EBRD and Power Generation Efficiency in Russia; achievements and challenges ahead
description
Transcript of EBRD and Power Generation Efficiency in Russia; achievements and challenges ahead
EBRD and Power Generation Efficiency in Russia; achievements and challenges ahead
EPG Conference, 19-20 September 2011, Moscow
Ioannis Papaioannou
Senior Engineer, Energy Efficiency & Climate Change
Contents
1. EBRD and Energy Efficiency
2. The main issues
3. How EBRD can help
4. Challenges ahead
Contents
1. EBRD and Energy Efficiency
2. The main issues
3. How EBRD can help
4. Challenges ahead
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Debt ABV Equity ABV Net Cumulative Business Volume
€ billion
What is the EBRD?
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Reconciled as at 31 March 2011
International financial institution, promotes transition to market economies in 29 countries from central Europe to central Asia
Owned by 61 countries and two inter-governmental institutions
Capital base of €30 billion
The EBRD is active in all its countries of operations
Central Asia
Central Europe and Baltics
Eastern Europe and Caucasus
Russia
South-Eastern Europe
0%
10%
20%
30%
40%
50%
60%
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Unaudited as at 31 March 2011
Launched in 2006. Results through to Q1 2011:
– EBRD’s sustainable energy investments to €6.6 billion, for total project value of €35 billion in 369 projects in 29 countries;
– Annual GHG emissions savings of 39.6 million tonnes CO2-eq p.a. (equivalent of more than Azerbaijan’s emissions)
SEI 6 areas of investment are:
1. Industrial Energy Efficiency
4. Renewable Energy Scale-up
2. Sustainable Energy Financing Facilities
5. Municipal Infrastructure Energy Efficiency
3. Power Sector Energy Efficiency
6. Carbon Markets Development
EBRD and Energy Efficiency The Sustainable Energy Initiative (SEI)
EBRD and Energy Efficiency The SEI Operational Approach
Working with
governments to support
development of strong
institutional and
regulatory frameworks
that incentivise
sustainable energy
Working with
governments to support
development of strong
institutional and
regulatory frameworks
that incentivise
sustainable energy
Technical assistance to
overcome barriers:
market analysis, energy
audits, training, awareness
raising; grant co-financing
to provide appropriate
incentives and address
affordability constraints
Technical assistance to
overcome barriers:
market analysis, energy
audits, training, awareness
raising; grant co-financing
to provide appropriate
incentives and address
affordability constraints
Projects with numerous
clients, public and private,
with a range of financing
instruments
Projects with numerous
clients, public and private,
with a range of financing
instruments
Via these three
parallel activities
SEI accounted for
24% of EBRD’s
total and 75% of
power sector
portfolio in 2010
Via these three
parallel activities
SEI accounted for
24% of EBRD’s
total and 75% of
power sector
portfolio in 2010
Contents
1. EBRD and Energy Efficiency
2. The main issues
3. Typical Projects
4. Challenges ahead
Some characteristics of the power system of Russia
Thermal Power Generation represents around 70% of installed capacity and electricity production
Gas is the primary fuel, but also coal has a significant share, and the prevailing policy is to continue with both gas and coal for the long term
There is an increasing demand for both electricity and heat
Some characteristics of the power system of Russia
Official GHG emissions in Russia (thousand ton CO2 eq)
Total emissions
GHG emissions (without LULUCF)
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500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
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CO2 Non-CO2 Total GHG
Official GHG emissions in Russia
Emissions by sector 2009
Agriculture
6.59%Waste
3.49%Other
0.00%Industrial
Processes
7.33%
Solv ents
0.03%
Energy
82.56%
Official GHG emissions in Russia
Energy related emissions 2009
1.A.1. Energy
industries
48.65%
1.A.3. Transport
11.16% 1.A.2. Man.
industries and
construction
7.43%
1.B. Fugitiv e
emissions
23.18%
1.A.5. Other
1.59%
1.A.4. Other
sectors
8.00%
EBRD funded a study in 2009
Market and Investment Needs Study (AF Consult, Finland) – To review and analyse the existing situation and general
technical condition of the main TPPs and CHPs in Russia, Ukraine, Kazakhstan and Mongolia;
– To assess at a preliminary level the needs for investment projects for rehabilitation, energy efficiency and environmental performance improvement;
– To review and assess the capabilities of local manufacturers of equipment;
– To prepare a long list of appropriate investment projects and sub-projects that could be implemented in coal fired and gas fired TPPs and CHPs together with an order of magnitude estimation of the investment costs.
Many old coal fired units, with more than 220,000 hours, with limited Rehabilitation Plans under “Capitalna Remont”
– Low achievable maximum load (~75% of nominal)
– Low availability (~60%) and reliability
– Low net efficiency (~ 32%) and high carbon (> 1.1 tonCO2/MWh)
– Poor Environmental performance (e.g. dust > 500 mg/Nm3)
Few new units have been installed in the last 25 years, and even these are not Best Available Techniques (BAT), with design and operational performance indicators of the 80’s, so
– Very few super-critical steam for coal fired plants
– Some Combined Cycle Gas Turbines (CCGT) for gas fired plants
The thermal power plants of Russia based on EBRD’s study of 2009
Most of the Russian and Ukrainian equipment manufacturers have not fully passed transition to market conditions and there is great scope to improve in order to approach their European peers, especially in terms of:
– Design and manufacturing technologies for overall achievable net efficiency
– Quality of materials and machining processes
– Customer service
There is great need for new state-of-the-art units as well as rehabilitation and modernisation of existing units, especially for:
– Coal preparation systems (conveyors, crushing, mixing etc.)
– Boilers (burners, economisers, super-heaters etc.)
– Reconstruction of turbine parts (cylinders, rotors, blades etc.)
– Reconstruction of generators (rotors, stators, excitation, cooling etc.)
– Installation of modern DCS systems
The thermal power plants of Russia based on EBRD’s study of 2009
Contents
1. EBRD and Energy Efficiency
2. The main issues
3. How EBRD can help
4. Challenges ahead
Technical Assistance to our clients
Free of charge Technical Assistance (TA) through donors funds
The overall aim of this advisory services is to assist both the Bank and its clients in the preparation of the most appropriate Rehabilitation or New Unit Programme
2 Framework Contracts, Call Off Notices; Technical Audits / Projects Review (Vattenfall, Germany and MWH, Italy)
– To review and analyse the condition of existing equipment and recent years performance;
– To review and analyse the necessary investment programme as a whole as well as the main projects it consists of in terms of technical and financial viability;
– To perform a conceptual technical and financial analysis of the investment projects and expected benefits, including achievable capacity and availability improvements, extension of lifetime, increase of energy efficiency, reduction of carbon emissions and improved environmental performance.
Technical Assistance to our clients
7 TA assignments have been completed up to now
– 2 of them in Russia, to review the clients’ investment programme and propose possible improvements
– 4 in Kazakhstan, one to analyse alternative heat and power supply options for a large city and three for modernisation of CHP plants
– 1 in Ukraine, to review alternative options for a new state of the art coal fired unit
Technical Assistance to our clients
How EBRD can help Two recent projects in Russia
USD 150 million loan to TGK-8 for the installation of a new 410 MW CCGT at Krasnodar CHP
Improve electricity operational efficiency from 32 to more than 55%
Natural gas savings of around 390 million Nm3 per year
Carbon emission savings of around 750,000 ton CO2 per year
USD 75 million loan to TGK-13 for the completion of a 185 MW / 270 Gcal coal fired cogeneration unit at Krasnoyarsk CHP-3
The unit will replace old and inefficient heat only boilers and electric boilers
Improve overall resource efficiency by around 15%
Carbon emission reduction of around 240,000 ton CO2 per year
New TA Framework for the Power Sector
At this moment tendering for 3-4 framework contracts of total value EUR 1.5 million for Technical and Efficiency Audits / Projects Review / Projects Preparation for
– Thermal Power Generation and Cogeneration plants of any technology and configuration;
– Hydropower generation;
– Grid connected renewable sources, i.e. wind, small hydro, biomass, solar, geothermal and waste to energy;
– Power Transmission systems, including lines, substations, SCADA systems etc.
– Gas and Power Distribution systems, including lines, substations, smart metering systems etc.
Contents
1. EBRD and Energy Efficiency
2. The main issues
3. How EBRD can help
4. Challenges ahead
IEA’s predictions for the power generation capacity for the “450 scenario”(450 ppm CO2eq in the atmosphere)
Some projected characteristics of the power system of Russia
Typical Dilemma for coal fired TPP
Investment Cost (EUR/kW)
Expected Lifetime
(years)
Net Efficiency
(%)
Availability
(%)
New Unit 1,000 – 1,500 35 > 40 85
Rehabilitation of Old Unit
250 – 400 10 – 15 Improvement of 3 – 5 percentage points to 35%
Improvement of 10 – 15 percentage points to 75%
Resource Efficiency Target Performance Indicators
Rehabilitation
Extend lifetime for 15 years
Improve availability by 10 pc points
Improve efficiency by 3-5 pc points
Improve environmental performance (what and how much?)
New Units
Electricity only
– Gas, CCGT only with efficiency > 52% (390 kgCO2/MWh)
– Coal, SC parameters with efficiency > 42% (860 kgCO2 /MWh)
CHP
– cogeneration efficiency > combined efficiency for separate generation > 80%
– Gas, GT open cycle or CCGT
– Coal, SC steam parameters
Resource Efficiency Advanced Coal Technologies
SC and USC PC combustion (commercially available, many units around the world)
– Higher investment is justified by efficiency and carbon benefits
– Target is for 375 bar and 700oC by 2020, net efficiency > 48%
IGCC (commercially available, only 5 units around the world)
– Specific use, high own consumption, net efficiency only 38 - 42%
CCS (still at development stage)
– Double investment cost, very high own consumption, so nearly double generation cost
– For Russia the “Carbon Capture Ready” concept seem appropriate
Resource Efficiency Typical Technical & Economic Characteristics
Type Investment Cost
(EUR/kW)
Net Efficiency
(%)
Carbon
kgCO2/MWh
Coal SC and USC Steam Cycle
1,000 to 1,500 Electricity only: 40-45
CHP – el: 30-35
- heat: 40-50
750 – 900
Gas Turbine with HRSG (open cycle)
600 to 850 Electricity only: 32-36
CHP – el: 32-36
- heat: 40-50
560 – 630
Gas Turbine Combined Cycle
800 to 1,200 Electricity only: 50-55
CHP – el: 30-40
- heat: 40-50
370 – 410
Key challenges
Need for improved performance requirements; resource efficiency pays back fast
Need for significant investments (many new units and many modernisations) in parallel with the privatisation and regulation improvements of the power generation sector
Need for international know-how transfer to the major manufacturers of equipment
Thank you
Ioannis Papaioannou
Senior Engineer, Energy Efficiency & Climate Change
EBRD, One Exchange Square, London EC2A 2JN
United Kingdom
Tel: +44 20 7338 7024
Fax: +44 20 7338 6942
Email: [email protected]