The magazine for the international power industry January 2017

Trends & Strategies

KEY QUESTIONS ON WHY THE MARKET NEEDS
THE FUTURE OF ENERGY INNOVATION INCENTIVES
SMART CITY TRENDS BRINGING ENERGY
AND OPPORTUNITIES STORAGE TO THE ARCTIC
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 POWER ENGINEERING INTERNATIONAL
JANUARY 2017/// VOLUME 25/// ISSUE 1

Contents

26 Project Update

28 Market Analysis Update

32 Diary

32 Ad Index
Why Europes energy market development needs innovation incentives - P6
Credit: Fotolia

Features
14
2 Three questions on the future of energy
As part of its World Energy Outlook released in November,
the International Energy Agency posed key questions over
the current and future global energy landscape.
Smart cities: Innovating urban energy
The 21st century energy model is a data-driven, multi-
directional, market-based platform where the divisions
between producer, distributor and consumer are blurring.

18 Energy storage in the Arctic

6 Innovation, incentives, integration A lithium-ion energy storage system specially equipped
Innovation is vital to European competitiveness and the with a cold temperature package is helping an Alaskan
new energy market development requires innovation community make the most of its wind resource.
incentives for distribution systems operators.

22 Modular power in the nuclear industry

8 Strategy for component manufacturers There are a multitude of roles for mobile power
For component suppliers it is crucial to know where the generation in the nuclear sector in both short and long-
industry is headed and which technological, regulatory term scenarios.
and resource issues are most likely to affect them.

24 Plant maintenance: the outsourcing option

12 Intellectual property in the energy sector Plant owners are increasingly looking to outsource the
Energy firms may not always be up to date on legal issues major elements of equipment maintenance in order to
involving the technology they use, and may be exposing improve reliability and minimize downtime.
themselves to allegations of patent infringement.

On the cover
Cover design: Samantha Heasmer

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 Global power trends
Three questions on
the future of energy
As part of its World Energy Outlook released in November, the International Energy
Agency posed key questions over the current and future global energy landscape.
Q: Has the world broken
the link between rising
economic activity, energy
demand and energy-
related CO2 emissions?
IEA data suggests that what has been a
fairly inexorable rise in global energy-related
CO2 emissions slowed sharply in 2015, for the
second year in a row.
Before 2015, there were only four periods
in the past 40 years in which emissions stood
still or fell compared with the previous year.
Three of those the early 1980s, 1992 and
2009 were associated with global economic
weakness.
In contrast, the most recent stall in emissions
growth comes during a period of economic
expansion. This represents a clear hint that the
previously close relationship between global
economic growth, energy demand and
related CO2 emissions is weakening. But is it
too soon to conclude that the link is broken?
Energy intensity is a measure of the link
between global economic activity and energy
demand; preliminary estimates suggest that
2 Power Engineering International January 2017
1701PEI_2 2
global energy intensity decreased by 1.8 per
cent in 2015, almost twice the average level of
improvement over the last decade.
Part of the reduction in energy intensity
was due to changes in the global economy:
for example, production of steel and cement
fell by 23 per cent in 2015, mainly because
of developments in China. The increasing
rigour of global energy efficiency policies also
played a role.
In turn, the link between energy
demand and energy-related CO2 emissions
is determined by the mix of fuels and
technologies used to meet the worlds
energy needs. Moving away from the most
carbon-intensive fuels (for the first time, the US
generated as much power from natural gas
as from coal in 2015) or introducing more
renewables into the system (additional power
generated from renewables was equal to
more than 90 per cent of the growth in global
electricity generation in 2015) are the main
ways to drive a wedge between energy and
emissions trends.
Overall, the IEA estimates that around
two-thirds of the contribution to the flattening
in emissions in 2014 and 2015 came from
reductions in energy intensity; the rest from an
Credit: AdobeStock
expansion of cleaner energy sources in global
energy use.
The IEA says that some of the factors
that have caused the slowdown in global
emissions growth in 2014 and 2015 are
cyclical and might not be prolonged the
most pronounced slowdown in economic
activity over this period occurred in some of
the most energy and carbon-intensive parts of
the global system, e.g., Russia, the Middle East
and other hydrocarbon-exporting countries
and regions.
A further implication is that, if indeed
the trends seen in 2014 and 2015 are to be
a turning point, then stronger policies than
those in place or envisaged today would be
needed to boost improvements in efficiency
and the deployment of low-carbon energy.
In the IEAs projections, the annual average
increase in GDP is assumed to pick up, from
3 per cent in 2015 to an average of 3.7 per
cent over the ten years to 2025, meaning
that improvements in energy intensity and
deployment of lower carbon technologies
have to clear a higher bar in order to deliver a
net reduction in emissions.
The IEA forecasts that global energy
intensity will continue to fall at a rate of
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1/13/17 2:49 PM

1.8 per cent per year to 2040, which it calls
a significant achievement given that
GDP growth is concentrated in emerging
economies, where economic activity is still
relatively energy intensive. But the net result
is still a stubborn upward trend in global
demand for energy.
Primary energy demand in most advanced
economies is set to fall over the coming
decades: despite pockets of growth such as
Mexico, the net trend for OECD countries as
a whole is that they consume less energy in
2040 than they do today.
But this is more than offset by increases
elsewhere, with rising incomes, industrialization
and urbanization and rising levels of energy
access proving to be powerful spurs
for consumption. China has had a huge
influence on global energy trends since 2000
and continues to be the largest single source
of global demand growth until the mid-2020s
in the IEAs projections, when it is overtaken by
India.
But even as energy demand growth
slows in China, other countries in South and
Southeast Asia, along with parts of Africa, the
Middle East and South America where energy
demand per capita is low today, take on a
more prominent role in pushing global energy
demand higher.
Q: Which fuels and
technologies are poised
to do well in the post-Paris
Agreement new energy
order?
The IEA stresses that the global energy mix
does not change easily. Although government
policies, relative prices, changing costs and
consumer needs all create incentives to
switch fuels or to introduce a new technology
in order to obtain a better energy service, in
Which fuels and technologies will dominate?
Credit: Siemens
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1701PEI_3 3
practice the energy system has a great deal
of inertia.
Light bulbs and office equipment might
be replaced every few years, but the lifetimes
of vehicles, factories, power plants and
buildings are much longer, and each bit
of infrastructure locks in certain patterns of
energy use. So, in the absence of a concerted
policy push or a dramatic change in relative
prices, the positions of the different fuels and
technologies in worldwide energy use tends to
be fairly stable.
According to the IEAs projections in what
it calls its New Policies Scenario, coal is not yet
in terminal decline but growth is anaemic at
only 0.2 per cent per year to 2040, providing
scant relief for the 80 per cent of Chinese coal
companies that were reportedly losing money
in 2015 or the firms accounting for half of US
coal production that were under bankruptcy
protection in mid-2016.
The reason that coal demand continues
to rise at all is due to robust demand growth
in India and southeast Asia where readily
available coal is difficult to ignore as an
affordable solution to fast-growing energy
needs. This offsets rapid declines in coal use in
North America and the European Union.
More so than for any other fuel, it is China
still by far the largest coal producer and
consumer that holds the keys to the global
coal balance. The structural economic shift
towards non-energy-intensive industry and
services sectors hits coal use hard and means
that, barring an unexpected dry year for hydro,
Chinas coal use is likely to have peaked in
2013.
On the production side, China intends to
close more than 1 billion tonnes of mining
capacity in order to rebalance the market.
Even if this restructuring proceeds according
to plan, Chinas import needs are set to
plummet by around 85 per cent to 2040. If it
is delayed, it is conceivable that China could
even become a net exporter of coal again, a
development that would prolong the current
slump in international coal markets.
Natural gas demand grows by nearly
50 per cent in the New Policies Scenario over
the period to 2040.The 1.5 per cent annual rate
of growth to 2040 is healthy compared with
the other fossil fuels, although considerably
less than the 2.3 per cent seen over the last
25 years. Natural gas consumption increases
almost everywhere, with the main exception of
Japan, where it falls back from todays levels as
Power Engineering International January 2017
Global power trends
Are there limits to growth for renewables?
Credit: National Grid
nuclear power is reintroduced: China and the
Middle East are the largest sources of growth.
But, in the face of strong competition and
saturation effects in some mature markets,
the IEA stresses that the natural gas industry
has to work hard to secure new outlets for its
product. Gas prices rise steadily in all regions
as the current supply overhang is absorbed.
According to the IEA, by 2025, in gas-
importing countries in Asia (in the absence
of carbon pricing) new gas plants would be
a cheaper option than new coal plants for
baseload generation only if coal prices were
$150/tonne.The space for gas-fired generation
is also squeezed in many markets by the rising
share and falling costs of renewables. Gas
demand for industry increases more quickly
(at 2.1 per cent per year) than for power
(1.3 per cent); the fastest growth (3.4 per
cent), albeit from a low base, comes from
natural gas use in transport, including
liquefied natural gas for heavy goods vehicles
and for shipping.
Gas production growth is dominated over
the period to 2020 by Australia and the US,
but thereafter the increase in supply comes
from a larger range of countries. East Africa
emerges as a new gas province thanks to
large offshore developments in Mozambique
and Tanzania. Egypt makes a comeback with
the start of production from the major Zohr
field, as does Argentina with the development
of its promising shale gas resource in the Vaca
Muerta region.
After remaining relatively flat into the
early 2020s, Russias output rises again as
a new pipeline route opens up to bring gas
to China, but a larger share of the increase
in international trade is taken by LNG. New
projects in North America, Australia, Africa,
the Middle East and Russia help to boost the
share of LNG in inter-regional gas trade from
42 per cent today to 53 per cent in 2040.
3
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 Global power trends
Readily available coal is difficult to ignore
Credit: WCA
The gradual removal of contractual
restrictions, such as destination clauses,
also eases the emergence of a globalized
gas market in which prices are increasingly
determined by the interplay of gas supply and
demand.
In the case of nuclear, even though one-
sixth of the global nuclear fleet is retired in
the next decade (80 per cent of this in OECD
countries), overall prospects are buoyed by
large new build programmes in a select group
of countries led by China, Russia and India.
The largest expansion in the primary
energy mix comes, unsurprisingly, from
renewables. But...
Q: Are there limits to growth for
renewable energy?
Renewable energy is the major growth story in
the IEAs World Energy Outlook 2016.
The attention to renewables is typically
focused on their place in the power sector,
but renewable resources are also used in end-
use sectors to meet heat demand and as a
transport fuel. Use for heat can either be direct
(from bioenergy or solar thermal, for example)
or indirect (via renewables-based electricity or
heat from combined heat and power plants).
Use in the transport sector is as biofuels, mainly
for road transport.
To the extent that renewables in the power
sector test the limits of growth, they do so for
two reasons. First, particularly in countries with
Large new projects improve nuclears prospects
Credit: WANO
4 Power Engineering International January 2017
1701PEI_4 4
low rates of growth in electricity demand and
very strong decarbonization goals, the desired
pace of change may exceed the natural rate
at which existing capacity is retired.
There is no technical barrier to early
retirement of existing assets, but the political
challenges can be a different matter and early
retirement comes with a cost: an increase in
the amount of overall investment or, in some
instances, a claim for compensation for lost
income.
Second is the impact of variable
renewables on the operation and reliability of
the power system as a whole. At low shares of
penetration in the power mix, wind and solar
PV are unlikely to pose significant challenges.
Yet, the deployment of such technologies
requires a significant upgrade in technical,
institutional, policy and market design,
collectively known as system integration
measures.
In the absence of these measures to
increase the flexibility of the system, there
is a risk that wind or solar capacity would
face significant curtailment during times
of abundant generation, which could
undermine the economics of projects, deter
investment and make these technologies less
effective as emissions abatement options.
Any power system in which wind and
solar PV installations face a regular risk of
having their production curtailed is taking
an expensive and inefficient route towards
decarbonization.
Flexibility, in power system terms, is
traditionally associated with generators that
can change their output very quickly (typically
reservoir hydropower or gas-fired plants). But
there are multiple potential sources of flexibility
that can be exploited to shift the timing of
the demand or of the delivery of supply
in order to accommodate large shares of
renewables.
Markets can be designed in a way that
incentivize investment in locations and
technologies that offer the best value to
the system as a whole, i.e., are capable of
delivering power at times of day and in places
when it is particularly needed. Strengthening
the network or integrating with neighbouring
systems make it possible to aggregate
output over a larger area, helping to smooth
fluctuations that might occur in individual
locations.
Although its use has been limited so
far (with the partial exception of pumped
storage hydro), utility scale storage offers
promise especially once costs come down
to accommodate supply and demand
mismatches.
Another approach is to induce flexibility
on the demand side, either by moving
consumption in time without affecting the
total electricity demand (e.g., shifting the use
of a washing machine or the charge of an
electric vehicle to a different time period), or
by interrupting demand at short notice (e.g.,
stopping industrial production for a given
amount of time) or adjusting the intensity
of demand for a certain amount of time
(e.g., reducing the thermostat temperature
of space heaters or air conditioners to lower
electricity demand at that time).
A judicious mix of these solutions can allow
for very high shares of variable renewables in
power systems, while reducing curtailment to
negligible levels below 2.5 per cent of their
annual output in 2040. System integration
measures provide the essential enabling
mechanism for high growth of renewables.
In the end-use sectors, there is a mixture
of barriers that impede rapid growth in
renewables. Technological progress
been much less rapid than in the case of
wind or solar PV power, not least because
has
policies that can help renewable heat
technologies achieve full commerciality are
much less widespread than those supporting
renewables-based electricity.
Not all sources of renewables for heat offer
the range of heating temperatures demanded,
especially in industry. But there is still scope for
further penetration of solar thermal heating for
use in the residential or services sectors or in
low-temperature applications, such as textiles
and food processing.
Bioenergy offers a wider range of heating
temperatures, although logistics and supply
chain problems could emerge as a constraint
on large-volume consumption. Research
and development is still essential to bring
down costs and to open up new areas for
growth, for example solar thermal heating for
medium-temperature industrial applications,
or renewables-based cooling systems for
buildings and industry.
OECD/IEA 2016 World Energy Outlook, IEA
Publishing. Licence: www.iea.org/t&c
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 HRSGs for the
Worlds Most Ecient
Power Plants

CMI Energy
hrs@cmigroupe.com www.cmigroupe.com/energy
energy.llc@cmigroupe.com
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 Strategy: Innovation Credit: Fotolia

Innovation,
incentives,
integration
The new energy market development requires innovation incentives for
distribution systems operators, writes Hans ten Berge

I
nnovation is vital to European
competitiveness in the global economy.
A successful low-carbon energy
transition depends on new technology,
creative business models and innovation
moving forward.
Distribution systems operators (DSOs) will
face many challenges when large-scale
distributed generation will be integrated,
with high numbers of electric vehicles (EVs)
connected to the grid and prosumers
interacting in the market. More active grids
will require a more advanced monitoring and
management of the grid, for which innovation
technologies are needed.
In the future evolution of energy networks
towards a smarter grid concept, DSOs must
play an active co-ordinating role between all
market participants, facilitating markets and
services in a neutral and non-discriminatory
manner.
DSOs will have to position themselves in
both existing and emerging fields, notably
data handling, flexibility and storage, while
respecting market signals and priorities and
without interfering with them.
The growth of distributed generation
presents a challenge for DSOs, especially
as it affects their ability to maintain and
upgrade their grid infrastructure. According
to the European Commission, 95 per cent of
renewable energy sources are connected
to DSO grids and revenue allowances from
regulated activities in the distribution sector
are in the order of 62 billion ($64 billion)
per year Europe-wide. To keep up the pace,
400 billion worth of distribution network
investment will be needed by 2020 in Europe.
Investment in smart grid technology
such as smart metering, integration of
decentralized renewables and Demand Side
Management/Response will allow DSOs
to become central platforms for the energy
transition by connecting active consumers,
renewables and flexibility sources. However, it is
important to highlight that these investments
imply a revised asset base, operating costs
and revised business models.
Regulatory incentives
In 2016, EURELECTRIC conducted a survey
among 20 Member States to show the status
of regulatory incentives for innovation in
Europe. The survey showed that regulators
in 11 out of 20 countries do not offer any
specific mechanism to incentivize innovation.
Moreover, incentives for operational
expenditure (OPEX)-related innovation are
only implemented in four out of 20 countries.
When asked if the regulatory framework fosters
or hampers innovation, half of the surveyed
countries mentioned that the regulatory
framework rather hampers innovation.
The conclusion of the report was that
there is a clear positive correlation between
regulatory mechanisms and innovation
incentives. In cases where the regulatory
framework treats costs for innovation/research
& development like any other costs, the system
hampers innovation.
DSOs play a key role in implementing
innovative ideas to improve the functioning
of electricity distribution networks with the
ultimate goal of benefiting customers.
Because DSOs are natural monopolies
and regulated businesses, they have to
develop innovative concepts under a certain
regulatory framework that incentivizes them.

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1701PEI_6 6 1/13/17 2:49 PM

 Strategy: Innovation

To encourage the development of innovative DSOs,

the European Union needs a co-ordinated innovation
strategy together with wider co-ordination between Member
States.
To foster smart grid innovation and transition towards a new DSO
business model, the European Commission should create a robust
legislative framework that recognizes the need for innovation incentives,
while leaving the specific design to national regulatory authorities.
To achieve an efficient development of the distribution grids,
companies will have to invest in both conventional and innovative
technologies. In this context, most DSOs have to change their business
models and internal processes in order to implement innovative
solutions and technologies, to help the transition to the new energy
market.
Policymakers should encourage national regulatory authorities
(NRAs) to give DSOs appropriate incentives to implement the necessary
innovative initiatives. Meanwhile, it is important that NRAs monitor
whether DSOs achieve scheduled goals.
The implementation of innovation incentives should also target the
reduction of financial risk for DSOs while increasing their participation
in pilot research & development (R&D) projects and innovative
programmes.
Innovation investments for smart grids are hard to predict before the
establishment of a regulatory period. Moreover, they depend highly on
the regulatory scheme, which is constantly evolving. A lot of R&D and

HIGH PERFORMANCE
innovative projects have to be conducted and, finally, only a few of
these technologies will evolve from the pilot stage to commercial use
on the market.
In order to help DSOs innovate, the implemented specific regulatory
mechanisms should be predictable and stable in the outcome. Electric actuators for the
Regulation that efficiently incentivizes DSOs to engage in active
power plant industry
system management has to consider the changing OPEX and capital
expense (CAPEX) structures, acknowledging the shift from a higher Reliable, powerful, precise control. AUMA
share of CAPEX to OPEX in the deployment of new innovative network offer a large portfolio of actuator and
technologies.
On top of this, regulation has to find the optimal balance between
gearbox type ranges.
using distributed generation and building new infrastructure, and how Automating all types of
to incentivize DSOs to be innovative and find solutions (e.g., for ICT, data
industrial valves
handling, but also system services) in-house or by outsourcing.
As the discussion on the role of the DSO in the future gains Standardised interface for
momentum, it is important to provide DSOs with an updated toolbox various site control systems
with which it can integrate new technologies and operate under
smart(er) grid-oriented regulatory frameworks.
Plant Asset Management functions
Innovation-oriented policies can motivate DSOs to be actively Service worldwide
engaged in the shift towards smarter and sustainable network
management, whilst ensuring the security and high quality of the
distribution service. Therefore, fostering innovation at the DSO level
remains an essential strategy which needs to be pursued in due course.
Discover our solutions for the
Hans ten Berge was Secretary General of European electricity industry power plant industry
association EURELECTRIC for ten years. At the beginning of January he www.auma.com
stepped down and was succeeded by Kristian Ruby, who was previously
Chief Policy Officer for WindEurope.

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 Q&A
Strategy: OEMs
Predicting the
unpredictable
For component suppliers in the global power sector,
it is crucial to know where the industry is headed in
the medium-to-long term and which technological,
regulatory and resource issues are most likely to
affect them. Tildy Bayar spoke with Jose Larios,
President Power & Energy at SPX Flow, about the
changing energy landscape and his companys
strategy to address it
One thing about energy predictions is
certain: they will be wrong. At least in absolute
terms and within a specific time window. So
wrote Jos Larios, President Power and Energy
at global valve and pump manufacturer SPX
FLOW, on the occasion of the International
Energy Agencys (IEA) release of its 2016
Energy Outlook.
However, he continued, the macro
factors driving [energy sector] predictions
remain very valid. Larios, who is based in
the US, keeps a close eye on power sector
developments around the world in order
to align SPX FLOWs business with evolving
technology needs. His business designs new
valves and pumps in a symbiotic relationship
with its customers, which include the major
nuclear plant developers as well as utilities in
the coal and gas power spaces.
PEi spoke with Larios about the changes
driving the global power sector and the
corresponding strategies behind SPX FLOWs
core businesses in the nuclear, gas and coal
power sectors.
Q:
What is your view of nuclear powers place
in the global power mix?
A:
Each country and region has a different
approach to selecting their own individual
power mix, but there are around four to five
8 Power Engineering International January 2017
1701PEI_8 8
key critical elements that countries take into
account. Energy security; emissions policy or
public health policy; population growth and
the need for infrastructure, in particular for
power generation; and finally, technology
innovation. Its also very important that power
projects create jobs and leverage the local
supply chain.
In India there is huge population growth,
a huge infrastructure need, a supply chain
installed and a large manufacturing
infrastructure available. India could leverage
its significant nuclear capabilities to build
something like 18 reactors. China is similarly
developing a number of reactors in a bid to
tackle emissions concerns.
In Europe, public safety concerns are
seeing a big growth in renewable energy
with a lot of subsidies. Whereas nuclear is
becoming important for the UK where the
energy security and industry creation issues
have become more prominent.
So if you put all of these countries and
approaches together, the share of global
nuclear will increase because of the scale of
the opportunity provided by China and India,
and what the UK wants to develop. Through
technological improvements the sector will Q:
also grow to be safer than it ever has been. And What are the most pressing concerns for the
with the development of new technologies nuclear power sector right now?
like small modular reactors (SMRs) you dont
need huge infrastructure projects. SMRs have A:
the potential to be more efficient and can In nuclear, the most important topic is
deploy quickly to more remote places. always public safety for sure. This comes in
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1/13/17 2:49 PM

many shapes and forms, but the first is how to
address the post-Fukushima world. In existing
or new designs, everything revolves around
safety which leads to new technology, new
activities and upgrades on fleets around the
world.
Each part of the world is doing its own
assessment of how to respond to the post-
Fukushima world, and each has developed
a different set of principles that suits their
philosophy and the types of plants already
installed.
SPX FLOW is deeply involved in technology
development to address safety concerns.
Were delivering TWL emergency reactor
cooling pumps in order to make sure all plants
in Japan can operate under the new post-
Fukushima safety regulations. Were working
too with our customers in France to develop
safety pumps and valves for post-Fukushima
upgrades.
Were also implementing and developing
technology for new reactor designs in China.
We are involved with all the industry players in
understanding how we can keep developing
and delivering the most advanced safety
pumps and valves.
From new big reactors to SMRs, the nuclear
sector is investing more in new technology
than the rest of the power and energy world.
There are a lot of things on the radar in the
nuclear sector, notably around fuel and scale.
The trick for all players in the industry is
www.PowerEngineeringInt.com
1701PEI_9 9
meeting the evolving needs of the industry
as well as being cost-effective. Understanding
the right equation, figuring out the right size,
technology and cost for plants in the future is
the same in the UK, China or India. Everyone
needs an economic model that works.
Q:
What is your view of the coal and gas power
sectors?
A:
Understanding the mix
energy companies around the
world is key: how much of their
old nuclear they keep running
at a high cost, how much
they replace with new
nuclear, or
combined-
cycle plants
(CCPs) like
i n
Q&A
the US.The big challenge for power companies
is finding the right mix of technologies and
being flexible.
Customers worldwide tell me that it is hard
to predict what the profitability for each of
these technologies will be in 10 years time.
So, they need a flexible portfolio which can
expand and contract as time evolves, rather
than just concentrating on one technology.
Gas will become a very important source
in the mix because of its availability globally.
In terms of cost, looking at prices in both the
US and Asia, gas is extremely competitive so
for you can build combined-cycle plants at very
low cost. Renewables will grow too in countries
where the government and the public are
willing to make heavy investments in subsidies
until the industry becomes profitable in the
long term.
with I see coal being drastically reduced in
the global power mix. From 2014-15, in the UK
alone, coal went from close to 30 per cent to
closer to 25 per cent of the energy mix, that
is a very short period of time. Coal will be
limited to a few areas of the world that are
less concerned about emissions and have
plentiful coal resources. But there are less and
less of those in the world.
Companies have challenges in
understanding what their mix should be. Were
helping them by expanding our product
portfolio and working with them to reduce
the cost of the overall ecosystem, not only the
equipment. We provide, for example, pumps
for CCPs. We work with our customers to
Power Engineering International January 2017 9
1/13/17 2:49 PM
 Q&A
design pumps and valves that help increase
profitability and reduce noise levels, which are
now a concern.
We have established a global network
of service centres that can meet customers
servicing needs and reduce downtime, our
local workforce can respond and work in a
timely and efficient way whenever there are
planned maintenance cycles.
In North America, with the recent addition
of a significant number of plants, it becomes
very important how fast utilities and EPCs can
build plants and put them to work. As an
equipment provider its very important that we
develop products quickly, products that need
less engineering every time to bring down
costs and meet regulatory needs.
In the US, in the past years, noise levels
have become a huge issue. Now regulators
are more stringent, so our job is to make sure
current designs help our customers achieve
overall noise levels.

Q:
What are your key markets for 2017 and
beyond?

A:
In the nuclear sector, were concentrating on
France and Japan where we are delivering
post-Fukushima safety solutions to both
fleets. Were focusing on fast-growing markets,
notably China where close to 20 plants will be
built as well as SMRs.
India is growing significant power
capabilities and is attracting attention
from foreign investors too, with EDF and
Westinghouse announcing projects with the
Indian government for newer-design reactors.
The UK is investing in developing a new
generation of nuclear power and construction
of Hinkley Point C is already underway.
In the coal and gas markets, combined
cycle plants in the US is a big area of focus for
us. The presence of cheap gas gives a huge
advantage to utility companies that have
CCPs as part of their portfolio. We supply all
types of pumps and valves for that market.
We also work a lot in Spain, supplying valves
and pumps in the local power generation
market, as well as supplying Spanish EPCs
which are very active building plants in Latin
America and other parts of the world.
Globally, the Middle East is very important
in terms of pure power generation and also
in terms of generation attached to oil and
gas infrastructure. For example, countries like
Saudi Arabia build significant infrastructure
for downstream oil and gas, which requires its
own power generation.
Q:
How do you see the future for small modular
nuclear reactors, or SMRs?
A:
SMRs will not be developed in just one country,
but certainly a critical development is the UKs
research programme launched with 250
million ($307 million) behind it. This is going
to generate a tremendous amount of interest
in SMRs and we are part of the discussions
with all players in that space. Meanwhile,
China wants to develop more than 20 SMRs
which will require new investments and similar
technological innovation.
One drawback of nuclear has always
been the huge investment needed for any
government or utility to build a nuclear
power plant, whereas SMRs are a lot more
accessible, plus you can deploy them in more
remote places. As an equipment provider its
exciting to develop new technology and were
in the early stages of discussions with projects
around the world.
The key challenge for the nuclear industry
is finding which designs are going to deliver
on safety, cost, and quick implementation in
the field. I dont think all of these technologies
will progress forward, so as an industry well
have to develop them enough to make
projects commercially viable.
Visit www.PowerEngineeringInt.com
for more information

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1701PEI_10 10 1/13/17 2:50 PM

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Intellectual property
Intellectual
property in the
energy sector
Energy companies may not always be up to date on legal issues
involving the technology they use, and thus may unwittingly be
exposing themselves to allegations of patent infringement, write
Ji Young Park, Spencer Abraham and Salvatore Tamburo
W
ho would have
thought 10 years ago
that utilities would be in
the forefront of the third
industrial revolution?
Smart meters are
here. Solar panels are on rooftops. State energy
law now includes energy storage provisions,
and automobile manufacturers are working
together with the energy industry to deploy
the next generation of vehicles powered by
electricity. In the midst of all this, utilities are
working with software providers to manage
the smart grid and accommodate the latest
renewable energy resources and information
technology.
It appears,however,that the energy industry
may not always be up to date on legal issues
involving the technology they use, even those
technologies that are part of our everyday
operations like Wi-Fi and Bluetooth, and thus
may unwittingly be exposing themselves to
allegations of patent infringement.
As energy companies adopt technologies
to equip themselves and their clients to take
full advantage of the smart grid, they need to
think about how to protect their homegrown
technologies and protect themselves against
patent infringement lawsuits. Obtaining the
advice and guidance of counsel is a relatively
simple and inexpensive way to protect a
12 Power Engineering International January 2017
1701PEI_12 12
The energy industry may be exposing itself to copyright infringements
companys proprietary technology and avoid
common pitfalls of such lawsuits.
Good examples of companies who know
how to protect their technologies are Apple
and IBM. These high-tech goliaths have been
developing consumer electronic products,
and patent portfolios covering the products,
for decades in order to prevent anyone from
stealing or using their innovative ideas without
permission.
By securing patents that cover the
companies proprietary technologies, they
were able to protect their place in the market
against unscrupulous copycats. The situation
is no different for companies in the energy
sector.
For example, a couple of years ago,
Dominion Resources Inc secured a patent
to protect its invention related to conserving
energy using smart meters. This cutting-edge
technology was invented by Dominions
engineers, and upon recognizing its value,
Dominion obtained a patent that protects the
invention.
When Alstom Grid Inc, an electricity
distribution management solution provider,
started promoting a software product
that infringed Dominions patent without
permission, Dominion filed a patent
infringement suit based on its patent.
Dominions lawsuit was successful and
Credit: AdobeStock
in October 2016, the court enjoined Alstom
Grid Inc from selling the infringing feature
without Dominions permission. The court also
multiplied the jury award in this case based
upon the jurys finding that Alstoms patent
infringement was willful.
Dominions lawsuit is one of many patent
infringement lawsuits now implicating
businesses in the energy sector. For instance,
between November 2015 and May 2016,
Atlas IP, LLC, brought patent infringement
lawsuits against multiple utilities, including
PG&E and Florida Power & Light Company.
In its complaint, Atlas IP, LLC alleged that the
utilities infringed its patent related to a wireless
communication device by communicating
data using smart meters.
And with the increased use of information
technology in the smart grid era, what has
been a long-time reality for companies in the
IT sector seems to be bleeding into the energy
sector: patent infringement lawsuits brought
by non-practicing entities, also known as
patent trolls. Atlas IP, LLC, for example, is an
assignee of a patent once owned by a well-
known non-practicing entity in the IT sector,
Wi-LAN Inc. Wi-LAN, for years, brought patent
infringement lawsuits against companies
providing consumer electronics devices, such
as Apple, Sharp, Ericsson, Samsung, LG, and
Toshiba.
www.PowerEngineeringInt.com
1/13/17 2:50 PM
 Intellectual property

The companies in the IT sector are also targets of patent

infringement lawsuits based on patents covering communication
technology standards, for example Wi-Fi and Bluetooth. This means,
when a company is selling a mobile device using Wi-Fi technology to
access the internet, it is infringing a Wi-Fi patent and the owner of the
patent can bring a patent infringement lawsuit against the company.
Smart Energy Profile (SEP 2, also known as IEEE 2030.5 standard), a
communication standard expected to be largely adopted by utilities
so that a customer at home can check how much electricity he or
she has consumed using a smartphone connected to a W-Fi network,
similarly puts utilities at risk of patent infringement.
There are simple precautionary measures utilities and energy
sector businesses, entering the era of the smart grid and Internet of
Things (IoT), could easily take to protect their proprietary technologies
and guard against the most common pitfalls of patent infringement
lawsuits.
First, consult with patent lawyers with expertise in the energy industry
to evaluate the companys research and development efforts, and file
a patent application that covers the companys inventions.
Second, to the extent the company enters into an agreement
with a vendor supplying software solutions based on the invention(s),
the agreement should be reviewed with the understanding that an
adoption of such technology may subject a utility to the risk of being a
defendant in a patent infringement lawsuit.
The company should seek the advice of IP lawyers with expertise
in licensing and contracts, and build provisions into the agreement
intended to protect the company against such lawsuits. This may
include, for example, a representation by the vendor that its product
does not infringe or a warranty to defend against such claims.
Third, when faced with a cease and desist letter or a patent

A Powerful
infringement notice, speak with a patent litigator who understands the
technology at issue to determine the reasonableness of the patent owners
position.
When a patent infringement is found to be willful, as the trial court
found in the Dominion case, the patent statute allows the courts to
Investment
enhance damages up to three times the amount found by the fact
finder, depending on the degree of egregiousness of the defendants
That Pays Off
behavior. An opinion letter from a patent attorney that the asserted
patent is either not infringed or invalid, and the reasonableness of the Quickly
positions taken by the defendant before a lawsuit is filed, can help
mitigate against a willfulness finding and enhanced damages. Improving access to your plant with rack and pinion
Every patent case is different, and as with many things, the devil elevators from Alimak Hek increases labor efficiency,
is in the details. Still, an overall strategy put into place to protect a reducing the labor required to complete planned
outages and routine maintenance. It also gets the
companys intellectual property and to address a claim for patent
plant back online faster, so utilities can start generat-
infringement can help the energy industry appropriate the full value of ing additional power and revenue sooner.
intellectual property, as both a shield and a sword. Learn more about vertical access solutions from
And the opportunity to benefit from such strategies may come Alimak Hek. Contact us today!
sooner than expected.

Ji Young Park is Associate at Blank Rome, Spencer Abraham is

Principal at Blank Rome Government Relations and Salvatore Tamburo
is Partner at Blank Rome, a Philadelphia-headquartered law firm with
offices in the US and Hong Kong.
www.alimakhek.com
Visit www.PowerEngineeringInt.com
for more information
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1701PEI_13 13 1/13/17 2:50 PM

 Many utility providers struggle to keep up with the pace of city growth
Smart cities
Innovating
urban energy
T
his article takes a closer look at
The 20th century energy in cities. Why focus on
model of centralized cities? First of all, more than half
the global population lives in cities,
energy production and
and cities account for over half of
distribution by a limited global energy consumption and
number of actors is 40 per cent of greenhouse gas emissions, with
evolving into a data- the largest shares going to road transport,
driven, multi-directional, building heating and building electricity.
As the global population increases and
market-based platform
the urbanization trend continues, cities will
where the divisions become ever more dominant consumers
between producer, of energy and other global resources, and
distributor and consumer their impacts will spread ever wider. The UN
are becoming blurred estimates that 66 per cent of the worlds
population will live in cities by 2050, while
and overlapping, write
another study estimates that the global urban
Alan Thomson and footprint (its physical extent) will triple over the
Stephen Cook 30 years to 2030, comprising an additional
area of 1.2 million square kilometres.
Reducing the impact of urbanization
through increasing urban energy efficiency
and switching to clean, low carbon resources
is clearly critical for cities to continue to thrive
as engines of economic growth and human
creativity.
City challenges and opportunities
Beyond these headline figures, the physical,
economic, social and political complexity
of these dense communities creates distinct
14 Power Engineering International January 2017
1701PEI_14 14
Credit: Adobe
challenges and opportunities, compared with
peri-urban, rural and industrial settings, that
merit investigation into urban energy.
Firstly, dense, mixed use urban forms can
reduce the unit cost of transport and energy
infrastructure and enable adoption of efficient
transit systems and low carbon heating and
cooling networks, but density can also lead to
adverse effects such as urban heat island and
reduce the availability of renewable resources
such as solar and wind.
Secondly, cities face dynamic challenges
including rapid urbanization, demographic
change and economic change. Many city
governments and utility providers struggle to
keep up with the pace of growth, while others
in contracting economies struggle to remain
viable while providing even basic services.
Thirdly, the legacies of existing urban
form, buildings and infrastructure tend to
lock in energy consumption patterns and
available sources and vectors of energy. This
legacy includes complex tenancy and land
ownership arrangements as well as physical
patterns of development. Rapid change can
only occur through highly context-sensitive
initiatives.
Finally, the governance of cities many of
which have considerable authority, influence
and budgetary powers can be critical to
the design and delivery of locally appropriate,
www.PowerEngineeringInt.com
1/13/17 2:50 PM

effective solutions for energy systems which
also deliver other city drivers, such as air
quality, economy and resilience.
Given these features, energy solutions for
cities need to be highly sensitive to context,
highly granular in application, and developed
as integrated technical, commercial and
social packages.
Transactive energy
Power systems today are undergoing a
profound transformation, driven by
diversification and decentralization of power
generation, coupled with the emergence
of advanced power electronics which
are capable of managing the increasing
complexity and size of modern power systems.
The technological changes are in turn
driving changes in the ways energy is
bought and sold: the 20th-century model of
centralized energy production and distribution
by a limited number of actors is evolving
into a data-driven, multi-directional, market-
based platform where divisions between
roles producer, distributor, consumer are
becoming blurred and overlapping.
This convergence of actors participating
in a dynamic energy market is referred to as
transactive energy (TE). TE is formally defined
by the GridWise Architecture Council as a
system of economic and control mechanisms
that allows the dynamic balance of supply
and demand across the entire electrical
infrastructure using value as a key operational
parameter.
Although the idea of a market operating in
a dynamic balance in response to supply and
demand signals may appear unremarkable
in the context of many other industries, the
implications for our energy systems are
profound.
Today, most grids are kept stable through
explicit control by a central grid operator,
which controls supply to meet continuously
changing demand through the dispatch of
generation assets in accordance with a pre-
defined ranking of priority.
An energy market does operate, but the
market transactions are mostly undertaken
well before or well after the generation-
consumption event. In the short term, demand
is generally uncontrollable and unresponsive
to the cost of supply.
The move to a real-time market-based
model of electricity supply and demand
means that system can no longer be
www.PowerEngineeringInt.com
1701PEI_15 15
the
Energy solutions for cities need to be highly sensitive to context
controlled by a central grid operator.
Instead, the network will migrate to an energy
ecosystem which is kept in a state of dynamic
equilibrium through the balancing effect
of price signals established by millions of
participants. The dichotomy of producers and
consumers will evolve into a spectrum of roles
which includes prosumers which act on both
sides of the market, along with additional roles
for ancillary grid services providers such as
ramping and balancing.
The complexity, density and diversity of
energy consumption in cities makes them
potentially key drivers and major beneficiaries
of the transactive energy model.
In many rapidly growing cities, grid
capacity and reliability is a major challenge,
with grid constraints and supply outages a
frequent occurrence. Landlords, businesses
and residents either incur losses (e.g., from
lower productivity or damage to goods and
assets) or higher costs to provide on-site
resilience, such as running diesel generators.
Such local and ad hoc solutions can have
other adverse impacts such as worsening air
quality, odour and streetscape clutter.
These same cities have potentially the
strongest value case for leapfrogging to a
TE model. A transactive energy system could
improve system reliability and efficiency and
unlock new investment to meet connected
areas growing demand, and to extend
access to those who have no electricity grid
connections at all.
Such investments would focus on
Trends: Smart cities
Credit: National Grid
distributed energy systems (DES), such as
renewable energy, energy storage, microgrids
and demand management technologies.
These systems can deliver value both locally
through cost savings and local resilience
and to the wider grid, through balancing and
load control.
Recent research by Arup and Siemens,
for example, indicates that the value to end
users of DES investment is significant. Based
on a series of modelled case studies around
the world, operational cost reductions ranging
between 8 per cent and 28 per cent and a
return on investment between three and
seven years were observed, compared to a
business as usual scenario.
Delivering efficient buildings
In developed cities, TE offers a significant
prize of a step change in building energy
efficiency. Buildings in the US, for example,
consume around 40 per cent of all energy
and 70 per cent of grid electricity. Reducing
this load is critical to the achievement of
carbon reduction targets and is a potential
major contributor to economic productivity,
as businesses reduce operational costs and
homeowners increase disposable income.
Applying distributed energy systems within
a transactive energy model allows urban
building owners to have better information on
energy consumption, the tools to control and
reduce energy and the access to a market
which translates the energy savings and
control investments to financial returns.
Power Engineering International January 2017 15
1/13/17 2:50 PM
 Trends: Smart cities
In all cities, the transactive energy model
could enable integration of the electric
grid with heating to deliver even greater
environmental benefits, lower carbon
emissions and improved energy resilience.
In temperate countries such as the UK,
energy for heating amounts to almost half of
final energy consumed, and peak heating
demand (i.e., on a cold winter evening) is
as much as five times the peak demand of
electricity.
This heating demand is met today in many
cities almost entirely by natural gas supplied
directly to buildings, although centralized
urban heat networks have high penetration
in some cities in northern Europe and North
America. Transitioning away from fossil fuel
heating to renewable and low carbon
sources will inevitably involve a transition
towards electricity as the main input energy
for heating systems, especially in cities, where
alternatives such as biomass and solar
thermal are less suitable, due respectively to
air quality impacts and the density of energy
demand compared with available roofspace
for solar generation.
Cities can enable the electrification of
heat in a way which limits pressure on grid
networks by capturing available heat sources
from within cities from ground, air and water
but also from sewers, tunnels and other urban
infrastructure and carrying the heat via hot
water heat networks to where it is needed.
In the most cases, with a warm heat source
and a low-temperature receiving system, heat
networks could deliver four to six units of heat
16 Power Engineering International January 2017
1701PEI_16 16
A transactive energy model can ensure that energy investment in cities keeps pace with demand
output for each unit of electricity (although
multipliers of around three are more typical as
average performances across the year). Heat
storage, meanwhile, can be used to smooth
peak electric loads and avoid times when grid
capacity is constrained.Through these means,
urban heat networks can effectively enable
a low carbon transition while contributing to
grid balancing through a transactive energy
market mechanism.
Electrification of urban transport
Like heat, the transportation sector appears to
be on a rapid trajectory towards electrification,
especially in cities.
Although todays stock of road vehicles is
almost entirely made of liquid fuel-powered
vehicles, electric vehicle (EV) penetration is
rising rapidly. This is due to a mix of pull factors,
including improving vehicle design, battery
performance and falling prices, and push
factors including policy support for EVs and
restrictions on other fuel types to improve air
quality.
Currently, EVs represent less than 0.1 per
cent of total passengers cars in the world, but
recent research by Bloomberg New Energy
Finance forecasts that continuing reductions
in battery prices will bring the total cost of
ownership of EVs below that for conventional-
fuel vehicles by 2025.
By 2040, Bloomberg projects that EVs will
represent 35 per cent of global light duty
vehicle sales. Such a volume equates to an
11 per cent share of the global electricity
demand in 2015.
Such a rate of transition from petroleum-
based to electricity-based transport will have
a profound impact on the grid.The impact will,
however, be greatest on urban energy systems,
given that EV penetration will inevitably be
most concentrated in urban areas, because
cost and environmental benefits over
conventional petrol and diesel engines are
greatest in cities; and EV range limitations are
less of an issue in cities, where most trips are
only a few miles. The shorter range also makes
EVs more viable for city-based medium-duty
vehicles (e.g., delivery trucks and vans); and
urban densities mean that deployment of
EV charging infrastructure is more viable in
cities.
Transactive energy can provide a critical
means to ensure that generation and
distribution infrastructure investment in cities
keeps pace with the rising marginal demand
of energy. TE can also provide price signals
to secure premium payments from those
whose need for recharging may be urgent,
while rewarding those willing to postpone or
spread out their recharge. Vehicle fleets may
also be able to capture excess generation in
low demand periods (e.g., overnight) and so
increase utilization of wind as renewables take
an ever larger share of the generation mix.
The article is part of a paper prepared by
Alan Thomson and Stephen Cook of Arup on
behalf of the World Energy Council.
Visit www.PowerEngineeringInt.com
for more information
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1/13/17 2:50 PM
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 Energy storage system at Kotzebue, Alaska
Energy storage case study Credit: Saft

Storage in the Arctic

A lithium-ion energy storage system specially equipped with a
cold temperature package is helping an Alaskan community
make the most of its wind resource, writes Jim McDowall

U
ntil recently, the city of Kotzebue
in Alaska relied on diesel
generation for its main power
source. The community of more
than 3000 people lies 30 miles
north of the Arctic Circle and is
not connected to a transmission grid.
Its electricity cooperative KEA (Kotzebue
Electric Association) has made use of wind
turbines since the late 1990s to hedge against
high and volatile diesel prices. This strategy
has brought success: in 2015 its wind turbines
enabled KEA to cut its diesel consumption by
250,000 gallons and save $900,000.
Energy is essential to the survival and
viability of communities in the far north and
KEA recognizes the impact of rising diesel
prices its fuel bills rose from $1.5 million to
$6 million between 2002 and 2008.
To counter such volatility, KEA is committed
to making every conceivable effort to reduce
its dependence on diesel and has invested in
wind energy.
However, the intermittent nature of the
wind means that KEA has often had to curtail
wind output and needed solutions to utilize
the excess wind capacity. This was especially
noticeable during the summer nights when
community loads were low, but could happen
any time of the year.
Its a rule of thumb that microgrid operators
can optimize fuel savings without a battery
when penetration (the proportion of the load
that is supplied by renewables at any instant)
is below 50 per cent. When penetration rises
above 50 per cent, an energy storage system
(ESS) is essential to maintain grid stability.
If penetration exceeds 100 per cent, when
wind power exceeds demand, that same
ESS can shift wind energy to help minimize
curtailment. In KEAs case, its wind capacity
of 2.9 MW is almost equal to its peak load
of around 3 MW, making energy storage
essential.
So, in 2015 KEA commissioned a Saft
Intensium Max+ 20M ESS to achieve the full
potential of wind by riding through fluctuations
in wind output and time-shifting wind energy.
In addition, the operator had the goal of
operating in diesel-off mode, where it would
rely only on the combination of wind and
storage for several hours at a time during
periods of high wind and low load.
Why Li-ion?
As a battery technology, lithium ion (Li-ion) has
several advantages for KEA. Firstly, because it
can react quickly to changing supply and
demand, Li-ion is particularly well suited to
riding out variations in wind output from

18 Power Engineering International January 2017 www.PowerEngineeringInt.com

1701PEI_18 18 1/13/17 2:50 PM


seconds to hours, matching the intermittent
breaks and gusts in wind power. Li-ion
performs predictably over a large number of
charge and discharge cycles. This translates
into a calendar life of 10 years or more.
In addition, its high energy density
combined with the low weight of lithium
means that Li-ion batteries are relatively small
and lightweight, providing close to 1 MWh of
energy in a single six-metre container and with
a power capability of up to 2 MW. Intensium
Max containers can also be shipped fully
assembled and factory tested, thus minimizing
the work that has to be performed on-site.
Installation is also straightforward. Saft
delivered the Kotzebue battery as a fully
integrated system with battery modules,
battery management systems, temperature
control and safety systems. The ESS includes a
1.2 MW power conversion system (PCS) and
grid connect transformer supplied by ABB,
housed inside a generator building.
Extreme conditions
KEA has worked hard since the 1990s to
develop wind infrastructure that works in the
harsh conditions of the Arctic. Maintenance
can be very challenging or even impossible
when temperatures drop to -50C and annual
snowfall exceeds one metre. Equipment must
be extremely rugged to operate reliably.
Saft designed KEAs battery container with
a cold temperature package that combines
advanced insulation material with a hydronic
heating coil. The coil uses the same hot glycol
solution that maintains the diesel gensets at
their operating temperature.
Logistics were a challenge as Kotzebue
is not connected to a road network. Being
situated to the north of the Seward Peninsula
that reaches out towards Russia, its port
is restricted by sea ice for more than nine
months of the year. As a result, the city is only
served by three freight barges per year. Saft
had to ensure its ESS was on board the last of
the 2015 barges to meet KEAs milestones for
installation and commissioning.
The PCS can deliver continuous power
of 1.2 MW and up to the full 2 MW battery
capability for short durations, giving KEA
the ability to stabilize the network if wind
generation ramps up or down suddenly.
Normal wind ramps are handled by the
ESS controller, which manages charge and
discharge and has latency in the region of
100 milliseconds. However, when the inverters
www.PowerEngineeringInt.com
1701PEI_19 19
Energy storage case study
detect a sudden drop in frequency, typically
resulting from a trip event, they can bypass the
controller and inject power in 40 milliseconds
to stabilize the grid.
While the ESS power is used for grid
stabilization, its energy capacity enables KEA
to time-shift excess wind energy to times with
higher demand or lower wind output.
With a year of operation under its belt, KEA
has reported that it is satisfied with progress
and the contribution the ESS is making to the
microgrid.The operator is now working towards
enabling fully automatic operation, which is
an essential step in enabling diesel-off mode.
THE BATTERY MARKET IS BOOMING
Saft chief executive Ghislain Lescuyer on
the importance of batteries to the energy
market and the sectors key trends and
advances:
Q: Why are batteries so important to the
future?
A: The battery market is booming. Energy
storage can be found at the intersection
of several macro trends that are changing
the world as we know it. Whether it is
industrialization and urbanization in
emerging countries, increased mobility,
greater global interconnections or
renewable energy, there is a need for
energy storage. And batteries are a clean,
recyclable and high-performance solution.
Q: What major technological advances
are helping meet todays needs?
A: Today, electrical storage is possible. Saft
began producing batteries a hundred
years ago. It has grown from manufacturing
non-rechargeable batteries for flashlights to
learning to charge batteries and increase
the number of cycles to store more and
more energy to deliver more power. We
are now pushing the limits to provide more
power under more extreme conditions,
using less space and at a lower weight.
Q: What role do batteries play in the key
changes that the world is facing?
A: Take the energy transition. Intermittent
renewable energies require storage to
smooth energy output and balance
electricity generation coming from multiple
sources. The real challenge of the energy
Cold climate maintenance is challenging
Credit: Saft
transition will consist in managing production
and consumption, where batteries also play
a role. Batteries will be key in developing
autonomous energies, just as they are
essential in creating smart cities, for airline
safety, or for communications satellites.
Q: Which areas are seeing battery
applications today?
A: Batteries are everywhere, covering all
markets. Traditional applications such as
those for rail and aviation are evolving.
In addition, new applications are arising
in such areas as renewable energy, data
centres and vehicles. Environment and
mobility, to name just a few trends, are
driving these needs. At a scale similar to the
digital revolution and parallel to it more
and more people and companies need
batteries.
Q: What strategy is needed to meet these
challenges?
A:Today, all companies need a differentiated
offer. Safts strategy is to differentiate
through quality and innovation, focusing
resources and R&D on high-performance
applications tailored to customers specific
needs. We must make the most of our
strengths: we are a world-leading developer
and manufacturer of advanced battery
technologies for industry. With this as a base,
we have a focused roadmap organized by
market, offering customers the best solutions
from Safts full spectrum of possible products
for their own differentiation. In doing so,
customers reap the benefits of best practices
and economies of scale between divisions.
Power Engineering International January 2017 19
1/13/17 2:50 PM
 Energy storage case study
Working towards diesel-off
Early experience has been that the ESS has
worked well to optimize wind generation
as part of KEAs microgrid. The system has
behaved in line with expectations.
From a technical and economic point of
view, energy storage has three drivers. The first
is that increasing the usage of renewables will
reduce the running hours of the gensets. This
avoids curtailing excess wind and smooths
the power output.
Second, energy storage is being
incorporated into the KEA demand control
system to replace diesel peaking units and
further utilize excess wind capacity. This
reduces fuel consumption and reduces wear
and tear on the gensets.
Lastly, energy storage brings potential to
operate in diesel-off mode.KEA is now reviewing
operation with a view to switching diesel
generators off completely at times during
summer months when low load coincides with
strong wind. While the ESS is already allowing
KEA to run its diesel generators at optimum
efficiency and maximize wind penetration,
these savings will be enhanced by reducing
the running hours in diesel-off mode.
Its hard to estimate payback through fuel
savings alone, particularly because an ESS is
essential for grid stability when operating with
more than 50 per cent renewable generation.
So its not the investment in the storage alone
20 Power Engineering International January 2017
1701PEI_20 20
Solar PV installation at Colville Lake in Canadas Northwest Territories
or the fuel savings that KEA is looking at, but
the performance of the microgrid as a whole,
taking into account greater use of wind
energy, a drop in fuel bills and maintenance
savings.
Adding an ESS can enable an operator to
maximize penetration of renewables but there
is no single unit that will meet the needs of all
sites.
One thing to consider when specifying a
ESS for a site like Kotzebue is the unique set
of conditions in terms of wind or solar PV
surveys, diesel generation and load patterns.
Its important to use this data to tailor the
ESS in terms of its power and energy storage
capacity. This ensures an optimized total cost
of ownership (TCO) that takes account of the
microgrid as a whole.
In addition, without diesel-based spinning
reserve being immediately available, its
important to specify an appropriate control
system that can react quickly to sudden
changes in generation.
Solar microgrid
Saft recently delivered another ESS for an Arctic
community. Canadas Northwest Territories
Power Corporation (NTPC) has commissioned
an ESS for its Colville Lake community, where
a single shipping container integrates both
the ABB power conversion system and the
battery system. That system also has a cold
Credit: Saft
INTEGRA
temperature package and is part of a solar/ AND ELEC
diesel hybrid microgrid.
Colville Lakes 150 inhabitants represent
a 150 kW peak and 30 kW base load, which
was being met by aging generators. In 2015
NTPC installed new diesel generation and
augmented the existing 50 kW solar array to
bring its output to 136 kW. The ESS implements
full-time grid-forming capability and is rated at
200 kW and 232 kWh.
As for KEA, it is already considering its next
foray into energy storage and will no doubt
build on the experience from its first Li-ion ESS
installation.The operator delivers grid planning
for smaller communities in Alaskas Northwest
Borough. The Alaskan Energy Authority has
funded the deployment of wind power in two
outlying communities with a goal of adding
storage using a different grant source.
KEA is also developing 500 kW of solar to be
added to their system that will make energy
storage even more critical. Solar in the Arctic is
viable and NTPC has proved that theres good
solar resource in extreme northern latitudes,
especially during the summer months.
Jim McDowall is Business Development
Manager for Saft America.
www.saftbatteries.com
Visit www.PowerEngineeringInt.com
for more information
www.PowerEngineeringInt.com
1/13/17 2:50 PM
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 Mobile power is an essential player during all phases of a nuclear plants lifecycle
Onsite power Credit: Aggreko

Modular power in the

nuclear industry
There are a multitude of roles for mobile power generation in the nuclear sector in
both short and long-term scenarios, argues Marcus Saul

C
hanging attitudes towards
nuclear power plants
(NPPs) are continuing to
have an impact on the
global utilities industry and
evolving energy mix.
Nearly 70 reactors are currently under
construction. However, countries like Sweden,
Switzerland and Germany are continuing to
phase out nuclear generation to an extent
that more plants have closed than opened in
recent years.
While the debate continues, the
construction, operation and decommissioning
of nuclear power plants (NPPs), including
processes that all have their own specific
power needs, is ongoing.
One key requirement at all stages of
the NPP lifecycle is a reliable, efficient and
flexible energy source, which modular power
achieves easily. Whether its filling the gap
during planned or unplanned maintenance,
load testing a newly commissioned turbine
or substation, or providing ancillary power for
heat exchangers and cooling technology,
for example, the adoption of mobile power
generation in the short and long term can
mitigate the risk of disruption to end users and
contribute to a more efficient operation.
Involving energy specialists early in the
process is vital to avoid delays and disruptions
during later stages. However, the true demands
of the project are often not realized until a full
review has been conducted. The flexibility
of modular power enables generation
technology to be tailored to these very specific
needs, even if they exceed initial expectations.
While energy demands continue to
grow and more fossil fuel plants and NPPs
close, either as a result of changing political
and environmental agendas or because
theyve reached a certain age, this widening
generation gap needs to be filled. According
to the Nuclear Energy Institute, one nuclear
reactor will need to be built every year to meet
rapidly growing energy demands in the US
alone.
Mobile power plays an important role
before and during the construction process,
supporting feasibility studies in often remote
locations and allowing both equipment and
workers to function safely at full capacity.
Often, an island mode approach to
energy is adopted, which sees generation
distributed across the NPP site, creating a
more efficient source and reducing the
overall cost of power production, as well as
minimizing any environmental risks. Providers
have a responsibility to deliver reliable and
effective power, but a big part of their role is
allowing operators or sub-contractors to meet
goals and deadlines, which saves costs in the
long run.
Similarly, during the decommissioning
process, adopting modular power can allow
operators to come off-grid earlier and, as a
result, save significant costs. Operators are
charged for access to the grid based on their
overall capacity rather than actual demand;
however, once they have decommissioned,
say, three or four sections (and reduced
capacity), they can adopt mobile power for
the remaining processes.
Modular generation equipment can be
rented on a short-term basis to avoid the

22 Power Engineering International January 2017 www.PowerEngineeringInt.com

1701PEI_22 22 1/13/17 2:50 PM


need to invest hundreds of thousands when
costs are already high. For example, if a plant
has access to power from the grid but no
transformer, it can hire one for six months or
longer if required. Renting rather than buying
reduces the up-front costs and mitigates the
risk of expensive maintenance fees.
NPPs arent designed to handle additional
operational parasitic power needs. An
increase in capacity demand that hasnt
been accounted for, such as elements of
the construction process and maintenance
requirements aside from planned shutdowns,
can cause significant strain on a plants
resources.
Small, localized generators offer a unique
benefit in this case as they address the
parasitic power, but also avoid the need to
lay comprehensive cables on-site and the
associated health and safety risks.The flexibility
and mobility of modular power makes it a
great fit, as generators can be easily moved to
an on-site location when needed.
Refeeding power from the grid is often
required where NPPs need to conduct short-
circuit testing of protective devices for first use
and on a regular basis to ensure a smooth
working process. Not only does this create
considerable expense, but it also depends on
free grid capacity, which doesnt particularly
allow for flexible operation.
Regular, planned maintenance of key
processes in an NPP operation, whether this
is during or outside its annual shutdown,
reduces its ability to contribute to the grid,
and so any downtime needs to be kept to
Load bank testing for backup power equipment
Credit: Aggreko
www.PowerEngineeringInt.com
1701PEI_23 23
Regular load testing of NPP equipment can help anticipate and prevent disruptions
a minimum. As well as adopting technology
that maintains a high level of efficiency and
productivity, reliability is central to mitigating
the risk of prolonging this downtime.
The type of maintenance and upgrades
required can depend on the age and
characteristics of the NPP. During the annual
shutdown, for operators to access the reactor
area significant cooling needs to take place,
which creates high parasitic power demands.
For example, Aggreko was required to
rapidly cool a steam turbine to allow operator
access. Rather than directly applying cool air
to the turbine, which might have cracked or
damaged it, we built a surrounding marquee
and cooled the air around it in a process that
took three or four days and required reliable
on-site power to ensure the process was
efficient and productive.
Another example of the importance of
a continuous energy supply is during the
treatment (cleaning) of transformer oil,
which is necessary every two to four years.
The cleaning process requires a reliable
source of power to supply pumps and heat
oil to around 75oC. Due to time restraints and
the specific requirements of the process, an
uninterruptible power source is essential, so
an unreliable grid can be a concern. Backing
this up with additional on-site generators
ensures there would be no disruptions should
it fail. By making the NPP independent of the
grid, it avoids the risks associated with it being
compromised.
Onsite power
Credit: Aggreko
Another component of planning ahead
to anticipate and prevent disruptions is the
regular load testing of equipment throughout
a NPP, whether this has been recently
commissioned or replaced. For one customer,
we tested an auxiliary stand-by turbine and a
new Rolls Royce turbine after replacement, as
well as the performance and stamina before
and after maintenance on all other parts of
the turbine installation, using our standard
load bank fleet. By incorporating specific
technology, the system allowed for a more
accurate result by capturing voltage, current
and frequency as generated.
As utilities continue to operate under
increased pressure to fill energy gaps while
reducing end-user costs and environmental
impact, improving reliability, productivity and
efficiency of a plant is key. This applies to all
processes throughout the lifecycle.
Changes in the nuclear sector in particular
mean that meeting objectives is ever
more important, whether thats during the
construction, operational or decommissioning
stages. As the energy agenda continues to
evolve, its clear that mobile power remains an
essential player in achieving these both in the
short and long term.
Marcus Saul is Aggreko Business Development
Manager for Marine Renewables & Nuclear
Visit www.PowerEngineeringInt.com
for more information
Power Engineering International January 2017 23
1/13/17 2:50 PM
 Plant maintenance

Optimizing the maintenance process requires considerable planning

Credit: Sulzer

Improving reliability
with outsourcing
Increasingly, plant owners

T
ime is money and plant owners
are looking to outsource the world over aim to maximize
productivity and minimize costs.
the major elements of
Central to this objective is
equipment maintenance avoiding unexpected breakdowns
in order to improve which can incur huge costs in
reliability and minimize terms of lost production.
downtime, writes Implementing a robust preventative
maintenance programme is the first of many
Sean Lancastle
actions that can be taken to reduce the
incidence of failure.
Depending on the equipment, a number
of techniques, such as vibration analysis,
thermal imaging, flow measurement and
power consumption can be used to indicate
the initial stages of a concern.
Recording this data also builds up a useful
asset history which can be used to predict
failures and enable intervention that minimizes
repair times.
In many cases this low level monitoring will
be carried out by the on-site engineers, while
the data analysis may be conducted by an
original equipment manufacturer (OEM) or
similar product specialist.
Once there is an indication that a repair
is required, or a piece of equipment is
scheduled for a predetermined overhaul,
the aim is to implement a strategy that will
minimize disruption and return the plant to
normal operation as soon as possible.
Optimizing this process requires
considerable planning, both in terms of
manpower and spare parts. Specialist

24 Power Engineering International January 2017 www.PowerEngineeringInt.com

1701PEI_24 24 1/13/17 2:50 PM

 Plant maintenance

maintenance contractors can provide expert

advice and practical assistance in preparing
for a major plant service. Experience in these
projects is essential to ensure the overhaul
runs smoothly and on-site management can
also be supplied in addition to the technical
support.
In some cases, such as large gas turbines,
the OEM may initially have a fixed contract
to deliver a long-term service agreement
(LTSA). However, once this has expired the
plant owner is free to continue with a similar
arrangement or to engage an independent
provider. In many cases the independent
option is more attractive, especially in terms of
response time and parts repairs which can be
critical in returning the asset back to normal
operation.
With such high value assets, it is common
for plant owners to maintain a stock of spare
Maintenance providers need to deliver manpower at short notice
components, either on their own premises or Credit: Sulzer
stored and managed by the independent
maintenance partner.
For example, spare rotors for compressors will provide a standard repair of damaged to achieve this, maintenance providers need
are usually held so that when a planned components, while others will offer the to be able to deliver manpower and facilities
maintenance shutdown is carried out, the opportunity to improve performance and at short notice.
service rotor can be swapped out for the efficiency through improvements to the Long-term maintenance contracts offer
spare, minimizing downtime for the plant. original design. several advantages and can be tailored to suit
Once the compressor has been The level of technical expertise also each client. From basic planning and project
recommissioned, then the task of inspecting influences the ability of a maintenance management through parts supply and repair
and repairing the rotor that was removed can provider to support a client in the event of an to complete technical support including asset
be carried out. unexpected failure or forced outage. improvement and life extension, the level
Again, the plant operator has a selection These events are a worst case scenario for of support can be adapted to each set of
of providers to choose from and the scale a plant manager and it is essential that repairs circumstances.
of service will differ between them; some are completed as quickly as possible. In order For those taking advantage of these
contracts, they can provide a fixed budget
for many aspects of the maintenance
contract and improve maintenance strategy.
Furthermore, the level of engineering expertise
and facilities will reduce maintenance periods
and minimize time lost for repairs.
Asset management plays a crucial role in
determining the reliability and performance
of any industrial process. In many cases
engaging an experienced and well-resourced
maintenance partner can improve project
management, make repairs more cost-
effective and improve productivity while also
providing a fixed cost basis that helps with
budgeting.

Sean Lancastle is Area Sales Manager for

Sulzer. www.sulzer.com

It is essential that repairs are completed as quickly as possible

Credit: Sulzer
Visit www.PowerEngineeringInt.com
for more information

www.PowerEngineeringInt.com Power Engineering International January 2017 25

1701PEI_25 25 1/13/17 2:50 PM

 Project Update
Siemens opens UK wind turbine hub
Siemens has opened a 310 million wind
turbine hub in the UK.
The facility in Hull will comprise
manufacturing, assembly and servicing
factories and provide over 1000 jobs.
It will make blades for Siemens 7 and 8 MW
turbines.
The plant was built in two years and
is the size of 78 football pitches at Hulls
Alexandra Dock. The development is one of
Siemens largest-ever global investments in
manufacturing facilities.
Siemens UK chief executive Juergen Maier
said: We are witnessing probably the best
example of industrial strategy in action we
have in the UK today creating new, local,
skilled jobs, sustainable growth and the latest
renewable technology, benefiting the UK
economy and our society.
DEWA in UAE first
with $74m substation
at solar park
Dubai Electricity and Water Authority (DEWA)
has inaugurated a 400/132 kV substation at
the Mohammed bin Rashid Al Maktoum Solar
Park.
The $74 million substation will transmit
and transform electricity produced from solar
energy and connect it to DEWAs grid.
The substation is the first of its kind in
the UAE to integrate clean energy with the
traditional energy grid.
Doosan to build 2.6 GW of coal capacity in India
Doosan Heavy Industries has won
$2.3 billion contract to build 2640 MW of new
coal-fired power capacity in India.
The contract, awarded by the Indian State
Government of Uttar Pradesh to Doosan
Power Systems India (DPSI), will lead to the
construction of two plants in the region.
Doosan will build two units, each with
26 Power Engineering International January 2017
1701PEI_26 26
He said energy policy should be at the
heart of the UKs industrial strategy, adding:
One of the greatest challenges we have is to
increase productivity in the UK and generate
growth while decarbonizing our energy
supply and reducing emissions to achieve a
sustainable energy mix.
Our new wind power blade factory in
Hull is an important part of that journey and I
Vestas to build 89 MW Jordan wind farm
An 89 MW wind farm is to be built in Jordan
by Danish windpower company Vestas. The
plant at Fujeij will utilize 27 Vestas V126 3.3 MW
turbines andit is planned to be operational in
October 2018. The facilitys entire output will
be sold to Jordan electricity company NEPCO
under a 20-year power purchase agreement.
Lending for the project has come from
the Export Import Bank of Korea (K-EXIM),
Mizuho Bank and Sumitomo Mitsui Banking
Corporation Europe.
The funding comprises a K-EXIM direct
a 660 MW capacity, at the Obra-C coal plant in
Sonebhadra. The firm will also build another
two generators, also each with 660 MW
capacity, at the Jawaharpur coal plant in
Etah.
The companys engineering, procurement
and construction division chief Kim Heon-tak
said: Doosan Heavy has put its utmost efforts
hope it will be a catalyst for further significant
investments by our suppliers, customers and
the industry at large.
Most of all this new factory signals a
positive future for manufacturing in this
country.This is a world-class facility innovative,
productive and competitive that generates
real value for the local community and the UK
economy.
loan of $64 million, with a $52 million K-EXIM-
covered facility being provided by Mizuho
and SMBC. There are also equity bridge
facilities totalling $81 million being funded by
the commercial banks. Arab Bank is acting as
onshore account bank and onshore security
agent.
The legal work for the project was handled
by London law firm Ashurst. Head of utilities
David Wadham said his firm is seeing
significant activity in the Jordan renewables
sector.
into making inroads into Indias power market.
The deal will mark a foothold for our future
operation in India. The country is expected to
consume a total of 18 GW of electricity a year
by 2020.
Doosan expects to complete work at the
Obra-C and Jawaharpur sites by October
2020 and February 2021 respectively.
www.PowerEngineeringInt.com
1/13/17 2:50 PM
 Project Update
Windpower kite firm clinches $6m funding from EON and Shell
UK windpower company Kite Power Systems
has secured 5 million ($6.19 million) of
investment from E.ON, oil and gas services
company Schlumberger and Shell Technology
Ventures.
The wind technology pioneered by Kite
Power Systems (KPS) utilizes not turbines but
kites. Instead of a rotor, the system harvests
wind by using a sail surfing in altitudes of up
to 450 metres.
KPS will use the new investment to
commercially develop its technology, which
it claims could transform the global offshore
wind generation market as it is cheaper to
manufacture and requires less construction
and installation materials than conventional 500 kW systems within the next four years, and technology is on the right trajectory towards
wind turbines. then a 3 MW onshore system, also in Scotland. commercialization. Its high altitude kite power
Kite power generation would not need KPS was established in 2011 and to solution has disruptive potential for the wind
government subsidies and could be deployed date has invested more than 3 million in industry. It is an interesting contribution to
in UK and Irish waters and other areas of the technology development, with financial renewable energy generation.
North Sea and in waters up to and potentially support coming from the UK government, Shell E.ON senior vice president of B2C &
deeper than 40 metres found offshore of and private investors. Innovation, Frank Meyer, said: E.ON has been
countries such as Portugal, Japan and the US. Geert van de Wouw, managing director looking into airborne wind technologies for five
KPS plans to deploy a 500 kW onshore of Shell Technology Ventures, said: We have years. The approach of Kite Power Solutions
power system in Scotland next year, followed closely followed KPSs progress over the has the potential to become a game changer
by an onshore demonstration array of multiple years and consider that its disruptive wind for the wind energy market.

Wartsila wins Tanzania fuel oil plant deal

Wartsila is to supply a 40 MW on-site power
plant in Tanzania.
The Finnish company will provide four of its
32TS engines running on heavy or light fuel oil
to Geita Gold Mining.
The plant which is expected to be
operational in the first quarter of 2018 will
provide electricity to the Geita gold mine,
located in the Lake Victoria goldfields of
the Mwanza region in the northwest of the
country.
Being off-grid means that the mine needs
to secure its own power supply and it needs to
remain operational at all times.
Wartsila says its 32TS engines are two-
staged turbocharged, making them ideally
suited for tough operating environments, such
as this high elevation location.

ABB secures Ferrybridge decommissioning contract

ABBs engineering and consultancy group
has won a contract to support UK utility SSE
with decommissioning and demolition work
at the Ferrybridge C coal-fired power plant.
SSE closed Ferrybridge C in March this year
after 50 years of service, stating that it was
no longer economical. However, a multi-fuel
plant burning waste and waste wood was
opened next to Ferrybridge in 2015.
ABB has been appointed as Construction
Design and Management Principal Designers,
in addition to providing a range of specialist
consultancy and engineering advice on
decommissioning and demolition activities.
Matthew Capstick of ABBs engineering
and consultancy group said that the size
and scale of Ferrybridge, its strategic location
near key infrastructure, and the continued
presence of the multi-fuel waste-to-energy
plants on the site all contribute to this being a
potentially challenging project.

www.PowerEngineeringInt.com Power Engineering International January 2017 27

1701PEI_27 27 1/13/17 2:50 PM

 Market Analysis Update
China drives tenth year of solar PV growth
Strong demand from China will drive a tenth
year of consecutive growth for the global
solar PV market, according to a report by
consultancy IHS Markit.
The proposed feed-in tariff cuts
announced in China since September have
resulted in stronger than projected growth in
the fourth quarter, said Josefin Berg, senior
analyst at IHS Technology.
Therefore, we forecast annual installed
capacity to be 77 GW in 2016, and 79 GW
in 2017. This is a year-on-year growth rate of
34 per cent in 2016, which follows the 32 per
cent year-on-year growth in 2015.
Since the 20102011 period, global PV
demand had not grown by more than 30 per
cent for two years in a row, the IHS Technology
report said.
However, IHS Markit forecasts that global
demand will only grow by 3 per cent in 2017
due to the decline in PV installations in the two
largest markets in 2016 China and the US.
There will be two years of single-digit
growth before a stronger market recovery in
2019, it predicts.
Until China officially publishes the changes
to the feed-in tarrif rates, and the timeframe for
the reductions, the forecast for total installed
capacity in 2017 and the quarterly distribution
remain highly uncertain, Berg said.
China has also lowered the 2020 minimum
target for solar power from 150 GW to 110 GW.
This reduced ambition reflects a projected
decline in Chinese additions in 2018, followed
by relatively flat demand in subsequent
years, enough for China to exceed its target
and reach 169 GW of cumulative installed
capacity in 2020.
Meanwhile, India at a projected 10 GW of
installations is set to become the third largest
PV market in 2017, overtaking Japan.
The Indian solar market is rapidly maturing
and it is benefiting from low system costs
globally, Berg said. India is currently the worlds
fourth largest market with a projected annual
demand of 5.8 GW. Japan is currently in third
place with 8.7 GW of newly installed capacity.

Report reveals multi-billion power project cost over-runs

On average, power and utility megaprojects
run $2 billion over budget and two years
behind schedule, analysis has revealed.
In a study titled Spotlight on power and
utility megaprojects formulas for success, EY
analyzed 100 of the worlds largest by capital
expenditure power generation, transmission
and distribution and water projects across
all asset lifecycle stages, from pre-financing
through to decommissioning, and found that
64 per cent experienced delays and 57 per
cent were over budget.
Safia Limousin, EY Global Power & Utilities
capital & infrastructure leader, said: Large
and complex power and utility megaprojects
are under massive pressure to come in on
time and budget and yet the majority of
all megaprojects in the sector dont. This
worldwide phenomenon often comes with
a large price tag for overrunning costs that
companies cant afford any longer.
The highest reported average delays
occurred in North America (a little under
three years), while South America reported
the highest average cost overruns at nearly
60 per cent.
Almost three quarters (74 per cent)
of hydropower, water, coal and nuclear
infrastructure projects were over budget by
49 per cent on average, with hydro and
nuclear suffering the greatest cost overruns at
$4.6 billion and $4 billion respectively.
Project delays were longest for coal and
hydropower technologies, at nearly three
years on average. Meanwhile, offshore wind
and gas-powered generation projects saw
significantly fewer delays and cost overruns.
Some 80 per cent of executives surveyed
identified financing and delivering projects on benefits megaprojects offer. That means
schedule and on budget as a top challenge. leveraging leading practices and innovations
And the majority also believed that project to enhance value.
financing and delivery challenges will The report outlines how harnessing digital
continue in the future. innovation is an important step toward more
EY states that investment in power sector effective control and enhanced project
infrastructure is expected to be close to performance.Embracing innovations in project
$20 trillion between now and 2040. fitness assessment, big data management
Limousin added: Cost overruns and late and decision support management methods,
delivery are symptoms of greater underlying for instance, can improve power and utility
problems in the power and utilities sector. companies ability to formulate a holistic view
Companies must address these issues head- of projects and accurately anticipate and
on in the next wave of infrastructure investment address time and cost overruns to keep them
or risk sacrificing the full economic and social on track.

28 Power Engineering International January 2017 www.PowerEngineeringInt.com

1701PEI_28 28 1/13/17 2:53 PM

 CONFERENCE EXHIBITION
18-20 JULY 2017
SANDTON CONVENTION CENTRE, JOHANNESBURG, SOUTH AFRICA

Let us match you up with the

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 Market Analysis Update
Appetite for renewables in Middle East stronger than ever
Squeezed budgets from lower oil prices
and rising energy demand will significantly
heighten the demand and use of renewables
and energy efficiency technologies in the
Middle East.
Thats the key finding of a new white
paper from Lloyds Register, based on an
industry executive briefing at the Abu Dhabi
International Petroleum Exhibition and
Conference, where participants debated
the challenge regional economies face in
establishing a cost-efficient low carbon future
while not jeopardizing their energy economics
and security. Most participants were of the
view that the growth of the low carbon
market is not a threat to the prominence of
hydrocarbons, which will be a primary source
of energy for at least five decades. Instead
they felt that renewables open a gateway for
hydrocarbon producers, and wider industry,
to expand the scope of their R&D to cut costs
and enhance operational efficiency.
30 Power Engineering International January 2017
1701PEI_30 30
Alasdair Buchanan, Lloyds Registers to see positive change. The adoption of new
Energy Director, said: This is a timely issue, technologies to help define a low carbon
considering the International Energy Agency future with widespread and cost effective
recorded a 25 per cent reduction in field implementation is the next step in helping the
investments in 2015 to $583 billion and said region realize this vision.
in September that oil prices could stay within Participants at the briefing unanimously
todays $50 a barrel range until mid-2017. agreed that the Paris Agreement spells a
He added that the unnerving outlook for new chapter in the historically fragmented
oil-centred economies in the Gulf, such as narrative of international climate policy.
Saudi Arabia, Qatar, Kuwait and the UAE, can The success is best illustrated by the US
be increasingly offset by low carbon solutions. and Chinas agreement in September to
The environmental incentives formally ratify the Agreement the worlds
underpinning political appetite for renewable two largest economies, responsible for
energy policies and technologies are also 40 per cent of global carbon emissions, are
stronger than ever. now on board.
The Middle East would benefit from an But governments and financial institutions
integrated energy policy, which would provide in the Middle East and beyond must
signposts to guide all the stakeholders towards enhance existing frameworks that encourage
a low carbon future. There is a considerable exploratory projects. The executive briefing
level of multilateral co-operation and heard how successful R&D and the resulting
collaboration already happening here this renewable energy technologies rely heavily
has created a strong and united movement on a well-measured trial and error approach.
www.PowerEngineeringInt.com
1/13/17 2:53 PM
 17-19 Renewables | Fossil Fuels | Nuclear

MAY
PRAGATI MAIDAN,
NEW DELHI, INDIA
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 Diary
February March May
16th World Renewable Energy 4th Nuclear Decommissioning & POWER-GEN India & Central Asia
Congress Waste Management Summit 1921 May
59 February 12 March New Delhi, India
Perth, Australia London, UK www.power-genindia.com
www.wrec2017.com www.wplgroup.com

First International Conference on World Sustainable Energy Days June

Nuclear Power Plants: Structures, 13 March
POWER-GEN Europe
Risk & Decommissioning Wels, Austria
2123 June
68 February www.wsed.at/en
Milan, Italy
London, UK
Solar Middle East www.powergeneurope.com
nupp.nuclearpowerplantconference.
com 13 March
Dubai, UAE July
Energy Storage 2017 www.solarmiddleeast.ae
89 February Solar Africa
Paris, France 7th International Smart Grid Expo 1214 July
www.wplgroup.com 13 March Kigali, Rwanda
Tokyo, Japan expogr.com/rwanda/solarexpo
www.smartgridexpo.jp/en
Visit www.PowerEngineeringInt.com POWER-GEN Africa
for more information Power & Electricity World Africa 1921 July
15 March Johannesburg, South Africa
Johannesburg, South Africa www.powergenafrica.com
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