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    ID266

    Customized Operation and Maintenance

    For Fossil Power Plants

    Holger Illbruck

    Siemens AG, Power Generation

    Germany

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    1. Introduction

    The primary objective of every power plant owner is to get constructed and to operate his

    plant as cost-effectively as possible to maximize his profit. This means that he has to

    minimize besides the investment costs for construction - the life cycle costs, which are

    influenced by different factors. One of them is the operation and maintenance cost incurrent in

    course of operation period of the power plant.

    The power plant utilities are further driven to reduce their life cycle costs by the deregulation

    of the different power markets.

    Cost reduction by outsourcing of O&M activities is one opportunity to meet such

    requirements.

    This presentation shall give an overview of the O&M Services shown on the example of the

    Arrbal project in Spain as well as the approach to customize services in compliance with

    different clients and market requirements.

    In general our service experiences are based on operation and maintenance of combined and

    open cycle power plants being equipped with gas turbines and other OEM components. A

    track record of the performances of the power plants under an O&M contract is shown

    exemplary for the power plants Paka (800 MW) and Pasir Gudang (400 MW). Both plants are

    located in Malaysia and are owned by the Malaysian construction company YTL Corporation.

    The track record has been published by the operations company YTL Power Services, a joint

    venture of Siemens AG (51%) and YTL Corporation (49%). After the know how transfer to

    YTL Power Services was achieved the joint venture contract was terminated as planned in the

    year December 2001. Since, that date YTL Power Services is a 100% subsidiary of YTL

    Corporation.

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    2. Range of Service Products

    wide range of service products from the simple supply of spares to integrated asset

    et developments, the focus is now, more and more on Long Term

    stomized as to meet customers specific needs:

    May 6-8, 2003 Power Generation 12

    Kodierung

    OEM

    Whole

    Plant

    Full Scope O&MFull Scope O&M (Lump Sum)

    Service Product Portfolio

    Long Term Maintenace (LTM)

    Turnkey Outages

    OEM Parts &technical Field

    Assistance

    Full Scope O&M (Pass Through Accounts)

    O&M Managers + LTM

    Full Scope Maintenance

    Long Term Maintenance (LTM)

    Turnkey Outages

    OEM PartsOEM Parts

    A

    management is offered.

    Due to the recent mark

    Service products. The scope of such Long Term service products can vary according to

    customer demands. To optimize customers benefit and to minimize customers risk in the

    project several service products are available.

    A service package of O&M products can be cu

    comprehensive maintenance programs for Gas Turbine, Power Train or for the whole Plant

    can be provided.

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    3. Competence Network

    It is of great importance to a power plant owner to be informed about the concept of how the

    fleet experience of an OEM/O&M contractor is introduced and available to his power plant.

    Since the experiences gathered by people is among others a significant source of know how,

    thus we deem it as essential to use OEM managers as O&M managers at the power plants.

    The use of OEM managers at the plants facilitates the exchange of information across the

    plants as well as across

    OEM works.

    May 6-8, 2003 Power Generation 27

    Kodierung

    O&M Competence Network

    O&M TeamProject A

    Generator Works

    Gas Turbine Works

    Engineering

    O&M Team

    Project ...

    O&M Team

    Project C

    O&M Team

    Project BSteam Turbine

    Works

    Service

    Backoffice Annual Plant

    Manager Meeting

    Due to the high availability demand and the life cycle cost reduction requirements of power

    plants a permanent improvement of the O&M services is requested. To fulfill these

    requirements a competence network has been established.

    The Service Back Office located in Erlangen collects all O&M experience of the individual

    Power Plants. Depending on the results of this ongoing evaluation, new improvements and

    developments are being pursued.

    The Service Back Offices evaluate and assess all the improvements and distribute this

    information to the individual Power Plants. In addition to these procedures annual global

    O&M manager meetings ensure direct exchange of experience.

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    3.1 Power DiagnosticsTM

    An essential part of the competence network is Power DiagnosticsTM which enables operators

    to minimize the life cycle costs of power plants and at the same time maximize the output of

    electrical energy. The drive to reduce life cycle costs results among other things in the

    reduction of staff and labor costs. Whereas the desire to maximize electrical output requires to

    raise the availability, reliability and efficiency of the plant. A solution for high availability,

    reliability and efficiency with minimum staff is Power DiagnosticsTM.

    The Power Plants covered under a long term service contract can be connected via telephone

    line to the Power Diagnostic Centers in Erlangen or in Orlando. The Power Diagnostic Center

    has access to the data monitored continuously at the power plant for all important operation

    values such as temperature distribution at gas turbine outlet, vibrations, operation hours, gas

    turbine start-up curves, performance curves etc. Experienced plant managers monitor the data

    in the Power Diagnostics Center and analyze these values with the objective to:

    Determine the actual conditions of systems and installed components,

    May 6-8, 2003 Power Generation 44

    Kodierung

    Data Acquisition Plant 1

    ST Specialist

    Worldwide Network for Remote Service CommunicationWorldwide Network for Remote Service Communication

    Data Acquisition Plant 3Data Acquisition Plant 2

    GT-Specialist

    Generator Specialist

    Power Diagnostics CenterServersCentral Data Base,

    Analysis Tools,Rule Based DiagnosticsData

    Handling Hardware /Software

    PlantTechnology

    Data Acquisition

    via WIN_TS

    Access

    Power Diagnostics Services - Structure

    Engineering and ProcessSpecialist

    Evaluate the power plant performance.

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    If needed the Power Diagnostics Center has direct access to specialised OEM know how, i.e.

    consultancy through specialists for Gas turbine, Generator or Steam turbine. In case of

    detected abnormal trends, events or trips, recommendations for predictive maintenance

    actions are given. The Power Diagnostics Center is one of the important features for early

    detection and prevention of damages.

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    May 6-8, 2003 Power Generation 1

    Kodierung

    Advantages of Remote Monitoring byOEM

    Early detection of abnormal operationRemote diagnostics is more sensitive than equipment protection criteria/thresholds of

    I&C

    Profound root cause analysis by applying the entire knowledge of the Original

    Equipment Manufacturer

    Continuous Monitoring

    gives Customer more security for further operation.

    In several cases it was possible to run the faulty equipment under close observation

    until the next planned outage.

    Timely Repair Planning

    By early fault detection and continuous remote monitoring it is possible to optimize

    the repair process as it can be planned ahead and spare parts can be shipped inadvance.

    May 6-8, 2003 Power Generation 50Kodierung

    Benefits of Online Plant Thermodynamics

    Identical thermodynamics code for plant design and online monitoring provides

    highest accuracy due to applied OEM knowledge

    Online Thermodynamics detects as well decreases in performance of plantcomponents (failures, degradation) as also drifting measurements (which can have

    an impact on operation due to I&C settings)

    Advantages also for understaffed plants

    Remote performance evaluations are offered by Siemens PG Power DiagnosticsTM

    Organization as a service, carried out by highly trained specialists.

    Learned limits from WIN_TS

    Slope C hange Occurs Over weekend

    Temp Begins to Drop at 1 deg per

    hour

    Learned limits from WIN_TS

    Slope C hange Occurs Over weekend

    Temp Begins to Drop at 1 deg per

    hour

    May 6-8, 2003 Power Generation 49

    Kodierung

    Wk 1 Wk2 Wk3 W k4 W k5 Wk8-40

    -35

    -30

    -25

    -20

    -15

    -10

    -5

    0

    5

    10

    Wk 6 Wk 7 Wk 9

    Channel 1 = gas

    Sub channel 1 = 0- 5 deg IGV

    TC #2 Upper Limit = 5

    TC #2 Lower Limit = -11

    WIN_TS Alarms

    On going discussions with LT PManager and Customer

    ~.5 deg / day

    >1 deg / day

    Wk 1 Wk2 Wk3 W k4 W k5 Wk8-40

    -35

    -30

    -25

    -20

    -15

    -10

    -5

    0

    5

    10

    Wk 6 Wk 7 Wk 9

    Channel 1 = g as

    Sub channel 1 = 0-5 deg IGV

    TC #2 Uppe r Limit = 5

    TC #2 Lower Limit = -11

    W IN_TS Alarms

    On going discussions with LTPManager and Customer

    ~.5 deg / day

    >1 deg / day

    Analysis of unit data utilizing diagnostic tools can identify

    problems before they become critical

    inspect

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    May 6-8, 2003 Power Generation 52

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    GT Online Thermodynamics Module (Screenshot)

    May 6-8, 2003 Power Generation 53

    Kodierung

    Compressor Efficiency

    - ISO Corrected -

    Offline Compressor Wash

    GT Online Thermodynamics

    Trending Screenshot

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    3.2 Reliability Centred Maintenance

    A logic supplement to Power Diagnostics with its feature of predictive maintenance is the

    introduction of a Reliability Centred Maintenance (RCM) method. The RCM Method allows

    to reduce the number of maintenance tasks specified in the product manuals of the various

    component suppliers. The component oriented maintenance schedule of the OEM suppliers

    will be redefined by an expert team consisting of OEM experts, maintenance managers,

    technicians and others. The expert team will define maintenance schedule with focus on the

    functionality of systems in the context of the actual operating regime.

    May 6-8, 2003 Power Generation 17

    Kodierung

    RCM Method optimises the number ofscheduled maintenance tasks

    Comparsion of RCM Maintenance workload with time based workload for a

    Siemens V94.2 Gas Turbine YTL Power Service Journal Nov-Dec 1997

    539170110,238,5Total

    Number of Maintenance Tasks according to Product Manual (Yearly)

    750011931562,6Total

    28,1%41,2%65,0%38,5%Percentage Reduction

    54

    1460

    30

    0

    1121

    367

    14

    40

    0

    2253

    52

    Operations

    2

    54

    12

    0

    0

    0

    0

    2

    0

    0

    0

    Electrical

    24

    2

    0

    4

    2,5

    12

    6

    10

    4,7

    44,5

    0,5

    MechanicalC&I

    2Cooling System

    0Generator / Transformer

    0Static Frequency Converter

    4Governor Control

    9Lubricating Oil

    2,5Diverter Damper

    2Ignition

    16Fuel Gas

    0Blow Off System

    1GT Mechanical

    2Air Intake

    Number of Maintenance Tasks Recommended by RCM (Yearly)

    System

    As published by YTL Power Services a significant reduction of maintenance tasks has been

    achieved through introduction of RCM.

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    4. Quality

    A certified quality system, ISO 9001 or equivalent, is a measure of growing importance of

    protection of owners assets especially on deregulated markets where beside electrical power

    also power plants are a merchandise. The perception of potential buyers is expected to be

    influenced positively if all processes related to operation and maintenance are integrated in a

    certified quality system, which is audited by an independent third party.

    As integral scope of an O&M agreement it is possible to develop and implement a quality

    system including a third party certification.

    May 6-8, 2003 Power Generation 28

    Kodierung

    First Class Power Operation

    by ISO 9001:

    Comparison with global competitors

    Transparent processes give common

    goals and motivation to the staff

    Living these processes means maximum

    control of the technical and financial aspectsof plant operation

    Maximum Plant Availability

    Maximum Plant Profitability Positive Public Perception

    Maximum Staff Motivation

    Quality means First Class Plant Operation.

    The Prerequisite: ISO 9001 Certification

    The benefit of a quality system can be maximized through combination with a computerized

    plant management system.

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    4.1 Computerized Plant Management System

    The increasing competition in power markets is making cost-optimized power plant

    management indispensable. A significant cost factor is labor cost for plant staff. It is

    considered that 20% till 40% of the working hours are spent for finding, compiling and

    archiving information, e.g.

    Recording and maintenance of plant documentation,

    Provision of information on present plants conditions,

    Monitoring of defects, failures and their follow up,

    Prepare, issue and expedite orders for spare parts, material and services,

    Cost control for spare parts, material and services

    Process Permit to Work system,

    Control and follow up of deenergizing processes of related systems,

    Scheduling and Follow Up of plant outages

    Management of spare parts inventory.

    The preferred solution is an intelligent, plant-wide IT support in the form of a plant

    management system in particular for maintenance work, modifications, documentation and

    spare parts management. The experiences of our O&M projects show that the workload for

    information management can be limited to about 10% of the daily working hours, with the

    help of our IT solution for computerized plant management, BFS++TM System.

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    May 6-8, 2003 Power Generation 62

    Kodierung

    Tie your Team together

    Management Shift MaintenanceEngineers/

    Technicians

    Workshop

    Storehouse Doc. Archive . . .MonitoringConsumables

    BFS++Administration

    The functions offered by BFS++-System are in line with standard power plant practice (i.e.

    extensive adaptation is not necessary), and special needs can be readily integrated as required.

    The system is delivered in a reconfigured form with power-plant specific catalogues which

    consider the fleet experiences also derived from utilizing the fleet data storage collected

    through applied BFS++ systems. All this ensures fast, smooth integration and high

    acceptance.

    BFS++ utilizes the hardware and software environment already in place in the power plant

    and also features field-proven interfaces to other systems such as DCS and I&C, Spares

    ess\------ACTIVECONFERENCES-------\pennwell\europe2003\working\fromthem\ID266_Illbruck.doc/2003-04-09

    May 6-8, 2003 Power Generation 31

    Kodierung

    Track Record

    3

    31

    8

    3

    46

    28

    2321

    1715,5

    0

    10

    20

    30

    40

    50

    Days

    Originial

    Standard

    Plan

    Paka GT11

    Jun 1998

    Paka GT12

    Aug 1998

    Paka GT22

    Nov 1998

    Paka GT21

    Feb 1998

    Pasir GT11

    Aug 1999

    Pasir GT12

    Jan 2000

    Hot Gas Path Inspection at 33,000 running hours

    YTL Power Service Journal

    Jan-Feb 200045

    Commissioning

    Finding

    Standard

    Preperation

    page 12 of21C:\workinprogr

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    Ordering System and electronic documentation. This minimizes clients initial investments

    and, ensures consistent, efficient processes. It offers its users a 3 in 1 solution covering

    operation, maintenance and administration processes from fault detection, through permit to

    work establishment up to spares cost control and inventory management.

    A parameter to measure the stability of processes at a power plant is the downtime for major

    overhauls. The recorded downtime published by YTL Power Services for six consecutive hot

    gas path inspections over a period of 18 month shows a steady trend of continuous outage

    shortening.

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    5. O&M Contracts

    Our substantial experience in the field of power plants including our commissioning

    experience is more than 500.000 MW installed capacity world wide. Our experience as

    operator is represented through more than 33 contracts with more than 12.000 MW. Beside

    this experience our Service organization has more than 90 Long Term Maintenance contracts

    with more than 35.000 MW. Through all this several worldwide experience our service

    organization has put in place a knowledge network sharing all relevant technical information

    through a home based back office.

    6. O&M at Work

    As part of our global experience record of projects we awarded 3 major projects in the last 2

    years. These 3 projects are just an example out of the record.

    6.1 Arrbal:

    Arrbal is Siemens first major O&Ms award in Europe. Signature of this contract was

    completed in a fast track negotiation and will cover the full scope O&M for the whole plant

    for a period of approximately 12 years. In the following the project will be presented in more

    detail.

    May 6-8, 2003 Power Generation 68

    Kodierung

    O&M at Work: Arrbal, Spain

    Plant::

    Arrbal, Spain

    Owners:

    Gas Natural

    Location:

    North of Spain

    Frame: 2x1S. 94.3A Combined Cycle

    Rating: 800 MW

    Contract Order:

    2002

    Contract Structure:

    Full Scope O&M

    Mobilization & Operation Fee

    (fix&var);

    Contract Duration: 12 Years

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    6.2 Tahaddart:

    he moroccan Tahaddart customer (Energy Electrique de Tahaddart) EET is a shareholder

    May 6-8, 2003 Power Generation 67

    Kodierung

    O&M at Work: Tahaddart, Morocco

    Plant::

    Tahaddart, Morocco

    Owners:

    ONE / ENDESA / Siemens SPV

    Location:

    Near Tanger, Morocco

    Frame: 1S. 94.3A Combined Cycle

    Rating: 384 MW

    Contract Order:

    LOI 12/2001, order 12/2002

    Contract Structure:

    Full Scope O&MInitial Spares, Mobilization &

    Operation Fee (fix&var);

    Contract Duration: 20 Years

    T

    company founded by ONE (Office National dElectricite), ENDESA and Siemens as

    investors. Siemens O&M will operate the full plant and maintain all equipment delivered

    under the EPC contract. Tahaddart is a typical O&M project where all O&M activities are

    included for 20 years from commercial operation date in a firm level payment structure.

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    6.3 Kuo Kuang:

    his 450 MW, 2 on 1 Combined Cycle Power Plant is an EPC Contract with Kuo Kuang

    May 6-8, 2003 Power Generation 66

    Kodierung

    O&M at Work: Kuo Kuang, Taiwan

    Plant::

    Kuo Kuang, Taiwan

    Owners:

    Kuo Kuang Power Co. Ltd.

    Location:

    near Taipeh, Taiwan

    Frame:

    2 x 1 V84.3A Combined Cycle,

    under Construction

    Rating: 460 MW

    Contract Order:

    2001

    Contract Structure:Fix Mobilization- Operation Fee;

    Pass-through Accounts

    Contract Duration: 14 Years

    T

    Power Co.Ltd., a single purpose company. For his newly ordered Power Plant, the customer

    required an O&M contract in a new structure which considered that local supplies and

    services are partly directly handled by the owner, others are purchased and specified by O&M

    contractor in a guaranteed budget.. The project is based on a customized contract structure

    tailored to owners needs. 14 years O&M including planned, unplanned and routine

    maintenance and operation of the plant.

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    7. Customer and Operator Synergies

    The sum is more than just the addition ! The know how of the Customer together with the

    O&M contractors experience ensure maximum long term asset protection.

    An excellent example for synergies can be seen in the O&M procedures. What are the

    synergy contributions in this specific case?

    The contribution of the customer is the know how in regard to regional power production

    requirements, and the long term experience in the local market as well as from the power

    plant ownership.

    On the other hand, worldwide long term O&M experience is brought in by us.

    These synergy contributions from both parties allow fastest possible elaboration of the O&M

    procedures and fastest possible installation of the ensuing engineering and administration

    processes.

    7.1 Arrbal Milestones of the Project

    The Arrbal O&M project schedule starting from submission of the proposal up to signing the

    contract was based on targeted negotiations in a very short time.

    Handing over of the O&M proposal to Gas Natural: November 2001

    Negotiation and Clarification Summer & Autumn 2002

    Signature of the O&M Contract November 2002

    Start Pre-Mobilization Phase November 2002

    Start Mobilization Phase August 2003

    Start Operation and Maintenance Phase October 2004

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    7.2 Arrbal Brief Description of the Scope

    he Arrbal O&M project is divided into 3 distinguished phases.

    n will be reviewed for its

    n of the plant - Start of assess

    rovisional acceptance of the plant, the O&M period starts and all

    May 6-8, 2003 Power Generation 69

    Kodierung

    Arrbal

    Brief Description Scope

    Pre Mobilization Phase (approx. 24 Months prior to COD)

    Review of EPC design

    Specification of High Availability Spare Part Package

    Order of Strategic Spares

    Mobilization Phase (14 Months prior to COD)

    Operation Phase (after COD)

    Hiring of Expats and local Personnel

    Training of local Personnel

    Assistance during Commissioning

    Setup of Computerized MaintenanceManagement System

    Preparation of O&M Policies and Procedures

    Daily Routine Maintenance

    Planned Maintenance Unplanned Maintenance

    Day to Day Plant Operations

    Material Schedule and Inventory Control

    T

    The first one is initial pre-mobilization phase in which EPC desig

    maintainability. Within this period of time our implementation team puts also into place a

    spare parts purchasing specification and specifies the high availability spare parts package.

    This period starts at the beginning of the EPC implementation.

    In the second phase - 12 months before the commercial operatio

    and hire of local staff and training according to its specific needs. During that time the O&M

    staff will be also involved in the commissioning of the plant and set up all necessary

    administration and IT tools.

    In the third phase, after the p

    routine, planned, unplanned and day to day operation will be handled by operator.

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    8. Benefits

    Within the frame of O&M contracts, operator takes over significant share of customers risks.

    For example one typical warranty in O&M contracts taken by operator is an availability

    warranty.

    An increased availability leads to increased revenues for the customer.

    Siemens has a proven record of increased availability beyond the typical industrial averages

    published in 2001 by EURELECTRIC, an independent non OEM organization. For

    Combined Cycle or Cogen Plants the median of :

    267 unit years resulted in a unit capability of 85.7% (unit capability is equivalent to

    plant energy availability),

    1966 unit years resulted in an accident rate per year and unit of 10.26 accidents.

    May 6-8, 2003 Power Generation 36

    Kodierung

    Track Record

    93,65 93,71 94,0495,43

    91,6693,53

    90,84

    94,7797,95

    94,43 94,2596,21

    93,29

    96,84

    92,58

    96,10

    0

    20

    40

    60

    80

    100

    percent

    Oct 95-

    Sep 96

    Oct 96 -

    Sep 97

    Oct 97 -

    Sep 98

    Oct 98 -

    Sep 99

    Oct 99 -

    Sep 00

    Oct 00 -

    Sep 01

    Oct 01 -

    Sep 02

    Oct 02 -

    Mar 03

    Paka

    Pasir Gudang

    Industry Average

    Availability 86%

    Highest Availability due to tailor-made Maintenance and Operation Contract

    Paka and Pasir Gudang

    ** ** **

    ** 2 GT Major Overhauls* 1 GT Major Overhaul

    **

    *

    Statement from YTL

    Oct 2002, PowerGen Singapore

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    May 6-8, 2003 Power Generation 40

    Kodierung

    Track Record

    1

    2

    0 0

    3

    2

    1 1

    0

    1

    0

    1

    2

    3

    0

    2

    4

    6

    8

    10

    Accidents

    1996 1997 1998 1999 2000 2001 2001

    Ye ar

    Paka

    Pasir Gudang

    Minimum Number of Accidents due Health and Safety Competency

    Statement from YTL

    Oct 2002, PowerGen Singapore

    C:\workinprogress\------ACTIVECONFERENCES-------\pennwell\europe2003\working\fromthem\ID266_Illbruck.doc/2003-04-09 page 20 of21

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    ID266

    9. Summary

    May 6-8, 2003 Power Generation 43

    Kodierung

    Conclusion

    QualityManagement

    IT-Tools

    OEMExpertKnowHowviaPowerDiagnostics

    ProvenStandardProceduresfor:

    -OperationMaintenance -Administrat

    ion

    DedicatedBackOffice

    PlantManagerswithOEMBackground

    500.000MWas OEM 12.000M

    Was O&M

    50.000MWasLTM

    Comprehensive operation and maintenance services are provided for entire power plants

    down to individual components. Services are based on worldwide operational experiences combined with detailed/country

    specific knowledge of power generating and distribution market.

    O&M services are supported by dedicated service back offices and Power Diagnostics

    Center. This center not only enhances the plants monitoring effectiveness but also

    provides fast experience information on generic problems, gained worldwide.

    Own maintenance management system called BFS++, provides comprehensive, cost

    saving services, contributing to plants availability and reliability increment.

    Presently trusted by clients worldwide to operate more than 12,000 MW and Long Term

    Programs for more than 35,000 MW.

    The recent three O&M contracts placed in Europe, Asia and Africa are proof of our

    competitiveness in this particular area,

    O&M services include also risks sharing with customers.

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