Constructing a new power plant is a highly sensitive business. Decisions to invest millions of Euros depend on a variety of fluctuating factors such as economic growth, availability of finance, fuel costs, the regulatory regime and market incentives, as well as the likely future demand for energy.

The current uncertainties surrounding the global economy, as well as the often unsteady direction of national energy policy, can threaten the economic viability of building a new power plant. At the same time, the need for cleaner, more cost-effective and efficient energy is more pressing than ever before. Luckily, utilities and energy intensive industries have an economic alternative to constructing an entirely new power plant: upgrading existing facilities to significantly improve their fuel consumption and emissions profile. This approach can be more attractive than constructing a new plant for a variety of reasons. In most cases, for one, the land the original power plant was erected on already belongs to the owner of the plant, which saves on land acquisition costs. Furthermore, it is much easier to obtain planning permission for the upgrade of an existing plant, while significant resources must be made available in order to overcome the various obstacles that will inevitably present themselves during the planning permission process for a new plant. And, naturally, retrofitting an existing plant is much quicker to accomplish than constructing a plant from scratch. While an upgrade will not result in a plant that can rival a new power station’s performance, it can extend the life expectancy of a plant, increase its output and flexibility and decrease its greenhouse gas emissions at a fraction of the time and investment needed for a new plant. Environmental and emissions regulations place additional pressures on plant operators and utilities to upgrade their fleet of power plants. Policies such as the EU’s Emissions Trading Scheme (ETS) are designed to reward investments into cutting industrial greenhouse gases. By limiting the amount of certain greenhouse gases a power plant may emit, and by penalising excess emissions, plant operators are encouraged to invest into efficiency measures. Covering approximately 11,000 power stations and industrial plants across 30 countries, the EU ETS has had much success in encouraging many plant operators to upgrade their installations. With the scheme set to expand to include other gases such as nitrous oxide (NOx) from 2013, additional pressure will be placed upon operators to upgrade their power generation equipment.

 

Given that the EU has targeted a rate of 20 per cent energy efficiency by 2020, as well as a reduction in emissions of 20 per cent, national governments are scaling up initiatives to achieve their own individual targets by enforcing tougher regulations and more stringent control measures. For instance, the Spanish government has declared that cogeneration plants, or combined heat and power plants under 50 megawatts will no longer qualify for the feed-in tariff subsidy scheme after 15 years of operation. This rule will be enforced unless the plant can adopt more efficient and environmentally friendly technologies.

At an industrial recycling paper mill in El Burgo de Ebro, near Zaragoza, Spain, plant operators decided to undertake a major overhaul of their GE Frame 6B gas turbine. In just seven weeks, GE Energy replaced the key components of the gas turbine with new, advanced design parts. The result of upgrading this single unit was an increased operating efficiency rate of the plant, a significant reduction in emissions and a considerable life extension for the plant. Owned by S.A. Industrias Celulosa Aragonesa (SAICA), an international company that specialises in the production of corrugated cardboard boxes, the paper mill can now continue to benefit from the Spanish government’s feed-in tariff scheme. The upgraded Frame 6B at the SAICA cogeneration plant delivers approximately 38 megawatts of power, which is then sold to the national power grid, and produces steam for use in the paper production process.

 

A similar project has also been undertaken at the España’s Tortosa Energía cogeneration plant in Tarragona, Spain. In just five short weeks, GE Energy performed a major repowering upgrade of its LM2500-PE aeroderivative gas turbine. By increasing output from 26 to 29 megawatts, 37 per cent efficiency in simple-cycle mode/61 percent efficiency in cogeneration mode, the plant not only complies with the latest environmental requirements, but also qualifies for ten years of cogeneration feed-in tariff.    

Despite the challenging economic climate, national governments, working in tandem with the EU, are pressing on with their environmental targets. While issues with investing and the financing of new power plants will persist, regulations will still need to be observed. Upgrading of existing power equipment is a fast and very economical answer to the ever more stringent energy regulations faced by utilities and energy intense industries around the world.

 

Submited by Refer

• energy efficiency
• gas turbines
• retrofitting
• Spain
• upgrades