BUSINESS AND TECHNOLOGY FOR THE GLOBAL GENERATION INDUSTRY

www.powermag.com Vol. 152 No. 5 May 2008

Can wind power be a dispatchable resource?

Options for monitoring cation conductivity Xcel moves on Smart Grid City plans Riding the ocean power wave PdM systems sweat the small stuff

We can take wind turbines to new heights.

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 10,000 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 www.mobilindustrial.com for more.

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COVER STORY: RENEWABLES

20 Regulating wind power into a dispatchable resource
Buyers of renewable energy may soon be able to purchase the intermittent resource even when the winds not blowing. New California guidelines may allow a utility banking the RECs associated with wind power production to use those certificates to buy new, not necessarily renewable, energy when demand peaks.

On the cover
The Windy Point Project in Klickitat County, Wash., aggregates the output of 130 wind turbines from Siemens Power Generation. Each turbine is rated at 2.3 MW and has a blade diameter of 93 meters (305 feet). Rated power is produced when the wind reaches about 30 mph. The project was developed by Cannon Power Corp. Photo courtesy: Windy Point Project

SPECIAL REPORTS
MERCURY CONTROL

26 Future of national mercury rule now uncertain

Now that a federal appeals court has ruled that mercury must be treated as a hazardous air pollutant, new coal-fired power projects may need to reevaluate their mercury control technology approach.

DEPARTMENTS
4 SPEAKING OF POWER 8 GLOBAL MONITOR 8 National Grid divested of Ravenswood 8 GE to sell Baglan Bay plant 8 From prairie grass to power 9 Renewables experience 40% growth 9 The sustainable city 10 Solar recharger for developing countries 10 Seeking CCS solutions 10 Hoover Dam could stop generating 10 Japan turns to fossil fuel 11 U.S. reactors produce record power 11 POWER digest 13 FOCUS ON O&M Retail competition 18 LEGAL & REGULATORY 56 NEW PRODUCTS 64 COMMENTARY Smart Grid requires clearing mental gridlock
By Mike Carlson, Xcel Energys executive in charge of smart grid initiatives.

WATER TREATMENT

32 Cation conductivity monitoring: A reality check

Measuring cation conductivity remains one of the most sensitive, simple, and reliable tools for detecting small amounts of contamination in feedwater and steam. To help understand why some operators find it difficult to interpret the readings, its important to know what cation conductivity is and what it is not.

FEATURES
PREDICTIVE MAINTENANCE

36 Making PM systems sweat the small stuff

Preventable outages can cost millions. Being able to spot a sick piece of equipment whatever its sizeand fix or replace it before it degrades or fails is priceless.

TRANSMISSION

42 Boulder to be first Smart Grid City

Much of the technology needed to modernize the electric transmission grid and to rationalize supply and demand already exists. Its deploying that technology on a large scale and assembling the pieces in a way that makes everyone happy thats the trick. Xcel Energy is trying to pull it off.

RENEWABLES

48 A new wave: Ocean power

Decades of research and development have yielded several innovative ways of using oceans to produce electric power. Now, the tide finally may be turning on the ability of businesses and governments to make dreams of ocean power come true.

May 2008 POWER

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BUSINESS AND TECHNOLOGY FOR THE GLOBAL GENERATION INDUSTRY

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SPEAKING OF POWER

Guns and Moses

harlton Hestons legacy will surely rest on his iconic performance as Moses in The Ten Commandments and his unwavering support of the Second Amendment. I had the privilege of watching a classic Heston performance at the 2000 National Rifle Association convention in Charlotte, N.C., when he raised a handmade Brooks flintlock above his head and warned thenpresidential candidate Al Gore that he could remove it only from my cold, dead hands. Focusing only on these two images misses the real measure of the man. Heston walked a picket line in front of a whitesonly restaurant in 1961 in Oklahoma City to repeal Jim Crow discriminatory laws; he marched with Dr. Martin Luther King, Jr. on Washington in 1963 to promote civil rights; and he served as a gunner on bombers during WWII. No one can deny that Heston was a man of strong principles who used his star power to focus the publics attention on issues he considered vital to the nation.

state approach to energy conservation: the utility knows best. In my opinion, this license is a fundamental intrusion into our personal privacy rights that should be resisted. To paraphrase Heston, Youll have to pry my toasty warm fingers from my thermostat this winter.

California yields to privacy

An early victory went to supporters of privacy this January when the California Energy Commission (CEC) retreated from plans to include programmable communicating thermostats (PCTs) in its proposed 2008 energy-efficiency standards for buildings. Had PCTs been left in, new buildings would have been required to have a data connection to let utilities control at least the air conditioning and heating system during power emergencies. Industrial and commercial users would have gotten a price break for selecting a rate plan that allows utilities to shed their load during grid emergencies. The CEC never entertained similar cost breaks for homeowners, at least in public. The public outcry was predictable to everyone except CEC regulators who proposed the scheme. In response, the CEC blinked twice. It first revised the rule to enable customers to override utility control of the PCTs, which were still required. Then, as the blowback continued, the CEC announced that it was removing PCTs from this years proposed building-efficiency standards. CEC spokeswoman Claudia Chandler quickly made the commissions mea culpas, noting that in the future the commission will work with utilities to craft voluntary programs that customers could opt into. I trust that the CEC and other regulators now understand the unwritten 11th Commandment of the utility industry: Tell me the time-based cost of energy and Ill make the consumption decisions. Its none of your business how much, when, and for what purpose I use the power I purchase. I think Charlton Heston would agree. Dr. Robert Peltier, PE Editor-in-Chief

What about the Fourth Amendment?

Issues involving individual rights are still in the news, but many now concern technologys impact on personal privacy. The most recent flap was over Googles addition of 360-degree views to its online street maps, because some photos show in great detail property clearly marked private. Privacy rights will also have to be considered by government programs designed to curb peak power consumption. For example, the advent of smart transmission and distribution grids (p. 42) does more than confirm that utilities are interested in adopting new technology. It also raises questions about how far beyond the home meter regulators should reach in the name of energy efficiency. Advanced smart meters and computer-controlled appliances have the potential to better match demand to supply without human interaction (see p. 64). The key question is this: Whose finger should be adjusting the thermostat? Some state regulators began with what Contributing Editor Ken Maize calls the nanny-

Welcome our new editors!

Im pleased to announce that POWER has added two experienced members to our editorial staff as we continue expanding our indepth coverage of the worldwide power generation industry. Senior Editor Angela Neville has been covering the environmental issues of the energy and other industrial sectors since 1995. She served as the editorial director of the magazines Environmental Protection and Water & Wastewater News from 1995 through 2007. Angelas columns on environmental law topics earned her one national award and four regional awards for editorial excellence from the American Society of Business Publication Editors. She has bachelors degrees in both journalism and English and a
4

law degree from the University of Texas at Austin. Angelas first contribution to POWER is an inside look at Xcel Energys plans to build the first smart grid in Boulder, Colo. Staff Writer Sonal Patel will be working on several aspects of print and online content delivery for POWER, COAL POWER, and POWERnews, as well as on a variety of other POWER-branded efforts. She has worked as a technical writer, as a freelance news and feature writer for British Petroleum, and as the editor of an avantgarde South Asian womens magazine/ webzine. Sonal jumped right into her new position with her article on ocean power in this issue.
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GE Energy

Energy demand isnt at either.

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GLOBAL MONITOR
National Grid divested of Ravenswood
London-based National Grid plc will sell Ravenswood Generating Station (Figure 1), a facility in Queens, N.Y., that provides more than 20% of New York Citys overall peak load, to TransCanada Corp. for $2.9 billion this summer. Ravenswood Generating Station was a 2004 POWER Top Plant (July/August 2004, p. 32). National Grid was obligated to divest itself of the 2,840-MW facility to fulfill a condition of the New York Public Service Commission (NYPSC) order approving the companys $7.9 billion acquisition of KeySpan LLC, a New York utility, in August 2007. The gross asset value of Ravenswood in KeySpans last audited accounts was $1.2 billion at Dec. 31, 2006. The station reported an operating income of $138 million for 2006. The Ravenswood acquisition by TransCanada is subject to regulatory approvals from the Federal Energy Regulatory Commission and the NYPSC, and to clearance

1. Sold! Ownership of Ravenswood Generating Station in Queens, N.Y., will pass from National Grid to TransCanada this summer. Courtesy: National Grid plc

2. For sale. The Baglan Bay station installed the first GE 50-Hz Frame 9H system. Courtesy: General Electric Power Systems

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under U.S. anti-trust and foreign investment laws. Approvals from these bodies are expected in the next few months. In addition to Ravenswoods vital supply, TransCanada will own, or have interests in, over 10,200 MW of power generation in Canada and the U.S. The companys activities in the U.S. Northeast include hydroelectric generation assets of 567 MW on the Connecticut and Deerfield Rivers in New England, and Ocean State Power, a 560-MW gas-fired combined-cycle power plant in Rhode Island. TransCanada is also currently vested in a proposed 132-MW wind energy project in western Maine. The Ravenswood Generating Station, which began operating in 1963, is primarily fueled by natural gas. Its multiple units employ steam turbine, combined-cycle, and combustion turbine technology.

film cooling, the H system recently surpassed 24,000 hours of service. Since 2003, three 50-Hz systems gas turbines have been installed at the Futtsu Thermal Power Station in Japan. They are scheduled to enter commercial operation this year. GE has also installed its first 60-Hz version of the technology at the $500 million Inland Empire Energy Center in southern California. The two 107H combined-cycle systems are expected to produce a total of 775 MW when the plant comes on-line this summer.

From prairie grass to power

Alliant Energy Corp. and Prairie Lands Bio-Products Inc. are jointly assessing ways to create a commercially viable market for switchgrass, corn stalks, and similar agricultural products for use as fuel. The energy services provider expects that the products will constitute up to 10% of the fuel source for a proposed 630MW hybrid plant in Marshalltown, Iowa, cutting substantially into coal burned at the facility. Prairie Lands, a nonprofit organization whose 60 members are switchgrass growers, is evaluating potential environmental, economic, and agricultural benefits of switchgrass (a tall native North American grass used for hay and forage) and other such products. The organization is also identifying cost-effective and efficient methods to harvest, aggregate, process, and deliver alternative fuel stocks to the power plant. The assessment will build upon successful switchgrass test-burn demonstrations conducted during the Chariton Valley Biomass Project, a 2006 venture funded by Alliant and the Department of Energy. That project investigated and demonstrated the technical feasibility, environmental benefits, and potential business viability of
POWER May 2008

GE to sell Baglan Bay plant

GE Energys mammoth Baglan Bay gasfired station, near Port Talbot in South Wales, will also be up for sale by the end of the year (Figure 2). GE Energy plans to put an estimated price tag of $986 million on the 500-MW plant so it can concentrate on plans to build and operate proposed nuclear stations in Britain, according to the Western Mail, a Welsh publication. GE has not yet issued a public statement regarding the planned sale. The Baglan Bay Power Station was recognized as one of POWERs Top Plants of 2003 for its first launch of GEs 50-Hz Frame 9H system (see POWER, July/August 2003, p. 45). It was the first gas turbine combined-cycle system capable of breaking the 60% fuel efficiency barrier. Hailed for increasing thermal efficiency by using steam from the bottoming cycle to cool the hot gas path parts without relying on
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cultivating switchgrass to replace a portion of the coal fuel supply at a similar Iowa plant. According to Alliants web site, one of the greater benefits of burning switchgrass is improved air quality due to a natural process: The plant collects CO2 emissions during the growth process and sequesters the greenhouse gas in the ground through its roots. Alliant supposes that a commercial project of 35 MW would require as much as 200,000 tons of biomass from 50,000 acres and that it would involve as many as 500 farmers. The proposed plant, Sutherland Generating Station Unit 4, is expected to be operational by 2013. Alliant is considering incorporating an additional 19-MW equivalent of steam cogeneration in the project for use by nearby industries. by small start-up companies (as opposed to large automakers), the use of clean technologies for ocean-faring ships, and the design and construction of new sustainable cities.

The sustainable city

Realization of a zero-carbon, zero-waste, and car-free city may seem futuristicbut it has already begun. In February 2008, the government of Abu Dhabi in the United Arab Emirates broke ground on Masdar City. The 2.3-square-mile district on Abu Dhabis outskirts (Figure 4)which the Abu Dhabi government hopes

4. Zero-carbon city rising. An aerial view of Masdar City in the

United Arab Emirates. Courtesy: Foster & Partners

Renewables experience 40% growth

Clean energy powers onand is projected to escalate exponentiallyin spite of a sluggish economy. According to a new report from Clean Edge Inc., revenues for the renewables industry surged 40% in 2007, with returns for solar photovoltaics, biofuels, and wind surpassing the $20 billion mark for the first time. Global revenues for solar photovoltaic products, wind power, biofuels, and fuel cells collectively shot up from $55 billion in 2006 to $77.3 billion in 2007. Of the four energy markets, wind power (new installation capital costs) earned the highest revenue$30.1 billion, while the fuel cell and distributed hydrogen market, the lowestbut newestof the four, saw returns of $1.5 billion. In 2007, $25.4 billion worth of biofuels were produced: 13 billion gallons of ethanol and 2 billon gallons of biodiesel. Solar photovoltaics, including modules, system components, and installation, totaled $20.3 billion last year, and worldwide system installations stopped just shy of 3,000 MW. The Clean Energy Trends 2008 report projected that growth for the four sectors will more than triple over the next decade, to $254.5 billion by 2017. Global installed solar photovoltaic capacity is expected to increase eightfold to 22,760 MW, and wind power capacity is expected to reach to 75,781 MW (Figure 3). The largest growth rate is expected in the nascent fuel cell and distributed hydrogen market, which is projected to increase tenfold to $16 billion. Comparatively, the rate of growth for solar photovoltaic, wind, and biofuels is projected to slow to 13.8% annually from the 50% average sustained over the past four years. This year, the renewables industry will see continued growth, however, with five trends contributing to it: the growing participation of overseas companies in the U.S. wind power market, a renaissance for geothermal energy, the launch of electric vehicles

3. Global green energy growth. Clean Edge Inc. projects considerable revenue growth for renewables over the next 10 years. Courtesy: Clean Edge Inc.
2007 Biofuels Wind power Solar power Fuel cells $1.5 Total
$0 $25 $50 $75

2017 $25.4 $30.1 $81.1 $83.4 $74

$20.3 $16

$254.5 $77.3
$100 $125 $150 $175 $200 $225 $250
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May 2008 POWER

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GLOBAL MONITOR
will someday be occupied by 1,500 businesses and 50,000 residentsis entirely designed for sustainable living. Skylights and breezeways are incorporated into architectural designs, and the city aims to utilize only power from renewable sources. In addition to zero emissions, the city will rely on sustainable materials, food, and water. It will also house the Masdar Institute of Science and Technology, a graduate university dedicated to renewable energy. The $22 billion project will be built in seven phases and is expected to be completed and fully functioning by 2015.

Seeking CCS solutions

On a larger scale, the North American coalfired generating industry has been scrambling for economically viable ways to retrofit existing infrastructure with carbon capture and sequestration (CCS) solutions. Power producer TransAlta Corp. recently announced it will partner with technology developer Alstom on a project to develop an extensive CCS facility in Alberta, Canada. The company anticipates a reduction of CO2 emissions from its coal-fired plants of 1 million tons per year. Calgary-based TransAlta plans to pilot Alstoms proprietary chilled ammonia process by 2012 at one of its coal-fired generating stations west of Edmonton. The first phase of the five-year project will begin this year. It aims to advance and improve understanding of CO2 capture and storage technology. The overall project is expected to cost $12 million. TransAlta has also partnered with experts at the Institute for Sustainable Energy, Environment and Economy, part of the University of Calgary, to quantify CO2 sequestration potential in the Wabamun area west of Edmonton. The results, due in January 2009, will provide a scientific assessment of potential sequestration sites in the area surrounding several power plants, including their capacity and security. Alstom has signed contracts with several U.S. and European companies to test its CCS technologies. The first pilot project that uses chilled ammonia to capture CO2 from coal-fueled power plants was launched in late February this year at We Energies 1,224-MW Pleasant Prairie Power Plant in Wisconsin (see POWER, February 2008, p. 38 for a technical description of the pilot process). The year-long demonstration project is a joint effort with the Electric Power Research Institute (EPRI) and We Energies. EPRI will conduct an engineering and environmental performance and cost analysis during the project. Alstom said that more than 20 organizations representing coal-fueled utilities in the U.S. are committed to project.

6. Dry dam ahead? Drought and increased demand could be threatening Hoover Dams ability to produce hydro power. Source: U.S. Bureau of Reclamation

Solar recharger for developing countries

Because they live in developing or emerging countries that cannot or do not set up a permanent power supply network, an estimated 1.6 billion people around the world still rely on traditional oil lamps to perform nightly tasks. Around Lake Victoria in Kenya, about 30 million people stave off darkness by burning kerosene lamps. Not only is it harmful to their health, according to Siemens subsidiary and lighting manufacturer, OSRAM, burning kerosene for light emits 67 tons of CO2 each year in Africaalmost equal to Finlands annual CO2 emissions. Globally, the figure swells to 190 million tons. To alleviate this problem, OSRAM constructed an off-grid kiosk-like solar station called an Energy Hub (Figure 5). The project was piloted in Mbita, a small town on the banks of Lake Victoria, which is easily accessible by locals who need to charge electrical appliances such as rechargeable lamps and cell phones inexpensively. The projects success has prompted OSRAM to open three more Energy Hubs in the region.

tors are causing a net deficit of nearly one million acre-feet of water per year in the Colorado River system, which includes Lake Powell and Lake Mead. The study estimates a 50% chance that Lake Mead, already operating at a deficit, could drop too low for power production. Additionally, the Scripps researchers predict that there is a 50% chance that by 2021, Lake Mead could run dry if water demand is not curbed and climate changes continue as expected.

Japan turns to fossil fuels

Since Asias largest utility, Tokyo Electric Power Co. (TEPCO), shut down its Kashiwazaki-Kariwa nuclear power plant (Figure 7) following a major earthquake last July, Japans nuclear-generated output has plummetedand will stay low. Reuters reported that TEPCOs nuclear output was 79.2% lower this February than last year, and the Hokuriku Electric Power Co. announced recently that it expects to keep its sole nuclear plant closed for the business year ending in March 2008. So to meet swelling demand, the country that once derived 30% of its power needs from nuclear generation has offset that decline with fossil-fueled generation. Japans 10 main utilities have generated record-high amounts of electricity for seven months straight compared with last year. Thermal generation was up 37.6% from February 2007, and last month, a Reuters survey found that the countrys 10 utilities will rely on 141 million barrels of oil in the business year starting April 1a 50% increase from the volume purchased two years ago. The Kashiwazaki-Kariwa plant has the fourth-largest generation capacity in the world, its seven reactors producing 8,212 MW collectively. Before its shutdown, the plant supplied 6% of Japans total power needs.
POWER May 2008

5. Power station.

This solar-powered Energy Hub will allow Kenyans near Lake Victoria to recharge small electrical appliances and reduce their dependence on kerosene. Courtesy: OSRAM

Hoover Dam could stop generating

A new study concludes that within a decade, growing water demand in the West and reduced runoff due to drought may deplete waters feeding the 2,080-MW Hoover Dam, a facility that generates power for more than a million people in Arizona, Nevada, and Southern California (Figure 6). Researchers at the Scripps Institution of Oceanography found that these fac10 www.powermag.com

GLOBAL MONITOR
7. No nuke.
The post-earthquake shutdown of Japans Kashiwazaki-Kariwa plant is requiring a shift to fossil-fueled generation. Courtesy: Tokyo Electric Power

The plant was shut down after the July 16, 2007, offshore earthquake (whose epicenter was only 11 miles away) caused a fire within and destroyed a transformer building. The Japanese trade ministry ordered plant operations halted indefinitely for ongoing safety checks.

U.S. reactors produce record power

The Japanese earthquake, combined with aging facilities in the UK and unplanned outages in Germany, caused a general slump in global nuclear generation in 2007 of 3.6%, from 2.8 billion MWh in 2006, according to Nucleonics Week. U.S. reactors, on the other hand, set a record for output, surging to 843 million MWh and utilizing an average 91% of reactor capacity. National total nuclear generation was 2.4% higher than in 2006 and 2.3% higher than in the previous record year, 2004. Though the total number of operating U.S. commercial reactors (104) remained below 1990 levels, generation was 40% higher

than the 577 billion kWh produced in that year. The South Texas Projects South Texas-1 in Bay City, Texas (Figure 8) generated the largest output of any reactor in the world12.36 MWh. Constellation Energys Calvert Cliffs-1 in Maryland performed the best against promised output levels, exceeding capacity level all year. Seven units closed down in 2007: Bulgarias Kozloduy-3 and -4, Slovakias Bohunice-1, and the UKs Dungeness A1 and -2 and Sizewell A-1 and -2; only four reactors were added: Indias 220-MW Kaiga-3 , Chinas 1,000-MW Tianwan-2 VVER, and Romanias 706-MW Cernavoda2 Candu unit. The four reactors added 3,100 MW to the grid. The Tennessee Valley Authority also returned to service the 1,155-MW Browns Ferry Unit 1 after 22 years. (See POWER, November 2007, p. 30 for details on the restart of Unit 1.) Last year also saw construction of the most nuclear power reactors in recent years. Five units were officially launched: the 650-MW Qinshan II-4 and the 1,000MW Hongyanhe-1 in China, the 1,000-MW Shin Kori-2 and Shin Wolsong-1 in South Korea, and the 1,650-MW Flamanville-3 in France.

POWER digest
News items of interest to power industry professionals. Siemens to build combined-cycle plant in Portugal. Siemens Energy is to build two turnkey combined-cycle units for ElecGas S.A. at Central Termoelctrica do Pego in Abrantes, northeast of Lisbon. ElecGas S.A. is a joint venture of the independent power generation company International Power plc and the Spanish utility Endesa S.A. Following the units start-up, tentatively set for 2011, Siemens will also assume responsibility for maintenance of the power train for a period of 25 years. The order, including the long-term service agreement, is valued at about $947 million. The natural gasfiring units have a targeted efficiency of over 58% and a combined installed capacity of 830 MW. The full turnkey scope of supply encompasses two gas turbines, two steam turbines, two generators, and all electrical plus instrumentation and control equipment. After Tapada do Outeiro and Ribatejo, which each comprise three units, Pego is the third power plant project handled by Siemens Energy in Portugal. The nations power demand is expected to increase by 3% annually up to 2010. The plants, with
www.powermag.com

8. Record holder. In 2007, South Texas1 in Bay City, Texas had the largest output of any reactor in the world: 12.36 MWh. Source: Nuclear Regulatory Commission

a combined capacity of 3,000 MW, will generate enough electricity to meet approximately 40% of Portugals demand. RWEs construction of twin-unit hardcoal power plant approved. The Arnsberg regional government has approved German utility RWE Powers planned construction of a new 1,600-MW twinunit hard coal power plant in Hamm. The government found that the proposed plants estimated efficiency rate of 46% and capture ready capability was in accord with the German Federal Emission Control Act. The new hard-coal twin unit is anticipated to reduce CO2 emissions by 2.5 million tons annually compared to older plants with the same output. RWE is already preparing the construction site. The power plants first block will be put into service in mid-2011 and the second block in early 2012. RWE will invest $3.16 million in the project. Twenty-three municipal utilities from four different German states are partners in the new plant. The utilities have formed a cooperative known as GEKKO (Gemeinschaftskraftwerk Steinkohle) that will hold a 350-MW share in the venture. Nordic Windpower to manufacture wind turbines in Idaho. Nordic Windpower Ltd., the maker of two-bladed utility-scale wind turbines, announced that it will site its new turbine-manufacturing facility in Pocatello, Idaho. The company plans to create more than 160 new technical, engineering, and administrative jobs at the new facility. Additional positions will be opened at the companys operational centers in California and the UK. Volume production is expected to commence for turbine delivery in November 2008. Production is anticipated to grow to at least 20 turbines monthly by September 2009. Foster Wheeler wins CFB contract. Global Power Group, a subsidiary of Foster Wheeler Ltd., has been awarded a contract by Entergy Louisiana, LLC, a subsidiary of Entergy Corp., for the design and supply of two circulating fluidized-bed (CFB) steam generators. The two CFBs will be a part of the 538MW Little Gypsy 3 Repowering Project in Montz, La. Unit 3 will have the capability of using petroleum coke, an abundant and inexpensive refining byproduct, as well as coal to produce electricity. Commercial operation of the plant is scheduled for the first quarter of 2012. SCE&G and Santee Cooper apply for COL. South Carolina Electric & Gas Co. (SCE&G) and Santee Cooper, a state11

May 2008 POWER

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owned electric and water utility in South Carolina, have submitted an application to the Nuclear Regulatory Commission (NRC) for a combined construction and operating license (COL). If approved, the license would authorize the companies to build and operate up to two new nuclear generating units at their existing V.C. Summer Nuclear Station site in Jenkinsville, S.C. The utilities have been developing their application since 2006. The NRC will now begin an approximately three-tofour-year review process. If the commission issues an approval, likely in 2011, the utilities plan to begin construction shortly thereafter and anticipate an inservice date of as early as 2016 for the first unit. SWEPCO Arkansas coal plant approved. The Louisiana Public Service Commission (LPSC) has approved a Southwestern Electric Power Co. (SWEPCO) request to construct a 600MW coal-fueled power plant in Hempstead County, southwest Arkansas. The plant will cost about $1.34 billon. SWEPCO will hold a 73% investment, owning 440 MW of capacity. The plant will be the first of its type in the U.S to use ultrasupercritical advanced coal combustion technology. It will feature low-sulfur coal and state-ofthe-art emission control technologies, including a design that allows for the retrofit of carbon dioxide controls. The LPSCs approval requires that SWEPCO, a unit of American Electric Power (AEP), submit a study identifying the potential for implementing cost-effective energy-efficiency and load management programs for the companys Louisiana customers. The company is awaiting a ruling on an air permit, expected this summer, from the Arkansas Department of Environmental Quality before construction can begin. Construction will take approximately 48 months; the operation date is set tentatively for late summer in 2012. The company garnered approval from the Arkansas Public Service Commission in November last year. The commission subsequently declined a third-party request for a rehearing in December. The intervenors have since appealed the case to the Arkansas Court of Appeals, where it is pending. The baseload plant is part of SWEPCOs previously announced plans to meet the regions energy needs. The company has completed a 340-MW natural gasfueled peaking plant at Tontitown in northwest Arkansas. The company also plans to
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build a 500-MW combined-cycle natural gasfueled plant at its existing Arsenal Hill Power Plant in Shreveport, La. Go-ahead granted to Appalachian Power in West Virginia. Meanwhile, AEPs operating unit, Appalachian Power, has been authorized by the Public Service Commission of West Virginia to build a 629-MW integrated gasification combined-cycle (IGCC) electric generating plant in West Virginia. The $2.23 billion plant, which will require approximately 48 to 54 months to complete, will be located beside the companys existing Mountaineer Plant near New Haven, W.Va. In addition to the West Virginia filing, Appalachian Power has filed with the Virginia State Corporation Commission (SCC) for approval to recover the Virginia share of carrying costs associated with the plant. The company also filed for an environmental permit from the West Virginia Department of Environmental Protection. The Virginia SCC is expected to rule on the IGCC plant in April. AEP announced in August 2004 that it intended to build approximately 1,200 MW of commercial-scale IGCC generation to meet baseload needs of the sevenstate eastern portion area it serves. In addition to the Mountaineer IGCC unit, AEP had planned to build a similar 629MW IGCC unit in Meigs County, Ohio. That project has been halted, following an Ohio Supreme Court decision in March. AEP responds to Ohio Supreme Court IGCC decision. The Ohio Supreme Court unanimously ruled that $23.7 million of start-up costs for AEPs Meigs County plant project charged to Ohio customers violated provisions of an electric choice law signed in 1999. The court said that construction of the plant falls into the generation portion of the companys operations that the Ohio Legislature deregulated under the law. A Public Utilities Commission of Ohio (PUCO) ruling in April 2006 permitted two AEP subsidiaries to recover preconstruction costs between July 2006 and 2007 for the $2 billion plant in Meigs County. Those costs were for the first of three planned phases for the plant. The ruling sent the case back to the PUCO for reconsideration. AEP reaffirmed its commitment to IGCC generation but indicated that the company will wait for clarity about the future of electricity generation in Ohio before it determines if it can build the IGCC plant in that state. Compiled by Sonal Patel.
POWER May 2008

FOCUS ON O&M FOCUS ON O&M FOCUS ON O&M FOCUS ON O&M FOCUS ON O&M FOCUS ON O&M FOCUS ON O&M FOCUS ON O&M FOCUS ON O&M FOCUS ON O&M FOCUS ON O&M FOCUS ON O&M FOCUS ON O&M FOCUS ON O&M FOCUS ON O&M FOCUS ON O&M FOCUS ON O&M FOCUS ON O&M FOCUS ON O&M FOCUS ON O&M FOCUS ON O&M FOCUS ON O&M FOCUS ON O&M

FOCUS ON O&M
TRENDS Retail competition
This nuts and bolts department doesnt usually feature a conference report. But the one were including in this issue is about a unique conference: KEMAs annual Executive Forum. Change in the power generation industry is occurring at an unprecedented rate. POWERs mission is to keep you apprised of the trends driving those changes, and events like KEMAs conference tend to shed light on the big picture. For plant operators, the impact of todays trends will be on tomorrows plant O&M practices. Finding KEMA. Some readers may ask, Who is KEMA? KEMA is a big Netherlands-based consulting firm that provides technical and management services to the global energy industry. It was formed in 1927 as a testing laboratory, much like Underwriters Labs (UL) in the U.S. In fact, in Holland and many parts of Europe, there still exist appliances with a KEMA label certifying that they passed the companys safety tests. Later, KEMA started providing consulting services to European and Asian utilities. It opened shop in the U.S. during the 1970s. Today, with 700-plus consultants dedicated to the global power and natural gas industries, KEMAs Retail Energy Markets advisory service is a leading source of business intelligence and market analysis to the competitive retail energy industry. KEMAs 19th annual Executive Forum brought to Dallas about 300 energy executives to discuss and debate the outlook for competitive retail electric markets. Currently, 20 states and the District of Columbia allow customer choice to some degree (Figure 1). According to Kristie Deiuliis, manager of KEMAs Retail Energy Markets service, last year about 10% of all electricity sold in the U.S. was consumed by customers who had switched to competitive providers. In 2006 the figure was 9%. At first glance, retail choice would seem to have a small market share. But as Taff Tschamler, director of KEMAs Retail Energy practice, underscored at the forum, that 10% represents more annual consumption than all UK consumption. Competitive retail electricity sales in the U.S. are also larger than sales in all
May 2008 POWER

1. Clusters of competition. Twenty states and the District of Columbia currently let customers choose their power provider. Source: KEMA

100% competitive Structured for 100% eligibility Choice for some customers 2007 movement to reregulate

2. Choosing choice. Estimated retail competitive power sales, in terawatt-hours, from 2001 to 2007. Source: KEMA
400,000,000 Residential Nonresidential 43 36 27 245 28 273 289 38 306 346

300,000,000 Terawatt-hours

200,000,000 12 100,000,000 113

18 204

2001

2002

2003

2004

2005

2006

2007

3. Pent-up demand.
last year. Source: KEMA 100 35 Percent change, total GWh migrated 30 25 20 15 10 5 0 CT

These were the fastest-growing markets for competitive power

IL

DC

OR

MA

TX
13

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FOCUS ON O&M
4. To know it is to love it. Awareness of and support for retail electricity competition are high in Texas. Will that support improve elsewhere? (The underlying survey was conducted in January 2008. It used random-digit telephone calls to contact households in these three areas. The sample size was 250 households per area.) Source: TXU Energy
Oncor area Awareness of Support for electric competition electric competition Centerpoint area AEP Central area 90 91 88 83 81 84 0 50 Percent 100

5. Exercising their right. Since 2002, 80% of eligible Texans have opted for a different power provider or rate plan. Source: TXU Energy
100

Percentage of customers who have switched

80

60

of Africa. Internationally, the U.S. competitive market ranks eighth, behind Indias and ahead of Brazils and Frances. Americas consumption of power bought on competitive markets has grown at an average annual rate of 20.8% since 2001 (Figure 2). The biggest percentage gains for competitive power during 2007 were in Connecticut and Illinois (Figure 3). Without excluding other markets, the KEMA Executive Forum focused on the unique ERCOT market of Texas, where competition is exceptionally intense in all three sectors: industrial, commercial, and residential. Most experts agree that customers within ERCOT have a greater choice of electricity providers than anywhere else in the U.S. The price for residential electricity in ERCOT is actually lower today than it was in 2001. If you consider that inflation has devalued the dollar 22% since 2001 and that the price of natural gas has risen 90% over the past seven years (and that 69% of ERCOTs generation capacity is gas-powered), proponents of competition can justifiably claim that their theory works in practice. So why arent other states copying the Texas model? Two reasons:

40

20

2002

2003

2004

2005

2006

2007

A perception in many parts of the U.S. that deregulation is bad public policy and that U.S. business in general needs to be more closely regulated. Fear of rate shock when price caps are removed from a market that has been bottled up while fuel costs (gas, coal, and uranium) have escalated sharply.

6. No second thoughts. Most Texans are satisfied with their electricity provider. (The
numbers come from a survey conducted in February 2008 that used random-digit telephone calls to contact households in all competitive areas of Texas. The sample size was 121 households per area.) Source: TXU Energy
100 Dissatised = 9% Neither = 14% Satised = 77%

40 34.7 30 22.1 20 9.5 3.5 1.5 1.5 3 2.5 4 5 4.7 6 7 8 9 10 Very satised 10.8

10

9.2

0 1 2 Very dissatised
14

Winners and losers. The forums keynote addressby Jim Burke, CEO of TXU Energyfocused on retail competition in ERCOT. In 2007, TXU Corp. was transformed from a publicly held company to a privately owned business with three discrete operations: Oncor, a regulated wires and poles (transmission and distribution) business; Luminant, responsible for operating and procuring generation capacity; and TXU Energy, a competitive retail electricity provider. By the end of 2007, TXU had lost about 40% of the residential and small business customers that it had served prior to the arrival of competition in ERCOT in 2002. Thats a statistic that Burke wants to reverse. Without a doubt, the gloves have come off in the fight for customers in ERCOT.
POWER May 2008

Percent

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FOCUS ON O&M
For confirmation, visit a web site run by the Public Utility Commission of Texas: www.powertochoose.org. In the prized regions of metro Houston and Dallas, no fewer than 27 retail providers are slugging it out for residential customers. A customer can choose fixed rates for one or two years forward, rates that fluctuate monthly with changes in fuel prices, electricity that is sourced only from renewable generation, and rates that include frequent-flyer program airline miles credits. According to a TXU survey (Figure 4), 90% of residential customers in ERCOT are aware of their ability to choose their electricity provider and more than 80% support choice. Retail choice at the residential level in Texas has been phased in since 2002. On January 1, 2007, Texas electric companies in deregulated regions were released from the last part of government regulation involving the price-to-beat. All electricity prices now are determined by supply and demand. Since the residential power market was opened to competition in Texas, more than 80% of customers have either changed their rate plan or provider at least once since being offered choice (Figure 5), and 77% are very satisfied with their current provider (Figure 6). The consensus of several speakers in plenary sessions was that:

gins of just 5% to 10% for residential customers and even less for commercial accounts. But even though the two big incumbents (TXU and Reliant) continue to lose market share, no new entrant has found the secret recipe for becoming the Southwest Airlines of the Texas retail electric market. However, there may be an 800-pound gorilla on the horizon: Wal-Mart. Texas Retail Energy, LLC, a wholly owned subsidiary of Wal-Mart, currently provides

electricity to all of the companys stores in ERCOT with the option to choose their provider. Wal-Mart is essentially acting as an aggregator for its own stores and is not currently offering electricity to any other customers. The audience roared with laughter when the moderator of a panel discussion ended his introduction of a Wal-Mart representative with the following request, Please dont ask Chris Hendrix the question that you all want to ask.

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Customers are smart. Customers will pay for value. Customers want to be able to fire their electric company and hire a new one.

Love the price, hate the company.

However, while calling customers smart and cost- and quality-conscious, several speakers also said customers are often hard to understand. For example, considering the revelation from TXUs survey that Texas ratepayers are happy to have electricity competition, another survey by Fox News in Austin produced a surprising result. One of the questions it asked residential customers was, Do you favor re-regulating utility companies? More than half of respondents (54%) said yes, 25% said no, and 21% were unsure. Explaining this paradox may get down to focusing on the words. Consumers seem to want competition and choice, but they are far less keen on deregulation, at least as a concept. One thing is sure about customers: Few know that most retail electricity providers are operating with gross marMay 2008 POWER

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FOCUS ON O&M
7. Using their assets. Here are the average capacity utilization rates of various industries, 19972006 (the rate for power is for 2007). Source: Reliant Energy
100 Product is storable No/limited product storage 93%

89% Capacity utilization rate Post-regulation improvement 84% 77% 72% 67%

50 44%

52%

Power

Airlines (pre/post deregulation

Hotels

Chemicals

Pulp and paper

Iron and steel

Rening

Cause and effect? In one forum session, Jim Ajello, a senior VP at Reliant, drew an interesting analogy between the deregulation of U.S. airlines and the utilization of industrial capacity. Since deregulation, the airlines have greatly improved their assets overall capacity utilization rate. Compared with airlines, refineries, and companies in other major industries,

utilities are much less efficient in this regard (Figure 7). Can we expect that competition will make utilities more efficient users of their generation fleets? With or without competition, adoption of plug-in hybrid vehicles will surely boost off-peak sales as customers recharge their cars overnight. The real question is, How long will it take for a meaningful percentage

of Americas automobile fleet to become hybrid or pure electric? Projections of 20% by 2020 do not seem out of the question. But lets circle back to Texas. Not all Texans have the freedom to choose their electricity provider. The geographic regions of Texas outside of ERCOT are still regulated. In addition, within ERCOT there are 77 municipally owned power companies and another 76 electricity cooperatives. Nueces Electric Cooperative Inc., which serves the Victoria-Corpus Christi region, is the only publicly owned power company in ERCOT to offer retail choice. Nueces not only lets its incumbent customers choose their provider, it also has set up a retail division to sell power to customers anywhere in ERCOT. Co-ops and competition. POWER discussed several aspects of retail power sales and customer choice with Sarah Fisher, communications manager for Nueces Electric Co-op (NEC): POWER: A year ago, the incumbent Nueces territory had nine competitive retail electric providers for commercial and industrial customers and two representatives for

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POWER May 2008

FOCUS ON O&M
residential customers. How many competitors do have on your home turf today? Fisher: Twelve altogether, although only two, Texas Power and NECs Retail Division, are actively seeking residential consumers. POWER: A year ago, Nueces had not lost many customers to competitors: only nine households and 113 small commercial accounts. What are these numbers today? What are your industrial, commercial, and residential meters market shares on your home turf? Fisher: Sixty-six residential users (of 14,695 active residential services) and 155 small commercial users (of 2,109 active small commercial accounts) have chosen a non-incumbent provider. POWER: Your retail division had 11,651 customers outside of Nueces service territory one year ago. What is your retail customer count today? Fisher: Nueces Retail Division now serves 16,109 active services customers outside its traditional distribution territory. POWER: Does Nueces own any generation assets? If you do, has their utilization rate increased during the last year, and do you attribute any of this increase to the expansion of your retail division? Fisher: Nueces does not own generation assets but is a member of South Texas Electric Cooperative [STEC], headquartered in Nursery. So indirectly, Nueces has increased the utilization rate of STECs generation assets. POWER: I heard that Nueces has expanded its coverage to all competitive choice regions within ERCOT. Is that true? Are there any regions in ERCOT open to customer choice that Nueces does not serve? Fisher: NEC Retail has applied to ERCOT to serve customers in every competitive market in Texas. Presently, it actively markets its services only in the AEP Central and NEC distribution areas. They include the Rio Grande Valley, Corpus Christi, and Victoria markets. POWER: Are the two decisions by Nuecesto allow customer choice in its incumbent region and to set up a retail divisionregarded as successful by the companys management and customers? For that matter, have you gathered customer satisfaction data to quantify success? Fisher: NECs decision to offer retail choice has been a success in that we are able to offer an at-cost, customerowned co-op provider option throughout the competitive areas of Texas. In addition, customers in NECs distribution area now can choose from 12 providers. Unfortunately, ongoing compliance with [the rules of] ERCOTs competitive retail market continues to increase our cost of doing business. We hope in time that there will be economies of scale that can lessen the impact of these additional costs on our members. POWER: There are 77 munis and 76 coops in Texas. Why do you think that none of these entities has joined Nueces by offering choice to its customers? Fisher: Electricity cooperatives generally have the highest level of customer satisfaction of all utility types. If consumers are being taken care of, they may not necessarily demand choice. Electricity co-ops and munis also realize that it is expensive to make the transition to competitive markets, as were experiencing to maintain compliance with ERCOT. Mark Axford, contributing editor

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17

LEGAL & REGULATORY

Steven F Greenwald .

Jeffrey P Gray .

Why RPS programs may raise renewable energy prices

By Steven F. Greenwald and Jeffrey P. Gray
fornia, for example, utilities are currently scrambling to procure significant amounts of renewable resources in order to meet the states 20% target by 2010. In such a market, rising prices should be no surprise: Prices rise when demand exceeds supply, regardless of the reasons for the imbalance. In economic theory, competition enables markets to respond with an invisible hand. When the movements of a market are precipitated by government fiat, they are subject to a visible and very heavy hand. Lets get real Wind farms are feasible only where its windy, and photovoltaic arrays only where its sunny. Access to fuel similarly limits potential sites for geothermal and biomass projects. Though these geographic realities should be evident, overly ambitious RPS programs such as Californias suggest a failure by regulators to meaningfully assess whether regional renewable energy reserves are sufficient to meet RPS-imposed demand. The shortage of viable in-state resources has prompted utilities to look to neighboring states to meet RPS requirements. But extending the search for renewable power beyond state borders can have negative consequences for both the consuming state (higher prices resulting from increased transmission costs) and the producing state (the energy that could be delivered locally at the lowest price is exported). The bottom line: Although governmental edicts to increase demand promise some short-term benefits, long-term gains wont be possible unless RPS targets are based on a realistic assessment of available supplynot simply on au courant political correctness. All is not lost . . . yet Fostering the development and use of green generation is good policy that should be continued for several reasons. If implemented wisely, RPS programs can significantly benefit both consumers and the environment by reducing dependence on foreign oil, diversifying generation fuels, cutting greenhouse gas emissions, and ultimately by lowering the overall cost of power. If they are ill-conceived, however, RPS programs create artificial market demand that does not reflect real-world limitations on renewable project development. The net effects could be much higher electric bills and a likely public backlash. If policy makers do not carefully consider the possible downsides of their fervor to make power generation less of a contributor to global warming nowwhatever the costhistory may remember RPS as yet another expensive green faade. Steven F. Greenwald (stevegreenwald@dwt.com) leads Davis Wright Tremaines Energy Practice Group. Jeffrey P. Gray (jeffgray@dwt.com) is a partner in the firms Energy Practice Group.
POWER May 2008

ntil very recently, common wisdom held that the price of renewable energy would fall as legislative procurement mandates ensured its long-term demand. The resulting growth in supply and sales would spur investment in the field, create economies of scale, and accelerate progress down the technology learning curve. Something unexpected, however, happened along the way. Though more than half of U.S. states have adopted renewable portfolio standards (RPS) that require utilities to meet specific generation targets, and investment in green projects and technology development has increased significantly, recent data suggest that the price of green electricity has risen and will continue to spiral upward. What happened?

The curse of the visible hand The economic Achilles heel of current state RPS programs is that they carve out a portion of the larger energy market and unbalance it by imposing legislatively determined demand. In the pre-RPS era, utilities aligned their resource planning with demand forecasts largely irrespective of generating technology. Procurement decisions were based primarily on need, price, and fit (dispatchability and black start capability). As a result, coal, gas-fired, nuclear, hydro, and renewable energy plants competed against each other for a piece of the utility demand pie. The overall market benefited from the increased competition, whichto some extentalso provided a hedge against raising fuel costs. For instance, if biomass prices rose, utilities could procure more gas-fired generation. In stark contrast, the RPS regime mandates specific renewable procurement targets, generally a percentage of a utilitys overall load. Legislatively imposed capacity targetsand penalties for failing to meet themoften obligate market participants to subordinate their own (and their customers) economic interests to the desires of states. Utilities must purchase RPS-compliant power even if its price cannot otherwise be justified. The economic consequences for utilities seeking to be RPS-compliant include higher costs for facility sites, fuel, and generating equipment. Moreover, although in theory there is competition among different renewable technologies, external forces (such as siting and transmission constraints) effectively limit the availability of resources that can meet a utilitys needsas well as the benefits that competition can provide consumers. Legislative directives that artificially increase demand will also increase prices when supply cannot keep pace. The net result is a skewed market in which power produced from renewable resources commands a price premium just for being green, irrespective of the benefits of the project that generated it. Upward price pressure on RPS-compliant power is further sustained by fast-approaching RPS compliance deadlines. In Cali18

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RENEWABLES

Regulating wind power into a dispatchable resource

Perhaps the biggest shortcoming of wind power is its unreliability. Unconcerned with human needs, Mother Nature has decided that the wind usually blows strongest at just the wrong times, when electricity demand is lowest. However, using savvy negotiations to exploit a new provision in Californias renewable energy regulatory regime could make wind power more dispatchable during peak-demand periods and increase the capacity of wind farms at the same time.
By Robert D. Castro, University of Southern California, and Fernando Pardo

s California goes, so goes the nation is one way to describe how the Golden State often sets trends in pop culture and the larger culture. It also applies to the likelihood that new provisions in Californias scheme for regulatingand promotingthe development of renewable energy resources may be copied elsewhere. Like many other states (Figure 1), California has imposed renewable portfolio standards (RPS) on its utilities to force them to become greener. Renewable electricity typically has two components: the power it-

self, measured in kilowatt-hours, and renewable energy credits (RECs), also known as green tags or tickets. One REC is earned for every MWh generated by a renewable energy plant. If a utility generates more than enough green power to meet its annual RPS requirement, it can sell its excess RECs on the open market at their going price. If it cant (or doesnt choose to) meet the mandate with its own production, the utility has to buy RECs earned by others. RECs represent the environmental benefits of generating power from renewable resources, as opposed to produc-

ing electricity by burning nonrenewable resources such as fossil fuels. Two camps have different views of the best way to use RECs to meet environmental and resource planning goals. The more conservative camp believes that regulatory regimes should never allow RECs to be sold separately from the energy that generated them because such separation gives utilities that purchase RECs to meet their RPS a license to pollute. The other campthe REC trading campfeels that renewable energy development will benefit more if RECs and

1. Crazy quilt. As of March 2008, 29 states and the District of Columbia had enacted some form of renewable portfolio standard. Each percentage represents the minimum share of a utilitys capacity powered by renewable resources. The utility may own that capacity or purchase it, and associated renewable energy certificates, from independent power producers. Source: DOEs Database of State Incentives for Renewables & Efficiency
*WA: 15% by 2020 OR: 25% by 2025 (large utilities) 5%10% by 2025 (smaller utilities) MT: 15% by 2015 ND: 10% by 2015 ME: 30% by 2000 10% by 2017 new RE VT: RE meets load growth by 2012 NH: 23.8% in 2025 MA: 4% by 2009+ 1% annual increase RI: 16% by 2020 CT: 23% by 2020 NJ: 22.5% by 2021 MD: 9.5% in 2022 *VA: 12% by 2022 *DE: 20% by 2019 DC: 11% by 2022

MN: 25% by 2025 (Xcel: 30% by 2020)

WI: requirement varies by utility; 10% by 2015 goal

NY: 24% by 2013 IA: 105 MW CO: 20% by 2020 (IOUs) *10% by 2020 (co-ops and large munis) NM: 20% by 2020 (IOUs) 10% by 2020 (co-ops) IL: 25% by 2025 MO: 11% by 2020 PA: 18%1 by 2020

*NV: 20% by 2015 CA: 20% by 2010

AZ: 15% by 2025

NC: 12.5% by 2021 (IOUs) 10% by 2018 (co-ops and munis)

HI: 20% by 2020

TX: 5,880 MW by 2015

Minimum solar or customer-sited RE requirement *Increased credit for solar or customer-site RE

1PA: 8% Tier I/10% Tier II (includes non-renewables) 20 www.powermag.com

State RPS State goal Solar water heating eligible

POWER May 2008

RENEWABLES
Site to behold. Windy Point Project is near Goldendale, Wash., on about 25 miles of ridgeline property overlooking the Columbia River on the Washington-Oregon border. Courtesy: Cannon Power Corp. Heavy lift. The Judith Gap Energy Center is a 135-MW wind farm located in central Montana, about 100 miles east of Helena. The project uses 90 GE wind turbines rated at 1.5 MW each. Courtesy: Invenergy Top billing.
Power generated by the Judith Gap Energy Center is sold to NorthWestern Energy under a 20-year power purchase agreement. The project began commercial operation in December 2005. Courtesy: Invenergy

their associated energy are allowed to be sold separately. The REC trading camp continues to gain adherents as transmission resources are unable to keep pace with growth in renewable generation.

Firming and banking wind power

One of the services available to both camps is the ability to firm wind energy. Utilities that generate lots of wind power frequently offer buyers the option of smoothing out the delivered product by averaging its capacity on an hourly basis. A typical example is hour-ahead firm energy; if weather and wind forecasts indicate that a wind farm will

generate 25 MW over the next hour, the utility guarantees that 25 MW will be delivered from its generation portfolio during that hour, regardless of the wind farms actual generation. Given winds inherent variability, which can cause operational and stability headaches, paying an extra $15/MWh for firm energy is attractive to some buyers. A further service that may soon be offered to utility purchasers is the ability to bank wind energy. This concept envisions a utility storing the RECs associated with wind power production until a more advantageous time for the recipient, and then releasing them for sale along with new, not necessarily renewable,

energy. Although this scheme would only work for those in the REC trading camp, it does provide a big benefit: delivery of wind power during peak-demand periods. The impetus for this banking service is found in the newest (third) edition of the California Energy Commissions Renewables Portfolio Standard (RPS) Eligibility Guidebook (download from www.energy. ca.gov/renewables/documents/index.html). In Section D of Part II, the guidebook states that Electricity may be delivered into California at a different time than when the RPS-certified facility generated electricity. . . . Further, the electricity delivered into

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RENEWABLES
California may be generated at a different site than that of the RPS generated facility . . . out-of-state energy may be firmed or shaped within the calendar year. This language allows those in the REC trading camp to bank the renewable energy for delivery at some later time, and other sites to provide the energy that is ultimately delivered to the receiving utility. Presumably, these sites can deliver nonrenewable energy (brown energy), but it will be considered green as long as the RECs created by the renewable power production are credited exclusively to the delivered energy. Wind is typically assigned a capacity value of about 10% of total installed wind farm capacity. That is, for every 100 MW of wind turbines installed, the utilitys energy control center typically expects about 10% to be online at any given time. Some utilities do not assign any capacity value to wind; they use spinning reserve or fast-start generation to compensate for any shortfalls. For example, in Texas, ERCOT purchases these as ancillary services. Others use wind power to store energy for later use as on-peak capacity, for example by pumping water into a storage facility and then dispatching the hydroelectric energy during peak-demand periods. Economically, the benefits of banking wind energy are enormous. Wind is capricious, but in most places it is stronger, and therefore capable of producing more power, at night, an off-peak time. Its value to a utility ranges from $15/MWh to $50/MWh. But in California, where wind speeds are higher than average, the typical wind energy price of over $70/MWh often causes negative cash flow for a utility. Even accounting for the value of RECs (whose prices are estimated to climb as high as $30/MWh), a 50% loss per MWh would not be atypical. To compare the economics of banked energy versus unbanked wind energy, lets see what firming wind energy would cost. Currently, the market is charging about $20/MWh to bank wind energy. So, if we purchase the wind energy for $75/MWh and then add $15/MWh to firm it and $20/MWh to bank it, were looking at $110/MWh as the total cost of wind energy. However, banked wind energy is more like solar power in that it is renewable energy that can be received on-peak. In fact, banked wind energys dispatchability makes it more valuable than solar because its capacity is much firmer. Banked wind energy can be used on-peak; during the hottest summer days, it is worth $80/MWh to $300/MWh. Even taking into account the $30/MWh cost of a REC, buying wind at $110/MWh would be beneficial to most utility bottom lines. Contractually, the acquisition of wind energy will change drastically due to the bene-

Take it to the bank

The ability to bank wind energy has multiple and far-reaching implications. Operationally, the major effect is to set a value on wind power capacity. One of the major shortfalls of using wind as a source of electricity is that wholesale-market dispatchers cannot rely on wind capacity being available to meet load (see Loss of wind forces Texas to brink of blackout).

Loss of wind pushes Texas to brink of blackout

The Electric Reliability Council of Texas (ERCOT) narrowly missed a blackout on February 26 by activating the second stage of its emergency electric curtailment plant (EECP) and curtailing industrial loads to compensate for a steep drop in wind power capacity and a drop in frequency on the ERCOT grid just as the evening demand was increasing. According to an ERCOT press release issued the following day, wind production dropped more than 1,700 MW in the middle of the afternoon of February 26 to 300 MW by early evening, when ERCOT activated its demand response procedures. Within 10 minutes, industrial customers shed 1,100 MW of load, helping ERCOT avoid having to shed more load or to initiate rolling blackouts to avoid a broad system failure. Most of the interruptible loads were restored after roughly 90 minutes. Preliminary reports indicate the frequency decline was caused by a combination of events, including a drop in wind energy production at the same time the evening electricity load was increasing, accompanied by multiple power providers falling below their scheduled energy production, the statement said. of installed wind capacity, found that if Texas were to install 15,000 MW of wind capacity, more than 75% of it would be available for use only 10% of the year. Its obvious around here that the wind blows when we dont need it as much, and that at peak times its not something we can rely on, said ERCOT spokeswoman Dottie Roark the day after the grid emergency. Wind works best in conjunction with other generation.

Transmission trouble
ERCOT reported in January that wind provided only 2.9% of the 307 million MWh the state consumed in 2007. Winds share of the total Texas energy mix continues to climb, however. In 2006, wind met 2.1% of demand, while in 2005 wind energy amounted to 1.4% of the total MWh consumed in the state. Texas, the nations wind generation leader, currently has 4,300 MW of installed wind capacity; projects totaling an additional 3,400 MW in capacity have signed contracts with prospective transmission providers. However, the state has only 5,000 MW of transmission capacity available to bring wind energy from west Texaswhere virtually all of the wind capacity is locatedto load centers in the eastern part of the state. Our biggest issue with wind is transmission congestion, Roark said. Obviously, we already have more installed capacity available than transmission capacity, and we have more than 40,000 MW of proposed wind projects in the queue. Though no one in ERCOT expects all of the 40,000 MW will be built, Texas clearly has a pressing need to build transmission to meet the growing demand for power in the state.

Bad timing
A 2007 study of the ERCOT system by General Electric concluded that the daily behavior of wind is anti-correlated with load, meaning that wind drops off sharply as the morning load builds, and builds up strongly as the nighttime load falls. This effect is most pronounced in late spring and summer, the study said. The GE analysis, which relied on ERCOT data, also concluded that adding wind generation to the Texas grid increases the need to boost the percentage of overall power plant capacity set aside to provide ancillary services, which ensure that voltage levels and other reliability factors are maintained at optimal levels. The report, which modeled scenarios assuming differing levels
22

By Chris Holly (cholly@accessintel.com), a reporter with POWERs sister publication, The Energy Daily (www.theenergydaily.com).
POWER May 2008

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RENEWABLES
fits of banking. Some utilities, like Southern California Edison (SCE), are willing to pay a premium for power delivered on-peak but much less for off-peak energy. For example, if SCE secures a wind deal for $100/MWh, the utilitys pro forma contract structures payments so they average $100/MWh over the year but are $328/MWh during the summer peak and $65/MWh during off-peak periods and winter months. The acceptance of energy banking by state energy regulators will enable contracts to be restructured to eliminate premium payments. tive sleight of hand can help address the need for green energy by making the shortage of on-peak transmission moot. State regulators may impose some restrictions on how the trick is accomplished. For example, the California Energy Commissions guidebook stipulates that the control area operator doing the firming and banking must be part of the Western Electricity Coordinating Council (WECC). wind. Since the only real costs incurred by the seller are incremental operation and maintenance costs, the prices paid for wind energy at levels other than P99 are typically 60% of that paid for P99 wind. This bracketing combination of minimum annual energy guarantees and lower prices for non-P99 wind encourages wind farm developers to accurately present the generating capability of their plants. If the guaranteed generation is set too low, then more energy would be sold at the discounted rate each year. Conversely, if the guarantee is set too high, performance obligations might not always be met and could possibly result in the assessment of costly damage payments. In planning their renewable resource portfolios, utilities typically choose suppliers willing to guarantee wind energy generation with low levels of uncertainty. The ability of wind farm developers to offer and meet an annual level of guaranteed generation is a significant milestone for an industry on the cusp of maturity.

Guaranteeing generation
One of the obstacles preventing wind plants from becoming a first-rate electricity resource is the inability of wind farm owners and developers to accurately predict and guarantee wind energy delivery. Wind energy resource assessments typically use several years worth of wind data. These assessments typically develop estimates of long-term mean wind speeds based on onsite anemometer data or on reference anemometer data from a nearby location. Once estimates of wind speeds have been made, they can be used to create power curves that estimate the electrical energy that wind turbines would produce at each speed. The resulting forecast, based on both estimates, is a probability-based energy production level for a wind farm. For example, P99 energy is the term used for the annual amount of energy predicted to be available at a point of delivery with a probability of 99% or greater. P50 energy describes the (larger) amount of annual energy expected to be available at a probability of 50% or more. Since P99 energy has a 99% probability of meeting the expected energy production level each year, it typically becomes the annual guaranteed energy expected of a particular wind farm. Accordingly, a wind farms P99 level is calculated and certified by an industry wind assessment expert. Performance damages are sometimes sought if the plant fails to deliver the guaranteed generation. Sometimes, a failure to perform clause in a contract is triggered at a certain percentage of the P50 level or of another P level. It all depends on the negotiations between the utility customer and the owner of the wind farm. Probability-based energy production levels also affect the building of wind farms because, as part of their financing, the level of expected revenues is based on substantiated generation numbers. If a wind farms guaranteed generation is from P99 wind, any revenues from additional sales of wind power with a lower P level are not used toward capital recovery or to meet investors return on investment targets. For this reason, the price of wind power at other P levels is usually substantially less than that of P99
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Connect the plants

Because they are powered by an intermittent resource, wind farms have an average capacity factor that rarely exceeds 40%. This has three negative and related consequences:

Much of the transmission capacity built to deliver wind power to grids is underutilized. Transmission must be overbuilt to deliver wind-generated electricity. The cost of transmitting wind power is two to three times that of transmitting the production of conventional power plants.

Guaranteeing availability
As wind power becomes more important to more utility resource portfolios, so does the availability of wind farms. Some utilities address the issue by specifying in their contracts with wind farms a target mechanical availability for the project, such as 98% for smaller wind turbines or 95% for the megawatt-size turbines. This, along with annual generation guarantees, enables them to more effectively establish the reliability of wind power resources. The two guarantees work hand-in-glove, because it is conceivable that a wind farm could meet its annual guaranteed generation level with poorly performing wind turbines. Typically, guaranteed generation is an annual target, while mechanical availability is based on quarterly turbine performance statistics. The main objective of requiring mechanical availability is to ensure that a wind farm is properly maintained and operated. But it also ensures that a minimum amount of energy is generated over a given period if the minimum mechanical availability number of the wind turbines is met. If this minimum production is not achieved, an energy shortfall will be declared and the wind farm owner will have to find a way to make up the difference that would have been generated had the turbines been fully available. Calculating the guaranteed generation of a typical wind plant for a given period of time (usually one quarter of a year) illustrates these points. Guaranteed generation is calculated using the following formula: GG = EQE x MAF = EQE x MAR x AH/TH
POWER May 2008

However, if the wind energy is banked, it can be transmitted as a firm resource, allowing all of its transmission capacity to be leveraged. Assuming a $7/MWh cost for transmission and the usual wind power capacity factor of 33%, banking wind energy and transmitting it later (raising the capacity factor to 100%) would produce a potential transmission savings of $14/MWh. However, banking wind energy does pose some challenges to transmitting it. Wind farms are usually sited in remote areas where the wind is strongest, so hundreds of miles of transmission lines are typically needed to bring their output to load centers. While firm transmission is an increasingly scarce commodity, transmitting wind energy in real time has been less problematic because wind speeds are usually higher during off-peak periods. At those times, transmission capacity is readily available, although mostly as nonfirm, day-ahead scheduling. Banking wind energy for on-peak consumption requires that on-peak transmission be available to move it to load centers. Since on-peak transmission is harder to come by, other steps must be taken. Members of the REC trading camp would suggest that a utility do the following: Buy the wind energy at one location, spin off its RECs, and sell the wind energy as brown energy locally. The utility can then combine the RECs with brown energy at a second location that has better transmission access. Many in the camp believe that this legisla24

RENEWABLES
Where: GG is guaranteed generation. EQE is the expected quarterly energy generated. MAF is the mechanical availability factor. (Wind turbine manufacturers typically guarantee the mechanical availability of their units for two to five years following installation. After this period, it is up to the wind farm owner/operator to perform the maintenance necessary to ensure their required availability.) MAR is the mechanical availability requirement (a percentage usually around 97%). AH is actual hoursthe number of hours in the given period, less two hourly sums. They are the total hours during the period that turbines are not operational because (1) they are being maintained, (2) there is a major power system emergency, or (3) wind conditions are too weak or strong. TH is total available hoursthe number of hours in a given period during which a wind farms turbines are physically capable of producing electricity. fall of 509 MWh that the wind farm owner would have to make up. Utilities typically buy wind energy using a power purchase agreement that may include an option to purchase the wind farm later as well, after its tax credits have expired (usually 10 years after its commissioning). In such cases, mechanical availability guarantees take on even more importance. Obviously, the utility would prefer the wind farm to have a high availability when it takes ownership. The operator, on the other hand, would be financially motivated to let turbine maintenance slip the last few years of operation. Guarantees of mechanical availability give wind farm operators an incentive to be conscientious about maintenance right up to the turnover date.

Robert Castro (robert.castro@alumni .usc.edu) teaches graduate level power classes at the University of Southern California and negotiates wind generation contracts for a local utility. Fernando Pardo (flpardo@aol.com) is a supervisor of renewable energy development at a local utility.

Welding Solutions for the Power Generation Industry

Example calculation
Consider a 50-MW wind farm with an annual 35% capacity factor and turbines whose required mechanical availability is 97% for a given quarter. Now assume that, during a 90-day quarter, the wind farm has 30 hours of scheduled maintenance, 10 hours of power system emergency, and 40 hours when wind speeds are above or below the turbines operating range. Further, assume that during that quarter the wind farm generated 34,800 MWh. For this quarter, the AH of the turbines is calculated as: AH = (24 hours/day x 90 days/ quarter) (30 hr + 10 hr + 40 hr) = 2,080 hr Since there are 2,160 hours in a calendar quarter, the turbines MAF during the same quarter would be: MAF = 0.97(2,080/2,160) = 0.9341 The wind farms GG for this quarter would be the product of its EQE and MAF. In this case, the EQE would be the product of 50 MW, the number of hours in the quarter, and the projected capacity factor. Using our definitions, EQE would be 50 MW x 2,160 hours x 35%, or 37,800 MWh. As a result, the wind farms GG for this quarter is 37,800 MWh x 0.9341, or 35,309 MWh. Because only 34,800 MWh are delivered to the meter, there would a shortMay 2008 POWER

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MERCURY CONTROL

Future of national mercury rule now uncertain

This February, a federal appeals court tossed out the Clean Air Mercury Rule and its cap-and-trade program and ordered that mercury be regulated more stringently as a hazardous air pollutant. Adding insult to injury, the court made its ruling effective one month later. While the EPA regroups, state energy and environmental regulators will have an opportunity to look closely at recent power plant permits for guidance. This article reviews the technology options and regulatory approach for mercury control used on recently permitted and currently operating coal-fired plants.
By Christopher Wedig; Dr. William Frazier, PE; and Ethan Begg, PE, The Shaw Group

s the baseball great Yogi Berra once said, Its dj vu all over again. On February 8, the U.S. Court of Appeals for the D.C. Circuit dismissed the Clean Air Mercury Rule (CAMR). The U.S. Environmental Protection Agency (EPA) wrote the CAMR assuming that mercury should be regulated under Clean Air Act (CAA) Section 111, which sets national emission standards for new stationary sources. But the court reinstated a more stringent regime under CAA Section 112, which governs hazardous air pollutants (HAPs). Section 112 regulation of mercury requires meeting maximum achievable control technology (MACT) standardsand eliminating the mercury capand-trade program. In the wake of this decision, coal-fired power projects currently in their planning or permitting phases may need to reevaluate whether their mercury control technology approach complies with their states standard. New federal regulations under Section 112 arent expected for several years. The EPA lost a fight with 15 states, which convinced the U.S. Court of Appeals for the Washington, D.C., circuit that both the CAMR and an EPA rule removing power plants from the list of sources of HAPs (placing them beyond the jurisdiction of Section 112) violate the CAA. On February 8, the court issued a decision that vacated both rules effective March 14, 2008. This leaves in place the original December 2000 judgment by the EPA that electric utilities should be regulated under Section 112. A case-by-case MACT for HAPs may be required for new solid-fuel facility permits. The EPA is currently reviewing the decisions and evaluating their possible impacts. Many anticipate the new regulatory regime
26

will require major new sources of HAPs, including power plants, to conduct case-bycase preconstruction reviews of their mercury control strategies until a new MACT standard is developed and promulgated.

States take center stage

At least 21 states have proposed, finalized, or implemented mercury limits or allocation procedures that are more stringent than the CAMR. In addition to the CAMR and state-specific rules, consent decrees between certain sources and regulatory agencies also have affected the mercury control technology landscape. Some coal-fired power plants recently have been issued air permits that limit their emissions of mercury. In most cases, the limits were established prior to the February ruling. For some permits, the limits were based on recently updated New Source Performance Standards (NSPS) for electric utility steam generating units that in turn are based on the units generating technology and fuel. In other cases, the limits were established as part of a MACT evaluation for mercury. Several new coal-fired power plant projects currently in their permitting phase are now assessing the implications of the recent court ruling. Some of the recently issued air quality permits call for the use of a specific mercury control technology. Many specify the injection of a sorbent such as activated carbon or halogenated activated carbon for mercury control.

Mercury projects continue

Mercury control technologies currently available for use by utilities have evolved from numerous laboratory, pilot, and demonstration-scale test programs completed in the
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mid-to-late 1990s and tested at various levels in the field since 2001. Much of the full-scale mercury control technology testing has been sponsored by the DOEs National Energy Technology Laboratory (NETL). NETLs program is currently focused on slip-stream and full-scale field testing of mercury control technologies at operating coal-fired power plants. The labs longer-term goal is to develop advanced mercury control technologies capable of 90% or greater capture for commercial demonstration by 2010. Many of the field tests sponsored by NETL were conducted at full scale for short periods of time. For example, during Phase I of the NETL program, testing conducted in 2001 and 2002 evaluated the mercury capture efficiency of activated carbon injection (ACI) at four coalfired power plants. The 14 projects selected for Phase II of the NETL program fall into two general categories of mercury control: sorbent injection and oxidation enhancements. Mercury oxidation enhancements are intended to improve mercury capture of conventional ACI or downstream air quality control systems (AQCS) by converting mercury to a more oxidized state. The 14 Phase II projects sponsored by NETL include 37 field tests performed at 30 different generating units. This program evaluated a wide range of coals, including coals from the Powder River Basin (PRB); low-, medium-, and high-sulfur bituminous coals; North Dakota lignites; and blends of PRB coal and bituminous coal and Texas lignite. Although the field tests covered numerous types of AQCS, most were performed on cold-side electrostatic precipitators (ESPs), the most common AQCS used by existing coal plants.
POWER May 2008

MERCURY CONTROL
In addition to the NETL Phase I and II field tests, the DOE, under its Clean Coal Demonstration Program, is sponsoring a commercial demonstration of the Toxecon process. (See POWERs special October 2004 issue for a detailed description of it and other technology options for mercury control.) Toxecon is an EPRI-patented process. It relies on the injection of sorbents (including powdered activated carbon for mercury control, and other sorbents for NOx and SOx control) into the flue gas downstream of an existing particulate control device and the collection of the resulting compounds by a new particulate control device, typically a pulse-jet fabric filter or baghouse (BH).

Table 1. Examples of new coal-fired facilities whose air permit specifies a mercury control technology. Source: Shaw Group
Unit Plant A Plant B Plant C Plant D Plant E Plant F Plant G Plant H Plant I Plant J Plant K Plant L Plant M State Georgia Nebraska Wisconsin Nevada Montana Texas Montana Illinois Illinois Nevada Colorado Texas Iowa Capacity (MW) 2 x 645 660 600 200 116 800 2 x 390 250 2 x 750 3 x 530 750 2 x 860 790 Primary coal supply PRB and central Appalachian PRB PRB PRB PRB PRB Western bituminous High-sulfur bituminous High-sulfur bituminous PRB PRB Lignite PRB Mercury control technology Halogenated ACI Sorbent injection Sorbent injection ACI ACI or equivalent Halogenated ACI ACI or equivalent ACI (if not 95% removal) ACI (if not 95% removal) Halogenated ACI Sorbent injection Treated ACI ACI Hg emission limit 15 lb/106 MWh 18 lb/106 MWh 1.7 lb/1012 Btu 20 lb/106 MWh Based on demonstration period 20 lb/106 MWh 1.5 lb/1012 Btu or 90% control 95% removal without ACI, or use ACI 95% removal without ACI, or use ACI 20 lb/106 MWh 20 lb/106 MWh 9.2 lb/1012 Btu 1.7 lb/1012 Btu

Trends in compliance technology

As mentioned, many new coal-fired power plants have specific mercury control technology identified in their air permit (Table 1). Many of the new plants will use spray dryer/ absorbers (SDAs) and BHs to control SO2 and particulate matter, and selective catalytic reduction (SCR) systems for NOx control. Variations abound. For example, the AQCS configuration at one station is a BH followed by a wet flue gas desulfurization (FGD) system and a wet ESP. At another plant, the configuration is a dry ESP followed by a wet FGD system and a wet ESP. There are many other new plants not listed in Table 1 whose air permit specifies a mercury emission limit but not a particular control technology. In these cases, the project developers will need to consider whether the co-benefit mercury removal provided by the AQCS chosen for SO2, NOx, and particulate matter control (using the design fuels) will be adequate to meet the permitted mercury limit. In some instances, project developers may elect to install an ACI systemeven though it is not required by the air permitto ensure meeting the permitted mercury emission limits. Although the incremental capital cost of an ACI system is relatively small compared to that of the entire plant, the cost of the activated carbon needed to operate the system can be significant. The Institute of Clean Air Companies (ICAC) maintains listings of commercial mercury control systems ordered by electric utilities for both new plants and retrofit applications. Table 2, which was updated this February, summarizes the control technology bookings for new plants. According to the ICAC, the regulatory driver of all 17 bookings listed is the projects construction permit. Significantly, there was a big increase in bookings since the last update of the database in September 2006. Table 3 summarizes the ICACs data on retrofit mercury control projects.
May 2008 POWER

Notes: ACI = activated carbon injection, Hg = mercury, PRB = Powder River Basin.

Table 2. Commercial mercury control technology bookings for new coal-fired utility plants. Source: Institute of Clean Air Companies Parameter Number of bookings Unit size Location Observation 17 220860 MW (range) 700 MW (median) Midwest7 West2 South3 Southwest2 East2 Canada1 Prime OEM contractors Coal type Five different process supplier teams PRB8 Bituminous5 Lignite3 Canadian subbituminous1 Air quality control system conguration SDA/FF8 ESP/WFGD/ wet ESP3 FF/WFGD5 CFB boiler/FF1 Mercury control technology ACI17

Table 3. Commercial mercury control technology bookings for retrofit utility mercury control projects.
Source: Institute of Clean Air Companies Parameter Number of bookings Unit size Location Observation 65 90880 MW (range) 460 MW (median) Midwest33 West3 South4 Southwest10 East11 Northeast4 Prime OEM contractors Coal type 15 different suppliers PRB43 Bituminous14 Bituminous/biomass1 Lignite3 Western bituminous/ subbituminous4 Mercury control technology Activated carbon injection64 Powerspans ECO process1 Regulatory driver Consent decree9 State rule35 Construction permit7 DOE demonstration1 Voluntary regional emission abatement plan8 Clean Air Mercury Rule5

Notes: ACI = activated carbon injection, BH = baghouse, CFB = circulating uidized-bed boiler, ESP = electrostatic precipitator, FF = fabric lter, SDA = spray dryer/absorber, WFGD = wet ue gas desulfurization system.
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MERCURY CONTROL
Table 4. Some retrofit mercury control projects in which Shaw Group has been involved. Source: Shaw Group
Name Plant A Unit size (MW, nominal) 100 Primary coal supply PRB AQCS conguration SNCR for NOx control (retrot) Trona injection for SO2 control (retrot) FF for control of SO2, Hg, and PM (retrot) Plant B 200 PRB SNCR for NOx control (retrot) Trona injection for SO2 control (retrot) FF for control of SO2, Hg, and PM (retrot) Plant C 250 Low-sulfur coal High-dust SCR system for NOx control (retrot) ESPs for yash control (existing) Lime SDA for SO2 control (retrot) FF for control of SO2, Hg, and PM (retrot) Plant D 335 Bituminous coal High-dust SCR system for NOx control (retrot) ESPs for yash control (existing) Wet LSFO FGD system for SO2 control (retrot) Plant E Plant F 350 350 Low-sulfur coal Bituminous coal ESP for yash control (existing) Clean-side SCR system for NOx control (existing) ESP for yash control (existing) Clean-side SCR system for NOx control (existing) Lime SDA for SO2 control (retrot) FF for control of SO2, Hg, and PM (retrot) Plant G Plant H 400 610 Low-sulfur coal Bituminous coal ESP for yash control (existing) FF for control of Hg and PM (retrot) High-dust SCR system for NOx control (retrot) ESP for yash control (existing) Lime SDA for SO2 control (retrot) FF for control of SO2, Hg, and PM (retrot) Plant I 635 Bituminous coal High-dust SCR system for NOx control (existing) ESP for yash control (existing) Wet LSFO FGD system for SO2 control (retrot) Plant J 650 PRB High-dust SCR system for NOx control (retrot) ESPs for yash control (existing) Lime SDA for SO2 control (retrot) FF for control of SO, Hg, and PM (retrot) Notes: ACI = activated carbon injection, AQCS = air quality control system, ESP = electrostatic precipitator, FF = fabric lter; FGD = ue gas desulfurization, Hg = mercury, LSFO = limestone forced-oxidation, PM = particulate matter, SCR = selective catalytic reduction, SDA = spray dryer/absorber, SNCR = selective noncatalytic reduction. ACI upstream of SDA (retrot) Retrot LSFO FGD also removes ionic Hg ACI between SDA and FF (retrot) ACI upstream of FF (retrot) ACI between SDA and FF (retrot) ACI upstream of existing ESP Retrot LSFO FGD also removes ionic Hg ACI between SDA and FF (retrot) ACI between trona injection and FF (retrot) Mercury control process ACI between trona injection and FF (retrot)

Table 5. Co-benefit mercury removal is possible from several air-quality control devices that were primarily designed to limit emissions of another pollutant. Source: Shaw Group
AQCS device SCR system Existing ESP or BH SDA + FGD Wet FGD Multipollutant processes Removal process Neutral Hg to ionic Hg. Removes some Hg-particulate and yash (yash LOI can lower concentrations of Hg2+ and Hg0). Adsorption of Hg in lime by-product solids at cool temperatures, with PM and solids removed in baghouse. Ionic Hg and PM absorbed in FGD slurry at cool temperatures. Additives used to minimize re-emission of Hg0. Ionizer reactors achieve Hg oxidation, followed by Hg absorption at cool temperatures in a wet FGD, with further removal in WESP.

Many options available

Table 4 lists 10 of the many significant retrofit full-scale mercury control projects in the U.S. currently in the design, construction, and/or initial operation phase. As the right column shows, not all make use of ACI; some projects achieve mercury reduction as a co-benefit of the operation of their AQCS devices, in any of several configurations. Co-benefit mercury removal (Table 5) is defined as the reduction of mercury concentration in flue gas by an AQCS device primarily designed to control emissions of another parameter such as SO2, SO3, NOx, particulate matter (PM), or CO2. Although the level of co-benefit mercury removal may be incidental, there are ways to design and/or operate an AQCS to improve its Hg removal
POWER May 2008

Notes: AQCS = air quality control system, BH = baghouse, ESP = electrostatic precipitator, FGD = ue gas desulfurization system, Hg = mercury, LOI = loss-on-ignition, PM = particulate matter, SCR = selective catalytic reduction, SDA = spray dryer/absorber, WESP = wet ESP.
28 www.powermag.com

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MERCURY CONTROL
efficiency. The degree of co-benefit Hg reduction depends on both the type of AQCS device being used as well as its process parameters. These variables include:

Table 6. Comparing the mercury removal efficiencies of various AQCS processes. Source: Shaw Group
AQCS process SCR oxidation Typical mercury removal efciency 10% to ~ 90% oxidation of neutral Hg to ionic Hg 5% to ~ 30% total Hg typical with higher values Up to ~ 80% to 90% ionic Hg removal in SDA/FF Comments Level depends on coals type and chlorine and bromine content and on SCR systems catalyst type, space velocity, and gas temperature. Level depends on LOI of yash, coals chlorine and bromine content, and ESPs specic collection area. Level depends on coals chlorine and bromine concentration and ue gas temperature, among other factors. Eastern bituminous coal typically has more oxidized Hg in its combustion products than does PRB coal. May require additives in wet FGD to reduce Hg reemission. Level depends on designs of reactor, FGD, and WESP.

Existing ESP or FF without ACI Dry FGD with FF; lime SDA without injection of PAC

The use of an ESP or baghouse to reduce flyash loss-on-ignition. The oxidation of neutral Hg to ionic Hg by an SCR system. The presence of a dry FGD system (an SDA, a BH, and a circulating dry scrubber with sorbent injection). The existence of a wet FGD system (with or without additives, to minimize conversion of ionic Hg to neutral Hg). The use of a multipollutant control process based on ionizer reactors, absorbers, and wet ESP(s). The use of ACI with an ESP, BH, or SDA (influences SO3 reduction levels). The use of brominated ACI with an ESP, BH, or SDA. The use of a demonstration- or R&D-phase mercury oxidation catalyst. Use of a fuel additive or boiler chemical injection to convert neutral Hg to ionic Hg.

Wet FGD; LSFO FGD without a WESP or injection of PAC Multipollutant processes (with reactor/FGD/WESP) without PAC injection

Up to ~ 90% ionic Hg removal Up to ~ 90% total Hg removal

Table 6 presents examples of typical co-benefit mercury removal efficiency levels for various AQCS devices. Co-benefit mercury control using wet and dry FGD systems is a function of the following parameters:

Notes: ACI = activated carbon injection, AQCS = air quality control system, ESP = electrostatic precipitator, FF = fabric lter; FGD = ue gas desulfurization, Hg = mercury, LSFO = limestone forced-oxidation, PAC = powdered activated carbon, PM = particulate matter, PRB = Powder River Basin, SCR = selective catalytic reduction, SDA = spray dryer/absorber, WESP = wet ESP.

The coals type and its concentrations of Hg, chlorine, bromine, fluorine, and sulfur. The level of mercury speciation (ionic, elemental, particulate). The extent to which the SCRs catalyst oxidizes mercury. Required levels of mercury reduction and stack emissions. The extent to which both wet and dry FGD systems reduce the concentration of mercury in flue gas. The level of mercury capture by the FGD system.

An FGD system can remove several compounds from a flue gas stream. They include SO2 and SO3, nitrogen dioxide (NO2), PM, mercury (in its ionic form), other trace elements (selenium, lead, arsenic, etc.), ammonia (NH3), hydrogen chloride (HCl), and hydrogen fluoride (HF). On some FGD projects, guaranteed trace species coremoval has been requested. Fortunately, both wet and dry FGD are compatible with ACI. Finally, every utility coal-fired boiler has unique design issues that must be addressed as part of any mercury control program. For plants with existing FGD systems, upgrading the FGD system for increased mercury co-removal is an option that could pay huge dividends. The benefits may go well beyond reducing the bare cost of mercury removal to include:

Increased SO2 removal (producing valuable credits). Increasing the amount of flue gas scrubbed. Increasing mercury removal efficiency. Allowing the plant to use a higher-sulfur coal or pet coke or fuel oil. The use of a limestone forced-oxidation FGD system to yield wallboard- and/or cement-grade gypsum. The ability to test larger atomizer drives in an existing SDA/FGD. Increased reliability of an existing FGD system. The ability to repair severe corrosion of FGD system materials.

Christopher Wedig (christopher.wedig@shawgrp.com) is a senior technology specialist with the Power Group of The Shaw Group. Dr. William Frazier, PE (william.frazier@shawgrp.com) is an executive environmental consultant for Stone & Webster Management Consultants, Inc., a Shaw Group company. Ethan Begg, PE (ethan.begg@shawgrp.com) is a client program manager with the Environmental & Infrastructure Group of Shaw Group.
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POWER May 2008

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WATER TREATMENT

Cation conductivity monitoring: A reality check

The ability to detect contaminated feedwater or steam before it can corrode the internals of a turbine or HRSG and cause a forced outage is worth millions. One knock against cation conductivity monitoringstill the most common technique for the early detection of contaminationis the difficulty of interpreting conductivity readings when the plants makeup contains significant levels of organics or CO2. Here are the pros and cons of cation conductivity monitoriting and some alternative monitoring methods.
By David G. Daniels, M&M Engineering Associates Inc.

he operators of a new combined-cycle plant being run in two-shift mode (on 16 hours, off 8) had become used to the cation conductivity sample of the condensate pump discharge being in alarm for a while following each days start-up. Normally, after a few hours of operation, the reading dropped to an acceptable limit. So, when cation conductivity didnt drop as usual and the alarm never cleared, a problem wasnt caught in time. Scratching their heads over the high reading, the operators guessed, Maybe the cation column needs to be replaced. Weeks later, what had been a small condenser tube leak suddenly became big enough to contaminate the plants heat-recovery steam generator (HRSG) and steam turbine. Although the large leak was quickly detected and the plant shut down, it took nearly three months to clean up and recondition the turbine. Despite the repairs, the long-term damage done to the expensive new turbine is still really anybodys guess. Had the operators not ignored the high cation conductivity reading at the condensate pump discharge, they would have known they had a problem. Locating and plugging the leaking condenser tube would have been easy and would have
Proper attention to cation conductivity monitoring might have prevented this damage to turbine blades. Courtesy: M&M Engineering Associates

1. Scaled up.

avoided the repair costs and millions of dollars in lost generation revenues. Unfortunately, this kind of story has become commonplace. A change in cation conductivity has been the first indication of many problems, but it has been ignored until major contamination occurs. Nevertheless, some operators have said that it is unnecessary (and, in some cases, impossible) to strictly follow ASME, EPRI, or a turbine manufacturers guidelines for cation conductivity. Their comments might suggest to some that the parameter is no longer important. To be sure, some conventional fossil fuel fired boilers and combined-cycle plants have operated for many years with the cation conductivity of feedwater or steam at levels well above what is considered normal. Indeed, one combined-cycle plant has been run for more than 15 years with cation conductivity more than an order of magnitude higher than the recommended limit of 0.25 S/cm (microSiemens per centimeter) without causing corrosion or cracks in its turbine. Heres why this plant has avoided problems. Because its water supply has significant concentrations of naturally occurring organic compounds, it adds both organic amines and a carbon-containing oxygen scavenger (a reducing agent) when preparing makeup. Another case of unexpected immunity occurred at an older plant that recently purchased its first cation conductivity analyzer. Following installation, the unit immediately indicated a high level in feedwater, and the cation resin columns were exhausting in a few days. This plants condensers have stainless steel tubing that has never leaked. I have regularly inspected the boilers, deaerators, and other equipment at this plant for several years. The steam drum and tubing are in excellent condition. Every time the turbine is inspected, there are no signs of cracking or pitting. As at
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the other plant, the additions of amine and the CO2 picked up by the condensate drive feedwater and steam cation conductivity high.

Useful or not?
Is cation conductivity so important that high values justify taking a unit off-line? Or should the parameter be ignored in favor of other analytical chemistry tools? Based on the experience of M&M Engineering Associates, measuring cation conductivity remains one of the most sensitive, simple, and reliable tools for detecting small amounts of contamination in feedwater and steam. Working in concert with sodium and other monitoring, cation conductivity monitoring can confirm that your feedwater is clean enough to be turned into steam that wont damage your turbine. However, many operators find it difficult to interpret cation conductivity readings, particularly at plants whose steam generators use water containing either naturally occurring or purposefully added organic compounds. To understand the difficulty, its important to know what cation conductivity is and is not. Actually, cation conductivity is a misnomer. A more precise name would be cation-exchanged conductivity, because it is a measure of the conductivity of a solution after it has been passed through a strong acid cation exchange resin. This resin exchanges all the cations in the sample for hydrogen ions. In high-purity samples (such as of condensate, feedwater, or steam), the cation exchanged is primarily ammonium ions. What passes through the resin unscathed are all the anions in the sample. These are primarily anions of dissolved carbon dioxide (bicarbonate), the anions of any organic acids such as formate or acetate, and (it is hoped) traces of chloride and sulfate. Because the ammonium ion is removed and exchanged for hydrogen, the pH of the water
POWER May 2008

32

WATER TREATMENT
exiting the column is more acidic than it was entering. This has led some to use the term acid conductivity to describe cation conductivity. Chloride and sulfate are known to contribute to corrosion fatigue in turbine blades, particularly those in the final rows of the low-pressure section. It is chloride and sulfate contamination that cation conductivity is really intended to detect. Early detection of this contamination can allow a plant time to correct contamination before it causes deposits and corrosion on the turbine (Figure 1). What cation conductivity is not is a reflection of a single parameter, as in the case of sodium or silica analysis. Similar to specific conductivity, cation conductivity represents the sum of the conductivities of all the anions that remain in the solution, with a small contribution from hydrogen ions. In fact, if cation conductivity measurements of steam represented the level of a single parameter, such as chloride, they would not be sufficiently sensitive to be of much value. The theoretical cation conductivity of a 2-ppb chloride (hydrochloric acid) solution is 0.063 S/cm, barely above the theoretical minimum of 0.055 S/cm. Most turbine manufacturers call for the chloride level in the steam to be below 2 ppb under normal conditions. The steams chloride concentration would have to rise to nearly 20 ppb before the resultant cation conductivity would exceed the generally accepted normal cation conductivity limit of 0.2 S/cm. Steam entering a turbine with a 20-ppb chloride concentration would be considered grossly contaminated. What makes cation conductivity monitoring so valuable is that contamination of feedwater or steam is rarely due to a single contaminant. When a condenser tube springs a leak, chloride, sulfate, carbonate, and many other anions contaminate condensate and feedwater. The combined effect will significantly raise cation conductivity and provide the desired early warning even when the individual contamination levels are small. Of course, if there is a large contribution from CO2 or organic acids, the problem may not be detected until it is too late. Carbon dioxide in steam is too volatile to create a low-pH environment for turbine blades and therefore cannot cause corrosion. Whether or not organic acids can damage a turbine is an area of active research. Turbine manufacturers are very aware of the long-term damage that can be caused by even low levels of chloride and sulfate. The simplest, most reliable way to detect such contamination in real time has been cation conductivity. Therefore, turbine OEMs have set cation conductivity limits where a significant contribution from CO2 or organic acids cannot be tolerated.
May 2008 POWER

During plant commissioning, for example, CO2 and other organic chemicals in first steam can raise the cation conductivity level so high that meeting the warranty limits specified by the turbine manufacturer(s) seems impossible. This leaves the plant two unpalatable options: invest in additional water treatment equipment to remove the offending organic chemicals, or use a more sophisticated tool such as ion chromatographyto prove the absence of chloride and sulfate in the steam. Turbine original equipment manufacturers often require that, during routine start-ups, the cation conductivity of steam be less than 1 S/cm before it can be admitted into the prime mover. Sampling problems and CO2 in the condensate can result in levels higher than that, unnecessarily delaying start-ups.

2. How low can you go?

Hachs Polymetron 9245 sodium analyzer boasts a sensitivity of 0.01 ppb. To maintain an optimum response time in low-sodium solutions, the analyzer automatically reactivates the electrode using nonhazardous chemicals. Courtesy: Hach Company

New and improved cation conductivity

Because cation conductivity is so simple and reliable, significant efforts continue to be made to improve the technique by removing interferences from carbon dioxide, in particular. The new parameter to be monitored and analyzed goes by the name of degassed cation conductivity. Because the pH of the sample following the strong acid cation resin is acidic, most, if not all, of the CO2 in the sample is in the form of a dissolved gas. The most common way to remove it is to drive it off with heat using a reboiler. After the sample is passed through the strong acid cation resin, it is heated to near boiling, cooled to 77F, and then sent to a conductivity meter. The most common complaint about reboiler-style degassed cation conductivity is unreliability. The temperature control of the reboiler is criticaltoo low or too high produces unreliable results. Whats more, the temperature of the sample after the reboiler can affect the result. The CO2 also can be removed by sparging it out with nitrogen gas through an empty or packed column. Nitrogen purge systems are typically only used during start-ups until the regular cation conductivity value drops to a normal level. The systems nitrogen consumption rate makes them impractical for continuous use. For units that only experience high cation conductivity during start-ups, nitrogen sparging may be all that is required. A relatively new technique uses a spinningdisk reactor and CO2-free air as the purge gas. The air is first passed through a molecular sieve to remove all the CO2. The water sample passes through the cation column and then is mixed with the CO2-free air and put through the reactor, whose large surface area creates air bubbles that strip the CO2 from the sample. The reactor removes about 70% of the CO2, so it does not completely remove the interferwww.powermag.com

ence. But the results are good enough to get within the desired limits. This method does not require heating or cooling the sample.

Seeing differently
Because some plant operators and chemists have had problems with degassed cation conductivity monitoring, they have looked for other ways to detect parts-per-billion levels of contamination in condensate. Here are three that we have seen used successfully. Sodium. On-line sodium analyzers have become more reliable and simpler to maintain. A number of manufacturersincluding Swan Analytical Instruments (www.swan.ch), Thermo Fisher Scientific Inc. (www.thermo. com), and Hach (www.hach.com)make sodium analyzers that can reliably detect 0.1 ppb of sodium. Swans Soditrace model claims the industrys lowest detection limit for sodium ion concentrations of 1 part per trillion (0.001 ppb). Figure 2 shows Hachs unit. Most cooling water contains sodium concentrations of the same order of magnitude as those for chloride or sulfate. Therefore, sodium detection in condensate, even at the 0.1 ppb level, becomes an excellent early warning system for condenser tube leaks or sodium leakage from water pretreatment systems. However, sodium analysis doesnt address chloride or sulfate concentrations directly. For that reason, M&M strongly recommends using both cation conductivity and sodium monitors not only on the main steam sample but also at the hotwell or condensate pump discharge (or,
33

WATER TREATMENT
if there are condensate polishers, downstream of them). Sodium monitoring is the only way to detect caustic contamination. Chloride. As part of its Orion line, Thermo Fisher Scientific offers a chloride monitor that can detect levels as low as 0.1 ppm (Figure 3). Though this sensitivity level is insufficient to detect contamination of feedwater, it has been used very successfully to continuously monitor chloride levels in boilers and HRSGs. Because contamination quickly concentrates in steam generators, this instrument can provide the desired early warning.
Ion chromatography. The only technique that can directly analyze for chloride, sulfate, and phosphate with a single sample injection is ion chromatography. If desired, an ion chromatograph can even be configured to analyze for organic acids such as formic and acetic acid. Great strides have been made in simplifying the technique. However, it still requires significant dedication to set up and maintain calibration on an ion chromatographparticularly one that is detecting ppb levels of contamination. Those who make that commitment usu-

3. No moving parts. According to the manufacturer, the Orion 2117XP chloride monitor holds calibration up to 60 days between reagent changes. The instrument can measure chloride concentrations as low as 0.1 ppm. Courtesy: Thermo Fisher Scientific Inc.

A world of surplus power equipment. One site.

ally end up feeling it was worth the effort. For example, lab techs at a large coal-fired plant that for years has used an on-line ion chromatograph from Dionex Corp. (www .dionex.com) have been very pleased with the results. By the way, the plants control room operators still use cation conductivity analyzers to monitor feedwater purity. Why? Ion chromatography analysis of a single sample for chloride, phosphate, and sulfate can take quite a few minutes. And if youre measuring multiple sample points, you may only get one analysis per point per hour. Cation conductivity measurement, on the other hand, is essentially continuous.

Dont drive blind

Whether you monitor cation conductivity or degassed cation conductivity alone or in combination with other analytical techniques, it is essential that your instruments be reliable, on-line continuously, and sensitive enough to detect contamination early enough to take corrective action to prevent corrosion. You would never think of operating your car at night without headlights. Dont operate your steam turbines and HRSGs without the tools to see whats coming down the road soon enough to steer away from problems. Like driving in the dark, the risks of operating a plant blind are far too great.

Buy and sell the nest in surplus energy equipment, all on one site; Network International. Visit OneSiteForEquipment.com or Networkintl.com for details.
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David G. Daniels (david_daniels @mmengineering.com) is a principal of M&M Engineering Associates and a contributing editor to POWER.
POWER May 2008

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PREDICTIVE MAINTENANCE

Making PM systems sweat the small stuff

Modern predictive maintenance systems can monitor the health of most plant equipment. By sorting through the wealth of information those systems deliver, operators can discern important trends, including the early signs of a system or component failure.
By Donald S. Doan, SmartSignal Corp.

s new power plants have become harder to permit, maintaining the performance of plants that some would consider past their prime has become more important than ever. Like a vintage coupe at a car show, an old plant that has been wellmaintained doesnt show its age. Even 40year-old plants can deliver many more years of profitable and reliable serviceif their equipment has a good health care plan. Over the past two decades, plant owners have increasingly used equipment condition monitoring (CM) to maximize plant availability and revenue and minimize maintenance costs. Among the most popular CM systems and schemes are data historians, digital control, trending of critical operating parameters, vibration and oil analyses, and infrared scans. However, many of these methods either focus only on whether a system is currently

operating within prescribed limits or track only certain measures of performance. In both cases, human analysts must then infer overall equipment health and its direction. Newer CM systems and techniques can extrapolate readings of common plant parameters to evaluations of overall equipment health in real time. By comparing past and present readings, they can predictfairly accuratelywhen a system or component will fail or begin causing problems elsewhere. When a plants analytic or interpretive methods fall short, its bottom line suffers. Two scenarios, both undesirable, are possible. If systems are maintained according to strict schedules, with no regard to their actual condition, man-hours and scarce O&M dollars may be spent on repairs that arent yet needed. If the maintenance philosophy is too cavalier, incipient problems that should be addressed may not get fixed

in time (because they were detected too late) to avert an expensive failure.

Neither too soon nor too late

Implementing predictive maintenance (PM) techniques solves both potential problems. If real-time readings of key parameters indicate that a piece of equipment is continuing to operate normally, a scheduled overhaul can be delayed, along with the cost of performing it. Conversely, slow but sure changes in readings enable analysts to detect impending failures early, before the equipments condition worsens to the point of needing urgent attention. Early awareness of a problem makes it possible to schedule repairs at a convenient time (for example, during an upcoming planned outage) and gives the plants O&M staff time to line up the team of technicians best qualified to do the work. Although PM has become commonplace at power plants in the developed world, the technique is more likely to be applied to key million-dollar systems such as boilers, turbines, and generators than to balance-ofplant (BOP) equipment such as motors, fans, pumps, and air heaters. Using case studies, this article argues that PM programs have their greatest positive impact on plant availability and profits when they also include BOP equipment. Comprehensive PM programs can even quantify the financial losses avoided by optimizing maintenance schedules to reflect actual equipment health.

1. From raw data to actionable intelligence. Data from key sensors are collected
and filtered to create an empirical model of all the normal and expected operational states of the equipment or system monitored. During live monitoring, snapshots of data are compared with the model to generate estimates and residuals. Any alerts created from too-high or too-low residuals are then passed through a diagnostic rules engine. If the alerts are persistent or multiple sensors are alerting in a way that fits a known fault pattern, an incident is created that is posted to a web-based watch list for the predictive monitoring analyst to evaluate and take action on. The time between the first posting of an item to the watch list and when an operator must react to an equipment problem is called the early warning period. Source: SmartSignal Corp. Robust, real-time alerting of impending problems

Real-time sensor data Determines if operations are abnormal

Diagnostic rules engine Diagnosis: excessive seal leakage Analyst

Managed care methodology

The case studies detail several instances where SmartSignal Corp.s predictive analytics software package (also called Smartsignal) detected abnormal operation of main or BOP equipment at a power plant, enabling O&M personnel to take early corrective action. Under a contract signed in September 2004, SmartSignal installed its real-time PM system at the generating units of the fossilfueled fleet owned and operated by a large Midwest utility.
POWER May 2008

Personalized Statistical deviation empirical model detection Removes effects of normal operation

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PREDICTIVE MAINTENANCE
Before we delve into the case studies, its worth outlining how the Smartsignal system works. The software uses empirical models of equipment that have been built from and trained on historical data. Monitoring is done in real time with 10 minutes between snapshots of various parameters. Algorithms in the Smartsignal system determine whether any parametric behavior is questionable and post anomalous results to a watch lista web-accessible folder of items worth investigating (Figure 1). An analyst can then judge whether any item represents a problem that warrants immediate corrective action while the piece of equipment and its generating unit remain on-line. Conventional CM systems compare the readings produced in real time by pressure, temperature, flow, speed, and vibration sensors to predetermined upper and lower thresholds. If a reading is higher or lower than it should be, the system triggers an alarm, shuts down equipment, or both. The thresholds are carefully set by experienced operators to be wide enough to minimize unnecessary alarming but narrow enough not to miss potential failures that may be catastrophic. However, because the limits must encompass the broad range of equipment operation and states, CM algorithms may lack the sensitivity to pick up subtle sensor deviations from normal that could signal an incipient equipment failure. The CM techniques used in the Smartsignal program are unique because they use all sensor readings to determine the current state of equipment. For example, the instruments dedicated to independent drivers (such as controllers, material inflow, and ambient conditions) and those monitoring dependent responses of the system (including exhaust gas temperature and material outflow) are grouped together in a single model. During monitoring, one algorithm assembles a sample snapshot from the readings of all individual sensors in the model at the exact same time. This actual snapshot is then compared to the model, which uses data embedded in it to create estimates of the normal readings expected to be produced by sensors with the equipment in its current operating state. For each operating parameter, the difference between the actual value and the estimated normal value is called the residual. Another algorithm then tests the residual to determine whether it is reasonably smallin other words, whether the actual value is close to the expected normal value. When the residual is relatively small, the sample is considered normal. When the residual is relatively large, the sample is considered suspect and triggers either of two actions. If only one parametric reading is yielding a high or low residual, the system signals an alert for that moment in time and notes it on that parameters graphic display. If there are persistent deviations in multiple sensor readings that match a known fault pattern, the system determines that an incident is occurring and creates an item for addition to the watch list.

Table 1. Assets typically monitored at a coal-fired generating unit and the empirical models used to do so. Source: SmartSignal Corp.
Equipment Steam turbine Electric generator Pumps and motors (boiler feedwater, circulating water, heater drain, and condensate) Primary and secondary air heaters Condenser Boiler fans (primary air, induced- and forced-draft) Coal pulverizer motors Number in unit 1 1 2 each (total of 8) Models Performance and mechanical condition of high-, intermediate-, and low-pressure section Electrical performance and mechanical condition of exciter and rotor and stator cooling Performance and mechanical condition

4 1 2 each (total of 6) 5 to 8 each

Performance Performance Fan and motor performance Mechanical condition

Problems, large and small

Now, the case studies. As mentioned, they detail incidents and alerts caught by Smartsignal at 16 individual generating units. Table 1 lists the assets (main and BOP) monitored and the models used at the typical coal plant. Of the 16 units (which have a total capacity of about 4,100 MW), eight burn pulverized coal, seven are simple-cycle combustion turbines that fire natural gas, and one is a gasfired combined-cycle unit. The 16 installations, including empirical models, were completed in December 2004, and shortly thereafter the system began live monitoring of the fleet at a 10-minute sampling rate.
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POWER May 2008

PREDICTIVE MAINTENANCE
Within the first few months of live monitoring, Smartsignal found compelling evidence of several potential equipment problems at the larger coal plants and posted them to the watch list. Following are four abnormal conditions detected on major equipment (turbines and generators):

At the 600-MW-class Plant A, lube-oil temperatures of the system for cooling bearings of the units steam turbine were behaving erratically. Technicians attributed the problem to an improperly tuned control valve in the systems water cooling circuit. The early warning and subsequent retuning avoided a potential thermal cycling of the bearings. At the same plant, Smartsignal detected low hydrogen pressure in the electric generator. This early warning and subsequent corrective action avoided a potential overheating of the generator. The Smartsignal at Plant A also noted that the vibration residual for steam turbine bearing #7 was slowly rising. When the condition appeared on the watch list on February 7, 2005, operators responded immediately by placing the bearing vibration signal in bypass mode, to prevent the turbine control system from tripping the unit for excessive vibration. Vibration levels continued to rise, with the residual reaching 8 mils on March 7. Eventually, the vibration problem was eliminated during a planned outage. However, the generating unit might have tripped unnecessarily had operators not put the bearing vibration trip signal in bypass. One day, at the 800-MW-class Plant C, the generator exciters field amps and volts experienced substantial surges that were noted by Smartsignal. The initial diagnosis was shorted turns in the rotor. As a result of the early warning, the exciter was inspected during a planned unit outage two weeks later and was indeed found to need a rewind. In this instance, the early warning avoided the need for an unplanned outage.

to cycle high and low. The early warning avoided a possible forced outage because the lack of proper ID fan control may have eventually caused a unit trip for unstable draft. Smartsignal determined that the bearing of one of Plant Ds two cooling water pumps was starved of cooling water. A subsequent inspection found that the cooling systems operation was biased to the other pump, causing a rise of 30 to 70 degrees F above normal in the bearing temperature of the first pump. In this case, the early warning avoided potential bearing damage and a forced outage to replace the pumps motor. Similarly, Plant Ds secondary air heater support bearing was found to be starved of oil, causing bearing temperatures to rise 40 degrees F above normal. Here, too, the early warning avoided a potential bearing failure and an unplanned outage. At Plant C, Smartsignal sounded an air preheater alarm and added an item to the watch list when it detected excessive pressure due to erratic control of steam pressure. The lack of controlwhich meant that the air preheaters were not using properly conditioned steamreduced the preheaters efficiency. At Plant A, the outboard bearing of the primary air heater motor was found to be starved of oil.

One of Plant Ds pulverizer mill thermocouples was found to have been wired backward during a maintenance overhaul.

Inside two catches

Lets examine the specifics of two cases where the use of the CM and PM methods described above avoided an unforced outage to replace an air heater bearing. The first catch was made and put on the watch list for Plant D on February 1, 2005. The residual value of the support bearing temperature increased 10F to 40F above the expected value during the next week (Figure 2). A SmartSignal analyst determined that the bearing was oil-starved. The top graph of Figure 2 shows the actual sensor value (blue) and the estimated value (green) for the period of January 24 to February 8. Over most of the period, the two values are similar, between 50F and 90F. After February 1 (or around Sample 1600 shown on the plot), the actual value rises to as high as 120F (yet is still far below the conventional monitoring upper threshold limit of 150F), while the estimate stays at or below 90F. The bottom graph shows the residual value (actual minus estimate), which has a mean value of zero and a normal range of about 10F. After Sample 1600, the residual rises to as much as 40F above the zero baseline. The problem was easily solved by adding 3 gallons of oil to the bearing lubrication/ cooling system (of 25- to 30-gallon capacity),

2. Bearing down.

This screen shows the predictive monitoring graphs of Plant Ds secondary air heater B support bearing temperature from January 24, 2005 to February 8, 2005. On both plots, the y-axis shows sensor temperature and the numbers on the x-axis are sample numbers. On the top plot, the blue line indicates actual values and the green line is estimated values. On the bottom plot, the blue line shows residuals, the red line marks the zero baseline, and red Xs represent alerts. Source: SmartSignal Corp.

Monitoring catches werent limited to major equipment. Although BOP catches are not as dramatic, they are just as critical to maintaining plant reliability. In addition, they are more impressive because fans, motors, and pumps are usually less well-instrumented than turbines or generators. The BOP catches made within the first few months of Smartsignal going live included the following:

Symptom: Air heater support bearing temperature residual increases to 40F Diagnosis: Bearings starved of oil Findings/Fix: Temperature recovered after adding oil to lube oil system

At the 700-MW-class Plant D, the induced-draft fans shaft coupling set screw was found to be loose and causing amps

May 2008 POWER

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PREDICTIVE MAINTENANCE

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3. Residual effect. This screen shows predictive monitoring graphs of air heater guide bearing temperature at Plant A from December 10 to 15, 2005. On the top graph, the blue line indicates actual values and the green line estimated values. The red Xs represent alerts and the black bar (actually consisting of black diamonds grouped close together) indicates when the incident was placed on the watch list. Source: SmartSignal Corp.
Symptom: Air heater guide bearing temperature residual increases to 25F Findings: Lube oil had tripped off; no oil owing to bearings

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Diagnosis: Air heater support bearing starved of lube oil

Table 2. Estimated savings from early warnings of equipment failure at a 500-MW coal-fired power plant. Source: SmartSignal Corp.
Maintenance expense reduction Major equipment Balance-of-plant equipment Total $50,000 $100,000 $50,000$100,000 Up to $200,000 Portion (%) 53 47 MWh revenue improvement $250,000$500,000 $250,000$1,000,000 Up to $1,500,000 Total savings Up to $650,000 Up to $1,100,000 Up to $1,750,000 Portion (%) 40 60

Note: Assumes $10/MWh production cost and $32/MWh labor cost. Also assumes that repair times are reduced by 10% by doubling up some maintenance actions, extending overhaul intervals by the same percentage.

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which quickly brought the temperature back within spec. This air heaters support bearings have a very narrow range of acceptable oil levels as well as a history of operating problems. This catch led to corrective action that avoided a possible bearing failure and an unplanned outage for repairs. Plant D had suffered an air heater support bearing failure once before, on July 24, 1998. The bearing took nine days to replace. During that time, according to North American Electric Reliability Corp. data, the utility lost 138,800 MWh of generation. Because the production cost of this unit ranges from $10 to $30/MWh, the utility lost between $1.4 million and $4 million by not having a CM system on-line. A second catch of abnormal air heater bearing temperature was made at Plant A and put on its watch list on December 10, 2005. Over the next five days, the residual value of the guide bearing temperature increased 20 to 25 degrees F above expected values (Figure 3). The graph shows the actual sensor value (blue) and the estimated value (green) for the period of December 10 to December 15. During most of the period, these two values are similar, between 90F and 130F. But around midnight on December 10, the actual oil temperature increased to 145F while the expected temperature was at or below 120F. Note that the actual value never reached the conventional monitoring upper threshold limit of
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150F that would cause the units distributed control system to sound an alarm. As in the previous case, a SmartSignal analyst diagnosed the problem as an oil-starved bearing. Technicians at Plant A determined that the lube oil pumps had tripped and cut off the flow of oil to the air heaters bearings. Once again, the catch and corrective action avoided a possible bearing failure and a forced outage.

The great value of good health

Analyzing the value of a PM system requires making an educated guess of how much unplanned maintenance can be shifted to planned maintenance by having early warnings of impending problems (Table 2). Each catch of a potential equipment problem will reduce maintenance expenses if it is determined that it is safe to delay any needed repairs until the next scheduled unit outage. If that is the case, the repairs will cost less (because they will not require overtime payments and are likely to be less complex because the equipment was not run until it failed), there will be no losses of generation revenue, and there will be no need to pay spot-market prices for replacement power.

Donald S. Doan (ddoan@smartsignal .com) is a senior power plant specialist with SmartSignal Corp., a supplier of computer-based applications for analyzing and predicting the operating condition of industrial assets.
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Boulder to be first Smart Grid City

The next-generation power gridenhanced by digital technologies throughout the network to give generators, distributors, and customers greater controlpromises to improve efficiency and lower operating costs. This year, in the most full-scale effort yet, Xcel Energy begins introducing intelligent grid technologies that it hopes will make Boulder, Colo., the first Smart Grid City.
By Angela Neville, JD

ust as the Internet changed the way we communicate, so will the smart grid transform the way we deliver electricity. The Internets success is largely due to its networking capabilities. In a similar way, the smart grid will use broadband capabilities and high-speed computing to revolutionize the transmission and distribution of power to end users. Though the notion has been around for at least a decade, theres no consensus about

what constitutes a smart grid. However, the many government, industry, technology, and policy groups that have been working to advance the idea from theory into practice (see sidebar) do agree that, in general, a smart grid will use digital technologies to enable integrated, real-time control of all the systems elements, from generation to end use.

Future grid features

Industry observers agree that the basic way

Whos shaping the smart grid?

Entities from U.S. federal labs to international consortia to individual utilities and technology manufacturers are engaged in research, development, policy, and implementation projects geared toward modernizing the electric transmission grid. Here are a few of them:

IntelliGrid (http://intelligrid.epri.com), created by the Electric Power Research Institute, focuses on creating the technical foundation for a smart power grid that links electricity with communications and computer control to achieve tremendous gains in reliability, capacity, and customer services. A major early product is the IntelliGrid Architecture, an open-standards, requirements-based approach for integrating data networks and equipment that enables interoperability between products and systems. Modern Grid Initiative (www.netl.doe .gov/moderngrid) is a joint effort of the U.S. Department of Energy, the National Energy Technology Laboratory, utilities, consumers, researchers, and other grid stakeholders to develop a common, national vision to modernize the U.S. electrical grid. The DOEs Of-

fice of Electricity Delivery and Energy Reliability (www.oe.energy.gov) sponsors the initiative and coordinates with other programs such as GridWise (www .gridwise.org) and GridWorks. GridWise Architecture Council (www .gridwiseac.org) was formed by the DOE and seeks to provide guidelines for interaction between participants and interoperability between technologies and systems. Smartgrids (www.smartgrids.eu) bills itself as a European technology platform for the electricity networks of the future.

You know an idea has reached a tipping point when theres at least one publication dedicated to it. The Smart Grid Newsletter (www.smartgridnews.com) is sponsored by the DOE, the GridWise Alliance, Pacific Northwest National Laboratory, and other entities involved in developing a smart grid. As one article notes, The Smart Grid will not advance unless most of the 3300 utilities in the United States adopt interoperability standards. Until then, we may see development of multiple smart grids with different IQ scores.

the U.S. power grid operates has not changed much in the past 100 years. Now, however, as a result of electricity deregulation and market-driven pricing in parts of the U.S., utilities are looking for a means to match the consumption of electricity with its generation. Many in the industry have a vision of a fully network-connected power grid that identifies all aspects of the grid and communicates their status and the impact of consumption decisions to automated decision-making systems. The general definition of a smart grid, according to a recent white paper by power generation analysts at Xcel Energy, is an intelligent, auto-balancing, self-monitoring power grid that takes a variety of fuel sources (coal, sun, and wind, for example) and transforms them into electricity for consumers end use (heat, light, and warm water) with minimal human intervention. They assert that it is a system that will allow society to optimize the use of renewable energy sources and minimize our collective environmental footprint. A smart grid has the ability to sense when a part of its system is overloaded and reroute electrons to reduce that overload and prevent a potential outage. Additionally, it is a grid that enables real-time communication between the consumer and the utility, allowing the utility to optimize a consumers energy usage based on that persons environmental and/or price preferences. Several utilities have run pilot projects involving one or more smart grid technologies over the past decade or so. Most common has been the installation of advanced metering to enable time-of-use pricing programs that are designed to shave demand peaks. But Xcel Energys plan appears to be the most all-inclusive one yet. Examples of technology being tested by Xcel Energy for future use to build intelligence into the power grid are as follows:

Neural networks: This project creates a state-of the art system that helps reduce
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boiler slagging and fouling. Boiler sensors plug directly into the plants distributed control system. Neural networks will model slagging and fouling by using historical data to learn boiler behavior. Smart substation: This project is retrofitting an existing substation (Merriam Park) with cutting-edge technology for remote monitoring of critical and noncritical operating data. It includes developing an analytics engine that processes massive amounts of data for near-real-time decision-making and automated actions. The team will monitor breakers, transformers, batteries, and substation environmental factors, such as ambient temperatures and variable wind speeds. Smart distribution assets: This project tests existing meter communication equipment that can automatically notify Xcel Energy of outages and help the utility restore service more quickly. Smart outage management: This project tests diagnostic software that uses statistics on eight factors, including equipment maintenance and real-time weather, to predict problems on the power distribution system and create an outage-cause model. A substation feeder analysis system can detect and predict cable and device failures on monitored substation banks. Consumer web portal: This project will allow customers to program or preset their energy use for specified devices (such as air conditioners or dishwashers, for example) and automatically control power consumption based on hourly energy costs and environmental factors. Wind power storage: This project tests a 1-MW battery energy storage system connected directly to a wind turbine at the MinnWind wind farm in southwest Minnesota in an effort to store wind energy and return it to the grid when it is most needed. It is expected to demonstrate long-term emission reductions from increased availability of wind, help reduce impacts of wind variability, and allow Xcel Energy to meet renewable portfolio standard requirements.

Tomorrows grid today

The 20th century grid was built primarily from steels and wires and managed almost exclusively from the supply side. Its primary goal was to deliver electricity in a reliable fashion, said Robert Pratt, Pacific Northwest National Laboratory (PNNL) project manager for the GridWise project. The new 21st-century grid model will use information technology to enable customer-level assets, demand response, and distributed generation and storage to play key strategic roles in creating a cleaner and more affordable energy future. Customers will also have more control over how and when they use energy. Michael Lamb, managing director of IT operations and strategy at Xcel Energy, sees similar contrasts between the current grid and the future grid. The grid, as we know it today, has not changed significantly since the days of Thomas Edison, he said. Customers needs and demands, however, have grown exponentially. According to Lamb, the 21st-century smart grid will take the old analog grid and create a self-balancing and self-monitoring digital grid by adding the following:

Information technology throughout the energy pathway to integrate power production sources, transmission/distribution, and the consumers home or business. High-speed, real-time, and two-way communications. Sensors enabling rapid diagnosis and correction. Dispatchable distributed generation, including plug-in hybrid electric vehicles, wind energy, and photovoltaics. Energy storage. In-home energy controls. Automated home energy use.

In ten years, we envision that the technologies tested in Smart Grid City in Boulder will be expanded to other areas throughout our service area, Lamb said.

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In December 2007, Xcel established the Smart Grid Consortium, bringing together leading technologists, engineering firms, business leaders, and IT experts. Consortium members include Accenture, Current Group, Schweitzer Engineering Laboratories, and Ventyx. The group is providing guidance, products, and services needed to promote the implementation of Xcels smart grid vision (see sidebar). Specifically, the consortium partners will make the following contributions:
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Accenture will provide guidance for best business/consumer outreach practices and overall IT integration consulting. Current Group will provide the communications network (broadband over power lines) to connect all the smart grid components and allow them talk to each other (interconnectivity). Schweitzer Engineering Laboratories will provide substation technology and infrastructure such as monitors, relays, sensors, and switches for smart substations. Ventyx will provide work management solutions for deploying the smart grid technologies by identifying the right tools and sending the right crews to the right place, when needed. It will also provide planning and analytics for price and load forecasts as well as decision support for connecting customer actions to trading and investment decisions in real time.

1. Prototypically Boulder. Boulders highly educated residents have long been known
as early adopters of progressive ideas and emerging technologiesespecially those related to the environment. Its no surprise that a city that insists on pedestrian- and bike-friendly shopping centers (like the recently redeveloped 29th Street Mall pictured here, whose REI store earned one of the first U.S. Green Building Council Leadership in Energy and Environmental Design [LEED] Retail certifications) would embrace the idea of a modernized grid that promises efficient resource use and enhanced customer control. Source: Xcel Energy

Boulder leads the way

In an effort to give its smart grid vision a face, Xcel Energy has chosen Boulder, Colo. (Figure 1), to be the nations first Smart Grid City. When fully implemented over the next few years, the planned system will provide customers with a portfolio of technologies

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designed to provide environmental, financial, and operational benefits. Xcel Energy anticipates funding only a portion of the project and plans to leverage other sources, including government grants, for the remainder of what could be up to a $100 million effort. We realize this is an enormous task, which is why we are taking a collaborative approach to getting it done. Smart Grid City can only be accomplished with assistance from all the stakeholders involved and with the help of our consortium partners, Michael Lamb, managing director of IT operations and strategy at Xcel Energy, said in an interview with POWER in March. In addition to its geographic concentration, ideal size, and access to all grid components, Boulder was selected as the first Smart Grid City because it is home to the University of Colorado and several federal institutions, including the National Institute of Standards and Technology, which already is involved in smart grid efforts for the federal government. Smart Grid City (Figure 2) could feature a number of infrastructure upgrades and customer offerings, including: Creation of a communications network providing real-time, high-speed, two-way communication throughout the power distribution grid (via broadband over power lines). Conversion of substations to smart substations capable of remote monitoring, near-real-time data collection and communication, and optimized performance. Installation, at the customers invitation, of programmable in-home control devices and the necessary systems to fully automate home energy use (Figure 3). Integration of infrastructure to support easily dispatched distributed generation technologies (such as plug-in hybrid electric vehicles with vehicle-to-grid technology, battery systems, wind turbines, and solar panels). The first phase of Smart Grid City is expected to be in place by as early as August 2008. Implementation throughout the city will continue through 2009. The consortium expects to begin initial assessment of the technologies in 2009. After initial implementation and assessment, Xcel Energy will use the results from this effort to talk with state, federal, and regulatory officials about a larger deployment throughout the companys eight-state service territory. We dont yet have a full understanding of the technical and economic challenges that we will face while implementing the smart grid system, said Lamb. Thats why the implementation of Smart Grid City is so important. Boulder will be the nations first fully integrated Smart Grid City and will serve as a test-bed for how all these technologies work together.

2. Xcel Energys concept of a Smart Grid City. It all depends on a dynamic system rich in information technology; high-speed, real-time, two-way communications; sensors throughout the grid enabling rapid diagnosis and correction; decision-making data and support for peak efficiency; distributed generation; automated smart substations; in-home energy control devices; and automated home energy use. Source: Xcel Energy

3. A smart house. Though many industrial users have for some time had the option of managing their energy budget by participating in time-of-use pricing and voluntary load-shedding programs, a smart grid could give residential customers similaror even greatercontrol over their energy use. Source: Xcel Energy
Renewable distributed generation Photovoltaics tied to the grid may even run a customers meter backward.

Plug-in hybrid electric car Xcel Energy is studying how plug-in electric vehicles can store energy, act as backup generators for homes, and supplement the grid during peak hours. Smart meter Real-time pricing signals create increased options for consumers

High-speed connections Advanced sensors distributed throughout the grid and a high-speed communications network tie the entire system together. Smart thermostat Customers can opt to use a smart thermostat, which can communicate with the grid and adjust device settings to help optimize load management. Other smart devices could control an air conditioner or pool pump. Customer choice Customers may be offered an opportunity to choose the type and amount of energy theyd like to receive with just the click of a mouse on their computers.

Demand-response technologies hold the key

Several years ago, the U.S. Department of Energy (DOE) launched an initiative called GridWise, which promotes the agencys vision that in the near future information technology will profoundly transform the
POWER May 2008

Smart appliances Smart appliances contain on-board intelligence that talksto the grid, senses grid conditions, and automatically turns devices on and off as needed.
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planning and operation of the power grid. GridWise envisions a collaborative networkfrom generation down to customer appliances and equipmentfilled with information and market-based opportunities. DOEs Pacific Northwest National Laboratory (PNNL) is the national lab most involved in developing new technologies designed to increase the grids ability to provide energy that is reliable, affordable, and clean. Robert Pratt, PNNL project manager for the GridWise project, told POWER that PNNL is helping with the formation of the GridWise Alliance, a collection of smart grid industry leaders and innovators who have been instrumental in moving demand response from a concept to a reality. In addition, PNNL program leaders are conducting field demonstrations, such as the recently completed Pacific Northwest GridWise Testbed Demonstration of advanced demand-response network operations. This year-long demonstration project connected 112 homes with real-time electricity price information through new advanced meters and programmable thermostats connected via Invensys Controls home gateway devices to IBM software. The final results showed that participants saved approximately 10% on their energy bills and did not want to give up their grid-responsive appliances. Such demonstrations highlight the benefits of demand-response technologies, including the ability to mitigate peak demand and increase reliability by making the grid more flexible and adaptable. They show how benefits could be derived even down to the distribution system level. Additional benefits include the ability to provide frequency regulation services that could make it easier to operate wind power resources on the grid and thereby help promote wind power penetration. Of note, the demonstrations led by PNNL gave consumers complete control over how much and when they participated, by providing them with simple, automated controls that responded to real-time (5-minute) prices reflecting the value of their response to the grid, and literally sharing some of that financial value with them as a reward, said Pratt. We feel this will be critical in gaining broad public acceptance of smart grid technologies as a natural part of everyday life. PNNL also has developed the means to allow even small household appliances, such as clothes dryers and refrigerators, to help keep the grid reliable. This is done by adding a simple controller that autonomously senses a grid frequency or voltage disturbance and then drops the load for up to a minute or two to help out. According to Pratt, PNNL has shown in a field demonstration that this simple device
May 2008 POWER

is reliable and its operation is not noticed by the consumer. Because enabling this capability does not require communications, it can be inexpensive enough to build it into appliances at the factory. The result, if enough appliances were so enabled, could be a vast safety net to help keep our grid reliable. Smart metering is the key enabling technology for demand response. It provides the hardware necessary to start moving the ball forward. Until you can provide an incentive for customers or distributed resources to collaborate with the needs of the grid, they wont, Pratt said. And, until you can measure the degree of that collaboration with some good time resolution, you cant offer those incentives. Additionally, PNNL is developing GridLAB-Dan open-source time-series simulation of the smart grid from each individual appliance all the way up to substation operationsas a platform for designing technologies and control strategies and determining their benefits. We are hoping GridLAB-D becomes the basis for extensive technical collaboration among researchers and technology developers engaged in realizing various aspects of the smart grid, Pratt said. We are also looking at how these same smart grid concepts could be applied to managing the charging of large numbers of plug-in hybrid electric vehicles without adding new generation or T&D capacity.

Challenges remain
Clearly, implementation of a smart grid will force U.S. utilities to deal with several complicated issues. First, consumer acceptance will be critical, said Pratt. It is important that they maintain control and can participate in demand response but do so to their own comfort level. Nobody wants to feel like the power company has the ability to control when you turn the air conditioner on. We found that even when consumers maintain control you can engage them enough that they will play along and reduce peak demand as much as 50% for short periods of time. Another looming issue is related to smart grids financial viability. State regulators need to allow utilities to earn a fair rate of return on smart grid investments, just as they do with the traditional grid infrastructure that smart grid investments displace, according to Pratt. The PNNL project manager also focused on challenges related to the increased use of renewable energy sources, which could negatively affect the smart grid. He pointed out that in the face of the need to manage carbon emissions, there is tremendous pressure to rapidly bring large amounts of renewable
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generation onto the grid. Essentially, that means wind power in the near term, with extensive solar photovoltaics (PVs) following, as costs come down. [Renewable sources] add a great deal of complexity to grid operations. One challenge with wind power is that it is an intermittent resource. We can forecast wind to a degree, but many fluctuations are very rapid, and other generation must ramp up or down to compensate, Pratt said. Those fluctuations make a grid that is already hard to operate that much harder. He gave the example that during this past winter a fluctuation in wind output in West Texas was so large and rapid that power plants could not compensate. An unexpected cessation of wind power caused the regional transmission authority (ERCOT) to implement its voluntary load-curtailment program (which pays industrial users for ramping down power usage or going off-line temporarily to reduce load and avoid a blackout). That event was a tangible example of the complexity of using intermittent renewable energy resources. One thing we can do with a digital power grid is to use demand capability to soak up fluctuations in windcreating a partnership. That will help solar, too. Unlike wind power, solar PVs are usually connected to the grid at a home or building, Pratt said. When there are enough of them to actually push power back up the lines toward the substation, new dynamic schemes for voltage regulation and short-circuit protection will be required.

Higher grid IQ benefits

Overall, the transition to a smart grid should be a positive one for consumers, utilities, shareholders, and regulators. Consumers will be able to manage their energy consumption and peak demand by modifying their electricity usage habits and lifestyle. The PNNL demonstration project found that participants were able to accommodate these changes without bother. Utilities will benefit by having more-reliable systems, which will translate into a reduced need for building additional capacity. In return, consumers should get more control over their energy bills. Customer participation in demand-response programs will close the loop between generation and consumption that power market economists have yearned for for years. As a result, utilities will be better able to manage energy demand with available resources and, thereby, create higher financial returns for investors. Automation and better feedback about individual consumers demand and consumption patterns should lead to more-efficient use of resources and lower operating costs.
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RENEWABLES

A new wave: Ocean power

The idea of harnessing the vast power of Earths oceans has tantalized humans for more than a century. Today, the prospect of generating as much as 4,000 TW of clean energy from marine sources is fueling a resurgence of interest in a variety of technologies.
By Sonal Patel

wice a day, 115 billion tons of saltwater churn in and out of the Bay of Fundy, a funnel-shaped pocket of the Atlantic Ocean wedged between the Canadian provinces of New Brunswick and Nova Scotia. Swelling steadily through the 174-mile journey to the narrow head of the bay at Minas Basin, tidewaters can surge to 53 feetthe highest in the world (Figure 1). More spectacular is the force harbored within these unique waters as a result of a natural anomaly: The sloshing effect created by tidal resonancea coincidence in the time taken by a large wave to travel the length of the bay and back and the time between the high and low tidescan amplify these tides with enough energy to supply most of Ontarios electricity needs. Despite the sheer power potential of this regionand others worldwide, such as the

1. Worlds highest tides.

During a springtime high tide (top), waters at the head of Minas Basin in the southeastern corner of the Bay of Fundy may surge to heights of 53 feet. At low tide in autumn, much of the bay becomes exposed, appearing like a wide channel of braided rivers (bottom). Depth is indicated by dark blue for deep water and purple for shallower water. Source: NASA

Bristol Channel in the UK, an inlet that shares similar geographic characteristics only one commercial-scale power project has been implemented in the Bay of Fundy: the 18-MW Annapolis Royal Generating Station in Nova Scotia. That plant is the sole operating commercial tidal energy generating station in North America, and one of only three in the world. It shares its barrage technology with the 1966 Rance River plant in France, a larger installation with peak power capacity of 240 MW and annual production of 600 GWh, and Kislaya Guba, a 400-kW project in northwestern Russia. Even the Annapolis station did not begin operation until 1984and only after several other efforts to construct tidal power plants in the region had failed. The idea to harvest tidal energy from the Bay of Fundy extends as far back as 1925, when Maine voters approved $100 million to support hydraulic engineer Dexter Coopers proposed construction of a power plant to reap power from the tides racing through Passamaquoddy Bay on the Maine coast. Around the same time an official feasibility study was begun for construction of an 800MW tidal power scheme on the Severn estuary in the Bristol Channel. But while the Severn study concluded that the project was technically feasible, it was thought of as economically unsound. President Franklin D. Roosevelt thought the Passamaquoddy project would make vital contributions to the nations burgeoning power needs and granted it $10 million of federal funding in 1935. Nevertheless, this project, like many others in the long history of marine energy, never materialized. But now, thats all about to change.

The marine energy renaissance

Increasing concerns about the environmental, economic, and strategic costs of relying on fossil fuels, coupled with the widespread success of wind and solar power, are giving new life to hopes of capturing energy from the oceans. Oceanic bodieswhich collectively cover a little more than 70% of the planets surfacemay be a potentially significant, currently untapped reservoir of energy.
48 www.powermag.com

Decades of research and development have yielded several innovative ways of using oceans to fuel power generation. They include wave energy, ocean current energy, salinity gradient energy, and ocean thermal energy. Recently, with determined governments and companies in tow, several ocean power prototypes have been tested and pilot plants commissioned. In 2006, for example, following a 22-yearlong power-project lull in the Bay of Fundy, the Electric Power Research Institute (EPRI) of Palo Alto undertook a continent-wide study and identified four potential sites for commercial-scale power generation. EPRIs list included three passages around Deer Island in Passamaquoddy Bay and Nova Scotias Minas Passage. The studys results immediately prompted Nova Scotia and New Brunswick to begin the site-evaluation process, and three companies secured permits to test their technologies in the Bay of Fundy. Last year, Nova Scotia Power announced that, following the successful installation in the Minas Basin of a tidal demonstration project by OpenHydro, the manufacturer of an open-center stand-alone turbine, the Canadian utility plans to develop large-scale tidal farms in the region. In addition to being renewable, some types of marine energy, particularly those that derive generation from waves, or from tidal and ocean currents, are predictable (which gives them an edge over wind and solar power). Tides, determined by lunar gravitational pull, can be forecast years in advance, and currents can be mapped by satellite. Doing so could help guard against blackouts. Offshore or submerged zero-emission turbines would also offer an added aesthetic benefit not enjoyed by offshore wind turbines: invisibility. Among marine powers disadvantages are a host of environmental uncertainties and a long list of technical hurdles, from operation to installation. Yet, as the ensuing stream of research and development yields significant results, it can be said with some certainty that the fledgling secPOWER May 2008

RENEWABLES
tor of marine power is about to grow up and take off. The remainder of this article is a survey of the different concepts currently in use or under development for the extraction and conversion of marine energy to electricity. Several competing approaches have emerged to convert the kinetic energy of waves into electricity. Pelamis. The floating snake-like Pelamis has already evolved from prototype to operating unit. Three of these devices collectively generate 2.5 MW at full capacity at the worlds first wave farm in Aquaadora, northern Portugal. The device relies on vertical wave motion to move articulated joints in the body, which then pump high-pressure oil through generator-driving hydraulic motors. A 250kW prototype module is 360 feet long and over 10 feet in diameter. Power-holding company Enersis has issued a letter of intent for an additional 20 MW of Pelamis equipment to expand the wave farm project, and plans are under way to use Pelamis technology to power an Orcadian wave farm in Scotland. Buoy technologies. The buoy concept typically consists of modular buoy-arrays moored several miles offshore in choppy waters. Finerva Renewables AquaBuOY converts the vertical component of waves kinetic energy into electricity by directing pressurized seawater through two-stroke hose pumps into a turbine-driven generator. The power is transmitted to shore via an undersea transmission line. Finerva is developing the first phase of a 2-MW commercial power project site using this technology in Fiqueria de Foz in Portugal. Construction of a 100-MW wave energy plant is planned if this project is successful. Scottish company AWS Ocean Energy has devised an anchored underwater buoy generator system using Archimedes Wave Swing (AWS) technology (Figure 2). The buoys would drive generators as they bob with passing waves, and a pressurized gas cylinder inside the buoy would cause a float to oscillate based on the pressure differential of the water depth above as the wave passes. The AWS buoy was successful in its 2004 pilot test. The company plans to facilitate commercial development and deployment of the technology using a recent 2 million grant from the Scottish government. Ocean Navitas technology, known as the Aegir Dynamo, functions by generating electrical current from wave motion in one phase via direct mechanical conversion and the use of a custom buoyancy vessel. Ocean Navitas has tested a 1-MWh buoy in the Orkneys, in Scotland, and plans to place a five-buoy array off the Welsh coast. Iberdrola Renewables has begun testing an innovative U.S.-manufactured buoy called Power Take Off (PTO), which captures and processes wave energy for storage. The energy is later evacuated under optimum conditions. The company estimates that an array of 10 PTO buoys could produce 1.24 MW.
Breakwater and shoreline technologies. Voith Siemens Hydros Wavegen tech-

Wave power
Created when windswhich result from the planets heat differentialspass on their energy to the oceans, waves are in essence a concentrated form of solar energy. According to an International Energy Agency estimate, wave energy could supply between 10% and 50% of the worlds yearly electricity demand of 15,000 TWh.

2. One of the buoys.

Buoys using Archimedes Wave Swing technology enjoyed a successful pilot test in 2004. The technology recently won a 2 million ($4 million) grant from the Scottish government. Courtesy: AWS Ocean Energy

nology is integrated into a concrete power station built on a breakwater or coastal protection project. Breakwater turbines, each with an output of between 20 kW and 100 kW, are based on the oscillating water column (OWC) principle. Waves create oscillations on the waters surface in a partially submerged hollow chamber thats open at the bottom. The oscillations continuously compress and decompress an air column above the chamber. The difference in pressure converts the rotational energy to electricity via

3. A breakwater turbine. Voith Siemens Hydros Wavegen technology employs the oscillating water column principle. Courtesy: Voith Siemens Hydro

One turbine per chamber Air ow Wave motion Decompression Compression

May 2008 POWER

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RENEWABLES
4. Wave Dragon. This floating barges design increases the wave height at the ramp, which, like a beach, causes waves to break over it and into the reservoir behind it. Courtesy: Wave Dragon Ltd.

5. Welsh wave power.

This Wave Dragon device will generate enough power to supply 2,500 to 3,000 homes. Courtesy: Wave Dragon Ltd.

Reservoir

Overtopping

Turbine outlet

a turbine-driven generator (Figure 3). The worlds first breakwater power station is currently under construction in Mutriku on the Atlantic coast of Spain. Wavegen has also developed the Land Installed Marine Powered Energy Transformer (LIMPET), a shoreline energy-converter that uses an OWC to feed a pair of counter-rotating turbines, each driving a 250kW generator. The current LIMPET model, Limpet-500, installed on a pilot plant on Scotlands Islay island, is being performance optimized. If the pilot is successful, LIMPET will be used to build a series of commercial power generators. Floating barge technologies. The Wave Dragon is a large floating barge with dynamic turbines that produces energy much as a lowhead hydro power station does. By facing its outstretched collector arms toward oncoming waves, the Wave Dragon can concentrate the wave front toward the ramp at the front of the structure. This increases the wave height at the rampwhich acts like a beach, causing the waves to break over it and into the reservoir behind it (Figure 4). Electricity is generated when water runs through the turbines in the bottom of the structure. A 7-MW Wave Dragon device tested in Pembrokeshire in southwest Wales was commissioned in 2007 (Figure 5) and will be deployed this summer (see sidebar).

Moving power from the ocean to land

To support the diverse portfolio of emerging designs for the capture and conversion of wave energy, some companies and government agencies are developing underwater transmission projects to facilitate prototype testing in a wide range of sea and weather conditions. The $56 million Wave Hub, situated off the coast of Cornwall in South West England, acts like a subsea socket for offshore technologies like Pelamis and buoy wave energy converters, sending electricity 10 miles to the grid via an onshore substation. When it is operational in 2009, the Wave Hub will accommodate up to 30 devices and collect and transmit enough power to meet South West Englands tarthe technology, tidal energy has the potential to generate about 10% of the UKs power. Barrage systems. The concept of building dams composed of gated sluices and low-head hydro turbines across channels to harness water-level differentials has been proven productive by long-standing installations like the Annapolis station in the Bay of Fundy and La Rance, in France. Costs and environmental issues aside, researchers at Utrecht University in the Netherlands have deemed the concept feasible and have proposed that a dam constructed across the 20-mile Bab al Manab strait of the Red Sea could generate as much energy as 50 GW (see POWER, January 2008, p. 10). And now, more than 80 years after the first feasibility study, the UK government has renewed its interest in constructing a 10www.powermag.com

get of generating 15% of its electricity from renewable sources (Figure 6).

6. Taming the tentacles.

The Wave Hub is designed to simplify the connection of multiple marine powergenerating devices to land-based electricity grids. Courtesy: Wave Hub

Tidal power
The most significant difference between wave and tidal energy is that waves occur only in water closest to the surface, whereas the entire water body moves from surface to seabed in a tide. In tides, moreover, energy is due to a net movement of waterunlike waves, where the water acts as a carrier for energy. Unlike wave energy, therefore, tidal energy is location-specific. Although only a few regions in the world harbor ideal conditions for tidal power, a range of diverse devices have been designed and are ready for testing and deployment. The UK, notably, has surged to the forefront of the tidal power race, propelled by a recent Sustainable Development Commission (SDE) report estimate that, considering how geographically well-suited the islands are to
50

mile-long barrage across the Severn tidal estuary running between the English and Welsh coasts, prompted by an SDE finding that a location-specific hydroelectric barrier on the estuary could generate 8.6 GWmeeting 5% of Britains power needs. Britain has allocated 14 million ($28 million) for the feasibility study, which is expected to culminate in early 2010. Meanwhile, to reap energy from the Bay of Fundy, Canadian company Blue Energy International is advancing technologies used in tidal dam power with a tidal fence concepta horizontal array of stand-alone vertical-axis turbines. This configuration, which can capture energy from both directions of a tide, has so far seen six prototypes and is currently being assessed by the National Research Council of Canada.
POWER May 2008

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RENEWABLES
7. First commercial-scale tidal energy turbine. SeaGens 52-foot-diameter
twin rotors will operate for up to 18 to 20 hours per day off the coast of Northern Ireland, producing up to 1.2 MW. Courtesy: Marine Current Turbines Ltd.

8. Harnessing tidal power. Each 60-foot tall Rotech Tidal Turbine consists of a 2,500-ton
frame containing a pump, generator, motor, and electronics. Courtesy: Lunar Energy

The generator module The removable cassette The turbine

The gravity base

The duct

1MW RTT Unit Duct diameter: 15 meters Duct length: 19.2 meters Turbine diameter: 11.5 meters

9. Goes with the flow. OpenHydros open-center turbine extracts tidal stream energy and
will be used in a demonstration project in the Bay of Fundy. Courtesy: OpenHydro

Tidal stream turbines. Making a marked departure from the traditional barrage system, tidal stream turbines are massive stand-alone turbines that work much like wind turbinesbut with a much higher energy density, because saltwater is 850 times denser than air. In April 2008 the first commercial-scale tidal turbine from Bristol-based company Marine Current Turbines, a 122-foot long inverted windmill dubbed the SeaGen, was installed in Strangford Laugh, a shallow inlet in Northern Ireland where tides gush in at speeds of up to 9 mph (Figure 7). Energy produced by the 1.2-MW device will be purchased by ESB Independent Energy, a retail subsidiary of Irelands national electricity companyand one of the first utilities to provide tidal energy to its customers. Deep-sea tidal farms. British tidal company Lunar Energy plans to construct two deep-sea tidal farms. One would consist of eight underwater turbines on the sea bottom in Pembrokeshire, South Wales; the other would be a colossal 300-turbine field in the Wando Hoenggan Water Way off the South Korean coast. The latter project, a collaboration with Korean Midland Power Co., is a $1 billion scheme that extracts power from fastmoving deep-sea tidal streams. Lunar Energy will utilize 60-foot-tall Rotech Tidal Turbines, each with a 2,500-ton frame containing a pump, generator, motor, and electronics (Figure 8). The project entails a full resource research and feasibility study, and if successful, it will be operational by 2015.
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Ocean current energy

Oceanic bodies are constantly in motion, propelled by a variety of factors, including winds, water temperature, salinity levels, and the Coriolis force. Surface currentswhich constitute about 10% of all the water in the oceansare restricted to the upper 1,300 feet of the oceans and predominantly derive their energy from the wind and the sun. According to the U.S. Minerals Management Service, the worlds oceans harbor about 5,000 GW of power, with densities of up to 1.5 kW/f2. By some estimates, this
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means that capturing just 0.1% of the available energy from the Gulf Streamwhich has 21,000 times more energy than Niagara Falls and a flow 50 times that of the worlds freshwater rivers collectivelycould generate enough power to supply Florida with 35% of its electrical needs. Compared with other ocean energy technologies, the harnessing of ocean current power is still in its infancy. A handful of prototypes and demonstration units have been developed, including Hammerfest Strms submerged wind-like turbines that capture
POWER May 2008

RENEWABLES
energy with hydrodynamic, rather than aerodynamic, lift or drag. However, developers of this technology continue to grapple with a long list of potential problems, from complex and costly maintenance to the potential disruption of delicate marine ecosystems. Open-center turbine. The stand-alone open-center turbine that features a fixed outer disk and a rotating inner disk is thought to suit both tidal stream and ocean current applications. Gulfstream Energy Inc.s device is designed to be anchored to the seafloor, 200 feet below the surface. Installed 5 miles offshore in Floridas Gulfstream, where the current flows at an average sustained speed of 3 knots, the turbine could produce an estimated 2.5 MW of power. OpenHydros open-center turbine, on the other hand, has been applied to the extraction of tidal stream energy with such promising results that the company will engage in a demonstration project in the Bay of Fundy. The device has a self-contained rotor fitted with a solid-state permanent magnet generator, all encapsulated within an outer rim (Figure 9).

10. Hybrid model. Ocean thermal energy conversion (OTEC) takes advantage of ocean temperature gradients to generate power. In the hybrid OTEC process, warm seawater is flashevaporated, the steam is used to vaporize the working fluid, and that fluid drives a turbine. Source: National Renewable Energy Laboratory

Steam condenser /ammonia vaporizer Steam

Vacuum pump Noncondensable gases Desalinized water Power Ammonia turbine Ammonia condenser

Spouts

Warm seawater Liquid ammonia pump Cold seawater

Salinity gradient energy

It has been estimated that 2.6 TW may be derived from exploiting the salinity gradient or salt differentialbetween the worlds seawater and freshwater. The process, called pressure-retarded osmosis (PRO), basically involves pumping seawater at 60% to 85% of the osmotic pressure against one side of semipermeable membranes whose other side is exposed to freshwater. When freshwater, compelled by osmosis, flows across the membranes, it dilutes the saltwater and increases its volumeand consequently, the pressure within the saltwater chamber. A generator-driving turbine is spun as the pressure is compensated. (For details of the PRO process see POWER, November/ December 2006, p. 76.) PRO can be thought of as the reverse osmosis process (used for desalination and water treatment) running backward and producing power from the flow of freshwater. A decade of collaborative research and development by the Norwegian University of Science and Technology and Statkraft, a Norwegian power company, has yielded promising results, including the development of a high-performance membrane. In 2007, Statkraft initiated construction on the worlds first osmotic plant prototype. The plant, at Tofte on the Oslo fjord, scheduled for completion by the end of 2008, will produce between 2 kW and 4 kW of power.

Ocean thermal gradient energy

Tides and currents arent the only potential energy source we can harness from the
May 2008 POWER

oceans. Oceans also absorb and store tremendous amounts of solar energy. According to the National Renewable Energy Laboratory, 23 million square miles of tropical seas absorb an amount of solar radiation equal in heat content to about 250 billion barrels of oila tenth of which could supply 20 times the power needs of the entire U.S. on any given day. The technology for converting this solar radiation into electrical power is ocean thermal energy conversion (OTEC), which exploits the oceans thermal gradientstemperature differences of 36 degrees F or more between warm surface water and cold deep seawaterto drive a power-producing cycle. Besides sourcing a clean, renewable reserve of energy, OTEC has the potential to provide many useful by-products such as freshwater, hydrogen via electrolytic processing of freshwater, and lithium and uranium, which may be extracted from deep seawater. Despite these potential payoffs, OTEC development has been gradual, primarily because of competitive operation costs. The technology was first proposed as far back as 1881 by a French physicist, and several prototypes have been tested intermittently since the first experimental 22-kW low-pressure turbine was deployed in 1930. Closed-cycle OTEC. In the closed-cycle version of OTEC, warm seawater from the oceans surface vaporizes a working fluid with a low boiling point, such as ammonia, which then flows through an evaporator. The vapor expands and turns a generator-driving turbine. The vapor is then condensed using cold seawater pumped from deep within the ocean. The working fluid is continuously recycled within this closed system. Open-cycle OTEC. In the open-cycle
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variant of this technology, warm seawater becomes the working fluid and is flashevaporated in a vacuum chamber, producing pressurized steam. The steam then expands through a low-pressure turbine. Cold seawater condenses the steam, and, if it remains separated, could supply desalinized water as a by-product. Hybrid-cycle OTEC. A hybrid-cycle OTEC employs features of both the closed and open cycles (Figure 10). Warm seawater is flash-evaporated, the steam is used to vaporize the working fluid, and that fluid drives a turbine. Finally, steam condenses and provides desalinized water. Although components to test the technology are widely available, no commercialscale plantsor even pilot plants connected to a gridexist. The most ambitious prototype to date was an Indian research vessel that carried a 1-MW OTEC plant in 2002. That effort, a collaboration with the Japanese company Xenesys Inc. and Saga University in Japan, was unsuccessful due to a failure of the deep sea cold water pipe. Xenesys is determined to power on, however. It opened a research and development center dedicated to OTEC last November to meet what it sees as increased demand as a result of renewed interest. According to its web site, the Indian government plans to construct 1,000 OTEC power plants, each 50,000 kW, throughout the country. And the island nation of Palau is planning to launch a 3,000kW OTEC plant; it hopes to make a complete switch from diesel oil for power generation to OTEC in the next 10 years. Xenesys said that it has been receiving offers for research support and technical collaboration from more than 50 countries, including South Korea, the
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RENEWABLES
11. Watery energy island. One scheme for offshoring energy storage uses an unusual type of pumped energy storage that depends on a dike-enclosed lakewhich is filled with water 105 feet to 130 feet below sea level. Courtesy: KEMA

Philippines, Indonesia, Sri Lanka, Maldives, Cook Islands, and the United States. Companies like U.S.-based Sea Solar Power Inc. (SSP) have also continued to test and develop key elements of the hybrid Rankine cycle OTEC plant. SSP President James H. Anderson Jr. penned articles for POWER as far back as 1965 with his father, J. Hilbert Anderson, regarding the feasibility and economic viability of power harvested from the oceans thermal gradient. The younger Anderson asserts that the technology continues to have tremendous potentialthat the only setback it may experience is a lack of interest from the government. The Andersons had estimated in 1965 that it would cost $5.54 million to set up a floating 20MW sea thermal plant, including the installation of major equipment and auxiliaries plus the cost of services such as engineering and supervision. Today, a small but commercial-sized floating OTEC plant of 20 MWwhich could be built in as little as 39 monthscould cost from $120 million to $190 million.

Energy islands
Architects Dominic Michaelis and his son Alex recently proposed in an entry to the Virgin Earth Challenge (a competition for solutions to combat global warming) that a series of floating sea-faring platforms could be effectively outfitted to reap many forms of renewable energy. Each energy island would be fitted with wave energy devices, wind turbines, and solar panels; each could also harbor a small OTEC plant. With the right conditions, according to the Michaelises, one platform could generate as much as 250 MW of energy. A decade ago, this idea would have been considered fanciful. Now, considering the
54

advantages such a construct could provide in support of developing renewables, the concept is being taken more seriously. Last year, Dutch electric company KEMA and civil engineering firm Bureau Lievense announced they have been investigating the technical feasibility and economic viability of an artificial Energy Island for storing large-scale energy off the Dutch coast (Figure 11). The 6.2-mile by 3.7-mile island would incorporate a fall lake, or a pumped energy storage (PES) facility. The method reverses the principle on which a conventional PES facility works. When power supply exceeds demand, seawater is pumped out of the dike-enclosed lake which is filled with water 105 feet to 130 feet below sea leveland back into the surrounding sea; when demand exceeds supply, seawater flows back in, driving a generator. The 24 square-mile island would potentially store a capacity of 20 GWh, enough to supply an average of 1,500 MW to the onshore grid for at least 12 hours. Several construction companies have expressed interest in building or designing the island, a project that would cost about $4.9 billion and take six years to complete.

will continue to increase. According to one projection, marine energy will constitute up to 20% of Europes total renewable resources by 2020compared with the 40% projected for wind power. Governments, too, are lending their support to this new wave of power generation. The UK government and other public-sector organizations have invested around 15 million ($29 million) in the creation of the European Marine Energy Center, the research facility committed to help emerging technologies evolve from prototype to the commercial marketplace. And the EU is backing the Wave Energy Centre in Portugal, a facility to provide strategic and technical support to companies in this field. Comparatively, U.S. support is lagging. Despite increased interest in this emerging sector, the Federal Energy Regulatory Commission has only issued one license, awarded to Finerva Renewables Makah Bay wave pilot project in Washington State. So far this year, four preliminary licenses have been issued, including two to Pacific Gas & Electric Co. wave projects off the coast of California. Last year, though approved by the U.S. House Science Committee, a marine renewable energy and development bill (H.R. 2313) that would have appropriated $250 million from 2008 to 2012 was seemingly abandoned before the House vote. And, echoing the fate of marine energy research and development projects born in the Carter and Reagan eras that lost their funding in the 1980s, the DOEs Energy Efficiency and Renewable Energy 2009 budget for its Water Power Program proposes only $3 milliona 70% decrease from the $9.9 million Congress appropriated for 2008.

Marine energys future

If marine energy is to thrive, the monster hurdle that developers must overcome is the cost factor. Following an 18-month initiative, Carbon Trust found in a detailed study of the cost-competitiveness and potential growth of wave and tidal stream energy that marine energy will remain more expensive than other forms of generation until the sector sees the installation of hundreds of megawatts of capacity. Four routes may potentially reduce costs: concept design developments; detailed design optimizations; economies of scale; and lessons learned from production, construction, installation, operation, and maintenance. Additionally, future growth of wave energy will be affected by a range of factors, among them: strategic and security-of-supply considerations, the availability of financing for technology and project development, technology and risks, electricity networks, and environmental and regulatory factors.
POWER May 2008

Development incentives
Given that marine energy resources have the potential to generate 4,000 TW, as estimated by the British government-funded research group Carbon Trust, it is no surprise that venture capitalists and power companies are flooding the sector with ready money. In spite of the fact that marine-generated electricity currently costs 10 times as much as electricity produced by traditional sources, and undeterred by the abundant risks faced by marine energy firms, private investment
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NEW PRODUCTS

TO POWER YOUR BUSINESS

Ultra-compact pressure transmitters

The new Ashcroft GC51 and GC52 gauge and differential pressure (DP) transmitters offer the perfect economical alternative to network process transmitters when a digital protocol is not required. The innovative design features an ultra-compact NEMA 4X/ IP65 enclosure measuring only 2.65 inches in diameter. Stainless steel wetted parts accommodate either wet or dry media. The GC51 is available in ranges up to 7,500 psig, and the GC52 offers DP ranges up to 400 inches of water. A built-in LED display and a 4-20 mA output provide both local indication and remote signaling. Ashcroft GC series transmitters are ideal for measuring fluid levels in tanks and water towers and across DP membranes in water purification systems. (www.ashcroft.com)

Upgraded flowmeters for hydroelectric generators

Universal Flow Monitors Inc. has upgraded its line of hydro-generation electronic meters used for processing cooling water to turbine bearings. CoolPoint vortex-shedding flowmeters now provide increased flow accuracy and repeatability to ensure consistent cooling. They also include a new totalizing capacity for improved process monitoring. The flowmeters are available in pipe sizes ranging from a quarter inch to 4 inches. These provide 4-20 mA transmitter flow rates, ranging from 0.4 gallons per minute to 600 gpm. Unaffected by silt particles that can clog mechanical meters and erode their seals, the flowmeters are suited to applications where water quality is less than optimal. Upgrades include a totalizing capability, which increases the devices ability to measure, monitor, and control the total amount of water used in a process. A flow totalizer with reset button and six-digit LED is also offered as a special option on all CoolPoint pipe sizes. The flow totalizer features a pulse output and a display in either liters or gallons. Flow accuracy margins of error in CoolPoint models have been reduced to 1% in inch to 2-inch pipe sizes, and 2% on all other models. Flow repeatability differs within 0.25% of actual flow and is standard on all models. Flow turndown of 20:1 is also an option on -inch through 2-inch pipes, up from 10:1 turndown in standard pipe sizes. (Turndown is the ratio of the maximum to the minimum flow rate that a flowmeter can measure.) The increased turndown ratio improves users capability to detect, read, and record low flow. This presents an advantage when batching and standardizing a single flowmeter model for multiple applications. (www.flowmeters.com)

O2 and CO2 in the same in-situ analyzer

MRU Instruments Inc. recently introduced the OMS420 in-situ O2 and CO2 analyzer, a device that reduces O2 with increased efficiency over traditional O2 in-situ analyzers. The OMS420 features a modern hollow probe design that allows sensors to be changed without removing the probe from the stack. Probes available for temperatures up to 1,200F are 18 feet long and constructed of 316 stainless steel. Probes for temperatures of 2,000F are 9 feet long and made of Inconel. (www .mru-instruments.com)

56

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POWER May 2008

NEW PRODUCTS

High-temperature and high-pressure particulate sensor

The FilterSense Model PS 10 particulate sensor has ceramic insulation and a ceramic protective layer over the probe, making it suitable for harsh processes with high temperatures and high pressures. Temperature ratings of up to 1,600F and pressure ratings of up to 1,000 psi are available for applications such as coal gasification, fluidized-bed reactors, and various combustion processes. Like all FilterSense sensors, there are no active electronics in the sensor housing, which means high reliability. The sensor is mounted remotely to electronic control units with industrial temperature ratings of 160F. Applications include monitoring particulate emissions from fabric filters and particulate flow in process pipes. (www.filtersense.com)

Two-stage vacuum pump released

Gardner Denver Nashs new liquid-ring vacuum pump, the AT3006, is a versatile industrial workhorse proven to increase dry air capacity up to 25% in the high vacuum range without an increase in power. Tests have shown that this model offers a higher operating efficiency than the AT3004. (www.gdnash.com)

Wireless transceiver for point-to-point data acquisition and control

The DR9031 wireless transceiver from Wilkerson Instrument Co. provides bidirectional analog and contact closure data transmission to a companion DR9031, where the data is recovered. Analog data is recovered as two 4-20 mA outputs, and the switch data is provided by optically isolated NPN transistor outputs. The analog inputs available are dual-channel DC voltage or current, single-channel RTD, or strain gauge bridge. The bridge version provides 10-VDC precision excitation for up to four 330-ohm bridges. For single-channel inputs, the two 4-20 mA outputs are both proportional to the single input. The DR9031 gives users a choice of three radio frequencies: two in the 915-MHz ISM band and one in the 2.4-GHz band. All use spread-spectrum frequencyhopping technology. Each RF module offers seven hop sequences. This allows up to 21 systems to operate in the same locale without interfering with each other. With proper antennas and installation, the 915-MHz units can function reliably over a 20-mile range. (www.wici.com)

Inclusion in New Products does not imply endorsement by POWER magazine.

May 2008 POWER

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Explosive Deslagging ServicesCameraAssistedOn-lineBlastingDetonatingCordandOverhead HazardBlastingIntroducingOn-lineVideoInspection/RecordingofBundle,PendantandWallDeposits Grit-Blasting ElectrostaticPrecipitatorFieldCleaningUTandBoiler/VesselOverlayPreparation On-lineRadiantRecoverywithShatterBlastBeadImpactDeslagging Big Water High Pressure Washing AirPre-heaterBaskets,Furnace+BoilerWashing HeatExchanger/CondenserHydro-Laze,PipelineCleaning Vacuum Services, Wet + DryFlyAsh,Sludges,Silo+VesselEvacuation Number One In Safety and Compliance. Privately Owned and Operated 24/7 Emergency Response From Many US Locations

DIESEL & TURBINE GENERATORS GEARS & TURBINES

Air Pre-Heaters Economizers Deaerators Pumps Motors Fuel Oil Heating & Pump Sets Valves Tubes Controls Compressors Pulverizers Rental Boilers & Generators

WE STOCK LARGE INVENTORIES OF:

847-541-5600 FAX: 847-541-1279 WEB SITE: www.wabashpower.com

800-866-6247 www.naisinc.com e-mail: naisinc@naisinc.com

READERSERVICENUMBER 206

wabash

POWER

EQUIPMENT CO.

444 Carpenter Avenue, Wheeling, IL 60090

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TRONA STORAGE
Want to: Store it in silos? Reclaim it easily? Do it safely? Control the flow? The answer: Laidig Systems

Norm Harty-TheFirstandLastWordinProfessionalDynamiting, servingyousince1964.Wehavepioneered,perfectedandproven themethodsofexplosivecleaningtheworstofs\lagorashoutin amatterofhoursinallboilerareas.WespecializeinElectric Utility work and have over 4000 jobs to our credit. Call the NUMBER ONE COMPANY for the quickest response and most efficientjobforyouremergencyneedsandscheduledoutages. N.B. Harty General Contractors, Inc. Phone: 573-624-4645 or 573-624-4588 l Fax: 573-624-4589 E-mail: norm@nbharty.com l www.nbharty.com
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GEORGE H. BODMAN, INC.

Chemical cleaning advisory services for boilers and balance of plant systems

George H. Bodman
Pres. / Technical Advisor
BoilerCleaningDoctor.com Office 1-800-286-6069

Office (281) 359-4006 PO Box 5758 E-mail: blrclgdr@aol.com Kingwood, TX 77325-5758 Fax (281) 359-4225
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www.laidig.com
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POWER Classifieds
Get More Attention When You Add Color!

To inquire about Classified Advertising, please contact:

Phone: 832-242-1969 Ext.: 311 Mobile: 713-202-7528

ryant@powermag.com
60

Ryan J.D. Titsch

Fax: 832-251-8963

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www.powermag.com

POWER May 2008

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GEGU's - 750 KW Guascor - natural gas fired - 3/60/480 volts (Qty 2) GTGUs - 20 MW Brown Boveri oil fired cheap BOILERS - 200,000#/HR Combustion Engineering package - 600# steam pressure - gas fired - 25,000#/HR ABCO - 150# steam pressure natural gas and propane fired (Qty 4)
We buy and sell transformers, boilers, steam turbine generator units, gas turbine generator units, diesel engine generator units, etc.

INTERNATIONAL POWER MACHINERY CO.

50 Public Square - Terminal Tower, Suite 834 Cleveland, OH 44113 U.S.A. PH 216-621-9514/FAX 216-621-9515 Email: kernx06@sbcglobal.net Web: www.intlpwr.com
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Need a Thorough Mix?

Ash, coal, sludges, what do You need to mix?

Get a thorough mix with:

P.O. Box 60 Columbia, TN 38402 USA ph: 931/388-0626 fax: 931/380-0319 www.pugmillsystems.com
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Pugmill Systems, Inc.

www.powermag.com

61

POweR PlanT BUyeRS MaRT

For Sale
SteamingCapacity:700,000lb/hrof superheatedsteam Pressure:1250psig Temperature:1000Fatmainsteam stopoutletvalve Feedstock:PRBCoal Fabricationispartiallycomplete. Reduceyourprojectscheduleby purchasingtherightstothisCFBBoiler. For complete details please contact: Keith Schick, 720-945-0641 READERSERVICENUMBER 215
CONDENSER OR GENERATOR AIR COOLER TUBE PLUGS THE CONKLIN SHERMAN COMPANY, INC.

CFB Boiler

visit PLCANYWHERE.COM since 1984

from INTERNET anywhere (hotel,airport)

w/ no spec software / wireless options

REPORTS

maint FLEET notebooks add live VIDEO

WinCC ,Wonderware , RsView , FIX

201 - 612 6700

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Need Cable? From StoCk

CopperPowerto69kv;BareACSR&AACConductor; UndergroundUD-P&URD,PILC-AEIC;InterlockArmorto 35kv;CopperInstrumentation&Control;Thermocouple Fax(773)539-3500Ph.(800)227-4292 E-Mail:basicwire@basicwire.com WEBSITE:www.basicwire.com
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Easy to install, saves time and money.

ADJUSTABLE PLUGS-all rubber with brass insert. Expand it, install it, reverse action for tight fit. PUSHPULLPLUGS- are all rubber, simply push it in. Sizes 0.530 O.D. to 2.035 O.D. Tel: (203) 881-0190 Fax:(203)881-0178 E-mail: Conklin59@aol.com www.conklin-sherman.com

Basic Wire & caBle

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OVER ONE MILLION PLUGS SOLD

PRODUCT

Showcase

Magnetic Level Gage

Safe, most economical way to measure level requirements Low maintenance Innovative flipper design creates stronger gauss field Oversized flags for visual indication up to 90 feet

Magne-Trac

MTLT-5000 Magnetostrictive Liquid Level Transmitter

Externally mounted Explosion proof High accuracy 2 wire loop powered No maintenance
Mention Ad #300 to receive 10% off your next order
13960 South Wayside Houston, Texas 77048 Toll Free Tel:866.240.9906 Tel: 281.240.0440 Fax: 281.240.2440 www.questtecsolutions.com

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POWER May 2008

ADVERTISERS INDEX
Enter reader service numbers on the FREE Product Information Source card in this issue.
Reader Service Number

Unload railcars fast and inexpensively

ASHROSS RUMig-Rail Car Low prole, high speed railcar unloading system. In-ground system meant for stationary use. ASHROSS RUM-Rail Car Railcar unloading machine, train drives over the RUM, walks off the track by itself. Unloads anywhere, anytime with speed and efciency. ASHROSS RC-Reclaimer Coal reclaimer. Use with dozer or other equipment. Moves the entire pile of coal and reclaims the coal in a fast and efcient manner. ASHROSS 1260 C-Truck Self-propelled, mobile, towable drive over unloading system for belly dump and end dump trailers. ASHROSS ST-Truck Stationary drive over unloading system for belly dump and end dump trailers.

COAL HANDLING EQUIPMENT

Page
www.ashross.com

Ashross. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .63 . . . . . . . . 27 Applied Bolting Technology . . . . . . . . . . . . . . . . . . . . . . . . . .17 . . . . . . . . 12

www.appliedbolting.com

Babcock & Wilcox . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Cover 4 . . . . . . . . . 3

www.babcock.com

Cablesafe Hooks. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .16 . . . . . . . . 11

www.cablesafe.com

Detroit Stoker . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11 . . . . . . . . . 8

www.detroitstoker.com

Emerson . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6-7 . . . . . . . . 26
www.emersonprocess.com

Garlock Sealing Technologies. . . . . . . . . . . . . . . . . . . . . . . .19 . . . . . . . . 13

www.garlock.com

GE Energy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5 . . . . . . . . . 5
www.ge.com/energy

GE Sensing & Inspection Technologies . . . . . . . . . . . . . . . .15 . . . . . . . . 10

www.ge.com/phasorxs

Hach . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .41 . . . . . . . . 21
www.hach.com/power

Hitachi Power Systems . . . . . . . . . . . . . . . . . . . . . . . . . Cover 3 . . . . . . . . . 2

www.hitachi.us/hpsa

Lincoln Electric. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .25 . . . . . . . . 15

www.lincolnelectric.com

Magnetrol. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .23 . . . . . . . . 14
www.magnetrol.com

530 South 250 West Pleasant Grove, Utah 84062 801-785-6464 Fax; 801-785-6486 www.ashross.com email: sales@ashross.com Financing Available
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! oday Call t -6464 85 801-7

Membrana . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .45 . . . . . . . . 23
www.liqui-cel.com

Mobil Industrial Lubricants . . . . . . . . . . . . . . . . . . . . . Cover 2 . . . . . . . . . 1

www.mobilindustrial.com

Network International . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .34 . . . . . . . . 19

www.onesiteforequipment.com; www.networkintl.com

Orion Instruments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .37 . . . . . . . . . 9

www.orioninstruments.com

Otek Corporation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .38 . . . . . . . . 22

www.otekcorp.com

Parkline . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .43 . . . . . . . . 24
www.parkline.com

Power Systems Mfg. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .31 . . . . . . . . . 7

www.powermfg.com

Schmidt Industries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .30 . . . . . . . . 17

E-mail: schmidtind@aol.com

Siemens Power. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .29 . . . . . . . . 16

www.siemens.com/us-sppa

The Shaw Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3 . . . . . . . . . 4

www.shawgroup.com

Turbine Energy Solutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7 . . . . . . . . . 6

sales@turbineenergysolutions.com

Turbocare Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .55 . . . . . . . . 25

www.turbocare.com

United Brotherhood of Carpenters . . . . . . . . . . . . . . . . . . . .51 . . . . . . . . 20

www.ubcsuperintendents.com

Wrtsil . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .35 . . . . . . . . 18
www.wartsila.com

CLASSIFIED ADVERTISING
Pages 5962, To place a classified ad, contact: Ryan Titsch, POWER magazine, 832-242-1969, ryant@powermag.com
63 www.powermag.com

POWER May 2008

COMMENTARY

Smart Grid requires clearing mental gridlock

By Mike Carlson

n mid-2006, a Google search of the term Smart Grid generated around 2,000 responses. The same search this past month yielded more than 500,000 hits from a wide variety of sources. The explosiveness of the concept is especially interesting because there is no universal agreement on what constitutes a smart gridmuch less agreement on what value a smart grid will provide to the industry and its customers. The challenges we face in defining and constructing a smart grid are deciding if we are designing a comprehensive smart grid and determining what about our design makes it smart. Companies pursuing smart grid strategies have defined them as everything from smart meter/advanced meter infrastructure solutions to automated distribution management or integrated SCADA systems. The components being used to build various parts of the smart grid appear to be existing technologies that could be defined as vertical solutions for any number of challenges and opportunities facing our industry. But if we are truly building a smart grid, we need to explore the entire grid, from generation through transmission and distributionall the way to consumption. Further, though creating additional data and information to supplement our operating models will no doubt improve industry performance, does that really make our grid smart? When you consider other industries and the smartness of their products, you look to a cell phone. It identifies where its located, selects its signal from multiple options to maximize connectivity performance, and can repeat that process continuously while changing its location in a vehicle moving at 60 miles per hour. Though we now take this capability for granted, youve got to consider the cell phone smart, especially when you look at the size of the package that performs this feat and the lack of human intervention required to accomplish it.

eration would mean the 12,000 MW of wind generation currently available in the U.S. wouldnt require an additional 12,000 MW of available fossil-based generation to exist on the system. Consider how the automated integration of supply and demand, coupled with automated, real-time demand response, could allow the industry to adjust its spinning reserves model. By integrating real-time system monitoring and signaling with customer preferences, we should be able to adjust operation of the system to immediately respond to shifts in demand load. Rather than have system spinning reserves respond to expected consumer demand, lets consider the possibility that consumer demand responds to system capacity based on any number of inputs, including environmental, cost, or reliability data. Consider how technology integrated into the devices that consume our product would enable consumers to preselect desired consumption levels based on cost and/or environmental impact preferences. While all indicators suggest that consumers are increasingly aware of and want to participate in the efficient management of the environment and the cost of electricity, the lack of automated real-time response capabilities and appropriate rate structures significantly compromises their ability to do so. Smart regulation The development, deployment, and adoption of the smart grid will also require effective regulatory structures and policies. First we need to address how to support an effective R&D model. While consumers need to be protected from nonaccountable R&D expenditures, we also need to establish effective financial models that support innovation that benefits our industry and, ultimately, our customers. Second, implementation of the smart grid will shift investment dollars from steel and physical infrastructure to technology and software. Effective cost-recovery models need to be established that recognize the difference between traditional infrastructure and technology investmentbut first the industry needs to demonstrate that technology investment can be effective and beneficial to our customers. Third, regulatory models need to incent participation in effective utilization and demand-response programs. Rate structures need to reflect the costs and benefits of responsible consumption and pass those benefits and responsibilities on to consumers. A change of mind required Leaders across our industry are addressing its many challenges by actively embracing the concept of a smart grid, and solution partners are investing in technology to achieve that vision. Lets not squander the opportunities of the smart grid by remaining stuck in the mental gridlock of how we operate today. Realizing those opportunities requires collaboration and exploration of how we can operate tomorrow. Mike Carlson, vice president and chief information officer of Xcel Energy, oversees the utilitys smart grid initiatives, including its first Smart Grid CityBoulder, Colo.
POWER May 2008

Smart along all dimensions The electric grid cant be considered smart until the entire system is integrated and we automate everything from generation dispatch to consumption response. Shouldnt a truly smart grid:

Increase reliability by automatically adjusting the system to avoid device stress and failure? Extend asset life and performance by protecting the asset from wide fluctuations in operating demand? Automatically adjust demand to match available supply? Integrate environmental, cost, and reliability impacts with consumer demand decisions? Horizontally integrate the grid with real-time data that constantly adjusts the entire system to optimize its performance and our consumption of its output?

Consider how a fully integrated and truly smart grid could impact the challenges we face in the next 25 years. The benefit of providing consumers with a device that automatically adjusts their consumption based on the availability of renewable gen64

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Visit us at BOOTH 1017

BOILERS
AQCS NUCLEAR SCR TURBINES

... vertically integrated to meet your total power and environmental generation needs.

HITACHI POWER SYSTEMS AMERICA

Hitachi Power Systems America, Ltd. 645 Martinsville Road Basking Ridge, NJ 07920 Tel: 908.605.2800

www.hitachi.us/hpsa

power.info@hal.hitachi.com
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We call these tangible renewable energy credits.

Consider biomass as an energy source for electric power production. Energy from biomass is dependable, dispatchable and readily available. In addition, biomass is CO2 neutral and can reduce plant emissions. Diversify your fuel portfolio and earn renewable energy credits. Call 1-800-BABCOCK or visit www.babcock.com.

2007 The Babcock & Wilcox Company. All rights reserved.

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