
ural gas guru T. Boone Pickens, geologist
Gary Lash, fracking pioneer George Mitch-
ell. Courtesy: Terry Engelder
www.powermag.com POWER
|
December 2012 68
THE FUTURE OF NATURAL GAS
Bullish on Gas
But Penn State geologist Terry Engelder, the
major domo of Marcellus Shale (see sidebar),
doesnt share Bermans pessimism about gas
supply and prices, or Bermans assessment of
the production decline of shale gas wells. All
wells decline, Engelder said in an interview.
What distinguishes shale wells from conven-
tional reservoirs is the percentage of gas deliv-
ered over a long period of time. Shale wells,
Engelder said, start producing at very high
volumes, decrease considerably during the
first year, but continue producing much longer
than conventional gas wells, because the tight
rock formations slow the release of the gas.
With shale gas, Engelder said, You have
a steeper decline curve initially, but a much
longer period of production. Thats a func-
tion of the tight shale reservoirs, with inher-
ent low permeability, he said. The gas takes
longer to get to the well head but remains
economic over a longer period of time.
Here is where it can get pretty wonky. En-
gelder notes that the dispute with Berman and
others in his camp who say shale wells decline
too rapidly is a matter of hyperbolic production
curves versus exponential curves. Engelder is
in the hyperbolic school and Berman is one of
the exponential advocates. If a wells decline
is hyperbolic, Engelder explained, you get a
decreasing rate of decline year after year. The
best data for eastern shale wells available, he
said, shows a general hyperbolic decline over
a 40-year period, versus a 25-year lifespan for
conventional gas wells.
The advocates of exponential decline
including Berman and retired Canadian ge-
ologist J. David Hughesargue that shale
wells decline quickly after their initial high
production, then level out quickly. Hughes
puts the issue in the classic terms of resource
depletion that environmentalists frequently
use: [O]il and gas are finite resources that
are being consumed at unprecedented and
growing rates, and the U.S. is the worst of-
fender and is highly vulnerable to future en-
ergy price and supply shocks.
The shape of the decline curve for hori-
zontal gas wells can be very important for the
economics of the well, notes an article (De-
bate Over Shale Gas Decline Flares Up) in
the Oct. 10, 2010, Financial Times: [I]f the
pessimists/exponentials are right, then the ul-
timately recovered gas reserves from, say, the
Haynesville deposits in Louisiana and Texas
could be closer to 2 billion cubic feet (bcf) for
the average well, rather than the 6 bcf some
operators project. This implies a market price
two or three times the current level in order for
producers to see a profit.
Balancing Opinions
Could Berman and Engelder both be right?
Art Berman and I agree on a lot, Engelder
told POWER. Where we get into a difference
of opinion is whether horizontal wells convert
from hyperbolic to exponential. When that
happens, you would get the same decline rate
year after year, and the well would drain more
rapidly. The physical reason for hyperbolic
decline, said Engelder, is that the wells do not
interfere with each other, so the impermeabil-
ity of the shale formations governs the decline
rate. When the drainage area of the well reach-
es out to adjacent wells, and the well is not just
draining virgin territory, he said, the decline
rate might switch to exponential.
Thats not in the future for most of the giant
black shale Marcellus formation, Engelder
says. Drillers in the Mid-Atlantic region are
well positioned to ramp up production rap-
idly and cheaply should natural gas prices go
up even slightly. In Pennsylvania alone, says
Engelder, more than a thousand wells have
been drilled but not put into production. Of
the wells in production, many are on drilling
pads designed for six to eight wells each, but
only two or three are producing. With this in-
frastructure in place, it only takes a day or
two to start drilling again.
So Engelder sees little chance of the kind of
price spikes that characterized the bursting of
the conventional gas bubble of the 1980s and
1990s. The reality is that the supply of gas
in North America is so large it will take years
for the price to recover, he said. Producers
and consumers both want stability, although
consumers prefer lower prices and the indus-
try higher. Engelder says the industry can live
with $4 gas, while many are losing money or
shutting in production at $3/mcf.
Today, Engelder and the optimists appear
to be winning the argument over the future
role of shale gas. Berman, Hughes, and the
pessimists are a distinct minority among ge-
ologists. Skip Horvath, who for many years
has run the Natural Gas Supply Association,
representing the largest gas producers in
Washington, says, Art Berman clearly has
the best intentions. Hes just out of step with
the rest of the geological community. (Read
Meet the Man the Shale Gas Industry Hates
at http://tinyurl.com/Art-Berman.)
Engelder is even more charitable. Ber-
man is not beloved by industry, he says,
but he has things well worth thinking about
in evaluating shale gas.
Ultimately, the questions about shale gas
supply and demand offer a good illustration
of the basics of mineral resources economics,
notes British science writer Matt Ridley in a
paper titled The Shale Gas Shock (www
.marcellus.psu.edu/resources/PDFs/shalegas_
GWPF.pdf). Taking square aim at Berman and
his concern about investors losing money on
shale gas plays, Ridley comments: It is quite
possible that investment in shale gas firms
will indeed prove risky as their very success
drives gas prices down. But that will only hap-
pen if volumes of gas produced are high; and
it does not mean that exploration and drilling
will cease, for if they did, prices would rise
again and exploitation would resume. After
all, this has been the experience of the coal in-
dustry, the oil industry, and many other indus-
tries throughout history: success drives down
prices, leading to business failures, but over
the long term this does not prevent continuing
expansion of production because low prices
stimulate expanding consumption.
New World Order
Devonian shale, and its now-accessible sup-
plies of natural gas and crude oil, has been a
revolutionary force in the U.S., and one that
may be duplicated in Europe. While other
factorsa slowly growing U.S. economy
and a plethora of new Environmental Protec-
tion Agency rules regulating coal generation
are twoare contributors, cheap methane
is driving fundamental changes in the way
America uses energy. The U.S. carbon foot-
print is making a smaller impact on the glob-
al environment, while bigger feet in China,
India, and even Europe have emerged. Gas
is pushing out coal, nuclear, and solar and
wind power, purely on the basis of the cost of
generating electricity. U.S. oil imports have
declined substantially. The U.S. may soon be
exporting significant amounts of natural gas
to consumers in Europe and Japan.
Wall Street Journal columnist John Bussey
wrote in the Sept. 20 edition, During Ameri-
cas Age of Imperialism, Henry Cabot Lodge
famously said that commerce follows the
flag. Send over U.S. gunships, and U.S. busi-
ness will be right behind. These days it may
be the reverse. Americas shale oil and gas
revolutionone of the biggest commercial
bonanzas in generationsis itself shaking
up the world order. As oil and gas flood into
U.S. pipelines, relationships that defined how
energy moved around the globe are shifting.
How far that will go is open to debate.
Kennedy Maize is a POWER
contributing editor and executive
editor of MANAGING POWER.
The dispute . . . is a matter of hyperbolic
production curves versus exponential curves.
December 2012
|
POWER www.powermag.com 69
NUCLEAR FUEL
MOX Fuel Fabrication Facility:
Turning Swords into Plowshares
The U.S. Department of Energy contracted Shaw AREVA MOX Services LLC
to design, construct, and operate a Mixed Oxide (MOX) Fuel Fabrication
Facility (MFFF) at its Savannah River Site in South Carolina. The MFFF will
convert depleted uranium and excess weapons-grade plutonium stock-
piles, equivalent to approximately 17,000 nuclear weapons, into MOX fuel
assemblies that will be used in U.S. nuclear power plants by 2018.
By James M. Hylko
T
he bilateral Strategic Arms Reduction
Treaty (START) signed in July 1991
was an agreement to dismantle 80% of
U.S. and then-USSR strategic nuclear weap-
ons in existence. START may have signaled
the end of the Cold War, but it also ushered in
a new problem: potential uncontrolled access
to large stockpiles of surplus weapons-grade
(WG), highly enriched uranium (HEU) and
plutonium. The challenge was how to safely
dispose of these surplus nuclear materials to
prevent their future use in nuclear weapons.
In 1992, General Brent Scowcroft, then
the national security advisor to President
George H.W. Bush, requested that the Na-
tional Academy of Sciences (NAS) rec-
ommend disposition options to reduce the
potential loss by theft of these materials,
particularly the plutonium. (See the sidebar
for important differences between each of
the nuclear materials. The early work asso-
ciated with the megatons-to-megawatts
program focusing on uranium is described
in DOE Project Converts Weapons-Grade
Uranium to Fuel for Browns Ferry in the
December 2006 issue of POWER, available
in our archives at www.powermag.com.)
The outcome of the NAS study was that
excess WG plutonium should be as difficult
to acquire for a nuclear weapon as the reac-
tor grade (RG) plutonium in spent fuel from
civilian nuclear reactors. The MOX option,
selected by the NAS as the best disposition al-
ternative, blends WG plutonium from disman-
tled nuclear weapons with depleted uranium
(a byproduct of uranium enrichment) to create
mixed-oxide (MOX) fuel for irradiation in a
commercial nuclear reactor. The plutonium
becomes part of the spent fuel, thus no longer
making it usable for a nuclear weapon.
Nuclear Agreement
The current inventories of surplus WG
plutonium to be processed are based on
the Plutonium Management and Disposi-
tion Agreement (PMDA) originally signed
in 2000 by the U.S. and Russia, and reaf-
firmed in 2007 and 2010. The PMDA com-
mits each country to dispose of no less than
34 metric tons (~75,000 pounds) of excess
WG plutonium and irradiate it as MOX
fuel in commercial nuclear reactors. The
combined amount, 68 metric tons, repre-
sents enough material for approximately
17,000 nuclear weapons. To implement this
agreement in the U.S., the Department of
Energys (DOE) National Nuclear Security
Administration (NNSA), under the Office
of Fissile Materials Disposition, contract-
ed the construction of a Mixed Oxide Fuel
Fabrication Facility (MFFF).
POWER recently discussed the proj-
ect and timetable with Kelly Trice, presi-
dent and chief operating officer of Shaw
AREVA MOX Services LLC, which is
responsible for the design, licensing, and
construction of the MFFF. He described
the 17-acre MFFF as a plutonium process-
ing and fuel fabrication plant designed to
convert surplus WG plutonium inventories
and depleted uranium into MOX fuel as-
semblies. It is the first facility of its kind
in the U.S.
Trice pointed out that the completed
MOX fuel assemblies will look like stan-
dard pressurized water reactor (PWR) and
boiling water reactor (BWR) fuel assem-
blies. He indicated that of the 34 metric
tons of plutonium coming from the U.S., 10
metric tons of plutonium oxide are already
available for processing and the remaining
24 metric tons from the weapons programs
will arrive later in the program.
Following irradiation in a reactor, the re-
sulting spent fuel contains WG plutonium
in a nonproliferent form. No reprocessing
or subsequent reuse of the MOX spent fuel
is planned. Once the fuel cycle use is com-
pleted, the MOX spent fuel will be perma-
nently stored in a geologic repository. The
MFFF will be shuttered when the plutoni-
um disposition goals are met.
DOE and NRC Licenses Required
The contract to build the MFFF at the
DOEs Savannah River Site (SRS) near
Aiken, S.C., was awarded in March 1999
to Shaw AREVA MOX Services LLC. The
DOE looked at many sites, but the SRSs
existing security infrastructure and experi-
ence with handling plutonium gave it an
edge in the selection process.
Licensing of the MFFF is following a
two-step process. The first step required
submitting a Construction Authorization
Request to build at the SRS in February
2001. The Nuclear Regulatory Commis-
sion (NRC) issued the construction au-
thorization on Mar. 30, 2005. The second
stage requires NRC staff review of the li-
cense application submitted on Sept. 27,
2006. The license would authorize the pos-
session and use of byproduct and special
nuclear material. The NRC review verifies
that the structures, systems, and compo-
nents are constructed, installed, and can be
operated properly.
MFFF construction officially started on
Aug. 1, 2007 (Figure 1). Overall, the con-
crete structure at the main plant is about
88% complete and 12 of 18 buildings are
finished. The Waste Solidification Build-
ing, expected to be completed in 2013, is
forecasted to treat 150,000 gallons of waste
and solidify approximately 600,000 gal-
lons of low-level radioactive waste streams
from the MFFF for ultimate disposal.
In addition to the 2,400 personnel on
site, an additional 800 people are employed
in 42 states by suppliers to the construc-
tion project. Trice noted that both large
and small businesses are benefiting from
www.powermag.com POWER
|
December 2012 70
NUCLEAR FUEL
the construction activities. We actually do
about 58% of our subcontracts with small
businesses. To date, we have subcontract-
ed about $900 million in small business
awards.
Trice proudly acknowledged the teams
achievement of a new safety milestone over
the summer. We have also just crossed
11.5 million safe work hours without a lost
work day accident, which is a significant
accomplishment for a project of this size,
complexity, and importance.
Cold-startup testing is scheduled to
begin in 2016, followed by fabrication of
the first fuel assemblies slated to begin in
2018. The MFFF will be licensed for 20
years and is expected to operate into the
2030s.
Building Fuel Assemblies
The MFFF is composed of two main pro-
cess operations: the aqueous polishing
process to remove impurities, such as am-
ericium and gallium, and the MOX process,
which converts the plutonium and depleted
uranium into fuel pellets, fuel rods, and
fuel assemblies (Figure 2).
The process will begin with incoming
plutonium and depleted uranium received
in their respective shipping containers and
inventoried according to the MFFF mate-
rial control and accounting and radiation
protection programs. The material would
then be moved to the aqueous polishing
(AP) area.
Aqueous Polishing Process. Before
combining the surplus WG plutonium with
depleted uranium to produce ceramic pel-
lets for MOX fuel rods, the plutonium ox-
ide will be purified using an AP process,
equivalent to the process the French nucle-
ar industry has successfully used for over
30 years. The AP process removes impu-
rities such as gallium, americium, alumi-
num, and fluorides and consists of three
major steps: dissolution, purification, and
conversion.
Plutonium oxide is dissolved in nitric
acid in the first step. Next, a solvent ex-
traction process removes impurities and
purifies the material. Then plutonium is
separated from the uranium. The solid and
liquid materials removed are recycled to
reduce waste volume. The final step con-
verts the purified plutonium stream back
to an oxide powder by precipitation and
calcination. The oxide powder is then ho-
mogenized, sampled, and stored in cans for
future production of MOX fuel pellets.
MOX Process. The MOX process is a
mechanical process and consists of four
major steps: powder master blend, pellet
production, fuel rod production, and fuel
assembly production.
In producing the powder master blend,
polished plutonium oxide is mixed with de-
pleted uranium oxide and recycled powder/
pellet material. This mixture is micronized
in a ball mill and mixed with additional de-
pleted uranium oxide and recycled material
to produce a final blend with the required
plutonium content. A lubricant and pore-
former are added to control density.
Next, the final powder blend is pressed
to form green pellets, which are then sin-
tered in a furnace to obtain the required ce-
ramic qualities. The sintering step removes
organic products dispersed in the pellets
and the previously introduced pore-former.
The sintered pellets are ground to a speci-
fied diameter and then inspected to verify
dimensions, density, markings, and appear-
The Differences Between Radioactive Materials
Several pairs of radioactive substances are
discussed in this article. Here is a primer
on their different properties.
Highly Enriched Uranium and Plutoni-
um. There are important differences between
highly enriched uranium (HEU) and pluto-
nium. HEU can be diluted with other, more
abundant, naturally occurring uranium iso-
topes to make low-enriched uranium (LEU),
which cannot sustain the fast-neutron chain
reaction needed for a nuclear explosion. LEU
fuel is used in most of the worlds nuclear
reactors. In contrast, plutonium cannot
be diluted with other plutonium isotopes
to make it unusable for weapons. Re-en-
riching LEU for weapons requires complex
enrichment technology, while separating
plutonium from other elements and mix-
ing it with fresh reactor fuel requires only
straightforward chemical processing.
Weapons-Grade and Reactor-Grade
Plutonium. There is substantial worldwide
experience with the use and behavior of
reactor-grade (RG) plutonium, as it is cre-
ated during the fission process. U.S. re-
actors were not specifically designed to
use weapons-grade (WG) plutonium (see
the table). The primary difference is the
percentage of the plutonium isotopes: WG
plutonium contains more plutonium-239,
while RG plutonium has more plutoni-
um-240. Weapons-grade plutonium is more
fissionable, but RG is more radioactive.
MOX and Low-Enriched Uranium. MOX
fuel and LEU fuel behave much the same in
reactors. MOX fuel assemblies and LEU fuel
assemblies are essentially identical with
respect to mechanical design. Both MOX
fuel pellets and LEU fuel pellets consist of
sintered ceramic pellets that are predomi-
nantly U-238 dioxide, and the respective
material properties are very similar.
However, the microstructures of the
two types of fuel pellets differ. LEU fuel
is a homogeneous mixture of U-238 diox-
ide and U-235 dioxide, whereas MOX fuel
is more heterogeneous, with very small
plutonium-rich particles in a matrix of
depleted uranium oxide. The nuclear char-
acteristics of MOX and LEU fuel are also
different due to the nuclear cross-section
differences between uranium and pluto-
nium. Also, the decay heat from MOX is
slightly lower than that of LEU fuel, which
provides a safety benefit.
Fundamentally, MOX fuel is very similar
to LEU fuel. MOX fuel has been demonstrat-
ed to perform well in commercial nuclear
power reactors. Fuel assembly, core, and
plant design practices can effectively ac-
commodate the minor differences that do
exist between the MOX and LEU fuel types.
Plutonium
form
Weapons-grade
plutonium
(weight %)
Reactor-grade
plutonium
(weight %)
Pu-238 0 14
Pu-239 9295 5060
Pu-240 57 2427
Pu-241 00.5 611
Pu-242 00.05 510
Plutonium isotopic composition
comparison. Source: American Nuclear
Society
1. Complex construction project.
The Mixed Oxide Fuel Fabrication Facility at
the DOEs Savannah River Site near Aiken,
S.C., recently entered its sixth year of con-
struction. Courtesy: Shaw AREVA MOX Ser-
vices LLC
December 2012
|
POWER www.powermag.com 71
NUCLEAR FUEL
ance. The MFFF will produce upwards of
70,000 pellets each day.
The fuel rods are then assembled in glove-
boxes by arranging the pellets in a long tray
and inserting the pellets into a zirconium alloy
tube (the fuel rod), loaded to an adjusted pel-
let column length, pressurized with helium,
welded, and then decontaminated. Each fuel
rod contains approximately 360 pellets. The de-
contaminated rods are then removed from the
gloveboxes and placed on racks for inspection.
In the final step, fuel assemblies are
manufactured by inserting the individual
rods into a metallic structure referred to as
the fuel assembly skeleton. A typical MOX
PWR fuel assembly contains 264 fuel rods
in a 17 x 17 array, is 13 feet in length, and
weighs about 1,500 pounds. Each MOX
fuel assembly is subjected to a final inspec-
tion prior to storage and shipment.
The MOX fuel fabrication facility will
have the flexibility to produce fuel for
PWRs and BWRs as well as for the new-
generation reactors.
Fresh MOX fuel assemblies will be
stored in the assembly storage vault. The
assemblies will be transferred to the ship-
ping and receiving area and loaded into an
NRC-approved MOX transportation pack-
age and then loaded onto a secure trans-
port vehicle for shipment to a commercial
nuclear reactor.
Using Recycled Fuel
There are two types of fuel for nuclear
plants: uranium oxide (the most common)
and MOX, a mixture of uranium and pluto-
nium. Plutonium has more available energy
than uraniumanalogous to adding a gal-
lon or two of premium gasoline to a cars
tank of regular fuel (see sidebar).
In the U.S., there was substantial devel-
opment work on MOX fuel technology in
the 1960s and 1970s. That work culminat-
ed in a series of MOX fuel demonstration
programs at five reactors: the San Onofre
and Ginna PWRs and the Dresden, Quad
Cities, and Big Rock Point BWRs. In each
program, lead test assemblies were used to
study the performance of MOX fuel rods.
After several operating cycles, the MOX
fuel had performed acceptably and similar
to the co-resident uranium fuel.
The U.S. nuclear industry was poised
to begin large-scale reprocessing of spent
nuclear fuel and associated re-use of the
separated RG plutonium. However, fearing
worldwide nonproliferation consequences
of separating large quantities of plutonium,
the U.S. government decided against repro-
cessing spent nuclear fuel and stopped the
development and deployment of U.S. MOX
fuel technology. A more detailed history of
U.S. attempts at reprocessing and recycling
used fuel can be found in the August 2008
article, How to Solve the Used Nuclear
Fuel Storage Problem, available at www
.powermag.com.
Other countries continued their large-
scale development and reprocessing of
spent fuel. In the early 1980s, nuclear re-
actors in Germany began using substan-
tial quantities of reprocessed plutonium
in the form of MOX fuel. Other European
reactors followed in France, Belgium,
and Switzerland. International safeguards
implemented in the MOX fabrication pro-
cess have ensured that no proliferation
has occurred from this process for nearly
40 years.
The MELOX facility in France has been
operating since the mid-1990s and pro-
duces nearly all the commercial MOX fuel
assemblies in the world. In fact, MELOX
increased production in April 2007 to keep
2. Pair of processes. The MFFF will house two main process operations: aqueous polishing and the MOX process. Source: Shaw AREVA
MOX Services LLC
Powder master
blend & final blend
production
Pellet
production
Rod
production
Fuel rod
assembling
Dissolution
PuO
2
conversion
Purification
cycle
PuO
2
Ga, Am, U
impurities
MOX fuel
assemblies
Polished
PuO
2
Aqueous polishing
MOX Process
There are two types of fuel for
nuclear plants: uranium oxide
(the most common) and MOX, a
mixture of uranium and plutonium.
www.powermag.com POWER
|
December 2012 72
NUCLEAR FUEL
in step with market needs for MOX fuel.
The mixture of uranium oxides and pluto-
nium is obtained from recycling used fuel
at AREVA NCs La Hague plant, which
currently handles nearly half of the worlds
light water reactor spent nuclear fuel repro-
cessing capacity.
In the U.S., from June 2005 through
May 2008, four MOX fuel test assemblies
containing WG plutonium were tested at
the Catawba nuclear plant located in Rock
Hill, S.C. Nondestructive and destructive
hot cell examinations of five fuel rods veri-
fied that the MOX fuel behaved as predict-
ed on the basis of experience with uranium
dioxide fuel and MOX fuel with recycled
RG plutonium.
Trice noted that the MFFF is a general
reproduction of Frances La Hague and
MELOX plants. In addition, the Catawba
experience has been translated into MFFF
design features. The processing technol-
ogy is generally similar, but the scale of the
MOX plant is much different. We operate
about half of the production capacity of the
plants in France. Also, we are using weap-
ons grade plutonium as opposed to reactor
grade plutonium. We use pieces of machin-
ery that are similar to La Hague, but not
exactly the same because we are not repro-
cessing spent nuclear fuel. At La Hague,
they take reactor fuel, chop it up, dissolve
it, extract the plutonium, then reprocess it
into plutonium oxide, and then ship the ox-
ide to the MELOX plant.
Trice emphasized that although the
two French facilities were designed and
constructed according to French building
codes, the MFFF design meets all U.S.
regulatory requirements. It will also be a
hardened facility, similar to a nuclear reac-
tor. Security will be equal to the security
measures currently in place at SRS.
Finding Customers for MOX Fuel
The Master Services Agreement, a result
of the successful Catawba fuel-testing pro-
gram, is a very promising contract that
would open up a third of the U.S. reactor
fleet as potential users of MOX fuel, ac-
cording to Trice. Several utilities have
expressed interest, and that will create
a substantial demand for the MOX fuel.
In the future, reactor licensees approved
to use MOX fuel are still expected to run
test assemblies for at least two operating
cycles to gain operational experience and
confirm computer models to predict fuel
performance.
The NRC expects no significant interim
storage differences between used MOX fuel
and used uranium fuel. After the MOX fuel
has been in a reactor for two operating cycles,
it can be stored in fuel pools or dry-storage
casks located at each reactor site. In the U.S.,
the used fuel will remain in interim storage
until a permanent geological repository is
available. If a repository is licensed, the used
MOX fuel assemblies would be packaged
into special containers and shipped directly
to the repository by truck or rail using NRC-
approved shipping packages.
Trice concluded that operation of the
MFFF and disposing of surplus U.S. weap-
ons-grade plutonium will demonstrate that
the U.S. is living up to its nonproliferation
commitments in a transparent and irrevers-
ible manner. In addition to these critical
nonproliferation benefits, the U.S. MOX
strategy will support additional DOE mis-
sions by consolidating materials, thereby
reducing security and storage costs of sur-
plus plutonium, estimated to be hundreds
of millions of dollars annually, while gen-
erating clean energy.
James M. Hylko (jhylko1@msn.com)
is a POWER contributing editor.
THE BALANCE OF POWER
C
O
M
P
L
I
A
N
C
E
I
S
S
U
E
S
,
M
A
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P
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AcidGasExperts.com
To learn how Breen can help with your
balancing act, call 412.431.4499 or visit
www.breenes.com today.
Operating a power generation
plant is a balancing act.
Compliance issues, managing
emissions, Balance-of-Plant
impacts from emissions
control... and the bottom line.
At Breen, we understand
this balancing act. Were the
leader in bringing newideas and
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An innovator in acid gas
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No matter the issues, Breen
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Some of Breens solutions
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Reburn for NOx and SOx
compliance.
BREEN BOP - Power Mag Ad 4-10:Layout 1 4/11/12 8:38 AM Page 1
CIRCLE 34 ON READER SERVICE CARD
December 2012
|
POWER www.powermag.com 73
MERCURY EMISSIONS
Mercury Regulations Up in the Air
U.S. Environmental Protection Agency efforts to regulate mercury emissions
from coal- and oil-fired power plants have spanned nearly two decades. In
February of this year the agency promulgated the Mercury and Air Toxics
Standards, but changes to the standards continue.
By Brandon Bell PE, KBR Power & Industrial
T
he Mercury and Air Toxics Standards
(MATS) formally impose limitations on
mercury, filterable particulate matter, and
hydrogen chloride emissions from electric gen-
erating units (EGUs) firing coal (including in-
tegrated gasification combined cycle, or IGCC,
facilities), solid oil, and liquid oil. In addition
to a variety of available control technologies to
meet MATS, new technologies that allow mea-
surement of more minute quantities of mercury
will be necessary to ensure compliance.
Regulatory History
The basis for MATS dates back to two studies
funded by the Environmental Protection Agen-
cy (EPA) and required by the Clean Air Act
(CAA). In 1995, as directed by Congress, the
National Institute of Environmental Sciences
(NIEHS) issued a report detailing the threshold
of mercury exposure below which adverse hu-
man health effects are not expected to occur.
Several years later, the National Academy of
Sciences (NAS) was commissioned to perform
an independent evaluation of the health impacts
from methyl mercury. The results of this study
were finalized and released by 2000, thus satis-
fying the CAA Section 112 (n)(1) requirement
to evaluate the hazards to public health from
mercury emissions.
In total, the expected number of units that
will be affected by this regulation is large. There
are approximately 1,100 coal-fired units and
300 oil-fired units that would need to meet com-
pliance by three years from the finalization of
this rule. Each facility may request a one-year
compliance extension, which states may grant
on a case-by-case basis.
However, a recent judicial ruling regarding
another key regulation, that found the EPA over-
stepped its bounds, could lead to further scru-
tiny of the MATS regulation. The decision by
the U.S. Court of Appeals for the District of Co-
lumbia Circuit on Aug. 21, 2012 (EME Homer
City Generation v. EPA, D.C.C. No. 11-1302)
dealt a significant blow to the Cross State Air
Pollution Rule (CSAPR), as it was vacated and
determined that the EPA had regulated beyond
its statutory authority. The court determined the
EPA overstepped its bounds in two key ways.
First, under the good neighbor policy, the
EPA has the authority to require upwind states
to reduce their emissions that affect a down-
wind states nonattainment. It was determined
that CSAPR required upwind states to reduce
their emissions by more than the amount that ul-
timately affected downwind states. Second, the
court found that states should have been allowed
to reduce their own emissions through a state
implementation plan (SIP). Instead, the EPA
did not give the states this option and enacted
a federal implementation plan (FIP) to reduce
emissions on a state level.
A great deal of effort was made by the EPA
to ensure CSAPR would be upheld under legal
review. MATS may succumb to a similar fate,
as multiple parties have filed for review of the
rule by the courts. It should be noted that EPA
regulations have a history of litigation, with
a mixed record of courts upholding them or
rejecting them. At press time, the EPA and in-
tervenors, including Calpine and Exelon, had
petitioned for a rehearing of the courts Aug.
21 split decision against CSAPR. The court
has ordered 20-page responses to the petition
for rehearing be filed with the court by Oct.
29. The court has no timeline within which to
decide to reject the petition, rehear the case
with another three-judge panel, or hear the
case en banc with all eight judges.
Costs are expected to increase considerably
for implementing the MATS regulation. Accord-
ing to the EPAs Regulatory Impact Analysis
(RIA), the incremental cost of compliance with
MATS in 2015 will be $9.6 billion per year. As
part of the RIA, the EPA estimated that capital
costs to meet both CSAPR and MATS would
have been $84 billion. Recent cost estimates
by some major utilities suggest that the cost to
comply may be lower than originally estimated.
Even with the vacating of CSAPR and positive
estimates from utilities, final compliance costs
are a moving target, leaving the number of po-
tential plant closures up in the air.
Mired in Litigation
As a result of the NIEHS and NAS analyses, the
EPA concluded in December 2000 that regulat-
ing hazardous air pollution emissionsspecifi-
cally mercurywas appropriate and necessary.
That determination triggered a series of legal
actions that were individually resolved over the
following decade. This process led to the even-
tual promulgation of MATS.
After the initial determination that regulat-
ing mercury was appropriate and necessary,
the Utility Air Regulatory Group (UARG)
and Edison Electric Institute (EEI) chal-
lenged this determination in court (UARG v.
EPA, 2001 WL 936363, No. 01-1071, D.C.
Cir. July 26, 2001). The case was dismissed
on jurisdictional grounds.
Mercury regulation was still deemed appro-
National Institute of
Environmental Sciences
study commissioned
u
National Academy of
Science study commis-
sioned
u
EPA decision to regu-
late mercury
u
EPA promulgates
Clean Air Mercury Rule
(CAMR)
u
CAMR vacated u
Mercury and Air Toxics
Standards promulgated
u
1
9
9
5
1
9
9
6
1
9
9
7
1
9
9
8
1
9
9
9
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0
0
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2
0
0
1
2
0
0
2
2
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3
2
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0
4
2
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6
2
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0
7
2
0
0
8
2
0
0
9
2
0
1
0
2
0
1
1
2
0
1
2
1. History review. Milestones in the regulation of mercury. Source: EPA
www.powermag.com POWER
|
December 2012 74
MERCURY EMISSIONS
priate and necessary and, consequently, the EPA
was required to set rules for EGUs as a result
of the agency adding them as a source category,
as described in Section 112 of the CAA. As re-
quired by the CAA, the deadline for the mercu-
ry rules revision was Dec. 20, 2002. However,
the EPA failed to meet that deadline. As a re-
sult, several environmental groups filed suit to
compel the EPA to issue emission standards for
EGUs (Izaak Walton League v. Leavitt, D.D.C.
No. 04-0694). The deadline for the standard to
be issued then became Mar. 15, 2005.
Instead of issuing a rule for Section 112 of the
CAA for EGUs, the EPA subsequently issued
an action on Mar. 29, 2005, that delisted EGUs
from Section 112 regulation. Shortly after the
delisting action, the EPA issued the Clean Air
Mercury Rule (CAMR), on May 18, 2005. That
rule was meant to regulate mercury emissions
from new and existing coal-fired EGUs under
Section 111 of the CAA. Again, environmental
groups and states took issue with the EPAs de-
listing without following requirements outlined
in Section 112.
The result of that legal challenge (New Jersey
v. EPA, 517 F.3d, D.C. Cir. 2008) reversed both
actions taken by the EPA in 2005: The delist-
ing action in March and the subsequent CAMR
issuance in May. In striking down CAMR,
the court simply postponed but did not negate
implementation of mercury regulations. Fur-
thermore, reversal of the delisting action further
confirmed the EPAs obligation to finalize emis-
sion standards under Section 112 of the CAA.
In order to ensure an emission standard
was issued in a timely manner, environmental
groups once again filed suit to seek enforceable
deadlines on the EPA (American Nurses Asso-
ciation v. EPA, DDC No. 08-2198). The result
of this suit set a deadline of Nov. 16, 2011, for
a finalized air toxics standard. Pursuant to this
settlement, the EPA signed the promulgated
MATS rule on Dec. 16, 2011, and published it
in the Federal Register on Feb. 16, 2012.
True to the history of this regulation, litigation
resumed as soon as MATS was signed. White
Stallion, the National Mining Association, the
National Black Chamber of Commerce, and the
Institute for Liberty all filed suit the same day
as MATS was finalized. These suits have not
been resolved and have been consolidated into
a single action.
Reconsideration of MATS
In June 2012, Senator James Inhofe (R-Okla.)
introduced a motion in Congress that would
have overturned the MATS regulation. This
motion (Senate Joint Resolution 37), put forth
under the Congressional Review Act, could
have sent the regulation back to the EPA to be
rewritten under congressional review. However,
when brought before the Senate on June 19, the
resolution was narrowly defeated.
Although not required by Congress,
the EPA took action on July 20 to review
MATS. The EPA issued a letter acknowl-
edging that a number of petitions had been
received specifically addressing measure-
ment issues associated with mercury for
new sources. In addition to addressing
measurement problems with mercury, the
data set used to set new source standards
for particulate matter and hydrochloric
acid will be revisited to ensure variability
calculations were applied correctly.
The issues to be reviewed will be mostly
technical in nature and are not expected to affect
the rules legality. An expedited review process
has been initiated. However, final reconsidera-
tion of the rulemaking will not be complete until
March 2013. In the meantime, a stay of three
months was given by the EPA for the effective
date of the new source emission standards.
MACT Floor
Once a source category is listed by the EPA un-
der Section 112 of the CAA, the agency must
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December 2012
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Steve Elonka began chronicling the exploits of Marmaduke
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December 2012
158
Albemarle. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47. . . . . . . . . .23
www.albemarle.com
Ampirical Solutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14. . . . . . . . . . .8
www.ampirical.com
Applied Bolting. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46. . . . . . . . . .22
www.appliedbolting.com
AREVA. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29. . . . . . . . . .16
www.areva.com
Baldor Electric. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23. . . . . . . . . .13
www.baldor.com
Bechtel Corp.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31. . . . . . . . . . . .
www.bechtel.com
BHI Energy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21. . . . . . . . . .12
www.bhienergy.com
Bibb Engineering . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55. . . . . . . . . .30
www.bibb-eac.com
Breen Energy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72. . . . . . . . . .34
www.breenes.com
BRUKS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57. . . . . . . . . .31
www.bruks.com
Chatham Steel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13. . . . . . . . . . .7
www.chathamsteel.com
CleaverBrooks. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39. . . . . . . . . .19
www.cleaverbrooks.com/engineered
Detroit Stoker . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52. . . . . . . . . .28
www.detroitstoker.com
Exxon Mobil. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 . . . . . . . . . .2
www.mobilindustrial.com
Fluke . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15. . . . . . . . . . .9
www.fluke.com
General Physics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7. . . . . . . . . . .4
www.etaproefficiency.com
Hitachi Power Systems. . . . . . . . . . . . . . . . . . . . . . . . . . . Cover 3. . . . . . . . . .37
www.hitachipowersystems.us
IFS North America . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59. . . . . . . . . .32
www.ifsworld.com/en-NA
Kepco/KPS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35. . . . . . . . . .17
www.kps.co.kr
Kiewit / TIC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37. . . . . . . . . .18
www.kiewit.com
MAN . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Cover 2. . . . . . . . . . .1
www.man-engines.com
Metalfab. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45. . . . . . . . . .21
www.metalfabinc.com
NAES Corp . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48. . . . . . . . . .24
www.naes.com
NatronX. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41. . . . . . . . . .20
www.natronx.com
Nol-Tec Systems. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50. . . . . . . . . .26
www.nol-tec.com
Paharpur. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49. . . . . . . . . .25
www.paharpur.com
Pentair Valves & Controls. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9. . . . . . . . . . .5
www.pentair.com
Phillips 66. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5. . . . . . . . . . .3
www.phillips66lubricants.com
PIC Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17. . . . . . . . . .10
www.picworld.com
ProEnergy Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Cover 4. . . . . . . . . .38
www.proenergyservices.com/vision
SICK Sensor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53. . . . . . . . . .29
www.sicknorthamerica.com
SMA-America . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19. . . . . . . . . .11
www.sma-america.com
STF S.p.A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62. . . . . . . . . .33
www.stf.it
Structural Integrity. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11. . . . . . . . . . .6
www.structint.com
Tata Power. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51. . . . . . . . . .27
www.tatapower.com
Verizon Wireless . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79. . . . . . . . . .35
www.verizonwireless.com/utilities
Victory Energy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82. . . . . . . . . .36
www.victoryenergy.com
Westinghouse . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25. . . . . . . . . .14
www.westinghousenuclear.com
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December 2012 160
COMMENTARY
Navigating a Sea of New
Regulations
By Dr. Thomas E. Higgins, PE
A
convergence of new environmental regulations and practical
realities is creating a boatload of challenges for power pro-
ducers. Impending regulations addressing raw water intake,
wastewater discharges, and coal ash managementas well as is-
sues such as drought, water scarcity, and public concerns and utility
liabilities with ash pondsare giving power plant owners much to
consider. Add the fact that states are enacting their own, sometimes
more-stringent requirements, and the horizon is anything but clear
as utility decision-makers chart a course for compliance.
A Wave of Changes
Two anticipated regulations are of key concern to utilities oper-
ating coal-fired power plants:
The U.S. Environmental Protection Agencys (EPA) proposed
regulations addressing coal combustion residuals (CCR) for
electric generating plants.
The EPAs updated rulemaking for steam electric power gener-
ating industry effluent limitation guidelines (ELGs).
These issues primarily boil down to the need for either ash pond
lining or replacement of ponds with wastewater treatment systems
(for the first) and applying best available technology to treat flue
gas desulfurization scrubber and other wastewater (for the second).
The ELGs may also prohibit discharge of ash transport water, ne-
cessitating changes to plants ash-handling systems. Also on the
horizon are changes to Sections 316(a) and (b) of the Clean Water
Act, addressing power plant thermal discharge impacts and cooling
water intake structure impacts on fish and other aquatic life.
Meanwhile, many power plant owners are facing, or already
must meet, strict limits on contaminants in their plants wastewa-
ter discharges, primarily driven by regional water qualitybased
limits. As more receiving water bodies are listed as impacted or
impaired due to metals, nutrients, or salinity, such limits will
likely become more common and more stringent.
Dont Wait for the Regulations
Prudence suggests doing more than treading water while await-
ing the new regulations, the changes they will require, and the
deadlines they will impose. Committing to specific modifications
or new processes like zero liquid discharge (ZLD) too quickly,
however, can be counterproductive, possibly resulting in over-
spending yet underachieving.
A good way to start is with the end in mind: Identify your
specific goalsfor example, complying with current and future
regulations, reducing water use/increasing reuse, or closing ash
ponds. Then gather the information needed to meet those goals.
Next, fill any data gaps (using methods such as sampling and
analysis, flow balance and mass balance, and modeling). Collect-
ing data from multiple years will account for variability of coal
composition and wastewater streams under different conditions
and allow designs to reduce conservatism necessitated by lack
of data. Finally, evaluate alternatives and make well-informed
choices. Important screening criteria include compliance with
current and pending regulations, long-term effectiveness and
permanence, reliability, suitability for implementation, land
availability, potential for adverse effects, and cost.
A practical approach to selecting cost-effective alternatives is to
progressively evaluate their ability to meet the desired objectives,
starting with the least costly alternative. For example, a first step
might simply be to determine whether negotiating more-favorable
permit conditions is possible. Once the best options are identified,
conduct bench-scale or pilot-scale testing, if possible, to confirm
that they work effectively under actual plant conditions.
This type of approach will help ensure cost-effective, sustain-
able solutions that address the myriad complexities inherent in
coal composition and wastewater variability, water and wastewa-
ter treatment and reuse potential, CCR management options, and
the flexibility to meet future regulations.
Plan to Be Flexible
Getting a jump on meeting upcoming regulations is a great start.
Incorporating flexibility to meet stricter regulations in the future
is even better. A Northeastern power producer, for example, de-
cided to convert two coal-fired plants to tank-based wastewater
treatment systems so it could close its ash ponds. CH2M HILL is
working with the owner to meet its objectives and provide flex-
ibility to accommodate expansion and the cost-effective addi-
tion of treatment for future trace metals limits. Anticipating that
future discharge limits could necessitate additional, expensive
treatment (such as ZLD), the system was designed to allow full
effluent reuse in the future, eliminating virtually all of the nearly
8 mgd of wastewater discharge and reducing the size of any fu-
ture ZLD system, if required, from over 10,000 gpm to 400 gpm.
For water scarcity issues, reuse of another type could be an op-
tion. In New York, the new Empire Power Plants water resource
needs were matched with a nearby wastewater treatment plant,
and a drilled pipeline was constructed to convey municipal efflu-
ent to the new facility. This effluent meets the power plants full
process water needs, thus reducing freshwater consumption by
up to 4,800 gpm. The WaterMatch Initiative (www.ch2mhill.com/
watermatch) promotes sustainable solutions like this by facilitating
partnerships between alternative water sources and water users.
Go with the Flow
As the surge of regulatory change approaches, make the most of
this quiet time to identify your goals, consider how you might
meet them, and gather the necessary data. Starting now and
taking a practical, comprehensive, forward-looking approach to
compliance can help you keep an even keel as you meet the chal-
lenges of changing regulations in a changing world.
Thomas Higgins, PE, PhD (tom.higgins@ch2m.com) is a
technology fellow, vice president, and global technology leader of
power water and process at CH2M HILL. This article was written
in October 2012 prior to the then-anticipated December 2012
release of the EPAs Draft Effluent Limitation Guidelines.
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645 Martinsville Road, Basking Ridge, NJ 07920
power.info@hal.hitachi.com Tel: 908-605-2800
www.hitachipowersystems.us
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