Microsoft PowerPoint - Presentation Michael IETA Feb 2013 V5.pptxof EU ETS

Alstom: Four main activities in top 3 in its main activities
• Power generation infrastructure
25%
Alstom supplies major equipment for 25% of the worldwide Installed power generation capacity and….
/

Alstom makes 1 metro in 4 and 1 tram in 4
Power transmission infrastructure
25%
Hydro Gas
Coal
0 500 1000 1500
Oil-fired

400-1200 MW PC* Supercritical
and TurbogeneratorDust collector
Denitrification system
Shoaiba I, II & III, 14 x 400 MW, Saudi Arabia

MW

HRSG

Advanced turbine design concepts to increase efficiency and reduce emissions 51 x GT24, 86 x GT26 ordered, >4.0 Mio. fired hours with >70’000 starts

• Fleet Experience
From “Daily starts and stops” to “base load” operation •
Natural gas (also high inert/C2+), oil with online switch- over •

GT26
GT24
GT13E2
Hz
Source: Vattenfall
Pre-combustion
Solutions developed by Alstom
Post-combustion Oxy-combustion
New Entrant Reserve
CompletedTESTS COMPLETE
WE - Energie USA WI - 5 MWth Chilled Ammonia, Coal
DOW Chemical Co. USA, WV Adv. Amines - Coal
Alstom Activity on Pilots & Demonstrations 1st and 2nd Generation CCS
OPERATING
Total Lacq France - 30 MWth Oxy - Gas
Alstom BSF Windsor US - 15 MWth Oxy - Coals
2nd Gen
Alstom Labs Växjö Sweden – 0.25 MWth Post C.-multi purpose
RFCS EU - Darmstadt Germany - 1 MWth Chemical Looping - Coal
2nd Gen
TCM Mongstad Norway 40 MWth, Chilled Ammonia, CHP & Refinery Offgas (RCC)
Alstom GPU Pilot (Mobile) 0.3 MWth
OPERATING COMMISSIONING
EDF Le Havre France - 5 MWth Adv. Adv. Amines - Coal
LARGE-SCALE PROJECTS
(under development)
NER300
Datang - China Oxy 350 MWe lignite, Post 350 MWe eq. Coal
CCM Mongstad (Gas Turbine based CHP) Norway – 280 MWe + 350 M Wth Chilled Ammonia
NER300
NER300
Getica - CET Turceni Romania - >250 MWe Chilled Ammonia-Lignite
– Alstom Transport - An extensive range of products and services
•: … •Rolling stock: from trams to very high speed…

Metro

Regional

• image To be inserted
AGV (350 km/h)
Integrated control centres
ERTMS Revolution in “interoperable” drive systems “”

Alstom TransportTechnologically leading products
- (1/2) Alstom Grid - Organised in 10 main Product Lines (1/2)
POWER TRANSFORMERS More than 130,000 MVA 130,000MVA 1,000 transformers per year1,000 World’s largest electric arc furnace
transformer DISCONNECTORS N° 1 manufacturer Over 140,000 units in more than 130
countries130140,000
CIRCUIT BREAKERS Over 80,000 equipments 80,000 8,000 solutions per year 8000 Top three suppliers with Live Tank,
Dead Tank and compact modules
GAS-INSULATED SUBSTATIONS & LINES (GIS &
GIL) 2,000 substations GIS

POWER ELECTRONICS ACTIVITIES One of the leaders in HVDC (high
voltage direct current) to transmit large
quantities of electricity over very long
distances Specialist in Flexible AC Transmission
Systems (FACTS)
Management Systems Market Management Systems Distributed Management Systems (DMS)

(PACiS) SERVICES From network design to asset evolution From project to long-term partnerships From emergency to predictive maintenance
(1200KV) AC SUBSTATIONS (up to 1200 kV) Air/Gas-insulated switchgear / Offshore and onshore wind farms Turnkey high voltage substations Grid interconnection for all types of generation
- (2/2) Alstom Grid -Organised in 10 main Product Lines (2/2)
– Alstom Grid - Global Leadership and Ready to address the market needs






electrolysis processes
electrolysis processes
electrolysis processes
POWER TURBO EQUIPMENT/
• Hami (Xinjiang), 2x660MW, Dec. 11
• Shentou (shanxi), 2 x 600 MW, Mar. 10
• Guixi (Jiangxi), 2 x 600 MW, SC WCC, Jun. 08
• Pingliang 2 (Gansu), 2 x 600 MW STG SC
• / Pingwei II (Anhui)/Dabieshan (Henan), 4 x 600 MW STG SC
• Longshan (Hebei), 2 x 600 MW STG
Three Gorges/
• Xiangjiaba (4 x 800 MW), Aug. 08
• Liyuan (4x660MV hydro generators and its auxiliary equipment)
• Three Gorges Underground, Right & Left Banks (14x700 MW)
• // Baoquan/Huizhou/Balianhe PSP (16 x 306 MW)
• Xiaowan (6 x 780 MVA generators, with HEC)
BOILERS & ENVIRONMENT CONTROL
• Luneng Hami , 2 x 300 MW
• Baima in Sichuan, 300 MW CFB Boiler, China's largest CFB
• Shidongkou No.2 Power Plant in Shanghai, 2x600 MW SC Boiler
• Waigaoqiao: 2 x 1000 MW USC Boiler
• / SWFGD: Huaneng Weihai, Huaneng Dalian…
TURNKEY PLANT
• Luohuang PP (Chongqing), 4 x 360 MW
• C Shajiao “C” (Guangdong), 3 x 660 MW
• Shidongkou No.2 Power Plant (Shanghai), 2x600MW SC
NUCLEAR POWER
• 4 x 1000 MW Arabelle STG for Hongyanhe
• 2 x 1000 MW STG for Ling Ao 2
• / EDG: Taishan, Changjiang
• / 4 x 1000 MW STG for Daya Bay and Ling Ao

MAIN LINES
• Electrification Shitai (200km/h)
Datong
Fangshan
• Guangzhou: L6
• Shanghai: L1, L3, L3 North Ext., L4, L10, L12, L13,
L16
• Ningbo: L1
MASS TRANSIT – RS
3, 6, 8, 10, XinMin)
• Total of 456 cars for Nanjing Metro (Lines 1 & 2)
• Over 1400 train sets for Hong Kong
MASS TRANSIT – TRACTION
• Traction and TCMS for Hong Kong South Island Line
P17

Disconnectors
18800kV
18 units of 800 kV Disconnectors installed in Gansu Yongdeng Substation & Shuidonggou Power Plant in Ningxia
Power transformers
220 kV Nuclear Substation, Lingang, Shanghai 550 kV Daya Bay and LingAo Nuclear Power Plants Inner Mongolia Daihai 4X600MW Power Plants
HVDC & FACTS
— Ningdong-Shandong HVDC link —Three Georges HVDC Project (Gezhou Dam to Shanghai)
Circuit Breakers
More than 10,000 installations of Live Tank circuit breakers installed in China with zero failures during operations Dead Tank for Shanghai Nanqiao Substation 180 MW Generator Circuit Breaker for Shanghai Electric
Instrument transformers
1100kV Bushing for SGCC’s first 1100 kV transmission line
Zero-flux ITR for SGCC Three Gorges to Shanghai 500 kV HVDC Project

VSC China’s 1st VSC HVDC for the country’s 1st off- shore wind farm
EU ETS – Key facts
and trade systems
and Norway
gas emissions
www.icapcarbon.com
From free allocation to full auctioning
Source: CDC Climat
Free allowances
EU ETS : Phase 1 (2005-2007) and Phase 2 (2008-2013) Bottom-up
• All big installations (capacity >25MWh) :electricity, industry
• yearly monitoring and reporting of CO2 emissions
• free allowances issued by national governments • Must hand in credits at the end of the year covering their CO2 emissions
• Cap: EU divides EU-cap into an individual cap for the 27 Member States
• Allocation
90% in Phase 1 and >95% in Phase 2
• Historical emissions used as benchmark
•Governements had incomplete information → contributed to over-
allocation
• Free allocation done to minimize impacts for international industries and
minimizing loss of competitive power of national industries.
Phase 3 (2013-2020) brings significant changes Top-down
• A single EU wide cap on emissions applies in place of the previous system of
27 national caps. Calculated based on what was needed to achieve the 2020
target of -20%. -1.74% per annum.
• Auctioning is the default method for allocating allowances
• More than 40% allowances auctioned in 2013, share to rise progressively
• Harmonized allocation rules for free allowances based on EU-wide
benchmarks of emissions performance
• Industrial installations receive free allowances on the basis of benchmarks
but must purchase at least 20% of allowances in 2013 rising to 70% in
2020 and 100% in 2027
• Operators at risk of carbon leakage will receive allowances for free up to
their benchmark
Free allocation and auctioning in phase III of the EU ETS
Source: French Govt
Source: European Commission
• Product benchmark: 75%
• 52 product benchmarks
• Alternative method: 25%
• Heat benchmark (20%)
• Fuel benchmark (5%)
Phase 3: Free allowances allocation process Carbon leakage – stage 2
Source: Climate Economics Chair
• Higher CO2 costs for companies exposed to carbon leakage
• Correction factor aims at limiting the loss of competitiveness
Cap-setting : current challenges (1)
allowances is building up because of
– Overallocation in phase II due to incomplete information of
governments
– Full implementation of the new Energy Efficiency Directive will
have an impact on the EU ETS
• Surplus of 950 million allowances already, > 1.4 billion by the end
of phase II => will be transferred into phase III
Weak price signal
– Reached lowest point in Jan 2013 : 2.9 €/t
Source: French Govt
– Less incentive for low carbon innovation
– Reduced government revenue from auctioning, reducing
public funds available for climate purposes
• Currently debating short-term and longer-term solutions in the
EU
investment and destabilizing market
• For the long term (after 2020) : a reflexion is needed on cap-
setting and governance
Source: French Govt
ECX CFI Futures Contracts: Price and Volume
0
2
4
6
8
10
12
6-2-2006
Total Volume
Dec07 Sett
Dec08 Sett
• Strong lobby from industrial companies for generous free allocation resulted in
overallocation for industry
Lessons learnt Allocation of free allowances should reflect actual economic conditions
•Plants receive free allowances based on their historical production, but
market conditions are different
Emissions 800
Adjustment factor
for FA
produce
• Phase 2 (and Phase 3) suffered from the
oversupply created by the economic crisis
• “Backloading” proposal from the EU
Commission
to be discussed
• Permanent Adjustment Mechanism?
considerable experience in implementing the ETS but are faced
with new challenges
predictability / regulatory stability
• Fund from auctioning should be used on climate change, such
as supporting the new low carbon tech and demo projects.
Importing factor to make the new tech fly…(In EUETS, - 50%
minimum must go towards climate change related purposes
(mitigation or adaptation, domestic or international, R&D etc.)
www.alstom.com