POWER PLANTS 2013

3RD ENERGY SYMPOSIUMCYPRUS 2014

“SMART POWER GENERATION”

30 April 20131 © Wärtsilä

Dr. Georgios A. Livanos

POWER PLANTS 2013

Power Plants

We provide superior value to our customers with our flexible, efficient and environmentally advanced energy solutions, which enable a transition to a more sustainable and modern energy infrastructure.

30 April 20132 © Wärtsilä

POWER PLANTS 2013

• We are a major supplier of flexible baseload power plants operating on various liquid and gaseous fuels

• We provide unique, dynamic solutions for grid stability, reserve, peaking, load following and intermittent power generation

• Our multi-fuel solutions provide security and optimal choice of fuel in any conditions

• Our project development and EPC capability provide customers a choice of everything from single point of responsibility to selected services

All applications are supported with tailored lifetime operation and maintenance services.

Power Plants offering

30 April 20133 © Wärtsilä

POWER PLANTS 2013

Wärtsilä is the major power plant contractor of liquid and gas fired flexible baseload power plants for utilities, IPPs and industrial self-generators • Sasolburg, 175 MW, natural gas,

South Africa, in operation since 2012

• Sangachal, 308 MW, Natural gas& HFO, Azerbaijan, in operation since 2007

Flexible baseload power plants

30 April 20134 © Wärtsilä

POWER PLANTS 2013

Wärtsilä multi-unit solutions provide unique, dynamic solutions for grid stability, reserve, peaking, load following and intermittent power generation • Suape II, 380 MW, HFO, Brazil,

in operation since 2012• Reserve for hydro power• STEC, 203 MW, natural gas, Texas,

USA, in operation since 2010• Wind chasing

Dynamic grid stability solutions

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POWER PLANTS 2013

Wärtsilä offers floating power plant solutions which integrate our expertise in marine technology with the benefits of flexible, decentralised power generation:• Seaboard, 106 MW, Natural gas

& HFO, Dominican Republic, in operation since 2012– Combined cycle

• Lihir, 71 MW, HFO, Papua New Guinea, in operation since 2011

Floating power plants

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Wärtsilä Services global networkWidest range of offering and expertise

70 countries, 160 locations, 11,000 service professionals

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Installed base181,000 MW

POWER PLANTS 2013

• GDP growth, electrification and increasing standard of living drive the growth of electricity demand

• Demand for sustainability and focus on climate change

• Rapid growth of intermittent renewable generation• Escalating daily, weekly and seasonal demand

fluctuation increases the need for flexibility• Increasing role of gas, especially as a balancing fuel• Ageing installed capacity drives investments in new

technologies

The world needs affordable, clean, flexibleand reliable power.

Market trends and drivers

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POWER PLANTS 2013

FuelFlexibility

OperationalFlexibility

EnergyEfficiency

Smart Power

Generation

...enables the transition toa modern and sustainable power system!

A unique all-in-one combination of valuable features that....

Smart Power Generation optimises energy systems

Smart Power Generation is a new concept which enables an existing power system to operate at maximum efficiency by effectively absorbing current and future system load variations, providing significant savings.

Reliable Sustainable

Affordable

Smart Power System

30 April 20139 © Wärtsilä

POWER PLANTS 2013

Smart Power Generation – unique features

Energy efficiency• Highest simple cycle electrical efficiency • High efficiency regardless of ambient conditions• High plant efficiency over a wide load range due

to multiple generating setsCompetitive generation cost and high dispatch

Energy efficiency

Fuelflexibility

Operationalflexibility

Operational flexibility• Unlimited, super fast,

reliable starting and stopping with no impact on maintenance schedule

• Fast reserve, load following, peaking and baseload

• All ancillary services• Grid support, wind enablingMulti-tasking plant prepared for future markets

Fuel flexibility• Continuous choice

of the most feasible fuel• Solutions for

– liquid and gaseous fuels– renewables– multi-fuel plants– fuel conversions

Hedge for the future

SmartPower

Generation

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Wärtsilä’s Solution – Values & Features

Series1

0

40

80

Output (%)

VALUE

Grid stability supportAncillary ServicesLow start-up costs

VALUE

Competitive life cycle generation cost

1

2 3

4

5

1 FASTSTART 2 BASELOAD 3 LOAD FOLLOWING

4 LOW-LOAD OPERATION 5 FAST STOP

FEATURES

Power to grid 30 secFull power 2 minStart-up efficiency

FEATURES

Highest SC efficiencyMulti unit set-upFlexicycle ™

VALUE

Wind balancingAncillary Services

FEATURES

Part load efficiencyNo EOH cost

VALUE

”low load” = No load

FEATURES

1min shutdownNo min down timeNo fuel costNo emissions

VALUE

No opportunity lostRE enabler

FEATURES

1min shutdownNo min down timeNo EOH calculation

ALL in ONE !

Provision of flexibility – with & without SPG (UK)

SPG can provide a very large proportion of flexible generation, primarily when standing ready but not generating

Without SPG, conventional coal and gas must provide a large proportion of flexibility by running at part load, decreasing efficiency

With SPG present, conventional coal and gas can provide far less flexibility, and so can run efficiently at full output

Value of Smart Power Generation (UK)

• The potential value of the flexibility provided by SPG has been quantified by calculating balancing costs under each of the scenarios:– Balancing costs: the costs incurred by the National Grid when ensuring adequate

flexibility on the Grid3

– These costs are passed onto consumers through BSUoS4 charges

• There are significant potential savings in all scenarios

Balancing costs – flexibility provision

( £ mn per annun, real 2011 )

2020 2030

Base Wind High Wind Base Wind High Wind

Costs - No SPG 692 1008 834 2781

Costs - With 4.8 GW SPG 311 464 256 1244

Cost Saving due to SPG 381 545 578 1537

Potential cost savings due to Smart Power Generation

3 The potential savings in underlying generation costs ( fuel, carbon, imports etc) have also been calculated, and range from £22mn pa (2020 Base wind) to £742mn pa (2030 High wind). These are incurred by generators and are reclaimed through participating in the Balancing Mechanism.4 Balancing Services Use of System

POWER PLANTS 201314 © Wärtsilä 30 April 2013