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High flexibility Distributed Power Plant to support intermittent Renewable Power Generation Mike Welch Siemens Industrial Turbomachinery Ltd. siemens.com/power-gas © Siemens AG 2016 All rights reserved.

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High flexibility Distributed Power

Plant to support intermittent

Renewable Power GenerationMike Welch

Siemens Industrial Turbomachinery Ltd.

siemens.com/power-gas© Siemens AG 2016 All rights reserved.

Michael Welch / Siemens AGApril 2017

© Siemens AG 2016 All rights reserved.

Page 2 PG DG SPM NM

Disclaimer

This document contains forward-looking statements and information – that is, statements related to future, not past, events. These statements may be identified

either orally or in writing by words as “expects”, “anticipates”, “intends”, “plans”, “believes”, “seeks”, “estimates”, “will” or words of similar meaning. Such statements

are based on our current expectations and certain assumptions, and are, therefore, subject to certain risks and uncertainties. A variety of factors, many of which

are beyond Siemens’ control, affect its operations, performance, business strategy and results and could cause the actual results, performance or achievements of

Siemens worldwide to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking

statements. For us, particular uncertainties arise, among others, from changes in general economic and business conditions, changes in currency exchange rates

and interest rates, introduction of competing products or technologies by other companies, lack of acceptance of new products or services by customers targeted

by Siemens worldwide, changes in business strategy and various other factors. More detailed information about certain of these factors is contained in Siemens’

filings with the SEC, which are available on the Siemens website, www.siemens.com and on the SEC’s website, www.sec.gov. Should one or more of these risks

or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in the relevant forward-

looking statement as anticipated, believed, estimated, expected, intended, planned or projected. Siemens does not intend or assume any obligation to update or

revise these forward-looking statements in light of developments which differ from those anticipated.

Trademarks mentioned in this document are the property of Siemens AG, its affiliates or their respective owners.

TRENT® and RB211® are registered trade marks of and used under license from Rolls-Royce plc. Trent, RB211, 501 and Avon are trade marks of and used under

license of Rolls-Royce plc.

Michael Welch / Siemens AGApril 2017

© Siemens AG 2016 All rights reserved.

Page 3 PG DG SPM NM

Contents

Introduction: the Energy Trilemma

Decentralized Power

Addressing the Energy Trilemma with Flexible

Decentralized Power Generation

Cost of Energy

Security of Supply

Environment

Hybrid Solutions

Conclusions

Michael Welch / Siemens AGApril 2017

© Siemens AG 2016 All rights reserved.

Page 4 PG DG SPM NM

Security of

Supply

Price of

Energy

Environment

Introduction

The Energy Trilemma

Growing demand for affordable electricity

Modern society requires security of power supplies

Need to limit impact of power generation on both the local

and global environment

Focus on only one area can cause problems

High penetration of intermittent renewables has created

security of supply and price problems

Change in operational requirements of fossil fuel power

Michael Welch / Siemens AGApril 2017

© Siemens AG 2016 All rights reserved.

Page 5 PG DG SPM NM

Changing Operational Needs

Rapid changes in fossil fuel power

generation output caused by non-

dispatchable intermittent renewables

Power plant designed for base load

having to operate as mid-merit or

peaking plant

Part-load operation of centralised fossil

plant or maintained as spinning reserve

‘Clean’ natural gas fossil fuel generation

under cost pressures

Security of supply risks, increased

emissions

Water constraints

Introduction

Michael Welch / Siemens AGApril 2017

© Siemens AG 2016 All rights reserved.

Page 6 PG DG SPM NM

Introduction

• Flexibility

• Fast Response

• Frequent Cycling

• Fuel Switching

Changing requirements for Power Plants

Fossil Power Generation needed

• Distributed Power can help address

these challenges

Michael Welch / Siemens AGApril 2017

© Siemens AG 2016 All rights reserved.

Page 7 PG DG SPM NM

Decentralized Power

Decentralised Power can help address

the challenges of the Energy Trilemma

Located close to load demand centres

Reduced transmission losses

Connected to distribution network

Frequency and voltage support

Can satisfy a local heat demand

Multiple units

Increased availability

Enhanced operational range

High efficiency across wide load range

Minimised environmental footprint

Low initial investment

Easy expansion

Michael Welch / Siemens AGApril 2017

© Siemens AG 2016 All rights reserved.

Page 8 PG DG SPM NM

Natural Gas – the fuel of choice for Decentralized Power

Low CO2 emissions

Widespread availability

Transportable

• Pipeline, LNG, CNG

Storage possibilities

Economic

Clean burning

• Low CO, NOx, UHC, PM0

0.05

0.1

0.15

0.2

0.25

0.3

0.35

0.4

0.45

Natural

Gas

Diesel Coal Lignite Wood MSW (non-

Biomass)

CO2 Emission Factors (T per MWh)

Ideal, low carbon fuel for Distributed Power

Michael Welch / Siemens AGApril 2017

© Siemens AG 2016 All rights reserved.

Page 9 PG DG SPM NM

Price of Energy

High Energy Efficiency

Competitive Installed Costs

Compact Modular Packages Small footprint, ease of future expansion

Low maintenance and plant manpower costs Core exchange principal

Fast start-up possibilities with no maintenance

penalties No EOH on aero-derivatives

Low cost fuel

Low waste disposal Lube oil & water treatment chemicals

0 20 40 60 80 100

Open Cycle

Separate Heat & Power

Combined Cycle

Cogeneration

Overall Energy Efficiency (%)

Addressing the Energy Trilemma with Decentralized Power

Decreasing

Steam Pressure

Michael Welch / Siemens AGApril 2017

© Siemens AG 2016 All rights reserved.

Page 10 PG DG SPM NM

Price of Energy: Pulse Load Operation

Addressing the Energy Trilemma with Decentralized Power

0

5000

10000

15000

20000

25000

30000

35000

Open

Cycle

CCGT ORC

4

8

14

Cost per Pulse (US$)

Operating cost comparison for differing pulse

length for different power plant configurations

based on 50MW class aero-derivative gas turbine

Michael Welch / Siemens AGApril 2017

© Siemens AG 2016 All rights reserved.

Page 11 PG DG SPM NM

Security of Supply

Potential to connect to Grid at

Distribution level

Voltage and frequency support to

avoid the need for load shedding

Multiple units: high station

availability / low maintenance

downtimes

Black start and multi-fuel capability

Low starting power

Potential to combine with energy

storage solutions

Fast start and cycling capability

Addressing the Energy Trilemma with Decentralized Power

99.5% Start Reliability

Michael Welch / Siemens AGApril 2017

© Siemens AG 2016 All rights reserved.

Page 12 PG DG SPM NM

Addressing the Energy Trilemma with Decentralized Power

Security of Supply

• Full power from cold in less than 10

minutes

• >12MW/min ramp rate per unit

• Low emissions to full load

Michael Welch / Siemens AGApril 2017

© Siemens AG 2016 All rights reserved.

Page 13 PG DG SPM NM

Environment

High Efficiency across wide load range

through multiple units

Low combustion emissions across wide

load range and on start-up

NOx, CO, UHC, Methane Slip

Water-free CCGT potential

Organic Rankine Cycle

Supercritical CO2

Reduced construction times through

modularity

Compact Footprint

Displace Fuels Oils with Natural gas or NGLs

Addressing the Energy Trilemma with Decentralized Power

Maintains SGT-800 CCGT net efficiency above 50% down to <25% power plant rated output

Michael Welch / Siemens AGApril 2017

© Siemens AG 2016 All rights reserved.

Page 14 PG DG SPM NM

Addressing the Energy Trilemma with Decentralized Power

Environment

0

10

20

30

40

50

60

70

80

90

100

NaturalGas

Diesel Propane NaturalGas +

3g/kWhMethane

Slip

Combustion Only

Life Cycle Emissions

CO2 released (kg/mmBtu)

Sources:

EIA 2007, US EPA 2009, GREET 1.8c

Will be higher if

methane accepted as

being 35 times worse

GHG than CO2

CO2 Emissions

per hour for

100MW @ 50%

efficiency

37

51

44

490

100

200

300

400

500

600

NOx (ppm)

0

0.5

1

1.5

2

2.5

3

3.5

Relative NOx emissions

Natural Gas

Propane

Diesel

≈ 170 tonnes /

year

Equivalent to 0.5 million

car journeys of 10 miles

30MW Class DLE Gas Turbine

Michael Welch / Siemens AGApril 2017

© Siemens AG 2016 All rights reserved.

Page 15 PG DG SPM NM

Addressing the Energy Trilemma with Decentralized Power

Environment

• Growing concern over impact of

methane emissions to atmosphere

• Several studies in Marine applications

on using LNG as fuel

• Methane slip reduces CO2 benefit of

LNG compared to diesel or HFO

• 9MW spark ignition gas engine with

typical 5g/kWh methane slip at full load

is > 1 tonne/hour CO2 eq.• Methane slip increases as load decreases:

typically 40g/kWh at 25% load

Tonnes/Year

250MW Power Plant

700 hours/year operation

Natural Gas fuel

Michael Welch / Siemens AGApril 2017

© Siemens AG 2016 All rights reserved.

Page 16 PG DG SPM NM

Addressing the Energy Trilemma with Decentralized Power

Environment

• Reducing water consumption in Power

Generation• Cooling

• Blow-down

• Steam Cycle

• ‘Zero water’ solutions• Organic Rankine Cycle

• Supercritical CO2

• Increased efficiency over open cycle

• Competitive CAPEX

• Reduced OPEX and maintenance costs over

steam cycles

• Available for all scales of power generation

0

10

20

30

40

50

60

ISO Gross Electrical Efficiency (%)

Michael Welch / Siemens AGApril 2017

© Siemens AG 2016 All rights reserved.

Page 17 PG DG SPM NM

Hybrid Solutions

Combining fossil fuel power plant with

complementary technologies to better

address the Energy Trilemma

• Energy Storage

• Batteries

• Hydrogen

• Renewables

• ‘Stand-alone’ solutions

• Renewables as baseload

• Fossil plant follows load demand

• Integrated Systems

• Reduces fossil fuel consumption

but ensures security of power

supply

Integrated Solar Combined Cycle (ISCC)

Michael Welch / Siemens AGApril 2017

© Siemens AG 2016 All rights reserved.

Page 18 PG DG SPM NM

Hybrid Solutions

Faster Response for Improved Security of Supply

• Gas Turbine or CCGT with Battery Storage: Instantaneous response and Grid Ancillary Services

Power

Time

Blackstart

Frequency Response

Spinning

Reserve

Fast ramp-up and

ramp-down support

Fast ramp-down

support

Clean range

minimum load

Primary

Frequency

Response

Fast

Start Up

Secondary

Frequency

Response

Peak Power Part

Load

Manual

Operation

Fast

Shut Down

BLOCTime

to Sync

Michael Welch / Siemens AGApril 2017

© Siemens AG 2016 All rights reserved.

Page 19 PG DG SPM NM

Hybrid Solutions

Integrated Solar Combined Cycle: >60%

efficiency at small scale

• Natural Gas as primary fuel

• Solar energy from solar thermal collectors

provides steam for bottoming (steam) cycle

• Two plant options:• Boost total plant output during daylight hours

• Load following with part-load gas turbine operation

• Steam cycle can be replaced with ORC for

simplified solution• Common thermal oil circuit for solar field and

GT/WHRUs

• Lower CAPEX, zero waterG. Franchini, A. Perdichizzi, S. Ravelli University of Bergamo (Italy): Performance prediction of solarized

CC power plants operating in a load-following strategy POWER-GEN AFRICA, July 19-21, 2016,

Johannesburg, South Africa 11/16

Michael Welch / Siemens AGApril 2017

© Siemens AG 2016 All rights reserved.

Page 20 PG DG SPM NM

Conclusions

Gas Turbine-based Decentralised Power can play a major role in

the future of Power Generation with a high penetration of

intermittent Renewable Power Generation

Flexibility to meet Market requirements

Applicable for any power output needs

Helps address the Energy Trilemma

Affordable cost of energy

Secure supplies

Minimised environmental footprint

Support for Grids with high penetration of Intermittent Renewables

Potential to combine with other technologies to maximise operational

flexibility and minimise environmental footprint

Michael Welch / Siemens AGApril 2017

© Siemens AG 2016 All rights reserved.

Page 21 PG DG SPM NM

Mike Welch

Industry Marketing Manager

Siemens Industrial Turbomachinery Ltd.

Waterside South

Lincoln, United Kingdom

Phone: +44 (1522) 584000

Mobile: +44 (7921) 242234

E-mail: [email protected]

Thank you for your attention!

siemens.com/power-gas