Converting and operating flexible power plants...Wood pellets ~100 ~50 ~50 Coal ~925 ~115 ~10 ~800...
Transcript of Converting and operating flexible power plants...Wood pellets ~100 ~50 ~50 Coal ~925 ~115 ~10 ~800...
Ørsted transformation Converting and operating flexible power plants
Vice President, Regulatory Affairs Ulrik Stridbæk
15 June 2018
Ørsted today
2 February 2018
Headquartered in Denmark Listed in the Nasdaq OMX: ORSTED 5,638 employees Revenue in 2017 DKK 59.5 bn (GBP 7.1 bn / EUR 8.0 bn) EBITDA in 2017 DKK 22.5 bn (GBP 2.7 bn / EUR 3.0 bn ) Phase out the use of coal by 2023
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Transforming from fossil to green energy
Share of green power
%
CO2-emissions
g / kWh
80
2007 2017
95
2020
13
64
2023
100
2020
20
151
2023
452
2017 2007
-96%
Conventional thermal business needed to adapt to the new energy system
1. Adjusted for divested activities
…and FTE numbers # of FTEs
… as well as in OPEX spend… OPEX (DKKbn)
Major reductions in power generation capacity since 2009… Danish portfolio of central plants (GWe)
5.0
3.0
2009 2016
40%
2.9
1.5
2009 2016
48%
~1,9001
~8001
2009 2016
58%
-60
-30
0
30
60
90
120
150
-2000
-1000
0
1000
2000
3000
4000
5000
€/M
Wh
Mw
h/h
Wind production Thermal production
Net import Consumption
Net import from North Net import from Germany
Price DK)
wind
price
thermal and net import
Investment in wind farm has reduced demand for thermal power without influencing security of supply
5 Source: Energinet market data and CEER
0
-1.000
3.000
1.000
4.000
2.000
-2.000
5.000
2018 2015 2000 2010 2005
Net import
Thermal production Solar production
Wind production
Production mix in Denmark’s power system
Mwh/h, 2000-2018
13-05-2018 14-05-2018 15-05-2018
Production variability in the Nordic power grid
Mwh/h, €/MWh, 13-15 May 2018 wind
price
thermal and net import
300 700 500 900 800 100 200 1.000 0 600 400
Spain
Luxembourg Denmark
Switzerland
France Austria Finland
The Netherlands Germnay
Italy
Greece
Estonia
EU-28
Hungary
Lithuania
Norway
Chech republic Poland
Slovak Republic
Malta
Latvia
Romania
Slovenia
Ireland Croatia
Sweden Portugal
Great Britain
Security of supply in Europe
Minutes lost per year per capita, 2014
Business model for thermal plants turned upside-down
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Fossil fuels
Power producer
Heat as by-product
Sustainable biomass
Heat producer
Power as flexible back-up
From To
3,0
5,0
2017 2009
0,01,1
6,2
2023 2017 2009
Capacity of Danish Power Plants GWe
Coal consumption Million tonnes
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Flexible power plants and X-border trade balance variation in wind and solar production
Source: Energinet
120,000
60,000
20,000
100,000
0
80,000
40,000
20,000 40,000 0 80,000 60,000
Thermal
Wind/Solar vs. thermal power production Daily values, Q4 2017
80,000
0 40,000
0
20,000
60,000
120,000
40,000
100,000
60,000 80,000 20,000
Wind/Solar power production vs. import/export Daily values, Q4 2017
Import Export
Wind/solar Wind/solar
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More flexibility in thermal plants – improved operation, improved infrastructure and minor investments
Load gradients 4% /min 8% /min (Skærbæk 3)
60 MWe 20 MWe (Asnæs 2)
Minimum load with ancillary services
30% 13% of full load (Avedøre 2) Minimum load
Flexibility between products
Turbine bypass and heat accumulators to decouple heat and power production
Examples of initiatives to improve plant flexibility
Building flexibility into a new biomass CHP in Esbjerg
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-40
-30
-20
-10
0
10
20
30
40
50
60
0 50 100 150 200 250 300
Back-pressure operation (incl. heat pump)
Full bypass + boiler
Bypass area
MW Power
MW Heat
Features of a new Esbjerg CHP (FiD expected in 2019)
The CHP co-produce heat and power in the range from 20-100%
Heat pump driven by flue gas condensation increases heat efficiency
Bypass (full and partial) opportunity makes it possible to only produce heat
The electric boiler can make the plant a net electricity consumer
Other possibilities such as GigaStorage and batteries for ancillary services are also considered
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Seamless trade integrates wind and distributes flexible resources across the region
– Nordpool, EEX and other exchanges couples markets from North to South of Europe
– >70 % market share in Nordpool on the day-ahead market in 2017
– Connects hydro in Norway with the thermal plants and nuclear
– Zonal pricing in the Nordic Countries reveals grid congestions
Sourco: Nordpollspot.com: https://www.nordpoolgroup.com/Market-data1/#/nordic/map
EEX 49.94
DK1 48.04
SE3 48.04
SE2 48.04
SE1 48.04
NO4 48.04
NO3 48.04
NO2 48.00
NO1 48.00 NO5
48.00
SE4 64.08
DK2 64.08
GB 61.78
FI 58.42
EE 58.42
LV 64.08
LT 64.08
2016 The Nordics, UK and Germany
Japan
Capita 172 mill. 127 mill.
Power consump.
1250 TWh 1000 TWh
Power capacity
318 GW 290 GW (incl. nuclear)
Many similarities between Japan and Northern Europe
Sourco: Bloomberg Energy Finance (nuclear capacity for Japan from 2014 from IEA “Energy Policies of Japan 2016”,
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The Energy Union: Integrate and decarbonise
Build and utilise infrastructure
Offshore wind potential at costs below 54 €/MWh Offshore wind potential at costs below 65 €/MWh
Offshore wind potential in North Seas
Potential at costs below 65€/MWh by 2030, including transmission
Source: BVG Associates for WindEurope, 2017 Source: ENTSO-E TYNDP (Ten year development plan). Overview of possible European energy futures up to 2040, based on energy scenarios.
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Thank you
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Effective enforcement of biomass sustainability criteria ensures real decarbonisation
Ørsted ensure sustainable sourcing of biomass Biomass sustainability criteria
Replanting of trees
Use of waste wood and thinnings
Independent certification and auditing
Protection of high conservation-value habitats
Biodiversity conservation
Other sustainability criteria (incl. legal and regulatory requirements)
Sustainable Biomass Partnership
~-90%
Wood pellets
~100
~50 ~50
Coal
~925
~115
~10
~800
Processing
Combustion
Transport
CO2 reductions from sustainable biomass-to-energy gCO2 / KWh
Biomass market are global
0
200
400
600
800
1000
1200
1400
1600
1800
Wood pellets (thousandtons)
Wood chips (thousandtons)
2016 2017
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