Transcript Title of presentation

EBRD and Power Generation Efficiency in
Russia; achievements and challenges
ahead
EPG Conference, 19-20 September 2011, Moscow
Ioannis Papaioannou
Senior Engineer, Energy Efficiency & Climate Change
Contents
1.
EBRD and Energy Efficiency
2.
The main issues
3.
How EBRD can help
4.
Challenges ahead
Contents
1.
EBRD and Energy Efficiency
2.
The main issues
3.
How EBRD can help
4.
Challenges ahead
What is the EBRD?
€ billion
Reconciled as at 31 March 2011
8
35
6
25
4
15
2
5
-5
Debt ABV
10
09
08
07
06
05
11
20
20
20
20
20
20
04
Equity ABV
20
20
02
03
20
20
01
20
00
20
19
99
0
98
Annual business volume (ABV)
45
97
Capital base of €30
billion
55
10
19

Owned by 61 countries
and two intergovernmental institutions
65
Net Cumulative Business Volume
Net cumulative business volume

International financial
institution, promotes
transition to market
economies in 29
countries from central
Europe to central Asia
19

12
% of Annual Business Volume
The EBRD is active in all its countries
of operations
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
South-Eastern Europe
Russia
Eastern Europe and
Caucasus
Central Europe and Baltics
Central Asia
'00
Unaudited as at 31 March 2011
'01
'02
'03
'04
'05
'06
Turkey
'07
'08
'09
10
11
EBRD and Energy Efficiency
The Sustainable Energy Initiative (SEI)
Launched in 2006. Results through to Q1 2011:
– EBRD’s sustainable energy investments to €6.6 billion, for total project value of €35
billion in 369 projects in 29 countries;
– Annual GHG emissions savings of 39.6 million tonnes CO2-eq p.a. (equivalent of more
than Azerbaijan’s emissions)
SEI 6 areas of investment are:
1. Industrial
Energy
Efficiency
2. Sustainable
Energy
Financing
Facilities
3. Power
Sector
Energy
Efficiency
4. Renewable
Energy Scaleup
5. Municipal
Infrastructure
Energy Efficiency
6. Carbon
Markets
Development
EBRD and Energy Efficiency
The SEI Operational Approach
Via these three
parallel activities
SEI accounted for
24% of EBRD’s
total and 75% of
power sector
portfolio in 2010
Technical assistance to
overcome barriers:
market analysis, energy
audits, training, awareness
raising; grant co-financing
to provide appropriate
incentives and address
affordability constraints
Working with
governments to support
development of strong
institutional and
regulatory frameworks
that incentivise
sustainable energy
Projects with numerous
clients, public and private,
with a range of financing
instruments
Contents
1.
EBRD and Energy Efficiency
2.
The main issues
3.
Typical Projects
4.
Challenges ahead
Some characteristics of the power
system of Russia

Thermal Power Generation represents around
70% of installed capacity and electricity
production

Gas is the primary fuel, but also coal has a
significant share, and the prevailing policy is to
continue with both gas and coal for the long term

There is an increasing demand for both electricity
and heat
Some characteristics of the power
system of Russia
Official GHG emissions in Russia
(thousand ton CO2 eq)
Total emissions
GHG emissions (without LULUCF)
3,500,000
Gg CO2 equivalent
3,000,000
2,500,000
2,000,000
1,500,000
1,000,000
500,000
0
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
CO2
Non-CO2
Total GHG
Official GHG emissions in Russia
Emissions by sector 2009
Solv ents
0.03%
Industrial
Processes
7.33%
Agriculture
6.59%
Waste
3.49%
Other
0.00%
Energy
82.56%
Official GHG emissions in Russia
Energy related emissions 2009
1.B. Fugitiv e
emissions
23.18%
1.A.1. Energy
industries
48.65%
1.A.5. Other
1.59%
1.A.4. Other
sectors
8.00%
1.A.3. Transport
11.16%
1.A.2. Man.
industries and
construction
7.43%
EBRD funded a study in 2009

Market and Investment Needs Study (AF Consult,
Finland)
– To review and analyse the existing situation and general
technical condition of the main TPPs and CHPs in Russia,
Ukraine, Kazakhstan and Mongolia;
– To assess at a preliminary level the needs for investment
projects for rehabilitation, energy efficiency and environmental
performance improvement;
– To review and assess the capabilities of local manufacturers of
equipment;
– To prepare a long list of appropriate investment projects and
sub-projects that could be implemented in coal fired and gas
fired TPPs and CHPs together with an order of magnitude
estimation of the investment costs.
The thermal power plants of Russia
based on EBRD’s study of 2009

Many old coal fired units, with more than 220,000 hours, with
limited Rehabilitation Plans under “Capitalna Remont”
– Low achievable maximum load (~75% of nominal)
– Low availability (~60%) and reliability
– Low net efficiency (~ 32%) and high carbon (> 1.1 tonCO2/MWh)
– Poor Environmental performance (e.g. dust > 500 mg/Nm3)

Few new units have been installed in the last 25 years, and
even these are not Best Available Techniques (BAT), with
design and operational performance indicators of the 80’s,
so
– Very few super-critical steam for coal fired plants
– Some Combined Cycle Gas Turbines (CCGT) for gas fired plants
The thermal power plants of Russia
based on EBRD’s study of 2009


Most of the Russian and Ukrainian equipment manufacturers have
not fully passed transition to market conditions and there is great
scope to improve in order to approach their European peers,
especially in terms of:
–
Design and manufacturing technologies for overall achievable net efficiency
–
Quality of materials and machining processes
–
Customer service
There is great need for new state-of-the-art units as well as
rehabilitation and modernisation of existing units, especially for:
–
Coal preparation systems (conveyors, crushing, mixing etc.)
–
Boilers (burners, economisers, super-heaters etc.)
–
Reconstruction of turbine parts (cylinders, rotors, blades etc.)
–
Reconstruction of generators (rotors, stators, excitation, cooling etc.)
–
Installation of modern DCS systems
Contents
1.
EBRD and Energy Efficiency
2.
The main issues
3.
How EBRD can help
4.
Challenges ahead
Technical Assistance to our clients

Free of charge Technical Assistance (TA)
through donors funds

The overall aim of this advisory services is to
assist both the Bank and its clients in the
preparation of the most appropriate
Rehabilitation or New Unit Programme
Technical Assistance to our clients

2 Framework Contracts, Call Off Notices; Technical
Audits / Projects Review (Vattenfall, Germany and
MWH, Italy)
– To review and analyse the condition of existing equipment and
recent years performance;
– To review and analyse the necessary investment programme
as a whole as well as the main projects it consists of in terms of
technical and financial viability;
– To perform a conceptual technical and financial analysis of the
investment projects and expected benefits, including
achievable capacity and availability improvements, extension of
lifetime, increase of energy efficiency, reduction of carbon
emissions and improved environmental performance.
Technical Assistance to our clients

7 TA assignments have been completed up to
now
– 2 of them in Russia, to review the clients’ investment
programme and propose possible improvements
– 4 in Kazakhstan, one to analyse alternative heat and
power supply options for a large city and three for
modernisation of CHP plants
– 1 in Ukraine, to review alternative options for a new
state of the art coal fired unit
How EBRD can help
Two recent projects in Russia

USD 150 million loan to TGK-8 for
the installation of a new 410 MW
CCGT at Krasnodar CHP

Improve electricity operational
efficiency from 32 to more than
55%

Natural gas savings of around 390
million Nm3 per year

Carbon emission savings of
around 750,000 ton CO2 per year

USD 75 million loan to TGK-13 for
the completion of a 185 MW / 270
Gcal coal fired cogeneration unit
at Krasnoyarsk CHP-3

The unit will replace old and
inefficient heat only boilers and
electric boilers

Improve overall resource
efficiency by around 15%

Carbon emission reduction of
around 240,000 ton CO2 per year
New TA Framework for the Power Sector

At this moment tendering for 3-4 framework contracts
of total value EUR 1.5 million for Technical and
Efficiency Audits / Projects Review / Projects
Preparation for
–
Thermal Power Generation and Cogeneration plants of any
technology and configuration;
–
Hydropower generation;
–
Grid connected renewable sources, i.e. wind, small hydro,
biomass, solar, geothermal and waste to energy;
–
Power Transmission systems, including lines, substations,
SCADA systems etc.
–
Gas and Power Distribution systems, including lines,
substations, smart metering systems etc.
Contents
1.
EBRD and Energy Efficiency
2.
The main issues
3.
How EBRD can help
4.
Challenges ahead
Some projected characteristics of the
power system of Russia
IEA’s predictions for the power generation capacity for the “450 scenario”
(450 ppm CO2eq in the atmosphere)
Typical Dilemma for coal fired TPP
Investment
Cost
(EUR/kW)
Expected
Lifetime
Net Efficiency
Availability
(%)
(%)
New Unit
1,000 – 1,500
35
> 40
85
Rehabilitation
of Old Unit
250 – 400
10 – 15
Improvement
of 3 – 5
percentage
points to 35%
Improvement
of 10 – 15
percentage
points to 75%
(years)
Resource Efficiency
Target Performance Indicators
Rehabilitation

Extend lifetime for 15 years

Improve availability by 10 pc
points

Improve efficiency by 3-5 pc
points

Improve environmental
performance (what and how
much?)
New Units

Electricity only
– Gas, CCGT only with efficiency >
52% (390 kgCO2/MWh)
– Coal, SC parameters with efficiency
> 42% (860 kgCO2 /MWh)

CHP
– cogeneration efficiency > combined
efficiency for separate generation >
80%
– Gas, GT open cycle or CCGT
– Coal, SC steam parameters
Resource Efficiency
Advanced Coal Technologies

SC and USC PC combustion (commercially available, many units
around the world)
– Higher investment is justified by efficiency and carbon benefits
– Target is for 375 bar and 700oC by 2020, net efficiency > 48%

IGCC (commercially available, only 5 units around the world)
– Specific use, high own consumption, net efficiency only 38 - 42%

CCS (still at development stage)
– Double investment cost, very high own consumption, so nearly double
generation cost
– For Russia the “Carbon Capture Ready” concept seem appropriate
Resource Efficiency
Typical Technical & Economic Characteristics
Type
Investment
Cost
Net Efficiency
Carbon
(%)
kgCO2/MWh
(EUR/kW)
Coal SC and
USC Steam
Cycle
1,000 to 1,500 Electricity only: 40-45 750 – 900
CHP – el: 30-35
- heat: 40-50
Gas Turbine with
HRSG (open
cycle)
600 to 850
Electricity only: 32-36 560 – 630
CHP – el: 32-36
- heat: 40-50
Gas Turbine
Combined Cycle
800 to 1,200
Electricity only: 50-55 370 – 410
CHP – el: 30-40
- heat: 40-50
Key challenges

Need for improved performance requirements;
resource efficiency pays back fast

Need for significant investments (many new units and
many modernisations) in parallel with the privatisation
and regulation improvements of the power generation
sector

Need for international know-how transfer to the major
manufacturers of equipment
Thank you
Ioannis Papaioannou
Senior Engineer, Energy Efficiency & Climate Change
EBRD, One Exchange Square, London EC2A 2JN
United Kingdom
Tel: +44 20 7338 7024
Fax: +44 20 7338 6942
Email: [email protected]