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BUSINESS AND TECHNOLOGY FOR THE GLOBAL GENERATION INDUSTRY

May 20

08 • Vo

l. 152 • No

. 5

Vol. 152 • No. 5 • May 2008www.powermag.com

Can wind power be a dispatchable resource?

Options for monitoring cation conductivity

Xcel moves on Smart Grid City plans

Riding the ocean power wave

PdM systems sweat the small stuff

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©2008 Exxon Mobil Corporation. The Mobil logotype and the Pegasus design are trademarks of Exxon Mobil Corporation or one of its subsidiaries.

Keep maintenance costs down and send productivity soaring with the complete range of Mobil SHC synthetic lubricants and greases. Each one is

formulated to offer outstanding all-around performance, including equipment protection, keep-clean characteristics and oil life. Take Mobilgear

SHC XMP. Used in more than 10,000 wind turbine gearboxes worldwide, it’s trusted by builders, proven in the fi eld and supported by exceptional

application expertise. Just a few of the reasons we don’t simply make things run. We make them fl y. Visit www.mobilindustrial.com for more.

We can take wind turbines to new heights.

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May 2008 | POWER www.powermag.com 1

www.powermag.com

COVER STORY: RENEWABLES

20 Regulating wind power into a dispatchable resourceBuyers of renewable energy may soon be able to purchase the intermittent resource even when the wind’s not blowing. New California guidelines may allow a utility “banking” the RECs associated with wind power production to use those certificates to “buy” new, not necessarily renewable, energy when demand peaks.

SPECIAL REPORTS

MERCURY CONTROL

26 Future of national mercury rule now uncertainNow that a federal appeals court has ruled that mercury must be treated as a hazard-ous air pollutant, new coal-fired power projects may need to reevaluate their mercury control technology approach.

WATER TREATMENT

32 Cation conductivity monitoring: A reality checkMeasuring cation conductivity remains one of the most sensitive, simple, and reliable tools for detecting small amounts of contamination in feedwater and steam. To help understand why some operators find it difficult to interpret the readings, it’s impor-tant to know what cation conductivity is and what it is not.

FEATURES

PREDICTIVE MAINTENANCE

36 Making PM systems sweat the small stuffPreventable outages can cost millions. Being able to spot a sick piece of equipment—whatever its size—and fix or replace it before it degrades or fails is priceless.

TRANSMISSION

42 Boulder to be first “Smart Grid City”Much of the technology needed to modernize the electric transmission grid and to ra-tionalize supply and demand already exists. It’s deploying that technology on a large scale and assembling the pieces in a way that makes everyone happy that’s the trick. Xcel Energy is trying to pull it off.

RENEWABLES

48 A new wave: Ocean powerDecades of research and development have yielded several innovative ways of using oceans to produce electric power. Now, the tide finally may be turning on the ability of businesses and governments to make dreams of ocean power come true.

DEPARTMENTS

4 SPEAKING OF POWER

8 GLOBAL MONITOR 8 National Grid divested of

Ravenswood

8 GE to sell Baglan Bay plant

8 From prairie grass to power

9 Renewables experience 40% growth

9 The sustainable city

10 Solar recharger for developing countries

10 Seeking CCS solutions

10 Hoover Dam could stop generating

10 Japan turns to fossil fuel

11 U.S. reactors produce record power

11 POWER digest

13 FOCUS ON O&M Retail competition

18 LEGAL & REGULATORY

56 NEW PRODUCTS

64 COMMENTARY Smart Grid requires clearing mental

gridlockBy Mike Carlson, Xcel Energy’s execu-tive in charge of smart grid initiatives.

On the coverThe Windy Point Project in Klickitat County, Wash., aggregates the output of 130 wind turbines from Siemens Power Generation. Each turbine is rated at 2.3 MW and has a blade diameter of 93 meters (305 feet). Rated power is produced when the wind reaches about 30 mph. The project was developed by Cannon Power Corp. Photo courtesy: Windy Point Project

Established 1882 • Vol. 152 • No. 5 May 2008

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www.powermag.com POWER | May 20082

BUSINESS AND TECHNOLOGY FOR THE GLOBAL GENERATION INDUSTRY

Power_May08_Ad_rev1_2.indd 1 4/8/2008 1:21:10 PM

Now incorporating and

EDITORIAL & PRODUCTION Editor-in-Chief: Dr. Robert Peltier, PE 480-820-7855, [email protected] Managing Editor: Gail Reitenbach, PhD Executive Editor: John Javetski Senior Editor: Angela Neville, JD Contributing Editors: Mark Axford; David Daniels; Bill Ellison, PE; Steven F. Greenwald; Tim Hurst; Jim Hylko; Kennedy Maize; Dick Storm Staff Writer: Sonal Patel Senior Designer: Leslie Claire Senior Production Manager: Tracey Lilly, [email protected] Marketing Manager: Jamie Reesby

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www.powermag.com POWER | May 20084

SPEAKING OF POWER

Guns and Moses

Charlton Heston’s legacy will surely rest on his iconic perfor-mance as Moses in The Ten Commandments and his unwaver-ing support of the Second Amendment. I had the privilege

of watching a classic Heston performance at the 2000 National Rifle Association convention in Charlotte, N.C., when he raised a handmade Brooks flintlock above his head and warned then-presidential candidate Al Gore that he could remove it only “from my cold, dead hands.”

Focusing only on these two images misses the real measure of the man. Heston walked a picket line in front of a whites-only restaurant in 1961 in Oklahoma City to repeal “Jim Crow” discriminatory laws; he marched with Dr. Martin Luther King, Jr. on Washington in 1963 to promote civil rights; and he served as a gunner on bombers during WWII. No one can deny that Heston was a man of strong principles who used his star power to focus the public’s attention on issues he considered vital to the nation.

What about the Fourth Amendment?Issues involving individual rights are still in the news, but many now concern technology’s impact on personal privacy. The most recent flap was over Google’s addition of 360-degree views to its online street maps, because some photos show in great detail property clearly marked private.

Privacy rights will also have to be considered by government programs designed to curb peak power consumption. For ex-ample, the advent of smart transmission and distribution grids (p. 42) does more than confirm that utilities are interested in adopting new technology. It also raises questions about how far beyond the home meter regulators should reach in the name of energy efficiency.

Advanced “smart” meters and computer-controlled appliances have the potential to better match demand to supply without human interaction (see p. 64). The key question is this: Whose finger should be adjusting the thermostat? Some state regulators began with what Contributing Editor Ken Maize calls the “nanny-

state approach to energy conservation: the utility knows best.” In my opinion, this license is a fundamental intrusion into our personal privacy rights that should be resisted. To paraphrase Heston, “You’ll have to pry my toasty warm fingers from my ther-mostat this winter.”

California yields to privacyAn early victory went to supporters of privacy this January when the California Energy Commission (CEC) retreated from plans to include programmable communicating thermostats (PCTs) in its proposed 2008 energy-efficiency standards for buildings. Had PCTs been left in, new buildings would have been required to have a data connection to let utilities control at least the air conditioning and heating system during power emergencies. In-dustrial and commercial users would have gotten a price break for selecting a rate plan that allows utilities to shed their load during grid emergencies. The CEC never entertained similar cost breaks for homeowners, at least in public.

The public outcry was predictable to everyone except CEC regu-lators who proposed the scheme. In response, the CEC blinked—twice. It first revised the rule to enable customers to override utility control of the PCTs, which were still required. Then, as the blowback continued, the CEC announced that it was removing PCTs from this year’s proposed building-efficiency standards. CEC spokeswoman Claudia Chandler quickly made the commission’s mea culpas, noting that in the future the commission will work with utilities to craft voluntary programs that customers could opt into.

I trust that the CEC and other regulators now understand the unwritten 11th Commandment of the utility industry: Tell me the time-based cost of energy and I’ll make the consumption deci-sions. It’s none of your business how much, when, and for what purpose I use the power I purchase. I think Charlton Heston would agree. ■

—Dr. Robert Peltier, PEEditor-in-Chief

Welcome our new editors!I’m pleased to announce that POWER has added two experienced members to our editorial staff as we continue expanding our in-depth coverage of the worldwide power generation industry.

Senior Editor Angela Neville has been covering the environmental issues of the energy and other industrial sectors since 1995. She served as the editorial director of the magazines Environmental Protection and Water & Wastewater News from 1995 through 2007. Angela’s columns on environmental law topics earned her one national award and four regional awards for editorial excel-

lence from the American Society of Business Publication Editors. She has bachelor’s degrees in both journalism and English and a

law degree from the University of Texas at Austin. Angela’s first contribution to POWER is an inside look at Xcel Energy’s plans to build the first smart grid in Boulder, Colo.

Staff Writer Sonal Patel will be work-ing on several aspects of print and online content delivery for POWER, COAL POWER, and POWERnews, as well as on a variety of other POWER-branded efforts. She has worked as a technical writer, as a free-lance news and feature writer for British Petroleum, and as the editor of an avant-garde South Asian women’s magazine/

webzine. Sonal jumped right into her new position with her article on ocean power in this issue.

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GEEnergy

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GE Energy offers a wide array of innovative gas turbine and combined cycle products and services. Through these proven solutions, we’re helping our customers achieve greater operating flexibility, including the ability to dispatch quickly and turndown while maintaining emissions compliance.

To learn more about how GE Energy’s quick, reliable and efficient solutions can help keep you ahead of the demand curve, visit www.ge.com/energy today.

Energy demandisn’t flat either.

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The Emerson logo is a trademark and a service mark of Emerson Electric Co. © 2008 Emerson Electric Co. HART® is a registered trademark of the HART Communication Foundation

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and industrial Wi-Fi standards, Emerson Smart Wireless economic and technical barriers to the information you to wireless asset and people tracking, it’s everything

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www.powermag.com POWER | May 20088

GLOBAL MONITORGLOBAL MONITOR GLOBAL MONITOR GLOBAL MONITOR GLOBAL MONITOR GLOBAL MONITOR GLOBAL MONITOR GLOBAL MONITOR GLOBAL MONITOR GLOBAL MONITOR GLOBAL MONITOR GLOBAL MONITOR GLOBAL MONITOR GLOBAL MONITOR GLOBAL MONITOR GLOBAL MONITOR GLOBAL MONITOR GLOBAL MONITOR GLOBAL MONITOR GLOBAL MONITOR GLOBAL MONITOR

National Grid divested of Ravenswood London-based National Grid plc will sell Ravenswood Generating Station (Figure 1), a facility in Queens, N.Y., that provides more than 20% of New York City’s overall peak load, to TransCanada Corp. for $2.9 billion this summer. Ravenswood Generat-ing Station was a 2004 POWER Top Plant (July/August 2004, p. 32).

National Grid was obligated to divest itself of the 2,840-MW facility to fulfill a condition of the New York Public Ser-vice Commission (NYPSC) order approving the company’s $7.9 billion acquisition of KeySpan LLC, a New York utility, in August 2007. The gross asset value of Raven-swood in KeySpan’s last audited accounts was $1.2 billion at Dec. 31, 2006. The sta-tion reported an operating income of $138 million for 2006.

The Ravenswood acquisition by Trans-Canada is subject to regulatory approvals from the Federal Energy Regulatory Com-mission and the NYPSC, and to clearance

under U.S. anti-trust and foreign invest-ment laws. Approvals from these bodies are expected in the next few months.

In addition to Ravenswood’s vital supply, TransCanada will own, or have interests in, over 10,200 MW of power generation in Canada and the U.S. The company’s activities in the U.S. North-east include hydroelectric generation as-sets of 567 MW on the Connecticut and Deerfield Rivers in New England, and Ocean State Power, a 560-MW gas-fired combined-cycle power plant in Rhode Is-land. TransCanada is also currently vested in a proposed 132-MW wind energy proj-ect in western Maine.

The Ravenswood Generating Station, which began operating in 1963, is primar-ily fueled by natural gas. Its multiple units employ steam turbine, combined-cycle, and combustion turbine technology.

GE to sell Baglan Bay plantGE Energy’s mammoth Baglan Bay gas-fired station, near Port Talbot in South Wales, will also be up for sale by the end of the year (Figure 2).

GE Energy plans to put an estimated price tag of $986 million on the 500-MW plant so it can concentrate on plans to build and operate proposed nuclear sta-tions in Britain, according to the Western Mail, a Welsh publication. GE has not yet issued a public statement regarding the planned sale.

The Baglan Bay Power Station was rec-ognized as one of POWER’s Top Plants of 2003 for its first launch of GE’s 50-Hz Frame 9H system (see POWER, July/August 2003, p. 45). It was the first gas turbine combined-cycle system capable of break-ing the 60% fuel efficiency barrier. Hailed for increasing thermal efficiency by using steam from the bottoming cycle to cool the hot gas path parts without relying on

film cooling, the H system recently sur-passed 24,000 hours of service.

Since 2003, three 50-Hz systems gas turbines have been installed at the Futtsu Thermal Power Station in Japan. They are scheduled to enter commercial operation this year. GE has also installed its first 60-Hz version of the technology at the $500 million Inland Empire Energy Cen-ter in southern California. The two 107H combined-cycle systems are expected to produce a total of 775 MW when the plant comes on-line this summer.

From prairie grass to power Alliant Energy Corp. and Prairie Lands Bio-Products Inc. are jointly assessing ways to create a commercially viable mar-ket for switchgrass, corn stalks, and simi-lar agricultural products for use as fuel. The energy services provider expects that the products will constitute up to 10% of the fuel source for a proposed 630-MW hybrid plant in Marshalltown, Iowa, cutting substantially into coal burned at the facility.

Prairie Lands, a nonprofit organization whose 60 members are switchgrass grow-ers, is evaluating potential environmen-tal, economic, and agricultural benefits of switchgrass (a tall native North American grass used for hay and forage) and other such products. The organization is also identifying cost-effective and efficient methods to harvest, aggregate, process, and deliver alternative fuel stocks to the power plant.

The assessment will build upon success-ful switchgrass test-burn demonstrations conducted during the Chariton Valley Bio-mass Project, a 2006 venture funded by Alliant and the Department of Energy. That project investigated and demonstrated the technical feasibility, environmental ben-efits, and potential business viability of

1. Sold! Ownership of Ravenswood Gen-erating Station in Queens, N.Y., will pass from National Grid to TransCanada this summer. Courtesy: National Grid plc

2. For sale. The Baglan Bay station in-stalled the first GE 50-Hz Frame 9H system. Courtesy: General Electric Power Systems

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May 2008 | POWER www.powermag.com 9

GLOBAL MONITOR

cultivating switchgrass to replace a portion of the coal fuel sup-ply at a similar Iowa plant.

According to Alliant’s web site, one of the greater benefits of burning switchgrass is improved air quality due to a natural process: The plant collects CO2 emissions during the growth pro-cess and sequesters the greenhouse gas in the ground through its roots.

Alliant supposes that a commercial project of 35 MW would require as much as 200,000 tons of biomass from 50,000 acres and that it would involve as many as 500 farmers.

The proposed plant, Sutherland Generating Station Unit 4, is expected to be operational by 2013. Alliant is considering incor-porating an additional 19-MW equivalent of steam cogeneration in the project for use by nearby industries.

Renewables experience 40% growthClean energy powers on—and is projected to escalate exponen-tially—in spite of a sluggish economy. According to a new report from Clean Edge Inc., revenues for the renewables industry surged 40% in 2007, with returns for solar photovoltaics, biofuels, and wind surpassing the $20 billion mark for the first time.

Global revenues for solar photovoltaic products, wind power, biofuels, and fuel cells collectively shot up from $55 billion in 2006 to $77.3 billion in 2007. Of the four energy markets, wind power (new installation capital costs) earned the highest rev-enue—$30.1 billion, while the fuel cell and distributed hydrogen market, the lowest—but newest—of the four, saw returns of $1.5 billion. In 2007, $25.4 billion worth of biofuels were produced: 13 billion gallons of ethanol and 2 billon gallons of biodiesel. Solar photovoltaics, including modules, system components, and installation, totaled $20.3 billion last year, and worldwide sys-tem installations stopped just shy of 3,000 MW.

The Clean Energy Trends 2008 report projected that growth for the four sectors will more than triple over the next decade, to $254.5 billion by 2017. Global installed solar photovoltaic ca-pacity is expected to increase eightfold to 22,760 MW, and wind power capacity is expected to reach to 75,781 MW (Figure 3).

The largest growth rate is expected in the nascent fuel cell and distributed hydrogen market, which is projected to increase tenfold to $16 billion. Comparatively, the rate of growth for solar photovoltaic, wind, and biofuels is projected to slow to 13.8% annually from the 50% average sustained over the past four years.

This year, the renewables industry will see continued growth, however, with five trends contributing to it: the growing partici-pation of overseas companies in the U.S. wind power market, a renaissance for geothermal energy, the launch of electric vehicles

by small start-up companies (as opposed to large automakers), the use of clean technologies for ocean-faring ships, and the design and construction of new sustainable cities.

The sustainable cityRealization of a zero-carbon, zero-waste, and car-free city may seem futuristic—but it has already begun. In February 2008, the government of Abu Dhabi in the United Arab Emirates broke ground on Masdar City. The 2.3-square-mile district on Abu Dha-bi’s outskirts (Figure 4)—which the Abu Dhabi government hopes

$0 $25 $50 $75 $100 $125 $150 $175 $200 $225 $250

Biofuels

Windpower

Solarpower

Fuelcells

Total $254.5

$81.1$25.4

$83.4$30.1

$20.3$74

$16$1.5

$77.3

2007 2017

$US (billions)

3. Global green energy growth. Clean Edge Inc. projects considerable revenue growth for renewables over the next 10 years. Courtesy: Clean Edge Inc.

4. Zero-carbon city rising. An aerial view of Masdar City in the United Arab Emirates. Courtesy: Foster & Partners

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www.powermag.com POWER | May 200810

GLOBAL MONITOR

will someday be occupied by 1,500 busi-nesses and 50,000 residents—is entirely designed for sustainable living.

Skylights and breezeways are incorpo-rated into architectural designs, and the city aims to utilize only power from re-newable sources. In addition to zero emis-sions, the city will rely on sustainable materials, food, and water. It will also house the Masdar Institute of Science and Technology, a graduate university dedi-cated to renewable energy. The $22 billion project will be built in seven phases and is expected to be completed and fully func-tioning by 2015.

Solar recharger for developing countriesBecause they live in developing or emerg-ing countries that cannot or do not set up a permanent power supply network, an estimated 1.6 billion people around the world still rely on traditional oil lamps to perform nightly tasks.

Around Lake Victoria in Kenya, about 30 million people stave off darkness by burn-ing kerosene lamps. Not only is it harmful to their health, according to Siemens sub-sidiary and lighting manufacturer, OSRAM, burning kerosene for light emits 67 tons of CO2 each year in Africa—almost equal to Finland’s annual CO2 emissions. Globally, the figure swells to 190 million tons.

To alleviate this problem, OSRAM constructed an off-grid kiosk-like solar station called an “Energy Hub” (Figure 5). The project was piloted in Mbita, a small town on the banks of Lake Victoria, which is easily accessible by locals who need to charge electrical appliances such as rechargeable lamps and cell phones inexpensively. The project’s success has prompted OSRAM to open three more En-ergy Hubs in the region.

Seeking CCS solutionsOn a larger scale, the North American coal-fired generating industry has been scram-bling for economically viable ways to retrofit existing infrastructure with carbon capture and sequestration (CCS) solutions. Power producer TransAlta Corp. recently announced it will partner with technology developer Alstom on a project to develop an extensive CCS facility in Alberta, Can-ada. The company anticipates a reduction of CO2 emissions from its coal-fired plants of 1 million tons per year.

Calgary-based TransAlta plans to pilot Alstom’s proprietary chilled ammonia pro-cess by 2012 at one of its coal-fired gen-erating stations west of Edmonton. The first phase of the five-year project will begin this year. It aims to advance and improve understanding of CO2 capture and storage technology. The overall project is expected to cost $12 million.

TransAlta has also partnered with ex-perts at the Institute for Sustainable En-ergy, Environment and Economy, part of the University of Calgary, to quantify CO2 sequestration potential in the Wabamun area west of Edmonton. The results, due in January 2009, will provide a scientific as-sessment of potential sequestration sites in the area surrounding several power plants, including their capacity and security.

Alstom has signed contracts with sev-eral U.S. and European companies to test its CCS technologies. The first pilot proj-ect that uses chilled ammonia to capture CO2 from coal-fueled power plants was launched in late February this year at We Energies’ 1,224-MW Pleasant Prairie Power Plant in Wisconsin (see POWER, February 2008, p. 38 for a technical description of the pilot process). The year-long demon-stration project is a joint effort with the Electric Power Research Institute (EPRI) and We Energies. EPRI will conduct an en-gineering and environmental performance and cost analysis during the project. Al-stom said that more than 20 organizations representing coal-fueled utilities in the U.S. are committed to project.

Hoover Dam could stop generatingA new study concludes that within a de-cade, growing water demand in the West and reduced runoff due to drought may deplete waters feeding the 2,080-MW Hoover Dam, a facility that generates power for more than a million people in Arizona, Nevada, and Southern California (Figure 6).

Researchers at the Scripps Institution of Oceanography found that these fac-

tors are causing a net deficit of nearly one million acre-feet of water per year in the Colorado River system, which includes Lake Powell and Lake Mead. The study es-timates a 50% chance that Lake Mead, already operating at a deficit, could drop too low for power production. Addition-ally, the Scripps researchers predict that there is a 50% chance that by 2021, Lake Mead could run dry if water demand is not curbed and climate changes continue as expected.

Japan turns to fossil fuelsSince Asia’s largest utility, Tokyo Electric Power Co. (TEPCO), shut down its Kashi-wazaki-Kariwa nuclear power plant (Figure 7) following a major earthquake last July, Japan’s nuclear-generated output has plummeted—and will stay low. Reuters reported that TEPCO’s nuclear output was 79.2% lower this February than last year, and the Hokuriku Electric Power Co. an-nounced recently that it expects to keep its sole nuclear plant closed for the busi-ness year ending in March 2008.

So to meet swelling demand, the country that once derived 30% of its power needs from nuclear generation has offset that de-cline with fossil-fueled generation.

Japan’s 10 main utilities have gener-ated record-high amounts of electricity for seven months straight compared with last year. Thermal generation was up 37.6% from February 2007, and last month, a Re-uter’s survey found that the country’s 10 utilities will rely on 141 million barrels of oil in the business year starting April 1—a 50% increase from the volume purchased two years ago.

The Kashiwazaki-Kariwa plant has the fourth-largest generation capacity in the world, its seven reactors producing 8,212 MW collectively. Before its shutdown, the plant supplied 6% of Japan’s total power needs.

5. Power station. This solar-powered “Energy Hub” will allow Kenyans near Lake Victoria to recharge small electrical appliances and reduce their dependence on kerosene. Courtesy: OSRAM

6. Dry dam ahead? Drought and in-creased demand could be threatening Hoover Dam’s ability to produce hydro power. Source: U.S. Bureau of Reclamation

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GLOBAL MONITOR

The plant was shut down after the July 16, 2007, offshore earthquake (whose epicenter was only 11 miles away) caused a fire within and destroyed a transformer building. The Japanese trade ministry or-dered plant operations halted indefinitely for ongoing safety checks.

U.S. reactors produce record powerThe Japanese earthquake, combined with aging facilities in the UK and unplanned outages in Germany, caused a general slump in global nuclear generation in 2007 of 3.6%, from 2.8 billion MWh in 2006, according to Nucleonics Week.

U.S. reactors, on the other hand, set a record for output, surging to 843 mil-lion MWh and utilizing an average 91% of reactor capacity. National total nu-clear generation was 2.4% higher than in 2006 and 2.3% higher than in the previous record year, 2004. Though the total number of operating U.S. com-mercial reactors (104) remained below 1990 levels, generation was 40% higher

than the 577 billion kWh produced in that year.

The South Texas Project’s South Tex-as-1 in Bay City, Texas (Figure 8) gen-erated the largest output of any reactor in the world—12.36 MWh. Constellation Energy’s Calvert Cliffs-1 in Maryland per-formed the best against promised output levels, exceeding capacity level all year.

Seven units closed down in 2007: Bulgaria’s Kozloduy-3 and -4, Slovakia’s Bohunice-1, and the UK’s Dungeness A-1 and -2 and Sizewell A-1 and -2; only four reactors were added: India’s 220-MW Kaiga-3 , China’s 1,000-MW Tianwan-2 VVER, and Romania’s 706-MW Cernavoda-2 Candu unit. The four reactors added 3,100 MW to the grid. The Tennessee Val-ley Authority also returned to service the 1,155-MW Browns Ferry Unit 1 after 22 years. (See POWER, November 2007, p. 30 for details on the restart of Unit 1.)

Last year also saw construction of the most nuclear power reactors in recent years. Five units were officially launched: the 650-MW Qinshan II-4 and the 1,000-MW Hongyanhe-1 in China, the 1,000-MW Shin Kori-2 and Shin Wolsong-1 in South Korea, and the 1,650-MW Flamanville-3 in France.

POWER digestNews items of interest to power industry professionals.

Siemens to build combined-cycle plant in Portugal. Siemens Energy is to build two turnkey combined-cycle units for ElecGas S.A. at Central Termoeléctri-ca do Pego in Abrantes, northeast of Lis-bon. ElecGas S.A. is a joint venture of the independent power generation company International Power plc and the Spanish utility Endesa S.A.

Following the units’ start-up, tenta-tively set for 2011, Siemens will also as-sume responsibility for maintenance of the power train for a period of 25 years. The order, including the long-term ser-vice agreement, is valued at about $947 million.

The natural gas–firing units have a tar-geted efficiency of over 58% and a com-bined installed capacity of 830 MW. The full turnkey scope of supply encompasses two gas turbines, two steam turbines, two generators, and all electrical plus in-strumentation and control equipment.

After Tapada do Outeiro and Ribatejo, which each comprise three units, Pego is the third power plant project handled by Siemens Energy in Portugal. The nation’s power demand is expected to increase by 3% annually up to 2010. The plants, with

a combined capacity of 3,000 MW, will generate enough electricity to meet ap-proximately 40% of Portugal’s demand.

RWE’s construction of twin-unit hard-coal power plant approved. The Arns-berg regional government has approved German utility RWE Power’s planned construction of a new 1,600-MW twin-unit hard coal power plant in Hamm.

The government found that the pro-posed plant’s estimated efficiency rate of 46% and “capture ready” capability was in accord with the German Federal Emission Control Act. The new hard-coal twin unit is anticipated to reduce CO2 emissions by 2.5 million tons annually compared to older plants with the same output.

RWE is already preparing the construc-tion site. The power plant’s first block will be put into service in mid-2011 and the second block in early 2012.

RWE will invest $3.16 million in the project. Twenty-three municipal utilities from four different German states are part-ners in the new plant. The utilities have formed a cooperative known as GEKKO (Gemeinschaftskraftwerk Steinkohle) that will hold a 350-MW share in the venture.

Nordic Windpower to manufacture wind turbines in Idaho. Nordic Wind-power Ltd., the maker of two-bladed utility-scale wind turbines, announced that it will site its new turbine-manufac-turing facility in Pocatello, Idaho.

The company plans to create more than 160 new technical, engineering, and administrative jobs at the new facil-ity. Additional positions will be opened at the company’s operational centers in California and the UK.

Volume production is expected to com-mence for turbine delivery in November 2008. Production is anticipated to grow to at least 20 turbines monthly by Sep-tember 2009.

Foster Wheeler wins CFB contract. Global Power Group, a subsidiary of Foster Wheeler Ltd., has been awarded a contract by Entergy Louisiana, LLC, a subsidiary of Entergy Corp., for the de-sign and supply of two circulating fluid-ized-bed (CFB) steam generators.

The two CFBs will be a part of the 538-MW Little Gypsy 3 Repowering Project in Montz, La. Unit 3 will have the capabil-ity of using petroleum coke, an abundant and inexpensive refining byproduct, as well as coal to produce electricity. Com-mercial operation of the plant is sched-uled for the first quarter of 2012.

SCE&G and Santee Cooper apply for COL. South Carolina Electric & Gas Co. (SCE&G) and Santee Cooper, a state-

8. Record holder. In 2007, South Texas-1 in Bay City, Texas had the largest output of any reactor in the world: 12.36 MWh. Source: Nuclear Regulatory Commission

7. No nuke. The post-earthquake shut-down of Japan’s Kashiwazaki-Kariwa plant is requiring a shift to fossil-fueled generation. Courtesy: Tokyo Electric Power

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owned electric and water utility in South Carolina, have submitted an application to the Nuclear Regulatory Commission (NRC) for a combined construction and operat-ing license (COL). If approved, the license would authorize the companies to build and operate up to two new nuclear gener-ating units at their existing V.C. Summer Nuclear Station site in Jenkinsville, S.C.

The utilities have been developing their application since 2006. The NRC will now begin an approximately three-to-four-year review process. If the commis-sion issues an approval, likely in 2011, the utilities plan to begin construction shortly thereafter and anticipate an in-service date of as early as 2016 for the first unit.

SWEPCO Arkansas coal plant ap-proved. The Louisiana Public Ser-vice Commission (LPSC) has approved a Southwestern Electric Power Co. (SWEPCO) request to construct a 600-MW coal-fueled power plant in Hemp-stead County, southwest Arkansas. The plant will cost about $1.34 billon. SWEPCO will hold a 73% investment, owning 440 MW of capacity.

The plant will be the first of its type in the U.S to use “ultrasupercritical” ad-vanced coal combustion technology. It will feature low-sulfur coal and state-of-the-art emission control technologies, including a design that allows for the retrofit of carbon dioxide controls.

The LPSC’s approval requires that SWEPCO, a unit of American Electric Power (AEP), submit a study identifying the potential for implementing cost-ef-fective energy-efficiency and load man-agement programs for the company’s Louisiana customers.

The company is awaiting a ruling on an air permit, expected this summer, from the Arkansas Department of Environmen-tal Quality before construction can begin. Construction will take approximately 48 months; the operation date is set tenta-tively for late summer in 2012.

The company garnered approval from the Arkansas Public Service Commission in November last year. The commission subsequently declined a third-party re-quest for a rehearing in December. The intervenors have since appealed the case to the Arkansas Court of Appeals, where it is pending.

The baseload plant is part of SWEPCO’s previously announced plans to meet the region’s energy needs. The company has completed a 340-MW natural gas–fueled peaking plant at Tontitown in northwest Arkansas. The company also plans to

build a 500-MW combined-cycle natural gas–fueled plant at its existing Arsenal Hill Power Plant in Shreveport, La.

Go-ahead granted to Appalachian Power in West Virginia. Meanwhile, AEP’s operating unit, Appalachian Pow-er, has been authorized by the Public Service Commission of West Virginia to build a 629-MW integrated gasification combined-cycle (IGCC) electric gener-ating plant in West Virginia. The $2.23 billion plant, which will require approxi-mately 48 to 54 months to complete, will be located beside the company’s exist-ing Mountaineer Plant near New Haven, W.Va.

In addition to the West Virginia filing, Appalachian Power has filed with the Vir-ginia State Corporation Commission (SCC) for approval to recover the Virginia share of carrying costs associated with the plant. The company also filed for an envi-ronmental permit from the West Virginia Department of Environmental Protection. The Virginia SCC is expected to rule on the IGCC plant in April.

AEP announced in August 2004 that it intended to build approximately 1,200 MW of commercial-scale IGCC generation to meet baseload needs of the seven-state eastern portion area it serves. In addition to the Mountaineer IGCC unit, AEP had planned to build a similar 629-MW IGCC unit in Meigs County, Ohio. That project has been halted, following an Ohio Supreme Court decision in March.

AEP responds to Ohio Supreme Court IGCC decision. The Ohio Supreme Court unanimously ruled that $23.7 million of start-up costs for AEP’s Meigs County plant project charged to Ohio customers violated provisions of an electric choice law signed in 1999. The court said that construction of the plant falls into the generation portion of the company’s op-erations that the Ohio Legislature dereg-ulated under the law.

A Public Utilities Commission of Ohio (PUCO) ruling in April 2006 permitted two AEP subsidiaries to recover precon-struction costs between July 2006 and 2007 for the $2 billion plant in Meigs County. Those costs were for the first of three planned phases for the plant. The ruling sent the case back to the PUCO for reconsideration.

AEP reaffirmed its commitment to IGCC generation but indicated that the com-pany will wait for clarity about the future of electricity generation in Ohio before it determines if it can build the IGCC plant in that state. ■

—Compiled by Sonal Patel.

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FOCUS ON O&MTRENDS

Retail competitionThis “nuts and bolts” department doesn’t usually feature a conference report. But the one we’re including in this issue is about a unique conference: KEMA’s annual Executive Forum.

Change in the power generation in-dustry is occurring at an unprecedented rate. POWER’s mission is to keep you apprised of the trends driving those changes, and events like KEMA’s con-ference tend to shed light on the big picture. For plant operators, the impact of today’s trends will be on tomorrow’s plant O&M practices.

Finding KEMA. Some readers may ask, “Who is KEMA?” KEMA is a big Neth-erlands-based consulting firm that pro-vides technical and management services to the global energy industry. It was formed in 1927 as a testing laboratory, much like Underwriters Labs (UL) in the U.S. In fact, in Holland and many parts of Europe, there still exist appliances with a KEMA label certifying that they passed the company’s safety tests.

Later, KEMA started providing consult-ing services to European and Asian utili-ties. It opened shop in the U.S. during the 1970s. Today, with 700-plus consul-tants dedicated to the global power and natural gas industries, KEMA’s Retail En-ergy Markets advisory service is a lead-ing source of business intelligence and market analysis to the competitive retail energy industry.

KEMA’s 19th annual Executive Forum brought to Dallas about 300 energy exec-utives to discuss and debate the outlook for competitive retail electric markets. Currently, 20 states and the District of Columbia allow customer choice to some degree (Figure 1).

According to Kristie Deiuliis, manager of KEMA’s Retail Energy Markets service, last year about 10% of all electricity sold in the U.S. was consumed by cus-tomers who had switched to competitive providers. In 2006 the figure was 9%.

At first glance, retail choice would seem to have a small “market share.” But as Taff Tschamler, director of KEMA’s Re-tail Energy practice, underscored at the forum, that 10% represents more annual consumption than all UK consumption. Competitive retail electricity sales in the U.S. are also larger than sales in all

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2. Choosing choice. Estimated retail competitive power sales, in terawatt-hours, from 2001 to 2007. Source: KEMA

3. Pent-up demand. These were the fastest-growing markets for competitive power last year. Source: KEMA

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of Africa. Internationally, the U.S. com-petitive market ranks eighth, behind In-dia’s and ahead of Brazil’s and France’s. America’s consumption of power bought on competitive markets has grown at an average annual rate of 20.8% since 2001 (Figure 2). The biggest percentage gains for competitive power during 2007 were in Connecticut and Illinois (Figure 3).

Without excluding other markets, the KEMA Executive Forum focused on the unique ERCOT market of Texas, where competition is exceptionally intense in all three sectors: industrial, commercial, and residential.

Most experts agree that customers within ERCOT have a greater choice of electricity providers than anywhere else in the U.S. The price for residential elec-tricity in ERCOT is actually lower today than it was in 2001. If you consider that inflation has devalued the dollar 22% since 2001 and that the price of natural gas has risen 90% over the past seven years (and that 69% of ERCOT’s generation capacity is gas-powered), proponents of competition can justifi-ably claim that their theory works in practice.

So why aren’t other states copying the Texas model? Two reasons:

■ A perception in many parts of the U.S. that “deregulation” is bad public pol-icy and that U.S. business in general needs to be more closely regulated.

■ Fear of “rate shock” when price caps are removed from a market that has been bottled up while fuel costs (gas, coal, and uranium) have escalated sharply.

Winners and losers. The forum’s keynote address—by Jim Burke, CEO of TXU Energy—focused on retail com-petition in ERCOT. In 2007, TXU Corp. was transformed from a publicly held company to a privately owned business with three discrete operations: Oncor, a regulated “wires and poles” (trans-mission and distribution) business; Lu-minant, responsible for operating and procuring generation capacity; and TXU Energy, a competitive retail electricity provider.

By the end of 2007, TXU had lost about 40% of the residential and small busi-ness customers that it had served prior to the arrival of competition in ERCOT in 2002. That’s a statistic that Burke wants to reverse. Without a doubt, the gloves have come off in the fight for customers in ERCOT.

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4. To know it is to love it. Awareness of and support for retail electricity competition are high in Texas. Will that support improve elsewhere? (The underlying survey was con-ducted in January 2008. It used random-digit telephone calls to contact households in these three areas. The sample size was 250 households per area.) Source: TXU Energy

5. Exercising their right. Since 2002, 80% of eligible Texans have opted for a different power provider or rate plan. Source: TXU Energy

6. No second thoughts. Most Texans are satisfied with their electricity provider. (The numbers come from a survey conducted in February 2008 that used random-digit telephone calls to contact households in all competitive areas of Texas. The sample size was 121 house-holds per area.) Source: TXU Energy

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For confirmation, visit a web site run by the Public Utility Commission of Texas: www.powertochoose.org. In the prized regions of metro Houston and Dallas, no fewer than 27 retail providers are slug-ging it out for residential customers. A customer can choose fixed rates for one or two years forward, rates that fluctu-ate monthly with changes in fuel prices, electricity that is sourced only from renewable generation, and rates that include frequent-flyer program airline miles credits. According to a TXU survey (Figure 4), 90% of residential custom-ers in ERCOT are aware of their ability to choose their electricity provider and more than 80% support choice.

Retail choice at the residential level in Texas has been phased in since 2002. On January 1, 2007, Texas electric com-panies in deregulated regions were re-leased from the last part of government regulation involving the “price-to-beat.” All electricity prices now are determined by supply and demand. Since the resi-dential power market was opened to competition in Texas, more than 80% of customers have either changed their rate plan or provider at least once since being offered choice (Figure 5), and 77% are very satisfied with their current provider (Figure 6).

The consensus of several speakers in plenary sessions was that:

■ Customers are smart.■ Customers will pay for value.■ Customers want to be able to fire their

electric company and hire a new one.

Love the price, hate the company.However, while calling customers smart and cost- and quality-conscious, several speakers also said customers are often hard to understand.

For example, considering the rev-elation from TXU’s survey that Texas ratepayers are happy to have electric-ity competition, another survey by Fox News in Austin produced a surprising result. One of the questions it asked residential customers was, “Do you favor re-regulating utility companies?” More than half of respondents (54%) said yes, 25% said no, and 21% were unsure. Ex-plaining this paradox may get down to focusing on the words. Consumers seem to want competition and choice, but they are far less keen on deregulation, at least as a concept.

One thing is sure about customers: Few know that most retail electricity providers are operating with gross mar-

gins of just 5% to 10% for residential customers and even less for commercial accounts. But even though the two big incumbents (TXU and Reliant) continue to lose market share, no new entrant has found the secret recipe for becoming the Southwest Airlines of the Texas retail electric market.

However, there may be an 800-pound gorilla on the horizon: Wal-Mart. Texas Retail Energy, LLC, a wholly owned sub-sidiary of Wal-Mart, currently provides

electricity to all of the company’s stores in ERCOT with the option to choose their provider. Wal-Mart is essentially acting as an aggregator for its own stores and is not currently offering electricity to any other customers. The audience roared with laughter when the moderator of a panel discussion ended his introduction of a Wal-Mart representative with the fol-lowing request, “Please don’t ask Chris Hendrix the question that you all want to ask.”

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Cause and effect? In one forum session, Jim Ajello, a senior VP at Reliant, drew an interesting analogy between the deregulation of U.S. air-lines and the utilization of industrial capacity. Since deregulation, the air-lines have greatly improved their as-sets’ overall capacity utilization rate. Compared with airlines, refineries, and companies in other major industries,

utilities are much less efficient in this regard (Figure 7).

Can we expect that competition will make utilities more efficient users of their generation fleets? With or without competition, adoption of plug-in hybrid vehicles will surely boost off-peak sales as customers recharge their cars over-night. The real question is, How long will it take for a meaningful percentage

of America’s automobile fleet to become hybrid or pure electric? Projections of 20% by 2020 do not seem out of the question.

But let’s circle back to Texas. Not all Texans have the freedom to choose their electricity provider. The geographic re-gions of Texas outside of ERCOT are still regulated. In addition, within ERCOT there are 77 municipally owned power companies and another 76 electricity cooperatives. Nueces Electric Coopera-tive Inc., which serves the Victoria-Cor-pus Christi region, is the only publicly owned power company in ERCOT to offer retail choice. Nueces not only lets its incumbent customers choose their pro-vider, it also has set up a retail division to sell power to customers anywhere in ERCOT.

Co-ops and competition. POWER discussed several aspects of retail power sales and customer choice with Sarah Fisher, communications manager for Nueces Electric Co-op (NEC):

POWER: A year ago, the incumbent Nueces territory had nine competitive retail electric providers for commercial and indus-trial customers and two representatives for

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7. Using their assets. Here are the average capacity utilization rates of various indus-tries, 1997–2006 (the rate for power is for 2007). Source: Reliant Energy

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residential customers. How many competi-tors do have on your home turf today?

Fisher: Twelve altogether, although only two, Texas Power and NEC’s Retail Division, are actively seeking residential consumers.

POWER: A year ago, Nueces had not lost many customers to competitors: only nine households and 113 small commer-cial accounts. What are these numbers today? What are your industrial, com-mercial, and residential meters’ market shares on your home turf?

Fisher: Sixty-six residential users (of 14,695 active residential services) and 155 small commercial users (of 2,109 active small commercial accounts) have chosen a non-incumbent provider.

POWER: Your retail division had 11,651 customers outside of Nueces service ter-ritory one year ago. What is your retail customer count today?

Fisher: Nueces Retail Division now serves 16,109 active services custom-ers outside its traditional distribution territory.

POWER: Does Nueces own any genera-tion assets? If you do, has their utili-zation rate increased during the last

year, and do you attribute any of this increase to the expansion of your retail division?

Fisher: Nueces does not own genera-tion assets but is a member of South Texas Electric Cooperative [STEC], head-quartered in Nursery. So indirectly, Nuec-es has increased the utilization rate of STEC’s generation assets.

POWER: I heard that Nueces has ex-panded its coverage to all competitive choice regions within ERCOT. Is that true? Are there any regions in ERCOT open to customer choice that Nueces does not serve?

Fisher: NEC Retail has applied to ERCOT to serve customers in every competitive market in Texas. Presently, it actively mar-kets its services only in the AEP Central and NEC distribution areas. They include the Rio Grande Valley, Corpus Christi, and Victoria markets.

POWER: Are the two decisions by Nueces—to allow customer choice in its incumbent region and to set up a retail division—regarded as successful by the company’s management and customers? For that matter, have you gathered customer satisfaction data to quantify “success”?

Fisher: NEC’s decision to offer retail choice has been a success in that we are able to offer an at-cost, customer-owned co-op provider option throughout the competitive areas of Texas. In ad-dition, customers in NEC’s distribution area now can choose from 12 providers. Unfortunately, ongoing compliance with [the rules of] ERCOT’s competitive retail market continues to increase our cost of doing business. We hope in time that there will be economies of scale that can lessen the impact of these additional costs on our members.

POWER: There are 77 munis and 76 co-ops in Texas. Why do you think that none of these entities has joined Nueces by of-fering choice to its customers?

Fisher: Electricity cooperatives gener-ally have the highest level of customer satisfaction of all utility types. If con-sumers are being taken care of, they may not necessarily demand “choice.” Electricity co-ops and munis also realize that it is expensive to make the transi-tion to competitive markets, as we’re ex-periencing to maintain compliance with ERCOT. ■

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LEGAL & REGULATORY

Steven F. Greenwald Jeffrey P. Gray

Until very recently, common wisdom held that the price of renewable energy would fall as legislative procurement mandates ensured its long-term demand. The resulting

growth in supply and sales would spur investment in the field, create economies of scale, and accelerate progress down the technology learning curve.

Something unexpected, however, happened along the way. Though more than half of U.S. states have adopted renewable portfolio standards (RPS) that require utilities to meet specific generation targets, and investment in green projects and tech-nology development has increased significantly, recent data suggest that the price of green electricity has risen and will continue to spiral upward. What happened?

The curse of the visible handThe economic Achilles heel of current state RPS programs is that they carve out a portion of the larger energy market and unbalance it by imposing legislatively determined demand. In the pre-RPS era, utilities aligned their resource planning with demand forecasts largely irrespective of generating technology. Procurement decisions were based primarily on need, price, and “fit” (dispatchability and “black start” capability). As a result, coal, gas-fired, nuclear, hydro, and renewable energy plants com-peted against each other for a piece of the utility demand pie. The overall market benefited from the increased competition, which—to some extent—also provided a hedge against raising fuel costs. For instance, if biomass prices rose, utilities could procure more gas-fired generation.

In stark contrast, the RPS regime mandates specific renewable procurement targets, generally a percentage of a utility’s over-all load. Legislatively imposed capacity targets—and penalties for failing to meet them—often obligate market participants to subordinate their own (and their customers’) economic interests to the desires of states. Utilities must purchase RPS-compli-ant power even if its price cannot otherwise be justified. The economic consequences for utilities seeking to be RPS-compli-ant include higher costs for facility sites, fuel, and generating equipment.

Moreover, although in theory there is competition among different renewable technologies, external forces (such as sit-ing and transmission constraints) effectively limit the avail-ability of resources that can meet a utility’s needs—as well as the benefits that competition can provide consumers. Leg-islative directives that artificially increase demand will also increase prices when supply cannot keep pace. The net result is a skewed market in which power produced from renewable resources commands a price premium just for being “green,” irrespective of the benefits of the project that generated it.

Upward price pressure on RPS-compliant power is further sus-tained by fast-approaching RPS compliance deadlines. In Cali-

fornia, for example, utilities are currently scrambling to procure significant amounts of renewable resources in order to meet the state’s 20% target by 2010. In such a market, rising prices should be no surprise: Prices rise when demand exceeds supply, regardless of the reasons for the imbalance.

In economic theory, competition enables markets to respond with an “invisible hand.” When the movements of a market are precipitated by government fiat, they are subject to a visible and very heavy hand.

Let’s get real Wind farms are feasible only where it’s windy, and photovol-taic arrays only where it’s sunny. Access to fuel similarly lim-its potential sites for geothermal and biomass projects. Though these geographic realities should be evident, overly ambitious RPS programs such as California’s suggest a failure by regulators to meaningfully assess whether regional renewable energy “re-serves” are sufficient to meet RPS-imposed demand.

The shortage of viable in-state resources has prompted utili-ties to look to neighboring states to meet RPS requirements. But extending the search for renewable power beyond state borders can have negative consequences for both the consuming state (higher prices resulting from increased transmission costs) and the producing state (the energy that could be delivered locally at the lowest price is exported).

The bottom line: Although governmental edicts to increase demand promise some short-term benefits, long-term gains won’t be possible unless RPS targets are based on a realistic as-sessment of available supply—not simply on au courant political correctness.

All is not lost . . . yetFostering the development and use of green generation is good policy that should be continued for several reasons. If imple-mented wisely, RPS programs can significantly benefit both con-sumers and the environment by reducing dependence on foreign oil, diversifying generation fuels, cutting greenhouse gas emis-sions, and ultimately by lowering the overall cost of power.

If they are ill-conceived, however, RPS programs create artifi-cial market demand that does not reflect real-world limitations on renewable project development. The net effects could be much higher electric bills and a likely public backlash. If policy makers do not carefully consider the possible downsides of their fervor to make power generation less of a contributor to global warming now—whatever the cost—history may remember RPS as yet another expensive “green” façade. ■

—Steven F. Greenwald ([email protected]) leads Davis Wright Tremaine’s Energy Practice Group.

Jeffrey P. Gray ([email protected]) is a partner in the firm’s Energy Practice Group.

Why RPS programs may raise renewable energy pricesBy Steven F. Greenwald and Jeffrey P. Gray

Page 21: Powermag200805 Dl

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www.powermag.com POWER | May 200820

RENEWABLES

Regulating wind power into a dispatchable resourcePerhaps the biggest shortcoming of wind power is its unreliability. Uncon-

cerned with human needs, Mother Nature has decided that the wind usually blows strongest at just the wrong times, when electricity demand is lowest. However, using savvy negotiations to exploit a new provision in California’s renewable energy regulatory regime could make wind power more dispatchable during peak-demand periods and increase the capacity of wind farms at the same time.

By Robert D. Castro, University of Southern California, and Fernando Pardo

“As California goes, so goes the na-

tion” is one way to describe how

the Golden State often sets trends

in pop culture and the larger culture. It also

applies to the likelihood that new provisions

in California’s scheme for regulating—and

promoting—the development of renewable

energy resources may be copied elsewhere.

Like many other states (Figure 1), Cali-

fornia has imposed renewable portfolio stan-

dards (RPS) on its utilities to force them to

become “greener.” Renewable electricity

typically has two components: the power it-

self, measured in kilowatt-hours, and renew-

able energy credits (RECs), also known as

green tags or tickets. One REC is earned for

every MWh generated by a renewable energy

plant. If a utility generates more than enough

green power to meet its annual RPS require-

ment, it can sell its excess RECs on the open

market at their going price. If it can’t (or

doesn’t choose to) meet the mandate with its

own production, the utility has to buy RECs

earned by others. RECs represent the envi-

ronmental benefits of generating power from

renewable resources, as opposed to produc-

ing electricity by burning nonrenewable re-

sources such as fossil fuels.

Two camps have different views of the

best way to use RECs to meet environmen-

tal and resource planning goals. The more

conservative camp believes that regulatory

regimes should never allow RECs to be sold

separately from the energy that generated

them because such separation gives utilities

that purchase RECs to meet their RPS a “li-

cense to pollute.” The other camp—the REC

trading camp—feels that renewable energy

development will benefit more if RECs and

1. Crazy quilt. As of March 2008, 29 states and the District of Columbia had enacted some form of renewable portfolio standard. Each percentage represents the minimum share of a utility’s capacity powered by renewable resources. The utility may own that capacity or pur-chase it, and associated renewable energy certificates, from independent power producers. Source: DOE’s Database of State Incentives for Renewables & Efficiency

MN: 25% by 2025(Xcel: 30% by 2020)

ND: 10% by 2015MT: 15% by 2015

*WA: 15% by 2020

OR: 25% by 2025 (large utilities)5%–10% by 2025 (smaller utilities)

*NV: 20% by 2015

CA: 20% by 2010

AZ: 15% by 2025

NM: 20% by 2020 (IOUs)10% by 2020 (co-ops)

HI: 20% by 2020

CO: 20% by 2020 (IOUs)*10% by 2020 (co-ops and large munis)

TX: 5,880 MW by 2015

IA: 105 MW

IL: 25% by 2025

MO: 11% by 2020

NC: 12.5% by 2021 (IOUs)10% by 2018 (co-ops and munis)

WI: requirement varies by utility; 10% by 2015 goal

ME: 30% by 200010% by 2017—new RE

NH: 23.8% in 2025MA: 4% by 2009+1% annual increase

RI: 16% by 2020CT: 23% by 2020

NY: 24% by 2013

NJ: 22.5% by 2021PA: 18%1 by 2020

MD: 9.5% in 2022

*DE: 20% by 2019DC: 11% by 2022

*VA: 12% by 2022

State RPS

State goalSolar water heating eligible

Minimum solar or customer-sited RE requirement

*Increased credit for solar or customer-site RE1PA: 8% Tier I/10% Tier II (includes non-renewables)

VT: RE meets loadgrowth by 2012

Page 23: Powermag200805 Dl

May 2008 | POWER www.powermag.com 21

RENEWABLES

their associated energy are allowed to be

sold separately. The REC trading camp con-

tinues to gain adherents as transmission re-

sources are unable to keep pace with growth

in renewable generation.

Firming and banking wind powerOne of the services available to both camps

is the ability to “firm” wind energy. Utilities

that generate lots of wind power frequently

offer buyers the option of smoothing out the

delivered product by averaging its capac-

ity on an hourly basis. A typical example is

“hour-ahead firm” energy; if weather and

wind forecasts indicate that a wind farm will

generate 25 MW over the next hour, the util-

ity guarantees that 25 MW will be delivered

from its generation portfolio during that

hour, regardless of the wind farm’s actual

generation. Given wind’s inherent variabil-

ity, which can cause operational and stabil-

ity headaches, paying an extra $15/MWh for

firm energy is attractive to some buyers.

A further service that may soon be offered

to utility purchasers is the ability to “bank”

wind energy. This concept envisions a utility

storing the RECs associated with wind power

production until a more advantageous time for

the recipient, and then releasing them for sale

along with new, not necessarily renewable,

energy. Although this scheme would only

work for those in the REC trading camp, it

does provide a big benefit: delivery of “wind

power” during peak-demand periods.

The impetus for this banking service is

found in the newest (third) edition of the

California Energy Commission’s Renew-ables Portfolio Standard (RPS) Eligibility Guidebook (download from www.energy.

ca.gov/renewables/documents/index.html).

In Section D of Part II, the guidebook states

that “Electricity may be delivered into

California at a different time than when the

RPS-certified facility generated electricity.

. . . Further, the electricity delivered into

Heavy lift. The Judith Gap Energy Center is a 135-MW wind farm located in central Montana, about 100 miles east of Helena. The project uses 90 GE wind turbines rated at 1.5 MW each. Courtesy: Invenergy

Top billing. Power generated by the Judith Gap Energy Center is sold to North-Western Energy under a 20-year power purchase agreement. The project began commercial operation in December 2005. Courtesy: Invenergy

Site to behold. Windy Point Project is near Goldendale, Wash., on about 25 miles of ridgeline property overlooking the Colum-bia River on the Washington-Oregon border. Courtesy: Cannon Power Corp.

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www.powermag.com POWER | May 200822

RENEWABLES

California may be generated at a different

site than that of the RPS generated facility

. . . out-of-state energy may be “firmed” or

“shaped” within the calendar year.”

This language allows those in the REC

trading camp to bank the renewable energy

for delivery at some later time, and other

sites to provide the energy that is ultimately

delivered to the receiving utility. Presum-

ably, these sites can deliver nonrenewable

energy (“brown energy”), but it will be con-

sidered “green” as long as the RECs created

by the renewable power production are cred-

ited exclusively to the delivered energy.

Take it to the bankThe ability to bank wind energy has mul-

tiple and far-reaching implications. Opera-

tionally, the major effect is to set a value

on wind power capacity. One of the major

shortfalls of using wind as a source of elec-

tricity is that wholesale-market dispatchers

cannot rely on wind capacity being avail-

able to meet load (see “Loss of wind forces

Texas to brink of blackout”).

Wind is typically assigned a capacity val-

ue of about 10% of total installed wind farm

capacity. That is, for every 100 MW of wind

turbines installed, the utility’s energy control

center typically expects about 10% to be on-

line at any given time. Some utilities do not

assign any capacity value to wind; they use

spinning reserve or fast-start generation to

compensate for any shortfalls. For example,

in Texas, ERCOT purchases these as “ancil-

lary services.” Others use wind power to store

energy for later use as on-peak capacity, for

example by pumping water into a storage fa-

cility and then dispatching the hydroelectric

energy during peak-demand periods.

Economically, the benefits of banking

wind energy are enormous. Wind is capri-

cious, but in most places it is stronger, and

therefore capable of producing more power,

at night, an off-peak time. Its value to a util-

ity ranges from $15/MWh to $50/MWh.

But in California, where wind speeds are

higher than average, the typical wind energy

price of over $70/MWh often causes nega-

tive cash flow for a utility. Even account-

ing for the value of RECs (whose prices are

estimated to climb as high as $30/MWh), a

50% loss per MWh would not be atypical.

To compare the economics of banked

energy versus unbanked wind energy, let’s

see what firming wind energy would cost.

Currently, the market is charging about

$20/MWh to bank wind energy. So, if we

purchase the wind energy for $75/MWh and

then add $15/MWh to firm it and $20/MWh

to bank it, we’re looking at $110/MWh as the

total cost of wind energy. However, banked

wind energy is more like solar power in that

it is renewable energy that can be received

on-peak. In fact, banked wind energy’s dis-

patchability makes it more valuable than so-

lar because its capacity is much firmer.

Banked wind energy can be used on-peak;

during the hottest summer days, it is worth

$80/MWh to $300/MWh. Even taking into

account the $30/MWh cost of a REC, buy-

ing wind at $110/MWh would be beneficial

to most utility bottom lines.

Contractually, the acquisition of wind en-

ergy will change drastically due to the bene-

Loss of wind pushes Texas to brink of blackoutThe Electric Reliability Council of Texas (ERCOT) narrowly missed a blackout on February 26 by activating the second stage of its emergency electric curtailment plant (EECP) and curtailing indus-trial loads to compensate for a steep drop in wind power capacity and a drop in frequency on the ERCOT grid just as the evening demand was increasing.

According to an ERCOT press release issued the following day, wind production dropped more than 1,700 MW in the middle of the afternoon of February 26 to 300 MW by early evening, when ERCOT activated its demand response procedures. Within 10 min-utes, industrial customers shed 1,100 MW of load, helping ERCOT avoid having to shed more load or to initiate rolling blackouts to avoid a broad system failure. Most of the interruptible loads were restored after roughly 90 minutes.

“Preliminary reports indicate the frequency decline was caused by a combination of events, including a drop in wind energy production at the same time the evening electricity load was in-creasing, accompanied by multiple power providers falling below their scheduled energy production,” the statement said.

Bad timingA 2007 study of the ERCOT system by General Electric concluded that the daily behavior of wind is “anti-correlated” with load, meaning that wind drops off sharply as the morning load builds, and builds up strongly as the nighttime load falls. This effect is most pronounced in late spring and summer, the study said.

The GE analysis, which relied on ERCOT data, also concluded that adding wind generation to the Texas grid increases the need to boost the percentage of overall power plant capacity set aside to provide ancillary services, which ensure that voltage levels and other reliability factors are maintained at optimal levels.

The report, which modeled scenarios assuming differing levels

of installed wind capacity, found that if Texas were to install 15,000 MW of wind capacity, more than 75% of it would be avail-able for use only 10% of the year.

“It’s obvious around here that the wind blows when we don’t need it as much, and that at peak times it’s not something we can rely on,” said ERCOT spokeswoman Dottie Roark the day after the grid emergency. “Wind works best in conjunction with other generation.”

Transmission troubleERCOT reported in January that wind provided only 2.9% of the 307 million MWh the state consumed in 2007. Wind’s share of the total Texas energy mix continues to climb, however. In 2006, wind met 2.1% of demand, while in 2005 wind energy amounted to 1.4% of the total MWh consumed in the state.

Texas, the nation’s wind generation leader, currently has 4,300 MW of installed wind capacity; projects totaling an additional 3,400 MW in capacity have signed contracts with prospective transmission providers. However, the state has only 5,000 MW of transmission capacity available to bring wind energy from west Texas—where virtually all of the wind capacity is located—to load centers in the eastern part of the state.

“Our biggest issue with wind is transmission congestion,” Roark said. “Obviously, we already have more installed capacity available than transmission capacity, and we have more than 40,000 MW of proposed wind projects in the queue.”

Though no one in ERCOT expects all of the 40,000 MW will be built, Texas clearly has a pressing need to build transmission to meet the growing demand for power in the state.

—By Chris Holly ([email protected]), a reporter with POWER’s sister publication,

The Energy Daily (www.theenergydaily.com).

Page 25: Powermag200805 Dl

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Page 26: Powermag200805 Dl

www.powermag.com POWER | May 200824

RENEWABLES

fits of banking. Some utilities, like Southern

California Edison (SCE), are willing to pay

a premium for power delivered on-peak but

much less for off-peak energy. For example,

if SCE secures a wind deal for $100/MWh,

the utility’s pro forma contract structures

payments so they average $100/MWh over

the year but are $328/MWh during the sum-

mer peak and $65/MWh during off-peak

periods and winter months. The acceptance

of energy banking by state energy regulators

will enable contracts to be restructured to

eliminate premium payments.

Connect the plantsBecause they are powered by an intermittent

resource, wind farms have an average capac-

ity factor that rarely exceeds 40%. This has

three negative and related consequences:

■ Much of the transmission capacity built

to deliver wind power to grids is under-

utilized.

■ Transmission must be overbuilt to de-

liver wind-generated electricity.

■ The cost of transmitting wind power is

two to three times that of transmitting the

production of conventional power plants.

However, if the wind energy is banked,

it can be transmitted as a firm resource, al-

lowing all of its transmission capacity to be

leveraged. Assuming a $7/MWh cost for

transmission and the usual wind power ca-

pacity factor of 33%, banking wind energy

and transmitting it later (raising the capacity

factor to 100%) would produce a potential

transmission savings of $14/MWh.

However, banking wind energy does pose

some challenges to transmitting it. Wind

farms are usually sited in remote areas where

the wind is strongest, so hundreds of miles

of transmission lines are typically needed

to bring their output to load centers. While

firm transmission is an increasingly scarce

commodity, transmitting wind energy in real

time has been less problematic because wind

speeds are usually higher during off-peak pe-

riods. At those times, transmission capacity

is readily available, although mostly as non-

firm, day-ahead scheduling. Banking wind

energy for on-peak consumption requires that

on-peak transmission be available to move it

to load centers. Since on-peak transmission is

harder to come by, other steps must be taken.

Members of the REC trading camp would

suggest that a utility do the following: Buy

the wind energy at one location, spin off its

RECs, and sell the wind energy as “brown

energy” locally. The utility can then combine

the RECs with brown energy at a second lo-

cation that has better transmission access.

Many in the camp believe that this legisla-

tive “sleight of hand” can help address the

need for green energy by making the short-

age of on-peak transmission moot. State

regulators may impose some restrictions on

how the trick is accomplished. For example,

the California Energy Commission’s guide-

book stipulates that the control area opera-

tor doing the firming and banking must be

part of the Western Electricity Coordinating

Council (WECC).

Guaranteeing generationOne of the obstacles preventing wind plants

from becoming a first-rate electricity re-

source is the inability of wind farm own-

ers and developers to accurately predict

and guarantee wind energy delivery. Wind

energy resource assessments typically use

several years’ worth of wind data. These

assessments typically develop estimates of

long-term mean wind speeds based on on-

site anemometer data or on reference an-

emometer data from a nearby location.

Once estimates of wind speeds have been

made, they can be used to create power curves

that estimate the electrical energy that wind

turbines would produce at each speed. The

resulting forecast, based on both estimates, is

a probability-based energy production level

for a wind farm. For example, “P99 energy”

is the term used for the annual amount of en-

ergy predicted to be available at a point of

delivery with a probability of 99% or greater.

“P50 energy” describes the (larger) amount

of annual energy expected to be available at

a probability of 50% or more.

Since P99 energy has a 99% probability

of meeting the expected energy production

level each year, it typically becomes the

“annual guaranteed energy” expected of a

particular wind farm. Accordingly, a wind

farm’s P99 level is calculated and certified

by an industry wind assessment expert. Per-

formance damages are sometimes sought if

the plant fails to deliver the guaranteed gen-

eration. Sometimes, a “failure to perform”

clause in a contract is triggered at a certain

percentage of the P50 level or of another P

level. It all depends on the negotiations be-

tween the utility customer and the owner of

the wind farm.

Probability-based energy production lev-

els also affect the building of wind farms

because, as part of their financing, the level

of expected revenues is based on substanti-

ated generation numbers. If a wind farm’s

guaranteed generation is from P99 wind,

any revenues from additional sales of wind

power with a lower P level are not used to-

ward capital recovery or to meet investors’

return on investment targets. For this reason,

the price of wind power at other P levels is

usually substantially less than that of P99

wind. Since the only real costs incurred

by the seller are incremental operation and

maintenance costs, the prices paid for wind

energy at levels other than P99 are typically

60% of that paid for P99 wind.

This bracketing combination of minimum

annual energy guarantees and lower prices

for non-P99 wind encourages wind farm de-

velopers to accurately present the generating

capability of their plants. If the guaranteed

generation is set too low, then more energy

would be sold at the discounted rate each

year. Conversely, if the guarantee is set too

high, performance obligations might not al-

ways be met and could possibly result in the

assessment of costly damage payments.

In planning their renewable resource

portfolios, utilities typically choose suppli-

ers willing to guarantee wind energy gen-

eration with low levels of uncertainty. The

ability of wind farm developers to offer and

meet an annual level of guaranteed genera-

tion is a significant milestone for an industry

on the cusp of maturity.

Guaranteeing availabilityAs wind power becomes more important

to more utility resource portfolios, so does

the availability of wind farms. Some utili-

ties address the issue by specifying in their

contracts with wind farms a target mechani-

cal availability for the project, such as 98%

for smaller wind turbines or 95% for the

megawatt-size turbines. This, along with an-

nual generation guarantees, enables them to

more effectively establish the reliability of

wind power resources. The two guarantees

work hand-in-glove, because it is conceiv-

able that a wind farm could meet its annual

guaranteed generation level with poorly

performing wind turbines. Typically, guar-

anteed generation is an annual target, while

mechanical availability is based on quarterly

turbine performance statistics.

The main objective of requiring mechani-

cal availability is to ensure that a wind farm

is properly maintained and operated. But it

also ensures that a minimum amount of en-

ergy is generated over a given period if the

minimum mechanical availability number

of the wind turbines is met. If this mini-

mum production is not achieved, an energy

shortfall will be declared and the wind farm

owner will have to find a way to make up the

difference that would have been generated

had the turbines been fully available.

Calculating the guaranteed generation of

a typical wind plant for a given period of

time (usually one quarter of a year) illus-

trates these points. Guaranteed generation is

calculated using the following formula:

GG = EQE x MAF = EQE x MAR x AH/TH

Page 27: Powermag200805 Dl

May 2008 | POWER www.powermag.com 25

RENEWABLES

Where: GG is guaranteed gen-

eration.

EQE is the expected quarterly en-

ergy generated.

MAF is the mechanical avail-

ability factor. (Wind turbine manu-

facturers typically guarantee the

mechanical availability of their units

for two to five years following instal-

lation. After this period, it is up to the

wind farm owner/operator to perform

the maintenance necessary to ensure

their required availability.)

MAR is the mechanical availabil-

ity requirement (a percentage usu-

ally around 97%).

AH is actual hours—the number

of hours in the given period, less

two hourly sums. They are the total

hours during the period that turbines

are not operational because (1) they

are being maintained, (2) there is a

major power system emergency, or

(3) wind conditions are too weak or

strong.

TH is total available hours—the

number of hours in a given period

during which a wind farm’s turbines

are physically capable of producing

electricity.

Example calculationConsider a 50-MW wind farm with an an-

nual 35% capacity factor and turbines

whose required mechanical availability is

97% for a given quarter. Now assume that,

during a 90-day quarter, the wind farm has

30 hours of scheduled maintenance, 10

hours of power system emergency, and 40

hours when wind speeds are above or below

the turbines’ operating range. Further, as-

sume that during that quarter the wind farm

generated 34,800 MWh.

For this quarter, the AH of the turbines is

calculated as:

AH = (24 hours/day x 90 days/quarter) – (30 hr + 10 hr + 40 hr) = 2,080 hrSince there are 2,160 hours in a calendar

quarter, the turbines’ MAF during the same

quarter would be:

MAF = 0.97(2,080/2,160) = 0.9341The wind farm’s GG for this quarter

would be the product of its EQE and MAF.

In this case, the EQE would be the product

of 50 MW, the number of hours in the quar-

ter, and the projected capacity factor. Using

our definitions, EQE would be 50 MW x

2,160 hours x 35%, or 37,800 MWh.

As a result, the wind farm’s GG for this

quarter is 37,800 MWh x 0.9341, or 35,309

MWh. Because only 34,800 MWh are de-

livered to the meter, there would a short-

fall of 509 MWh that the wind farm owner

would have to make up.

Utilities typically buy wind energy us-

ing a power purchase agreement that may

include an option to purchase the wind farm

later as well, after its tax credits have ex-

pired (usually 10 years after its commission-

ing). In such cases, mechanical availability

guarantees take on even more importance.

Obviously, the utility would prefer the wind

farm to have a high availability when it takes

ownership. The operator, on the other hand,

would be financially motivated to let turbine

maintenance slip the last few years of opera-

tion. Guarantees of mechanical availability

give wind farm operators an incentive to be

conscientious about maintenance right up to

the turnover date. ■

—Robert Castro ([email protected]) teaches graduate level power

classes at the University of Southern California and negotiates wind gen-

eration contracts for a local utility. Fernando Pardo ([email protected]) is a

supervisor of renewable energy development at a local utility.

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www.powermag.com POWER | May 200826

MERCURY CONTROL

Future of national mercury rule now uncertainThis February, a federal appeals court tossed out the Clean Air Mercury Rule

and its cap-and-trade program and ordered that mercury be regulated more stringently as a hazardous air pollutant. Adding insult to injury, the court made its ruling effective one month later. While the EPA regroups, state energy and environmental regulators will have an opportunity to look closely at recent power plant permits for guidance. This article reviews the technology options and regulatory approach for mercury control used on recently permitted and currently operating coal-fired plants.

By Christopher Wedig; Dr. William Frazier, PE; and Ethan Begg, PE, The Shaw Group

As the baseball great Yogi Berra once

said, “It’s déjà vu all over again.”

On February 8, the U.S. Court of

Appeals for the D.C. Circuit dismissed the

Clean Air Mercury Rule (CAMR). The U.S.

Environmental Protection Agency (EPA)

wrote the CAMR assuming that mercury

should be regulated under Clean Air Act

(CAA) Section 111, which sets national emis-

sion standards for new stationary sources.

But the court reinstated a more stringent re-

gime under CAA Section 112, which governs

hazardous air pollutants (HAPs). Section 112

regulation of mercury requires meeting maxi-

mum achievable control technology (MACT)

standards—and eliminating the mercury cap-

and-trade program.

In the wake of this decision, coal-fired

power projects currently in their planning

or permitting phases may need to reevaluate

whether their mercury control technology ap-

proach complies with their state’s standard.

New federal regulations under Section 112

aren’t expected for several years.

The EPA lost a fight with 15 states, which

convinced the U.S. Court of Appeals for

the Washington, D.C., circuit that both the

CAMR and an EPA rule removing power

plants from the list of sources of HAPs (plac-

ing them beyond the jurisdiction of Section

112) violate the CAA. On February 8, the

court issued a decision that vacated both

rules effective March 14, 2008. This leaves in

place the original December 2000 judgment

by the EPA that electric utilities should be

regulated under Section 112. A case-by-case

MACT for HAPs may be required for new

solid-fuel facility permits.

The EPA is currently reviewing the deci-

sions and evaluating their possible impacts.

Many anticipate the new regulatory regime

will require major new sources of HAPs,

including power plants, to conduct case-by-

case preconstruction reviews of their mer-

cury control strategies until a new MACT

standard is developed and promulgated.

States take center stageAt least 21 states have proposed, finalized,

or implemented mercury limits or alloca-

tion procedures that are more stringent than

the CAMR. In addition to the CAMR and

state-specific rules, consent decrees between

certain sources and regulatory agencies also

have affected the mercury control technology

landscape.

Some coal-fired power plants recently

have been issued air permits that limit their

emissions of mercury. In most cases, the lim-

its were established prior to the February rul-

ing. For some permits, the limits were based

on recently updated New Source Perfor-

mance Standards (NSPS) for electric utility

steam generating units that in turn are based

on the unit’s generating technology and fuel.

In other cases, the limits were established as

part of a MACT evaluation for mercury.

Several new coal-fired power plant proj-

ects currently in their permitting phase are

now assessing the implications of the recent

court ruling. Some of the recently issued air

quality permits call for the use of a specific

mercury control technology. Many specify

the injection of a sorbent such as activated

carbon or halogenated activated carbon for

mercury control.

Mercury projects continueMercury control technologies currently

available for use by utilities have evolved

from numerous laboratory, pilot, and demon-

stration-scale test programs completed in the

mid-to-late 1990s and tested at various levels

in the field since 2001.

Much of the full-scale mercury control

technology testing has been sponsored by the

DOE’s National Energy Technology Labora-

tory (NETL). NETL’s program is currently

focused on slip-stream and full-scale field

testing of mercury control technologies at

operating coal-fired power plants. The lab’s

longer-term goal is to develop advanced mer-

cury control technologies capable of 90% or

greater capture for commercial demonstra-

tion by 2010. Many of the field tests spon-

sored by NETL were conducted at full scale

for short periods of time.

For example, during Phase I of the NETL

program, testing conducted in 2001 and 2002

evaluated the mercury capture efficiency of

activated carbon injection (ACI) at four coal-

fired power plants. The 14 projects selected

for Phase II of the NETL program fall into

two general categories of mercury control:

sorbent injection and oxidation enhance-

ments. Mercury oxidation enhancements

are intended to improve mercury capture of

conventional ACI or downstream air quality

control systems (AQCS) by converting mer-

cury to a more oxidized state. The 14 Phase

II projects sponsored by NETL include 37

field tests performed at 30 different generat-

ing units.

This program evaluated a wide range of

coals, including coals from the Powder River

Basin (PRB); low-, medium-, and high-sulfur

bituminous coals; North Dakota lignites; and

blends of PRB coal and bituminous coal and

Texas lignite. Although the field tests cov-

ered numerous types of AQCS, most were

performed on cold-side electrostatic precipi-

tators (ESPs), the most common AQCS used

by existing coal plants.

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MERCURY CONTROL

In addition to the NETL Phase I and II field

tests, the DOE, under its Clean Coal Demon-

stration Program, is sponsoring a commercial

demonstration of the Toxecon process. (See

POWER’s special October 2004 issue for a

detailed description of it and other technol-

ogy options for mercury control.) Toxecon

is an EPRI-patented process. It relies on the

injection of sorbents (including powdered ac-

tivated carbon for mercury control, and other

sorbents for NOx and SOx control) into the

flue gas downstream of an existing particu-

late control device and the collection of the

resulting compounds by a new particulate

control device, typically a pulse-jet fabric fil-

ter or baghouse (BH).

Trends in compliance technologyAs mentioned, many new coal-fired power

plants have specific mercury control technol-

ogy identified in their air permit (Table 1).

Many of the new plants will use spray dryer/

absorbers (SDAs) and BHs to control SO2

and particulate matter, and selective catalytic

reduction (SCR) systems for NOx control.

Variations abound. For example, the AQCS

configuration at one station is a BH followed

by a wet flue gas desulfurization (FGD)

system and a wet ESP. At another plant, the

configuration is a dry ESP followed by a wet

FGD system and a wet ESP.

There are many other new plants not listed

in Table 1 whose air permit specifies a mer-

cury emission limit but not a particular con-

trol technology. In these cases, the project

developers will need to consider whether the

co-benefit mercury removal provided by the

AQCS chosen for SO2, NOx, and particulate

matter control (using the design fuels) will be

adequate to meet the permitted mercury lim-

it. In some instances, project developers may

elect to install an ACI system—even though

it is not required by the air permit—to ensure

meeting the permitted mercury emission lim-

its. Although the incremental capital cost of

an ACI system is relatively small compared

to that of the entire plant, the cost of the ac-

tivated carbon needed to operate the system

can be significant.

The Institute of Clean Air Companies

(ICAC) maintains listings of commercial

mercury control systems ordered by electric

utilities for both new plants and retrofit ap-

plications. Table 2, which was updated this

February, summarizes the control technol-

ogy bookings for new plants. According

to the ICAC, the regulatory driver of all 17

bookings listed is the project’s construc-

tion permit. Significantly, there was a big

increase in bookings since the last update

of the database in September 2006. Table 3

summarizes the ICAC’s data on retrofit mer-

cury control projects.

Parameter Observation

Number of bookings 17

700 MW (median)

West—2

South—3

Southwest—2

East—2

Canada—1

Prime OEM contractors

Five different process supplier teams

Bituminous—5

Lignite—3

Canadian subbituminous—1

ESP/WFGD/wet ESP—3

FF/WFGD—5

CFB boiler/FF—1

Mercury control technology

ACI—17

Notes: ACI = activated carbon injection, BH = baghouse, CFB = circulating fluidized-bed boiler, ESP = electrostatic precipitator, FF = fabric filter, SDA = spray dryer/absorber, WFGD = wet flue gas desulfurization system.

220–860 MW (range)Unit size

Midwest—7Location

PRB—8Coal type

SDA/FF—8Air quality control system configuration

Table 2. Commercial mercury con-trol technology bookings for new coal-fired utility plants. Source: Insti-tute of Clean Air Companies

Parameter Observation

Number of bookings 65

90–880 MW (range)

460 MW (median)

Midwest—33

West—3

South—4

Southwest—10

East—11

Northeast—4

Prime OEM contractors 15 different suppliers

PRB—43

Bituminous—14

Bituminous/biomass—1

Lignite—3

Western bituminous/subbituminous—4

Activated carbon injection—64

Powerspan’s ECO process—1

Consent decree—9

State rule—35

Construction permit—7

DOE demonstration—1Voluntary

regional emission abatement plan—8

Clean Air Mercury Rule—5

Regulatory driver

Unit size

Location

Coal type

Mercury control technology

Table 3. Commercial mercury con-trol technology bookings for retro-fit utility mercury control projects. Source: Institute of Clean Air Companies

Unit StateMercury control

technologyHg emission

limit

Plant A Georgia 2 x 645 PRB and central Appalachian

Halogenated ACI 15 lb/106 MWh

Plant B Nebraska 660 PRB Sorbent injection 18 lb/106 MWh

Plant C Wisconsin 600 PRB Sorbent injection 1.7 lb/1012 Btu

Plant D Nevada 200 PRB ACI 20 lb/106 MWh

Plant E Montana 116 PRB ACI or equivalent

Based on demonstration period

Plant F Texas 800 PRB Halogenated ACI 20 lb/106 MWh

Plant G Montana 2 x 390 Western bituminous

ACI or equivalent

1.5 lb/1012 Btu or 90% control

Plant H Illinois 250 High-sulfur bituminous

ACI (if not 95% removal)

95% removal without ACI, or use ACI

Plant I Illinois 2 x 750 High-sulfur bituminous

ACI (if not 95% removal)

95% removal without ACI, or use ACI

Plant J Nevada 3 x 530 PRB Halogenated ACI 20 lb/106 MWh

Plant K Colorado 750 PRB Sorbent injection 20 lb/106 MWh

Plant L Texas 2 x 860 Lignite Treated ACI 9.2 lb/1012 Btu

Plant M Iowa 790 PRB ACI 1.7 lb/1012 Btu

Notes: ACI = activated carbon injection, Hg = mercury, PRB = Powder River Basin.

Capacity(MW)

Primarycoal supply

Table 1. Examples of new coal-fired facilities whose air permit specifies a mercury control technology. Source: Shaw Group

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MERCURY CONTROL

Many options availableTable 4 lists 10 of the many significant ret-

rofit full-scale mercury control projects in

the U.S. currently in the design, construc-

tion, and/or initial operation phase. As the

right column shows, not all make use of ACI;

some projects achieve mercury reduction as

a co-benefit of the operation of their AQCS

devices, in any of several configurations.

Co-benefit mercury removal (Table 5)

is defined as the reduction of mercury con-

centration in flue gas by an AQCS device

primarily designed to control emissions of

another parameter such as SO2, SO3, NOx,

particulate matter (PM), or CO2. Although

the level of co-benefit mercury removal may

be incidental, there are ways to design and/or

operate an AQCS to improve its Hg removal

NameUnit size

(MW, nominal) Primary coal supply AQCS configuration Mercury control process

Trona injection for SO2 control (retrofit)

FF for control of SO2, Hg, and PM (retrofit)

Trona injection for SO2 control (retrofit)

FF for control of SO2, Hg, and PM (retrofit)

ESPs for flyash control (existing)

Lime SDA for SO2 control (retrofit)

FF for control of SO2, Hg, and PM (retrofit)

ESPs for flyash control (existing)

Wet LSFO FGD system for SO2 control (retrofit)

Clean-side SCR system for NOx control (existing)

Clean-side SCR system for NOx control (existing)

Lime SDA for SO2 control (retrofit)

FF for control of SO2, Hg, and PM (retrofit)

FF for control of Hg and PM (retrofit)

ESP for flyash control (existing)

Lime SDA for SO2 control (retrofit)

FF for control of SO2, Hg, and PM (retrofit)

ESP for flyash control (existing)

Wet LSFO FGD system for SO2 control (retrofit)

ESPs for flyash control (existing)

Lime SDA for SO2 control (retrofit)

FF for control of SO, Hg, and PM (retrofit)

Notes: ACI = activated carbon injection, AQCS = air quality control system, ESP = electrostatic precipitator, FF = fabric filter; FGD = flue gas desulfurization, Hg = mercury, LSFO = limestone forced-oxidation, PM = particulate matter, SCR = selective catalytic reduction, SDA = spray dryer/absorber, SNCR = selective noncatalytic reduction.

SNCR for NOx control (retrofit)Plant A 100 PRB ACI between trona injection and FF (retrofit)

SNCR for NOx control (retrofit)Plant B 200 PRB ACI between trona injection and FF (retrofit)

High-dust SCR system for NOx control (retrofit)Plant C 250 Low-sulfur coal ACI between SDA and FF (retrofit)

High-dust SCR system for NOx control (retrofit)Plant D 335 Bituminous coal Retrofit LSFO FGD also removes ionic Hg

ESP for flyash control (existing)Plant E 350 Low-sulfur coal ACI upstream of existing ESP

ESP for flyash control (existing)Plant F 350 Bituminous coal ACI between SDA and FF (retrofit)

ESP for flyash control (existing)Plant G 400 Low-sulfur coal ACI upstream of FF (retrofit)

High-dust SCR system for NOx control (retrofit)Plant H 610 Bituminous coal ACI between SDA and FF (retrofit)

High-dust SCR system for NOx control (existing)Plant I 635 Bituminous coal Retrofit LSFO FGD also removes ionic Hg

High-dust SCR system for NOx control (retrofit)Plant J 650 PRB ACI upstream of SDA (retrofit)

Table 4. Some retrofit mercury control projects in which Shaw Group has been involved. Source: Shaw Group

AQCS device Removal process

SCR system Neutral Hg to ionic Hg.

Existing ESP or BH Removes some Hg-particulate and flyash (flyash LOI can lower concentrations of Hg2+ and Hg0).

SDA + FGD Adsorption of Hg in lime by-product solids at cool temperatures, with PM and solids removed in baghouse.

Wet FGD Ionic Hg and PM absorbed in FGD slurry at cool temperatures. Additives used to minimize re-emission of Hg0.

Multipollutant processes Ionizer reactors achieve Hg oxidation, followed by Hg absorption at cool temperatures in a wet FGD, with further removal in WESP.

Notes: AQCS = air quality control system, BH = baghouse, ESP = electrostatic precipitator, FGD = flue gas desulfurization system, Hg = mercury, LOI = loss-on-ignition, PM = particulate matter, SCR = selective catalytic reduction, SDA = spray dryer/absorber, WESP = wet ESP.

Table 5. Co-benefit mercury removal is possible from several air-qual-ity control devices that were primarily designed to limit emissions of another pollutant. Source: Shaw Group

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MERCURY CONTROL

efficiency. The degree of co-benefit Hg reduction depends on both the

type of AQCS device being used as well as its process parameters.

These variables include:

■ The use of an ESP or baghouse to reduce flyash loss-on-ignition.

■ The oxidation of neutral Hg to ionic Hg by an SCR system.

■ The presence of a dry FGD system (an SDA, a BH, and a circulat-

ing dry scrubber with sorbent injection).

■ The existence of a wet FGD system (with or without additives, to

minimize conversion of ionic Hg to neutral Hg).

■ The use of a multipollutant control process based on ionizer reac-

tors, absorbers, and wet ESP(s).

■ The use of ACI with an ESP, BH, or SDA (influences SO3 reduc-

tion levels).

■ The use of brominated ACI with an ESP, BH, or SDA.

■ The use of a demonstration- or R&D-phase mercury oxidation

catalyst.

■ Use of a fuel additive or boiler chemical injection to convert neutral

Hg to ionic Hg.

Table 6 presents examples of typical co-benefit mercury removal

efficiency levels for various AQCS devices. Co-benefit mercury con-

trol using wet and dry FGD systems is a function of the following

parameters:

■ The coal’s type and its concentrations of Hg, chlorine, bromine,

fluorine, and sulfur.

■ The level of mercury speciation (ionic, elemental, particulate).

■ The extent to which the SCR’s catalyst oxidizes mercury.

■ Required levels of mercury reduction and stack emissions.

■ The extent to which both wet and dry FGD systems reduce the

concentration of mercury in flue gas.

■ The level of mercury capture by the FGD system.

An FGD system can remove several compounds from a flue gas

stream. They include SO2 and SO3, nitrogen dioxide (NO2), PM, mer-

cury (in its ionic form), other trace elements (selenium, lead, arse-

nic, etc.), ammonia (NH3), hydrogen chloride (HCl), and hydrogen

fluoride (HF). On some FGD projects, guaranteed trace species co-

removal has been requested. Fortunately, both wet and dry FGD are

compatible with ACI.

Finally, every utility coal-fired boiler has unique design issues that

must be addressed as part of any mercury control program. For plants

with existing FGD systems, upgrading the FGD system for increased

mercury co-removal is an option that could pay huge dividends. The

benefits may go well beyond reducing the bare cost of mercury re-

moval to include:

■ Increased SO2 removal (producing valuable credits).

■ Increasing the amount of flue gas scrubbed.

■ Increasing mercury removal efficiency.

■ Allowing the plant to use a higher-sulfur coal or pet coke or fuel

oil.

■ The use of a limestone forced-oxidation FGD system to yield wall-

board- and/or cement-grade gypsum.

■ The ability to test larger atomizer drives in an existing SDA/FGD.

■ Increased reliability of an existing FGD system.

■ The ability to repair severe corrosion of FGD system materials. ■

—Christopher Wedig ([email protected]) is a senior technology specialist with the Power Group of

The Shaw Group. Dr. William Frazier, PE ([email protected]) is an

executive environmental consultant for Stone & Webster Management Consultants, Inc., a Shaw Group company.

Ethan Begg, PE ([email protected]) is a client program manager with the

Environmental & Infrastructure Group of Shaw Group.

Table 6. Comparing the mercury removal efficiencies of various AQCS processes. Source: Shaw Group

AQCS processTypical mercury

removal efficiency Comments

SCR oxidation 10% to ~ 90% oxidation of neutral Hg to ionic Hg

Level depends on coal’s type and chlorine and bromine content and on SCR system’s catalyst type, space velocity, and gas temperature.

Existing ESP or FF without ACI

5% to ~ 30% total Hg typical with higher values

Level depends on LOI of flyash, coal’s chlorine and bromine content, and ESP’s specific collection area.

Dry FGD with FF; lime SDA without injection of PAC

Up to ~ 80% to 90% ionic Hg removal in SDA/FF

Level depends on coal’s chlorine and bromine concentration and flue gas temperature, among other factors. Eastern bituminous coal typically has more oxidized Hg in its combustion products than does PRB coal.

Wet FGD; LSFO FGD without a WESP or injection of PAC

Up to ~ 90% ionic Hg removal

May require additives in wet FGD to reduce Hg reemission.

Multipollutant processes (with reactor/FGD/WESP) without PAC injection

Up to ~ 90% total Hg removal

Level depends on designs of reactor, FGD, and WESP.

Notes: ACI = activated carbon injection, AQCS = air quality control system, ESP = electrostatic precipitator, FF = fabric filter; FGD = flue gas desulfurization, Hg = mercury, LSFO = limestone forced-oxidation, PAC = powdered activated carbon, PM = particulate matter, PRB = Powder River Basin, SCR = selective catalytic reduction, SDA = spray dryer/absorber, WESP = wet ESP.

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WATER TREATMENT

Cation conductivity monitoring: A reality checkThe ability to detect contaminated feedwater or steam before it can corrode the

internals of a turbine or HRSG and cause a forced outage is worth millions. One knock against cation conductivity monitoring—still the most com-mon technique for the early detection of contamination—is the difficulty of interpreting conductivity readings when the plant’s makeup contains significant levels of organics or CO2. Here are the pros and cons of cation conductivity monitoriting and some alternative monitoring methods.

By David G. Daniels, M&M Engineering Associates Inc.

The operators of a new combined-cycle

plant being run in two-shift mode (on

16 hours, off 8) had become used to the

cation conductivity sample of the condensate

pump discharge being in alarm for a while

following each day’s start-up. Normally, after

a few hours of operation, the reading dropped

to an acceptable limit. So, when cation con-

ductivity didn’t drop as usual and the alarm

never cleared, a problem wasn’t caught in

time. Scratching their heads over the high

reading, the operators guessed, “Maybe the

cation column needs to be replaced.”

Weeks later, what had been a small con-

denser tube leak suddenly became big enough

to contaminate the plant’s heat-recovery

steam generator (HRSG) and steam turbine.

Although the large leak was quickly detected

and the plant shut down, it took nearly three

months to clean up and recondition the tur-

bine. Despite the repairs, the long-term dam-

age done to the expensive new turbine is

still really anybody’s guess. Had the opera-

tors not ignored the high cation conductivity

reading at the condensate pump discharge,

they would have known they had a problem.

Locating and plugging the leaking condenser

tube would have been easy and would have

avoided the repair costs and millions of dol-

lars in lost generation revenues.

Unfortunately, this kind of story has be-

come commonplace. A change in cation con-

ductivity has been the first indication of many

problems, but it has been ignored until major

contamination occurs. Nevertheless, some

operators have said that it is unnecessary

(and, in some cases, impossible) to strictly

follow ASME, EPRI, or a turbine manufac-

turer’s guidelines for cation conductivity.

Their comments might suggest to some that

the parameter is no longer important.

To be sure, some conventional fossil fuel–

fired boilers and combined-cycle plants have

operated for many years with the cation con-

ductivity of feedwater or steam at levels well

above what is considered normal. Indeed,

one combined-cycle plant has been run for

more than 15 years with cation conductivity

more than an order of magnitude higher than

the recommended limit of 0.25 μS/cm (mi-

croSiemens per centimeter) without causing

corrosion or cracks in its turbine. Here’s why

this plant has avoided problems. Because its

water supply has significant concentrations

of naturally occurring organic compounds, it

adds both organic amines and a carbon-con-

taining oxygen scavenger (a reducing agent)

when preparing makeup.

Another case of unexpected immunity

occurred at an older plant that recently pur-

chased its first cation conductivity analyzer.

Following installation, the unit immediately

indicated a high level in feedwater, and the

cation resin columns were exhausting in a

few days. This plant’s condensers have stain-

less steel tubing that has never leaked. I have

regularly inspected the boilers, deaerators, and

other equipment at this plant for several years.

The steam drum and tubing are in excellent

condition. Every time the turbine is inspected,

there are no signs of cracking or pitting. As at

the other plant, the additions of amine and the

CO2 picked up by the condensate drive feed-

water and steam cation conductivity high.

Useful or not?Is cation conductivity so important that

high values justify taking a unit off-line? Or

should the parameter be ignored in favor of

other analytical chemistry tools?

Based on the experience of M&M Engi-

neering Associates, measuring cation con-

ductivity remains one of the most sensitive,

simple, and reliable tools for detecting small

amounts of contamination in feedwater and

steam. Working in concert with sodium and

other monitoring, cation conductivity moni-

toring can confirm that your feedwater is

clean enough to be turned into steam that

won’t damage your turbine. However, many

operators find it difficult to interpret cation

conductivity readings, particularly at plants

whose steam generators use water contain-

ing either naturally occurring or purposefully

added organic compounds.

To understand the difficulty, it’s important to

know what cation conductivity is and is not.

Actually, “cation conductivity” is a misno-

mer. A more precise name would be “cation-ex-

changed conductivity,” because it is a measure

of the conductivity of a solution after it has been

passed through a strong acid cation exchange

resin. This resin exchanges all the cations in

the sample for hydrogen ions. In high-purity

samples (such as of condensate, feedwater, or

steam), the cation exchanged is primarily am-

monium ions. What passes through the resin un-

scathed are all the anions in the sample. These

are primarily anions of dissolved carbon diox-

ide (bicarbonate), the anions of any organic ac-

ids such as formate or acetate, and (it is hoped)

traces of chloride and sulfate.

Because the ammonium ion is removed and

exchanged for hydrogen, the pH of the water

1. Scaled up. Proper attention to cation conductivity monitoring might have prevent-ed this damage to turbine blades. Courtesy: M&M Engineering Associates

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May 2008 | POWER www.powermag.com 33

WATER TREATMENT

exiting the column is more acidic than it was en-

tering. This has led some to use the term “acid

conductivity” to describe cation conductivity.

Chloride and sulfate are known to con-

tribute to corrosion fatigue in turbine blades,

particularly those in the final rows of the

low-pressure section. It is chloride and sul-

fate contamination that cation conductivity is

really intended to detect. Early detection of

this contamination can allow a plant time to

correct contamination before it causes depos-

its and corrosion on the turbine (Figure 1).

What cation conductivity is not is a reflec-

tion of a single parameter, as in the case of

sodium or silica analysis. Similar to specific

conductivity, cation conductivity represents

the sum of the conductivities of all the an-

ions that remain in the solution, with a small

contribution from hydrogen ions. In fact, if

cation conductivity measurements of steam

represented the level of a single parameter,

such as chloride, they would not be suffi-

ciently sensitive to be of much value.

The theoretical cation conductivity of a

2-ppb chloride (hydrochloric acid) solution

is 0.063 μS/cm, barely above the theoreti-

cal minimum of 0.055 μS/cm. Most turbine

manufacturers call for the chloride level in the

steam to be below 2 ppb under normal con-

ditions. The steam’s chloride concentration

would have to rise to nearly 20 ppb before the

resultant cation conductivity would exceed the

generally accepted normal cation conductivity

limit of 0.2 μS/cm. Steam entering a turbine

with a 20-ppb chloride concentration would

be considered grossly contaminated.

What makes cation conductivity moni-

toring so valuable is that contamination of

feedwater or steam is rarely due to a sin-

gle contaminant. When a condenser tube

springs a leak, chloride, sulfate, carbonate,

and many other anions contaminate con-

densate and feedwater. The combined effect

will significantly raise cation conductivity

and provide the desired early warning even

when the individual contamination lev-

els are small. Of course, if there is a large

contribution from CO2 or organic acids, the

problem may not be detected until it is too

late. Carbon dioxide in steam is too volatile

to create a low-pH environment for turbine

blades and therefore cannot cause corrosion.

Whether or not organic acids can damage a

turbine is an area of active research.

Turbine manufacturers are very aware of

the long-term damage that can be caused by

even low levels of chloride and sulfate. The

simplest, most reliable way to detect such

contamination in real time has been cation

conductivity. Therefore, turbine OEMs have

set cation conductivity limits where a sig-

nificant contribution from CO2 or organic

acids cannot be tolerated.

During plant commissioning, for example,

CO2 and other organic chemicals in first steam

can raise the cation conductivity level so high

that meeting the warranty limits specified by

the turbine manufacturer(s) seems impos-

sible. This leaves the plant two unpalatable

options: invest in additional water treatment

equipment to remove the offending organic

chemicals, or use a more sophisticated tool—

such as ion chromatography—to prove the

absence of chloride and sulfate in the steam.

Turbine original equipment manufacturers

often require that, during routine start-ups,

the cation conductivity of steam be less than

1 μS/cm before it can be admitted into the

prime mover. Sampling problems and CO2

in the condensate can result in levels higher

than that, unnecessarily delaying start-ups.

“New and improved” cation conductivityBecause cation conductivity is so simple and

reliable, significant efforts continue to be

made to improve the technique by removing

interferences from carbon dioxide, in par-

ticular. The new parameter to be monitored

and analyzed goes by the name of degassed

cation conductivity. Because the pH of the

sample following the strong acid cation resin

is acidic, most, if not all, of the CO2 in the

sample is in the form of a dissolved gas. The

most common way to remove it is to drive it

off with heat using a reboiler. After the sam-

ple is passed through the strong acid cation

resin, it is heated to near boiling, cooled to

77F, and then sent to a conductivity meter.

The most common complaint about re-

boiler-style degassed cation conductivity is

unreliability. The temperature control of the

reboiler is critical—too low or too high pro-

duces unreliable results. What’s more, the

temperature of the sample after the reboiler

can affect the result.

The CO2 also can be removed by sparging

it out with nitrogen gas through an empty or

packed column. Nitrogen purge systems are

typically only used during start-ups until the

regular cation conductivity value drops to

a normal level. The systems’ nitrogen con-

sumption rate makes them impractical for

continuous use. For units that only experience

high cation conductivity during start-ups, ni-

trogen sparging may be all that is required.

A relatively new technique uses a spinning-

disk reactor and CO2-free air as the purge gas.

The air is first passed through a molecular

sieve to remove all the CO2. The water sample

passes through the cation column and then is

mixed with the CO2-free air and put through

the reactor, whose large surface area creates

air bubbles that strip the CO2 from the sample.

The reactor removes about 70% of the CO2,

so it does not completely remove the interfer-

ence. But the results are good enough to get

within the desired limits. This method does

not require heating or cooling the sample.

Seeing differently Because some plant operators and chemists

have had problems with degassed cation con-

ductivity monitoring, they have looked for

other ways to detect parts-per-billion levels

of contamination in condensate. Here are

three that we have seen used successfully.

Sodium. On-line sodium analyzers have

become more reliable and simpler to main-

tain. A number of manufacturers—including

Swan Analytical Instruments (www.swan.ch),

Thermo Fisher Scientific Inc. (www.thermo.

com), and Hach (www.hach.com)—make so-

dium analyzers that can reliably detect 0.1 ppb

of sodium. Swan’s Soditrace model claims the

industry’s lowest detection limit for sodium

ion concentrations of 1 part per trillion (0.001

ppb). Figure 2 shows Hach’s unit.

Most cooling water contains sodium con-

centrations of the same order of magnitude

as those for chloride or sulfate. Therefore, so-

dium detection in condensate, even at the 0.1

ppb level, becomes an excellent early warn-

ing system for condenser tube leaks or sodium

leakage from water pretreatment systems.

However, sodium analysis doesn’t address

chloride or sulfate concentrations directly. For

that reason, M&M strongly recommends using

both cation conductivity and sodium monitors

not only on the main steam sample but also at

the hotwell or condensate pump discharge (or,

2. How low can you go? Hach’s Poly-metron 9245 sodium analyzer boasts a sen-sitivity of 0.01 ppb. To maintain an optimum response time in low-sodium solutions, the analyzer automatically reactivates the elec-trode using nonhazardous chemicals. Cour-tesy: Hach Company

Page 36: Powermag200805 Dl

www.powermag.com POWER | May 200834

WATER TREATMENT

if there are condensate polishers, downstream

of them). Sodium monitoring is the only way

to detect caustic contamination.

Chloride. As part of its Orion line, Ther-

mo Fisher Scientific offers a chloride monitor

that can detect levels as low as 0.1 ppm (Fig-

ure 3). Though this sensitivity level is insuf-

ficient to detect contamination of feedwater,

it has been used very successfully to continu-

ously monitor chloride levels in boilers and

HRSGs. Because contamination quickly con-

centrates in steam generators, this instrument

can provide the desired early warning.

Ion chromatography. The only tech-

nique that can directly analyze for chloride,

sulfate, and phosphate with a single sample

injection is ion chromatography. If desired,

an ion chromatograph can even be config-

ured to analyze for organic acids such as

formic and acetic acid. Great strides have

been made in simplifying the technique.

However, it still requires significant dedica-

tion to set up and maintain calibration on an

ion chromatograph—particularly one that is

detecting ppb levels of contamination.

Those who make that commitment usu-

ally end up feeling it was worth the effort.

For example, lab techs at a large coal-fired

plant that for years has used an on-line ion

chromatograph from Dionex Corp. (www

.dionex.com) have been very pleased with the

results. By the way, the plant’s control room

operators still use cation conductivity ana-

lyzers to monitor feedwater purity. Why? Ion

chromatography analysis of a single sample

for chloride, phosphate, and sulfate can take

quite a few minutes. And if you’re measur-

ing multiple sample points, you may only get

one analysis per point per hour. Cation con-

ductivity measurement, on the other hand, is

essentially continuous.

Don’t drive blindWhether you monitor cation conductivity or

degassed cation conductivity alone or in com-

bination with other analytical techniques, it

is essential that your instruments be reliable,

on-line continuously, and sensitive enough

to detect contamination early enough to take

corrective action to prevent corrosion.

You would never think of operating your

car at night without headlights. Don’t oper-

ate your steam turbines and HRSGs without

the tools to see what’s coming down the road

soon enough to steer away from problems.

Like driving in the dark, the risks of operat-

ing a plant “blind” are far too great. ■

—David G. Daniels ([email protected]) is a principal

of M&M Engineering Associates and a contributing editor to POWER.

3. No moving parts. According to the manufacturer, the Orion 2117XP chloride mon-itor holds calibration up to 60 days between reagent changes. The instrument can mea-sure chloride concentrations as low as 0.1 ppm. Courtesy: Thermo Fisher Scientific Inc.

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Page 38: Powermag200805 Dl

www.powermag.com POWER | May 200836

PREDICTIVE MAINTENANCE

Making PM systems sweat the small stuffModern predictive maintenance systems can monitor the health of most plant

equipment. By sorting through the wealth of information those systems deliver, operators can discern important trends, including the early signs of a system or component failure.

By Donald S. Doan, SmartSignal Corp.

As new power plants have become

harder to permit, maintaining the per-

formance of plants that some would

consider past their prime has become more

important than ever. Like a vintage coupe at

a car show, an old plant that has been well-

maintained doesn’t show its age. Even 40-

year-old plants can deliver many more years

of profitable and reliable service—if their

equipment has a good health care plan.

Over the past two decades, plant owners

have increasingly used equipment condition

monitoring (CM) to maximize plant avail-

ability and revenue and minimize mainte-

nance costs. Among the most popular CM

systems and schemes are data historians,

digital control, trending of critical operating

parameters, vibration and oil analyses, and

infrared scans.

However, many of these methods either

focus only on whether a system is currently

operating within prescribed limits or track

only certain measures of performance. In

both cases, human analysts must then infer

overall equipment health and its direction.

Newer CM systems and techniques can ex-

trapolate readings of common plant param-

eters to evaluations of overall equipment

health in real time. By comparing past and

present readings, they can predict—fairly ac-

curately—when a system or component will

fail or begin causing problems elsewhere.

When a plant’s analytic or interpretive

methods fall short, its bottom line suffers.

Two scenarios, both undesirable, are pos-

sible. If systems are maintained according

to strict schedules, with no regard to their

actual condition, man-hours and scarce

O&M dollars may be spent on repairs that

aren’t yet needed. If the maintenance phi-

losophy is too cavalier, incipient problems

that should be addressed may not get fixed

in time (because they were detected too late)

to avert an expensive failure.

Neither too soon nor too lateImplementing predictive maintenance (PM)

techniques solves both potential problems. If

real-time readings of key parameters indicate

that a piece of equipment is continuing to op-

erate normally, a scheduled overhaul can be

delayed, along with the cost of performing it.

Conversely, slow but sure changes in readings

enable analysts to detect impending failures

early, before the equipment’s condition wors-

ens to the point of needing urgent attention.

Early awareness of a problem makes it pos-

sible to schedule repairs at a convenient time

(for example, during an upcoming planned

outage) and gives the plant’s O&M staff time

to line up the team of technicians best quali-

fied to do the work.

Although PM has become commonplace

at power plants in the developed world, the

technique is more likely to be applied to

key million-dollar systems such as boilers,

turbines, and generators than to balance-of-

plant (BOP) equipment such as motors, fans,

pumps, and air heaters. Using case studies,

this article argues that PM programs have

their greatest positive impact on plant avail-

ability and profits when they also include

BOP equipment. Comprehensive PM pro-

grams can even quantify the financial losses

avoided by optimizing maintenance sched-

ules to reflect actual equipment health.

Managed care methodologyThe case studies detail several instances

where SmartSignal Corp.’s predictive analyt-

ics software package (also called Smartsig-

nal) detected abnormal operation of main or

BOP equipment at a power plant, enabling

O&M personnel to take early corrective ac-

tion. Under a contract signed in September

2004, SmartSignal installed its real-time PM

system at the generating units of the fossil-

fueled fleet owned and operated by a large

Midwest utility.

Real-time sensor data

Personalizedempirical model

Removes effects ofnormal operation

Statistical deviationdetection

Determines ifoperations are

abnormal

Diagnosticrules

engine

Robust, real-time alertingof impending problems

Diagnosis:excessive seal

leakage

Analyst

Pager, e-mail orphone advisory

1. From raw data to actionable intelligence. Data from key sensors are collected and filtered to create an empirical model of all the normal and expected operational states of the equipment or system monitored. During live monitoring, snapshots of data are compared with the model to generate estimates and residuals. Any alerts created from too-high or too-low re-siduals are then passed through a diagnostic rules engine. If the alerts are persistent or multiple sensors are alerting in a way that fits a known fault pattern, an incident is created that is posted to a web-based watch list for the predictive monitoring analyst to evaluate and take action on. The time between the first posting of an item to the watch list and when an operator must react to an equipment problem is called the “early warning period.” Source: SmartSignal Corp.

Page 39: Powermag200805 Dl

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CIRCLE 9 ON READER SERVICE CARD

Page 40: Powermag200805 Dl

www.powermag.com POWER | May 200838

PREDICTIVE MAINTENANCE

Before we delve into the case studies, it’s

worth outlining how the Smartsignal system

works.

The software uses empirical models of

equipment that have been built from and

“trained” on historical data. Monitoring is

done in real time with 10 minutes between

“snapshots” of various parameters. Algo-

rithms in the Smartsignal system determine

whether any parametric behavior is question-

able and post anomalous results to a “watch

list”—a web-accessible folder of items worth

investigating (Figure 1). An analyst can then

judge whether any item represents a problem

that warrants immediate corrective action—

while the piece of equipment and its generat-

ing unit remain on-line.

Conventional CM systems compare the

readings produced in real time by pressure,

temperature, flow, speed, and vibration sen-

sors to predetermined upper and lower thresh-

olds. If a reading is higher or lower than it

should be, the system triggers an alarm, shuts

down equipment, or both. The thresholds are

carefully set by experienced operators to be

wide enough to minimize unnecessary alarm-

ing but narrow enough not to miss potential

failures that may be catastrophic. However,

because the limits must encompass the broad

range of equipment operation and states, CM

algorithms may lack the sensitivity to pick

up subtle sensor deviations from normal that

could signal an incipient equipment failure.

The CM techniques used in the Smart-

signal program are unique because they use

all sensor readings to determine the current

state of equipment. For example, the instru-

ments dedicated to independent drivers (such

as controllers, material inflow, and ambient

conditions) and those monitoring dependent

responses of the system (including exhaust

gas temperature and material outflow) are

grouped together in a single model.

During monitoring, one algorithm as-

sembles a sample snapshot from the read-

ings of all individual sensors in the model

at the exact same time. This “actual” snap-

shot is then compared to the model, which

uses data embedded in it to create estimates

of the normal readings expected to be pro-

duced by sensors with the equipment in its

current operating state.

For each operating parameter, the differ-

ence between the actual value and the esti-

mated normal value is called the residual.

Another algorithm then tests the residual to

determine whether it is reasonably small—in

other words, whether the actual value is close

to the expected normal value.

When the residual is relatively small, the

sample is considered normal. When the re-

sidual is relatively large, the sample is con-

sidered suspect and triggers either of two

actions. If only one parametric reading is

yielding a high or low residual, the system

signals an “alert” for that moment in time and

notes it on that parameter’s graphic display.

If there are persistent deviations in multiple

sensor readings that match a known fault pat-

tern, the system determines that an “incident”

is occurring and creates an item for addition

to the watch list.

Problems, large and smallNow, the case studies. As mentioned, they

detail incidents and alerts “caught” by Smart-

signal at 16 individual generating units. Table

1 lists the assets (main and BOP) monitored

and the models used at the typical coal plant.

Of the 16 units (which have a total capacity

of about 4,100 MW), eight burn pulverized

coal, seven are simple-cycle combustion tur-

bines that fire natural gas, and one is a gas-

fired combined-cycle unit.

The 16 installations, including empirical

models, were completed in December 2004,

and shortly thereafter the system began live

monitoring of the fleet at a 10-minute sam-

pling rate.

Equipment Number in unit Models

Steam turbine 1 Performance and mechanical condition of high-, intermediate-, and low-pressure section

Electric generator 1 Electrical performance and mechanical condition of exciter and rotor and stator cooling

2 each (total of 8) Performance and mechanical condition

Primary and secondary air heaters 4 Performance

Condenser 1 Performance

Boiler fans (primary air, induced- and forced-draft)

2 each (total of 6) Fan and motor performance

Coal pulverizer motors 5 to 8 each Mechanical condition

Pumps and motors (boiler feedwater, circulating water, heater drain, and condensate)

Table 1. Assets typically monitored at a coal-fired generating unit and the empirical models used to do so. Source: SmartSignal Corp.

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May 2008 | POWER www.powermag.com 39

PREDICTIVE MAINTENANCE

Within the first few months of live monitor-

ing, Smartsignal found compelling evidence

of several potential equipment problems

at the larger coal plants and posted them to

the watch list. Following are four abnormal

conditions detected on major equipment (tur-

bines and generators):

■ At the 600-MW-class Plant A, lube-oil

temperatures of the system for cooling

bearings of the unit’s steam turbine were

behaving erratically. Technicians attrib-

uted the problem to an improperly tuned

control valve in the system’s water cooling

circuit. The early warning and subsequent

retuning avoided a potential thermal cy-

cling of the bearings.

■ At the same plant, Smartsignal detected

low hydrogen pressure in the electric gen-

erator. This early warning and subsequent

corrective action avoided a potential over-

heating of the generator.

■ The Smartsignal at Plant A also noted that

the vibration residual for steam turbine

bearing #7 was slowly rising. When the

condition appeared on the watch list on

February 7, 2005, operators responded im-

mediately by placing the bearing vibration

signal in bypass mode, to prevent the tur-

bine control system from tripping the unit

for excessive vibration. Vibration levels

continued to rise, with the residual reach-

ing 8 mils on March 7. Eventually, the vi-

bration problem was eliminated during a

planned outage. However, the generating

unit might have tripped unnecessarily had

operators not put the bearing vibration trip

signal in bypass.

■ One day, at the 800-MW-class Plant C, the

generator exciter’s field amps and volts

experienced substantial surges that were

noted by Smartsignal. The initial diagnosis

was shorted turns in the rotor. As a result

of the early warning, the exciter was in-

spected during a planned unit outage two

weeks later and was indeed found to need a

rewind. In this instance, the early warning

avoided the need for an unplanned outage.

Monitoring catches weren’t limited to ma-

jor equipment. Although BOP catches are not

as dramatic, they are just as critical to main-

taining plant reliability. In addition, they are

more impressive because fans, motors, and

pumps are usually less well-instrumented

than turbines or generators.

The BOP catches made within the first few

months of Smartsignal going live included

the following:

■ At the 700-MW-class Plant D, the in-

duced-draft fan’s shaft coupling set screw

was found to be loose and causing amps

to cycle high and low. The early warning

avoided a possible forced outage because

the lack of proper ID fan control may

have eventually caused a unit trip for un-

stable draft.

■ Smartsignal determined that the bearing of

one of Plant D’s two cooling water pumps

was starved of cooling water. A subse-

quent inspection found that the cooling

system’s operation was biased to the other

pump, causing a rise of 30 to 70 degrees F

above normal in the bearing temperature

of the first pump. In this case, the early

warning avoided potential bearing damage

and a forced outage to replace the pump’s

motor.

■ Similarly, Plant D’s secondary air heater

support bearing was found to be starved

of oil, causing bearing temperatures to rise

40 degrees F above normal. Here, too, the

early warning avoided a potential bearing

failure and an unplanned outage.

■ At Plant C, Smartsignal sounded an air

preheater alarm and added an item to the

watch list when it detected excessive pres-

sure due to erratic control of steam pres-

sure. The lack of control—which meant

that the air preheaters were not using

properly conditioned steam—reduced the

preheaters’ efficiency.

■ At Plant A, the outboard bearing of the

primary air heater motor was found to be

starved of oil.

■ One of Plant D’s pulverizer mill thermo-

couples was found to have been wired

backward during a maintenance overhaul.

Inside two catchesLet’s examine the specifics of two cases where

the use of the CM and PM methods described

above avoided an unforced outage to replace

an air heater bearing. The first catch was

made and put on the watch list for Plant D on

February 1, 2005. The residual value of the

support bearing temperature increased 10F to

40F above the expected value during the next

week (Figure 2). A SmartSignal analyst deter-

mined that the bearing was oil-starved.

The top graph of Figure 2 shows the actual

sensor value (blue) and the estimated value

(green) for the period of January 24 to Febru-

ary 8. Over most of the period, the two values

are similar, between 50F and 90F. After Feb-

ruary 1 (or around Sample 1600 shown on

the plot), the actual value rises to as high as

120F (yet is still far below the conventional

monitoring upper threshold limit of 150F),

while the estimate stays at or below 90F. The

bottom graph shows the residual value (ac-

tual minus estimate), which has a mean value

of zero and a normal range of about ±10F.

After Sample 1600, the residual rises to as

much as 40F above the zero baseline.

The problem was easily solved by adding

3½ gallons of oil to the bearing lubrication/

cooling system (of 25- to 30-gallon capacity),

Symptom: Air heatersupport bearing temperature residualincreases to 40F

Diagnosis: Bearings starved of oil

Findings/Fix: Temperature recovered after adding oil to lube oil system

2. Bearing down. This screen shows the predictive monitoring graphs of Plant D’s sec-ondary air heater B support bearing temperature from January 24, 2005 to February 8, 2005. On both plots, the y-axis shows sensor temperature and the numbers on the x-axis are sample numbers. On the top plot, the blue line indicates actual values and the green line is estimated values. On the bottom plot, the blue line shows residuals, the red line marks the zero baseline, and red Xs represent alerts. Source: SmartSignal Corp.

Page 42: Powermag200805 Dl

www.powermag.com POWER | May 200840

which quickly brought the temperature back

within spec. This air heater’s support bear-

ings have a very narrow range of acceptable

oil levels as well as a history of operating

problems. This catch led to corrective action

that avoided a possible bearing failure and an

unplanned outage for repairs.

Plant D had suffered an air heater support

bearing failure once before, on July 24, 1998.

The bearing took nine days to replace. Dur-

ing that time, according to North American

Electric Reliability Corp. data, the utility lost

138,800 MWh of generation. Because the

production cost of this unit ranges from $10

to $30/MWh, the utility lost between $1.4

million and $4 million by not having a CM

system on-line.

A second catch of abnormal air heater

bearing temperature was made at Plant A

and put on its watch list on December 10,

2005. Over the next five days, the residual

value of the guide bearing temperature in-

creased 20 to 25 degrees F above expected

values (Figure 3).

The graph shows the actual sensor value

(blue) and the estimated value (green) for the

period of December 10 to December 15. Dur-

ing most of the period, these two values are

similar, between 90F and 130F. But around

midnight on December 10, the actual oil tem-

perature increased to 145F while the expect-

ed temperature was at or below 120F. Note

that the actual value never reached the con-

ventional monitoring upper threshold limit of

150F that would cause the unit’s distributed

control system to sound an alarm.

As in the previous case, a SmartSignal an-

alyst diagnosed the problem as an oil-starved

bearing. Technicians at Plant A determined

that the lube oil pumps had tripped and cut

off the flow of oil to the air heater’s bear-

ings. Once again, the catch and corrective ac-

tion avoided a possible bearing failure and a

forced outage.

The great value of good healthAnalyzing the value of a PM system requires

making an educated guess of how much un-

planned maintenance can be shifted to planned

maintenance by having early warnings of im-

pending problems (Table 2). Each catch of

a potential equipment problem will reduce

maintenance expenses if it is determined that

it is safe to delay any needed repairs until the

next scheduled unit outage. If that is the case,

the repairs will cost less (because they will

not require overtime payments and are likely

to be less complex because the equipment

was not run until it failed), there will be no

losses of generation revenue, and there will

be no need to pay spot-market prices for re-

placement power. ■

—Donald S. Doan ([email protected]) is a senior power plant special-

ist with SmartSignal Corp., a supplier of computer-based applications for analyz-

ing and predicting the operating condi-tion of industrial assets.

Maintenanceexpense reduction

Portion(%)

Portion(%)

MWh revenue improvement Total savings

Major equipment $50,000– $100,000 53 $250,000–$500,000 Up to $650,000 40

Balance-of-plant equipment

$50,000–$100,000 47 $250,000–$1,000,000 Up to $1,100,000 60

Total Up to $200,000 Up to $1,500,000 Up to $1,750,000

Note: Assumes $10/MWh production cost and $32/MWh labor cost. Also assumes that repair times are reduced by 10% by doubling up some maintenance actions, extending overhaul intervals by the same percentage.

Table 2. Estimated savings from early warnings of equipment failure at a 500-MW coal-fired power plant. Source: SmartSignal Corp.

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Where Does the Industry Find Its

Best People?Symptom: Air heater guide bearing temperature residual increases to 25F

Diagnosis: Air heater support bearing starved of lube oil

Findings: Lube oil had tripped off; no oil flowing to bearings

3. Residual effect. This screen shows predictive monitoring graphs of air heater guide bearing temperature at Plant A from December 10 to 15, 2005. On the top graph, the blue line indicates actual values and the green line estimated values. The red Xs represent alerts and the black bar (actually consisting of black diamonds grouped close together) indicates when the incident was placed on the watch list. Source: SmartSignal Corp.

PREDICTIVE MAINTENANCE

HAC-0225 HR KL.indd 1 12/18/07 6:47:55 PM

Page 43: Powermag200805 Dl

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Boulder to be first “Smart Grid City” The next-generation power grid—enhanced by digital technologies throughout

the network to give generators, distributors, and customers greater con-trol—promises to improve efficiency and lower operating costs. This year, in the most full-scale effort yet, Xcel Energy begins introducing intelligent grid technologies that it hopes will make Boulder, Colo., the first Smart Grid City.

By Angela Neville, JD

Just as the Internet changed the way we

communicate, so will the “smart grid”

transform the way we deliver electric-

ity. The Internet’s success is largely due to

its networking capabilities. In a similar way,

the smart grid will use broadband capabilities

and high-speed computing to revolutionize

the transmission and distribution of power to

end users.

Though the notion has been around for at

least a decade, there’s no consensus about

what constitutes a smart grid. However, the

many government, industry, technology, and

policy groups that have been working to ad-

vance the idea from theory into practice (see

sidebar) do agree that, in general, a smart grid

will use digital technologies to enable inte-

grated, real-time control of all the system’s

elements, from generation to end use.

Future grid featuresIndustry observers agree that the basic way

the U.S. power grid operates has not changed

much in the past 100 years. Now, however,

as a result of electricity deregulation and

market-driven pricing in parts of the U.S.,

utilities are looking for a means to match the

consumption of electricity with its genera-

tion. Many in the industry have a vision of

a fully network-connected power grid that

identifies all aspects of the grid and com-

municates their status and the impact of

consumption decisions to automated deci-

sion-making systems.

The general definition of a smart grid,

according to a recent white paper by power

generation analysts at Xcel Energy, is an

intelligent, auto-balancing, self-monitoring

power grid that takes a variety of fuel sources

(coal, sun, and wind, for example) and trans-

forms them into electricity for consumers’

end use (heat, light, and warm water) with

minimal human intervention. They assert

that it is a system that will allow society to

optimize the use of renewable energy sources

and minimize our collective environmen-

tal footprint. A smart grid has the ability to

sense when a part of its system is overloaded

and reroute electrons to reduce that overload

and prevent a potential outage. Additionally,

it is a grid that enables real-time communi-

cation between the consumer and the utility,

allowing the utility to optimize a consumer’s

energy usage based on that person’s environ-

mental and/or price preferences.

Several utilities have run pilot projects in-

volving one or more smart grid technologies

over the past decade or so. Most common has

been the installation of advanced metering to

enable time-of-use pricing programs that are

designed to shave demand peaks. But Xcel

Energy’s plan appears to be the most all-in-

clusive one yet.

Examples of technology being tested by

Xcel Energy for future use to build intelli-

gence into the power grid are as follows:

■ Neural networks: This project creates a

state-of the art system that helps reduce

Who’s shaping the smart grid?Entities from U.S. federal labs to interna-tional consortia to individual utilities and technology manufacturers are engaged in research, development, policy, and imple-mentation projects geared toward mod-ernizing the electric transmission grid. Here are a few of them:

■ IntelliGrid (http://intelligrid.epri.com), created by the Electric Power Research Institute, focuses on “creating the tech-nical foundation for a smart power grid that links electricity with communica-tions and computer control to achieve tremendous gains in reliability, capaci-ty, and customer services. A major early product is the IntelliGrid Architecture, an open-standards, requirements-based approach for integrating data networks and equipment that enables interoper-ability between products and systems.”

■ Modern Grid Initiative (www.netl.doe.gov/moderngrid) is a joint effort of the U.S. Department of Energy, the Na-tional Energy Technology Laboratory, utilities, consumers, researchers, and other grid stakeholders to “develop a common, national vision to modernize the U.S. electrical grid.” The DOE’s Of-

fice of Electricity Delivery and Energy Reliability (www.oe.energy.gov) spon-sors the initiative and coordinates with other programs such as GridWise (www.gridwise.org) and GridWorks.

■ GridWise Architecture Council (www.gridwiseac.org) was formed by the DOE and seeks to “provide guidelines for interaction between participants and interoperability between technologies and systems.”

■ Smartgrids (www.smartgrids.eu) bills itself as a “European technology plat-form for the electricity networks of the future.”

You know an idea has reached a tipping point when there’s at least one publication dedicated to it. The Smart Grid Newsletter (www.smartgridnews.com) is sponsored by the DOE, the GridWise Alliance, Pacific Northwest National Laboratory, and other entities involved in developing a smart grid. As one article notes, “The Smart Grid will not advance unless most of the 3300 utilities in the United States adopt interoperability standards.” Until then, we may see development of multiple smart grids with different IQ scores.

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boiler slagging and fouling. Boiler sen-

sors plug directly into the plant’s distrib-

uted control system. Neural networks will

model slagging and fouling by using his-

torical data to “learn” boiler behavior.

■ Smart substation: This project is retrofit-

ting an existing substation (Merriam Park)

with cutting-edge technology for remote

monitoring of critical and noncritical op-

erating data. It includes developing an

analytics engine that processes massive

amounts of data for near-real-time deci-

sion-making and automated actions. The

team will monitor breakers, transformers,

batteries, and substation environmental

factors, such as ambient temperatures and

variable wind speeds.

■ Smart distribution assets: This project

tests existing meter communication equip-

ment that can automatically notify Xcel

Energy of outages and help the utility re-

store service more quickly.

■ Smart outage management: This project

tests diagnostic software that uses statis-

tics on eight factors, including equipment

maintenance and real-time weather, to

predict problems on the power distribution

system and create an outage-cause model.

A substation feeder analysis system can

detect and predict cable and device fail-

ures on monitored substation banks.

■ Consumer web portal: This project will

allow customers to program or preset their

energy use for specified devices (such as

air conditioners or dishwashers, for ex-

ample) and automatically control power

consumption based on hourly energy costs

and environmental factors.

■ Wind power storage: This project tests

a 1-MW battery energy storage system

connected directly to a wind turbine at the

MinnWind wind farm in southwest Min-

nesota in an effort to store wind energy

and return it to the grid when it is most

needed. It is expected to demonstrate

long-term emission reductions from in-

creased availability of wind, help reduce

impacts of wind variability, and allow

Xcel Energy to meet renewable portfolio

standard requirements.

In December 2007, Xcel established the

Smart Grid Consortium, bringing together

leading technologists, engineering firms,

business leaders, and IT experts. Consortium

members include Accenture, Current Group,

Schweitzer Engineering Laboratories, and

Ventyx. The group is providing guidance,

products, and services needed to promote the

implementation of Xcel’s smart grid vision

(see sidebar).

Specifically, the consortium partners will

make the following contributions:

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Tomorrow’s grid today“The 20th century grid was built primarily from steels and wires and managed almost exclusively from the supply side. Its pri-mary goal was to deliver electricity in a reliable fashion,” said Robert Pratt, Pacific Northwest National Laboratory (PNNL) project manager for the GridWise project. “The new 21st-century grid model will use information technology to enable cus-tomer-level assets, demand response, and distributed generation and storage to play key strategic roles in creating a cleaner and more affordable energy future.” Cus-tomers will also have more control over how and when they use energy.

Michael Lamb, managing director of IT operations and strategy at Xcel Energy, sees similar contrasts between the current grid and the future grid. “The grid, as we know it today, has not changed signifi-cantly since the days of Thomas Edison,” he said. Customers’ needs and demands, however, have grown exponentially. Ac-cording to Lamb, the 21st-century smart

grid will take the old “analog grid” and create a self-balancing and self-monitor-ing “digital grid” by adding the following:

■ Information technology throughout the energy pathway to integrate power production sources, transmission/dis-tribution, and the consumer’s home or business.

■ High-speed, real-time, and two-way communications.

■ Sensors enabling rapid diagnosis and correction.

■ Dispatchable distributed generation, in-cluding plug-in hybrid electric vehicles, wind energy, and photovoltaics.

■ Energy storage. ■ In-home energy controls. ■ Automated home energy use.

“In ten years, we envision that the technologies tested in Smart Grid City in Boulder will be expanded to other areas throughout our service area,” Lamb said.

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POwer Mag Ad 2008.eps 3/10/2008 2:49:56 PM

■ Accenture will provide guidance for best

business/consumer outreach practices and

overall IT integration consulting.

■ Current Group will provide the commu-

nications network (broadband over power

lines) to connect all the smart grid compo-

nents and allow them “talk” to each other

(interconnectivity).

■ Schweitzer Engineering Laboratories will

provide substation technology and infra-

structure such as monitors, relays, sensors,

and switches for smart substations.

■ Ventyx will provide work management so-

lutions for deploying the smart grid tech-

nologies by identifying the right tools and

sending the right crews to the right place,

when needed. It will also provide planning

and analytics for price and load forecasts

as well as decision support for connecting

customer actions to trading and invest-

ment decisions in real time.

Boulder leads the wayIn an effort to give its smart grid vision a

face, Xcel Energy has chosen Boulder, Colo.

(Figure 1), to be the nation’s first “Smart Grid

City.” When fully implemented over the next

few years, the planned system will provide

customers with a portfolio of technologies

1. Prototypically Boulder. Boulder’s highly educated residents have long been known as early adopters of progressive ideas and emerging technologies—especially those related to the environment. It’s no surprise that a city that insists on pedestrian- and bike-friendly shop-ping centers (like the recently redeveloped 29th Street Mall pictured here, whose REI store earned one of the first U.S. Green Building Council Leadership in Energy and Environmental Design [LEED] Retail certifications) would embrace the idea of a modernized grid that promises efficient resource use and enhanced customer control. Source: Xcel Energy

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designed to provide environmental, financial,

and operational benefits. Xcel Energy antici-

pates funding only a portion of the project

and plans to leverage other sources, includ-

ing government grants, for the remainder of

what could be up to a $100 million effort.

“We realize this is an enormous task,

which is why we are taking a collaborative

approach to getting it done. Smart Grid City

can only be accomplished with assistance

from all the stakeholders involved and with

the help of our consortium partners,” Michael

Lamb, managing director of IT operations

and strategy at Xcel Energy, said in an inter-

view with POWER in March.

In addition to its geographic concentra-

tion, ideal size, and access to all grid com-

ponents, Boulder was selected as the first

Smart Grid City because it is home to the

University of Colorado and several federal

institutions, including the National Institute

of Standards and Technology, which already

is involved in smart grid efforts for the fed-

eral government.

Smart Grid City (Figure 2) could feature

a number of infrastructure upgrades and cus-

tomer offerings, including:

■ Creation of a communications network

providing real-time, high-speed, two-way

communication throughout the power dis-

tribution grid (via broadband over power

lines).

■ Conversion of substations to “smart” sub-

stations capable of remote monitoring,

near-real-time data collection and com-

munication, and optimized performance.

■ Installation, at the customer’s invitation,

of programmable in-home control devices

and the necessary systems to fully auto-

mate home energy use (Figure 3).

■ Integration of infrastructure to support

easily dispatched distributed generation

technologies (such as plug-in hybrid elec-

tric vehicles with vehicle-to-grid technol-

ogy, battery systems, wind turbines, and

solar panels).

The first phase of Smart Grid City is ex-

pected to be in place by as early as August

2008. Implementation throughout the city

will continue through 2009. The consortium

expects to begin initial assessment of the

technologies in 2009. After initial imple-

mentation and assessment, Xcel Energy will

use the results from this effort to talk with

state, federal, and regulatory officials about a

larger deployment throughout the company’s

eight-state service territory.

“We don’t yet have a full understanding of

the technical and economic challenges that

we will face while implementing the smart

grid system,” said Lamb. “That’s why the im-

plementation of Smart Grid City is so impor-

tant. Boulder will be the nation’s first fully

integrated Smart Grid City and will serve as a

test-bed for how all these technologies work

together.”

Demand-response technologies hold the keySeveral years ago, the U.S. Department of

Energy (DOE) launched an initiative called

GridWise, which promotes the agency’s

vision that in the near future information

technology will profoundly transform the

2. Xcel Energy’s concept of a Smart Grid City. It all depends on a dynamic sys-tem rich in information technology; high-speed, real-time, two-way communications; sensors throughout the grid enabling rapid diagnosis and correction; decision-making data and support for peak efficiency; distributed generation; automated “smart substations”; in-home energy control devices; and automated home energy use. Source: Xcel Energy

3. A smart house. Though many industrial users have for some time had the option of managing their energy budget by participating in time-of-use pricing and voluntary load-shed-ding programs, a smart grid could give residential customers similar—or even greater—control over their energy use. Source: Xcel Energy

Renewable distributed generationPhotovoltaics tied to the grid may even run a customer’s meter backward.

Plug-in hybrid electric carXcel Energy is studying how plug-in electric vehiclescan store energy, act as backup generators for homes, and supplement the grid during peak hours.

Smart meterReal-time pricing signals create increased options for consumers

Smart appliancesSmart appliances contain on-board intelligence that “talks”to the grid, senses grid conditions, and automatically turns devices on and off as needed.

High-speed connectionsAdvanced sensors

distributed throughout the grid and a high-speed communications network

tie the entire system together.

Customer choiceCustomers may be offered an opportunity to choose the type and amount of energy they’d like to receive with just the click of a mouse on their computers.

Smart thermostatCustomers can opt to use

a smart thermostat, which can communicate with the grid and adjust device settings

to help optimize load management. Other “smart devices” could control

an air conditioner or pool pump.

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TRANSMISSION

planning and operation of the power grid.

GridWise envisions a collaborative net-

work—from generation down to customer

appliances and equipment—filled with infor-

mation and market-based opportunities.

DOE’s Pacific Northwest National Lab-

oratory (PNNL) is the national lab most

involved in developing new technologies de-

signed to increase the grid’s ability to provide

energy that is reliable, affordable, and clean.

Robert Pratt, PNNL project manager for the

GridWise project, told POWER that PNNL is

helping with the formation of the GridWise

Alliance, a collection of smart grid industry

leaders and innovators who have been instru-

mental in moving demand response from a

concept to a reality.

In addition, PNNL program leaders are

conducting field demonstrations, such as the

recently completed Pacific Northwest Grid-

Wise Testbed Demonstration of advanced

demand-response network operations. This

year-long demonstration project connected

112 homes with real-time electricity price in-

formation through new advanced meters and

programmable thermostats connected via

Invensys Controls home gateway devices to

IBM software. The final results showed that

participants saved approximately 10% on

their energy bills and did not want to give up

their grid-responsive appliances.

Such demonstrations highlight the benefits

of demand-response technologies, includ-

ing the ability to mitigate peak demand and

increase reliability by making the grid more

flexible and adaptable. They show how bene-

fits could be derived even down to the distribu-

tion system level. Additional benefits include

the ability to provide frequency regulation

services that could make it easier to operate

wind power resources on the grid and thereby

help promote wind power penetration.

“Of note, the demonstrations led by PNNL

gave consumers complete control over how

much and when they participated, by provid-

ing them with simple, automated controls

that responded to real-time (5-minute) prices

reflecting the value of their response to the

grid, and literally sharing some of that finan-

cial value with them as a reward,” said Pratt.

“We feel this will be critical in gaining broad

public acceptance of smart grid technologies

as a natural part of everyday life.”

PNNL also has developed the means to al-

low even small household appliances, such as

clothes dryers and refrigerators, to help keep

the grid reliable. This is done by adding a

simple controller that autonomously senses

a grid frequency or voltage disturbance and

then drops the load for up to a minute or two

to “help out.”

According to Pratt, PNNL has shown in

a field demonstration that this simple device

is reliable and its operation is not noticed by

the consumer. Because enabling this capabil-

ity does not require communications, it can

be inexpensive enough to build it into ap-

pliances at the factory. The result, if enough

appliances were so enabled, could be a vast

safety net to help keep our grid reliable.

Smart metering is the key enabling tech-

nology for demand response. It provides the

hardware necessary to start moving the ball

forward. “Until you can provide an incen-

tive for customers or distributed resources to

collaborate with the needs of the grid, they

won’t,” Pratt said. “And, until you can mea-

sure the degree of that collaboration with

some good time resolution, you can’t offer

those incentives.”

Additionally, PNNL is developing Grid-

LAB-D—an open-source time-series simula-

tion of the smart grid from each individual

appliance all the way up to substation opera-

tions—as a platform for designing technolo-

gies and control strategies and determining

their benefits.

“We are hoping GridLAB-D becomes the

basis for extensive technical collaboration

among researchers and technology develop-

ers engaged in realizing various aspects of

the smart grid,” Pratt said. “We are also look-

ing at how these same smart grid concepts

could be applied to managing the charging

of large numbers of plug-in hybrid electric

vehicles without adding new generation or

T&D capacity.”

Challenges remainClearly, implementation of a smart grid will

force U.S. utilities to deal with several com-

plicated issues.

“First, consumer acceptance will be criti-

cal,” said Pratt. “It is important that they

maintain control and can participate in de-

mand response but do so to their own comfort

level. Nobody wants to feel like the power

company has the ability to control when you

turn the air conditioner on. We found that

even when consumers maintain control you

can engage them enough that they will play

along and reduce peak demand as much as

50% for short periods of time.”

Another looming issue is related to smart

grids’ financial viability. State regulators need

to allow utilities to earn a fair rate of return on

smart grid investments, just as they do with

the traditional grid infrastructure that smart

grid investments displace, according to Pratt.

The PNNL project manager also focused

on challenges related to the increased use of

renewable energy sources, which could nega-

tively affect the smart grid. He pointed out

that in the face of the need to manage car-

bon emissions, there is tremendous pressure

to rapidly bring large amounts of renewable

generation onto the grid. Essentially, that

means wind power in the near term, with ex-

tensive solar photovoltaics (PVs) following,

as costs come down.

“[Renewable sources] add a great deal of

complexity to grid operations. One challenge

with wind power is that it is an intermittent

resource. We can forecast wind to a degree,

but many fluctuations are very rapid, and

other generation must ramp up or down to

compensate,” Pratt said. “Those fluctuations

make a grid that is already hard to operate

that much harder.”

He gave the example that during this past

winter a fluctuation in wind output in West

Texas was so large and rapid that power

plants could not compensate. An unexpected

cessation of wind power caused the regional

transmission authority (ERCOT) to imple-

ment its voluntary load-curtailment program

(which pays industrial users for ramping

down power usage or going off-line tempo-

rarily to reduce load and avoid a blackout).

That event was a tangible example of the

complexity of using intermittent renewable

energy resources.

“One thing we can do with a digital power

grid is to use demand capability to soak up

fluctuations in wind—creating a partnership.

That will help solar, too. Unlike wind power,

solar PVs are usually connected to the grid at

a home or building,” Pratt said. “When there

are enough of them to actually push power

back up the lines toward the substation, new

dynamic schemes for voltage regulation and

short-circuit protection will be required.”

Higher grid IQ benefitsOverall, the transition to a smart grid should

be a positive one for consumers, utilities,

shareholders, and regulators. Consumers

will be able to manage their energy con-

sumption and peak demand by modifying

their electricity usage habits and lifestyle.

The PNNL demonstration project found that

participants were able to accommodate these

changes without bother. Utilities will benefit

by having more-reliable systems, which will

translate into a reduced need for building ad-

ditional capacity. In return, consumers should

get more control over their energy bills.

Customer participation in demand-re-

sponse programs will close the loop be-

tween generation and consumption that

power market economists have yearned for

for years. As a result, utilities will be better

able to manage energy demand with avail-

able resources and, thereby, create higher

financial returns for investors. Automation

and better feedback about individual con-

sumers’ demand and consumption patterns

should lead to more-efficient use of resourc-

es and lower operating costs. ■

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RENEWABLES

A new wave: Ocean powerThe idea of harnessing the vast power of Earth’s oceans has tantalized humans

for more than a century. Today, the prospect of generating as much as 4,000 TW of clean energy from marine sources is fueling a resurgence of interest in a variety of technologies.

By Sonal Patel

Twice a day, 115 billion tons of saltwater

churn in and out of the Bay of Fundy,

a funnel-shaped pocket of the Atlantic

Ocean wedged between the Canadian prov-

inces of New Brunswick and Nova Scotia.

Swelling steadily through the 174-mile jour-

ney to the narrow head of the bay at Minas

Basin, tidewaters can surge to 53 feet—the

highest in the world (Figure 1). More spectac-

ular is the force harbored within these unique

waters as a result of a natural anomaly: The

sloshing effect created by tidal resonance—a

coincidence in the time taken by a large wave

to travel the length of the bay and back and

the time between the high and low tides—can

amplify these tides with enough energy to

supply most of Ontario’s electricity needs.

Despite the sheer power potential of this

region—and others worldwide, such as the

Bristol Channel in the UK, an inlet that

shares similar geographic characteristics—

only one commercial-scale power project has

been implemented in the Bay of Fundy: the

18-MW Annapolis Royal Generating Station

in Nova Scotia. That plant is the sole operat-

ing commercial tidal energy generating sta-

tion in North America, and one of only three

in the world. It shares its barrage technology

with the 1966 Rance River plant in France,

a larger installation with peak power capac-

ity of 240 MW and annual production of 600

GWh, and Kislaya Guba, a 400-kW project in

northwestern Russia. Even the Annapolis sta-

tion did not begin operation until 1984—and

only after several other efforts to construct

tidal power plants in the region had failed.

The idea to harvest tidal energy from the

Bay of Fundy extends as far back as 1925,

when Maine voters approved $100 million to

support hydraulic engineer Dexter Cooper’s

proposed construction of a power plant to

reap power from the tides racing through

Passamaquoddy Bay on the Maine coast.

Around the same time an official feasibility

study was begun for construction of an 800-

MW tidal power scheme on the Severn es-

tuary in the Bristol Channel. But while the

Severn study concluded that the project was

technically feasible, it was thought of as eco-

nomically unsound.

President Franklin D. Roosevelt thought

the Passamaquoddy project would make vi-

tal contributions to the nation’s burgeoning

power needs and granted it $10 million of

federal funding in 1935. Nevertheless, this

project, like many others in the long history

of marine energy, never materialized.

But now, that’s all about to change.

The marine energy renaissanceIncreasing concerns about the environmen-

tal, economic, and strategic costs of relying

on fossil fuels, coupled with the widespread

success of wind and solar power, are giving

new life to hopes of capturing energy from the

oceans. Oceanic bodies—which collectively

cover a little more than 70% of the planet’s

surface—may be a potentially significant,

currently untapped reservoir of energy.

Decades of research and development

have yielded several innovative ways of us-

ing oceans to fuel power generation. They

include wave energy, ocean current energy,

salinity gradient energy, and ocean thermal

energy. Recently, with determined govern-

ments and companies in tow, several ocean

power prototypes have been tested and pilot

plants commissioned.

In 2006, for example, following a 22-year-

long power-project lull in the Bay of Fundy,

the Electric Power Research Institute (EPRI)

of Palo Alto undertook a continent-wide

study and identified four potential sites for

commercial-scale power generation. EPRI’s

list included three passages around Deer Is-

land in Passamaquoddy Bay and Nova Sco-

tia’s Minas Passage.

The study’s results immediately prompt-

ed Nova Scotia and New Brunswick to begin

the site-evaluation process, and three com-

panies secured permits to test their technol-

ogies in the Bay of Fundy. Last year, Nova

Scotia Power announced that, following the

successful installation in the Minas Basin

of a tidal demonstration project by Open-

Hydro, the manufacturer of an open-center

stand-alone turbine, the Canadian utility

plans to develop large-scale tidal farms in

the region.

In addition to being renewable, some types

of marine energy, particularly those that de-

rive generation from waves, or from tidal and

ocean currents, are predictable (which gives

them an edge over wind and solar power).

Tides, determined by lunar gravitational pull,

can be forecast years in advance, and cur-

rents can be mapped by satellite. Doing so

could help guard against blackouts.

Offshore or submerged zero-emission

turbines would also offer an added aesthetic

benefit not enjoyed by offshore wind tur-

bines: invisibility.

Among marine power’s disadvantages

are a host of environmental uncertainties

and a long list of technical hurdles, from

operation to installation. Yet, as the ensu-

ing stream of research and development

yields significant results, it can be said

with some certainty that the fledgling sec-

1. World’s highest tides. During a springtime high tide (top), waters at the head of Minas Basin in the southeastern corner of the Bay of Fundy may surge to heights of 53 feet. At low tide in autumn, much of the bay becomes exposed, appearing like a wide channel of braided rivers (bottom). Depth is in-dicated by dark blue for deep water and purple for shallower water. Source: NASA

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RENEWABLES

tor of marine power is about to grow up

and take off.

The remainder of this article is a survey of

the different concepts currently in use or un-

der development for the extraction and con-

version of marine energy to electricity.

Wave powerCreated when winds—which result from

the planet’s heat differentials—pass on their

energy to the oceans, waves are in essence a

concentrated form of solar energy. According

to an International Energy Agency estimate,

wave energy could supply between 10% and

50% of the world’s yearly electricity demand

of 15,000 TWh.

Several competing approaches have

emerged to convert the kinetic energy of

waves into electricity.

Pelamis. The floating snake-like Pelamis

has already evolved from prototype to oper-

ating unit. Three of these devices collectively

generate 2.5 MW at full capacity at the world’s

first wave farm in Aquaçadora, northern Por-

tugal. The device relies on vertical wave mo-

tion to move articulated joints in the body,

which then pump high-pressure oil through

generator-driving hydraulic motors. A 250-

kW prototype module is 360 feet long and

over 10 feet in diameter. Power-holding com-

pany Enersis has issued a letter of intent for

an additional 20 MW of Pelamis equipment

to expand the wave farm project, and plans are

under way to use Pelamis technology to power

an Orcadian wave farm in Scotland.

Buoy technologies. The buoy concept typ-

ically consists of modular buoy-arrays moored

several miles offshore in choppy waters.

Finerva Renewables’ AquaBuOY converts

the vertical component of waves’ kinetic en-

ergy into electricity by directing pressurized

seawater through two-stroke hose pumps into

a turbine-driven generator. The power is trans-

mitted to shore via an undersea transmission

line. Finerva is developing the first phase of a

2-MW commercial power project site using

this technology in Fiqueria de Foz in Portu-

gal. Construction of a 100-MW wave energy

plant is planned if this project is successful.

Scottish company AWS Ocean Energy

has devised an anchored underwater buoy

generator system using Archimedes Wave

Swing (AWS) technology (Figure 2). The

buoys would drive generators as they bob

with passing waves, and a pressurized gas

cylinder inside the buoy would cause a float

to oscillate based on the pressure differential

of the water depth above as the wave passes.

The AWS buoy was successful in its 2004 pi-

lot test. The company plans to facilitate com-

mercial development and deployment of the

technology using a recent £2 million grant

from the Scottish government.

Ocean Navitas’ technology, known as the

Aegir Dynamo, functions by generating elec-

trical current from wave motion in one phase

via direct mechanical conversion and the use

of a custom buoyancy vessel. Ocean Navitas

has tested a 1-MWh buoy in the Orkneys, in

Scotland, and plans to place a five-buoy array

off the Welsh coast.

Iberdrola Renewables has begun testing

an innovative U.S.-manufactured buoy called

Power Take Off (PTO), which captures and

processes wave energy for storage. The en-

ergy is later evacuated under optimum condi-

tions. The company estimates that an array of

10 PTO buoys could produce 1.24 MW.

Breakwater and shoreline technolo-gies. Voith Siemens Hydro’s Wavegen tech-

nology is integrated into a concrete power

station built on a breakwater or coastal pro-

tection project. Breakwater turbines, each

with an output of between 20 kW and 100

kW, are based on the oscillating water col-

umn (OWC) principle. Waves create oscil-

lations on the water’s surface in a partially

submerged hollow chamber that’s open at the

bottom. The oscillations continuously com-

press and decompress an air column above

the chamber. The difference in pressure con-

verts the rotational energy to electricity via

3. A breakwater turbine. Voith Siemens Hydro’s Wavegen technology employs the oscil-lating water column principle. Courtesy: Voith Siemens Hydro

One turbine per chamber

Wavemotion

Air flow

Decompression

Compression

2. One of the buoys. Buoys using Ar-chimedes Wave Swing technology enjoyed a successful pilot test in 2004. The technology recently won a £2 million ($4 million) grant from the Scottish government. Courtesy: AWS Ocean Energy

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www.powermag.com POWER | May 200850

RENEWABLES

a turbine-driven generator (Figure 3). The

world’s first breakwater power station is

currently under construction in Mutriku on

the Atlantic coast of Spain.

Wavegen has also developed the Land In-

stalled Marine Powered Energy Transform-

er (LIMPET), a shoreline energy-converter

that uses an OWC to feed a pair of coun-

ter-rotating turbines, each driving a 250-

kW generator. The current LIMPET model,

Limpet-500, installed on a pilot plant on

Scotland’s Islay island, is being perfor-

mance optimized. If the pilot is successful,

LIMPET will be used to build a series of

commercial power generators.

Floating barge technologies. The Wave

Dragon is a large floating barge with dynamic

turbines that produces energy much as a low-

head hydro power station does. By facing its

outstretched collector arms toward oncoming

waves, the Wave Dragon can concentrate the

wave front toward the ramp at the front of the

structure. This increases the wave height at

the ramp—which acts like a beach, causing

the waves to break over it and into the reser-

voir behind it (Figure 4). Electricity is gener-

ated when water runs through the turbines in

the bottom of the structure. A 7-MW Wave

Dragon device tested in Pembrokeshire in

southwest Wales was commissioned in 2007

(Figure 5) and will be deployed this summer

(see sidebar).

Tidal powerThe most significant difference between

wave and tidal energy is that waves occur

only in water closest to the surface, whereas

the entire water body moves from surface to

seabed in a tide. In tides, moreover, energy

is due to a net movement of water—unlike

waves, where the water acts as a carrier for

energy. Unlike wave energy, therefore, tidal

energy is location-specific.

Although only a few regions in the world

harbor ideal conditions for tidal power, a

range of diverse devices have been designed

and are ready for testing and deployment.

The UK, notably, has surged to the forefront

of the tidal power race, propelled by a re-

cent Sustainable Development Commission

(SDE) report estimate that, considering how

geographically well-suited the islands are to

the technology, tidal energy has the potential

to generate about 10% of the UK’s power.

Barrage systems. The concept of build-

ing dams composed of gated sluices and

low-head hydro turbines across channels to

harness water-level differentials has been

proven productive by long-standing instal-

lations like the Annapolis station in the Bay

of Fundy and La Rance, in France. Costs

and environmental issues aside, research-

ers at Utrecht University in the Netherlands

have deemed the concept feasible and have

proposed that a dam constructed across the

20-mile Bab al Manab strait of the Red Sea

could generate as much energy as 50 GW

(see POWER, January 2008, p. 10).

And now, more than 80 years after the

first feasibility study, the UK government

has renewed its interest in constructing a 10-

mile-long barrage across the Severn tidal es-

tuary running between the English and Welsh

coasts, prompted by an SDE finding that a

location-specific hydroelectric barrier on the

estuary could generate 8.6 GW—meeting

5% of Britain’s power needs. Britain has al-

located £14 million ($28 million) for the fea-

sibility study, which is expected to culminate

in early 2010.

Meanwhile, to reap energy from the Bay

of Fundy, Canadian company Blue Energy

International is advancing technologies used

in tidal dam power with a “tidal fence” con-

cept—a horizontal array of stand-alone verti-

cal-axis turbines. This configuration, which

can capture energy from both directions of

a tide, has so far seen six prototypes and is

currently being assessed by the National Re-

search Council of Canada.

4. Wave Dragon. This floating barge’s de-sign increases the wave height at the ramp, which, like a beach, causes waves to break over it and into the reservoir behind it. Cour-tesy: Wave Dragon Ltd.

ReservoirOvertopping

Turbine outlet

5. Welsh wave power. This Wave Dragon device will generate enough power to supply 2,500 to 3,000 homes. Courtesy: Wave Dragon Ltd.

Moving power from the ocean to land To support the diverse portfolio of emerg-ing designs for the capture and conversion of wave energy, some companies and gov-ernment agencies are developing under-water transmission projects to facilitate prototype testing in a wide range of sea and weather conditions.

The $56 million Wave Hub, situated off the coast of Cornwall in South West Eng-land, acts like a subsea socket for offshore technologies like Pelamis and buoy wave energy converters, sending electricity 10 miles to the grid via an onshore substa-tion. When it is operational in 2009, the Wave Hub will accommodate up to 30 devices and collect and transmit enough power to meet South West England’s tar-

get of generating 15% of its electricity from renewable sources (Figure 6).

6. Taming the tentacles. The Wave Hub is designed to simplify the connection of multiple marine power–generating de-vices to land-based electricity grids. Cour-tesy: Wave Hub

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www.powermag.com POWER | May 200852

RENEWABLES

Tidal stream turbines. Making a

marked departure from the traditional bar-

rage system, tidal stream turbines are mas-

sive stand-alone turbines that work much

like wind turbines—but with a much higher

energy density, because saltwater is 850

times denser than air.

In April 2008 the first commercial-scale

tidal turbine from Bristol-based company

Marine Current Turbines, a 122-foot long

inverted windmill dubbed the SeaGen, was

installed in Strangford Laugh, a shallow in-

let in Northern Ireland where tides gush in

at speeds of up to 9 mph (Figure 7). Energy

produced by the 1.2-MW device will be pur-

chased by ESB Independent Energy, a retail

subsidiary of Ireland’s national electricity

company—and one of the first utilities to

provide tidal energy to its customers.

Deep-sea tidal farms. British tidal com-

pany Lunar Energy plans to construct two

deep-sea tidal farms. One would consist of

eight underwater turbines on the sea bottom

in Pembrokeshire, South Wales; the other

would be a colossal 300-turbine field in the

Wando Hoenggan Water Way off the South

Korean coast. The latter project, a collabora-

tion with Korean Midland Power Co., is a $1

billion scheme that extracts power from fast-

moving deep-sea tidal streams. Lunar Energy

will utilize 60-foot-tall Rotech Tidal Tur-

bines, each with a 2,500-ton frame contain-

ing a pump, generator, motor, and electronics

(Figure 8). The project entails a full resource

research and feasibility study, and if success-

ful, it will be operational by 2015.

Ocean current energyOceanic bodies are constantly in motion,

propelled by a variety of factors, including

winds, water temperature, salinity levels, and

the Coriolis force. Surface currents—which

constitute about 10% of all the water in the

oceans—are restricted to the upper 1,300 feet

of the oceans and predominantly derive their

energy from the wind and the sun.

According to the U.S. Minerals Manage-

ment Service, the world’s oceans harbor

about 5,000 GW of power, with densities

of up to 1.5 kW/f2. By some estimates, this

means that capturing just 0.1% of the avail-

able energy from the Gulf Stream—which

has 21,000 times more energy than Niagara

Falls and a flow 50 times that of the world’s

freshwater rivers collectively—could gener-

ate enough power to supply Florida with 35%

of its electrical needs.

Compared with other ocean energy tech-

nologies, the harnessing of ocean current

power is still in its infancy. A handful of pro-

totypes and demonstration units have been

developed, including Hammerfest Strøm’s

submerged wind-like turbines that capture

8. Harnessing tidal power. Each 60-foot tall Rotech Tidal Turbine consists of a 2,500-ton frame containing a pump, generator, motor, and electronics. Courtesy: Lunar Energy

The removable cassette

The gravity base

The generator module

The turbine

The duct

1MW RTT UnitDuct diameter:

15 metersDuct length:19.2 meters

Turbine diameter:11.5 meters

9. Goes with the flow. OpenHydro’s open-center turbine extracts tidal stream energy and will be used in a demonstration project in the Bay of Fundy. Courtesy: OpenHydro

7. First commercial-scale tidal en-ergy turbine. SeaGen’s 52-foot-diameter twin rotors will operate for up to 18 to 20 hours per day off the coast of Northern Ire-land, producing up to 1.2 MW. Courtesy: Ma-rine Current Turbines Ltd.

Page 55: Powermag200805 Dl

May 2008 | POWER www.powermag.com 53

RENEWABLES

energy with hydrodynamic, rather than aero-

dynamic, lift or drag. However, developers

of this technology continue to grapple with a

long list of potential problems, from complex

and costly maintenance to the potential dis-

ruption of delicate marine ecosystems.

Open-center turbine. The stand-alone

open-center turbine that features a fixed outer

disk and a rotating inner disk is thought to

suit both tidal stream and ocean current ap-

plications. Gulfstream Energy Inc.’s device is

designed to be anchored to the seafloor, 200

feet below the surface. Installed 5 miles off-

shore in Florida’s Gulfstream, where the cur-

rent flows at an average sustained speed of 3

knots, the turbine could produce an estimated

2.5 MW of power.

OpenHydro’s open-center turbine, on the

other hand, has been applied to the extraction

of tidal stream energy with such promising re-

sults that the company will engage in a dem-

onstration project in the Bay of Fundy. The

device has a self-contained rotor fitted with

a solid-state permanent magnet generator, all

encapsulated within an outer rim (Figure 9).

Salinity gradient energy It has been estimated that 2.6 TW may be de-

rived from exploiting the salinity gradient—

or salt differential—between the world’s

seawater and freshwater. The process, called

pressure-retarded osmosis (PRO), basically

involves pumping seawater at 60% to 85%

of the osmotic pressure against one side of

semipermeable membranes whose other side

is exposed to freshwater.

When freshwater, compelled by osmosis,

flows across the membranes, it dilutes the

saltwater and increases its volume—and con-

sequently, the pressure within the saltwater

chamber. A generator-driving turbine is spun

as the pressure is compensated. (For details

of the PRO process see POWER, November/

December 2006, p. 76.) PRO can be thought

of as the reverse osmosis process (used for

desalination and water treatment) running

backward and producing power from the

flow of freshwater.

A decade of collaborative research and

development by the Norwegian University

of Science and Technology and Statkraft,

a Norwegian power company, has yielded

promising results, including the development

of a high-performance membrane. In 2007,

Statkraft initiated construction on the world’s

first osmotic plant prototype. The plant, at

Tofte on the Oslo fjord, scheduled for com-

pletion by the end of 2008, will produce be-

tween 2 kW and 4 kW of power.

Ocean thermal gradient energyTides and currents aren’t the only poten-

tial energy source we can harness from the

oceans. Oceans also absorb and store tremen-

dous amounts of solar energy. According to

the National Renewable Energy Laboratory,

23 million square miles of tropical seas ab-

sorb an amount of solar radiation equal in

heat content to about 250 billion barrels of

oil—a tenth of which could supply 20 times

the power needs of the entire U.S. on any

given day. The technology for converting this

solar radiation into electrical power is ocean

thermal energy conversion (OTEC), which

exploits the ocean’s thermal gradients—tem-

perature differences of 36 degrees F or more

between warm surface water and cold deep

seawater—to drive a power-producing cycle.

Besides sourcing a clean, renewable re-

serve of energy, OTEC has the potential to

provide many useful by-products such as

freshwater, hydrogen via electrolytic process-

ing of freshwater, and lithium and uranium,

which may be extracted from deep seawater.

Despite these potential payoffs, OTEC devel-

opment has been gradual, primarily because

of competitive operation costs. The technol-

ogy was first proposed as far back as 1881

by a French physicist, and several prototypes

have been tested intermittently since the first

experimental 22-kW low-pressure turbine

was deployed in 1930.

Closed-cycle OTEC. In the closed-cycle

version of OTEC, warm seawater from the

ocean’s surface vaporizes a working fluid

with a low boiling point, such as ammonia,

which then flows through an evaporator. The

vapor expands and turns a generator-driving

turbine. The vapor is then condensed using

cold seawater pumped from deep within the

ocean. The working fluid is continuously re-

cycled within this closed system.

Open-cycle OTEC. In the open-cycle

variant of this technology, warm seawater

becomes the working fluid and is flash-

evaporated in a vacuum chamber, producing

pressurized steam. The steam then expands

through a low-pressure turbine. Cold seawa-

ter condenses the steam, and, if it remains

separated, could supply desalinized water as

a by-product.

Hybrid-cycle OTEC. A hybrid-cycle

OTEC employs features of both the closed

and open cycles (Figure 10). Warm seawater

is flash-evaporated, the steam is used to va-

porize the working fluid, and that fluid drives

a turbine. Finally, steam condenses and pro-

vides desalinized water.

Although components to test the technol-

ogy are widely available, no commercial-

scale plants—or even pilot plants connected

to a grid—exist. The most ambitious proto-

type to date was an Indian research vessel

that carried a 1-MW OTEC plant in 2002.

That effort, a collaboration with the Japanese

company Xenesys Inc. and Saga University

in Japan, was unsuccessful due to a failure of

the deep sea cold water pipe.

Xenesys is determined to power on, how-

ever. It opened a research and development

center dedicated to OTEC last November to

meet what it sees as increased demand as a

result of renewed interest. According to its

web site, the Indian government plans to con-

struct 1,000 OTEC power plants, each 50,000

kW, throughout the country. And the island

nation of Palau is planning to launch a 3,000-

kW OTEC plant; it hopes to make a complete

switch from diesel oil for power generation to

OTEC in the next 10 years. Xenesys said that

it has been receiving offers for research sup-

port and technical collaboration from more

than 50 countries, including South Korea, the

10. Hybrid model. Ocean thermal energy conversion (OTEC) takes advantage of ocean temperature gradients to generate power. In the hybrid OTEC process, warm seawater is flash-evaporated, the steam is used to vaporize the working fluid, and that fluid drives a turbine. Source: National Renewable Energy Laboratory

Steam condenser/ammoniavaporizer

Steam

Spouts

Warm seawater

Liquidammonia pump

Cold seawater

Vacuum pump

Noncondensablegases

Desalinizedwater

Power

Ammoniaturbine

Ammoniacondenser

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www.powermag.com POWER | May 200854

RENEWABLES

Philippines, Indonesia, Sri Lanka, Maldives,

Cook Islands, and the United States.

Companies like U.S.-based Sea Solar

Power Inc. (SSP) have also continued to test

and develop key elements of the hybrid Ran-

kine cycle OTEC plant. SSP President James

H. Anderson Jr. penned articles for POWER

as far back as 1965 with his father, J. Hilbert

Anderson, regarding the feasibility and eco-

nomic viability of power harvested from the

ocean’s thermal gradient. The younger An-

derson asserts that the technology continues

to have tremendous potential—that the only

setback it may experience is a lack of interest

from the government.

The Andersons had estimated in 1965 that it

would cost $5.54 million to set up a floating 20-

MW “sea thermal” plant, including the instal-

lation of major equipment and auxiliaries plus

the cost of services such as engineering and su-

pervision. Today, a small but commercial-sized

floating OTEC plant of 20 MW—which could

be built in as little as 39 months—could cost

from $120 million to $190 million.

Energy islandsArchitects Dominic Michaelis and his son

Alex recently proposed in an entry to the

Virgin Earth Challenge (a competition for

solutions to combat global warming) that a

series of floating sea-faring platforms could

be effectively outfitted to reap many forms

of renewable energy. Each “energy island”

would be fitted with wave energy devices,

wind turbines, and solar panels; each could

also harbor a small OTEC plant. With the

right conditions, according to the Michae-

lises, one platform could generate as much as

250 MW of energy.

A decade ago, this idea would have been

considered fanciful. Now, considering the

advantages such a construct could provide in

support of developing renewables, the con-

cept is being taken more seriously.

Last year, Dutch electric company KEMA

and civil engineering firm Bureau Lievense

announced they have been investigating the

technical feasibility and economic viabil-

ity of an artificial “Energy Island” for stor-

ing large-scale energy off the Dutch coast

(Figure 11). The 6.2-mile by 3.7-mile island

would incorporate a fall lake, or a pumped

energy storage (PES) facility.

The method reverses the principle on

which a conventional PES facility works.

When power supply exceeds demand, seawa-

ter is pumped out of the dike-enclosed lake—

which is filled with water 105 feet to 130 feet

below sea level—and back into the surround-

ing sea; when demand exceeds supply, sea-

water flows back in, driving a generator. The

24 square-mile island would potentially store

a capacity of 20 GWh, enough to supply an

average of 1,500 MW to the onshore grid for

at least 12 hours. Several construction com-

panies have expressed interest in building

or designing the island, a project that would

cost about $4.9 billion and take six years to

complete.

Development incentivesGiven that marine energy resources have

the potential to generate 4,000 TW, as esti-

mated by the British government-funded re-

search group Carbon Trust, it is no surprise

that venture capitalists and power companies

are flooding the sector with ready money. In

spite of the fact that marine-generated elec-

tricity currently costs 10 times as much as

electricity produced by traditional sources,

and undeterred by the abundant risks faced

by marine energy firms, private investment

will continue to increase. According to one

projection, marine energy will constitute up

to 20% of Europe’s total renewable resources

by 2020—compared with the 40% projected

for wind power.

Governments, too, are lending their sup-

port to this new wave of power generation.

The UK government and other public-sector

organizations have invested around £15 mil-

lion ($29 million) in the creation of the Eu-

ropean Marine Energy Center, the research

facility committed to help emerging tech-

nologies evolve from prototype to the com-

mercial marketplace. And the EU is backing

the Wave Energy Centre in Portugal, a facil-

ity to provide strategic and technical support

to companies in this field.

Comparatively, U.S. support is lagging.

Despite increased interest in this emerging

sector, the Federal Energy Regulatory Com-

mission has only issued one license, awarded

to Finerva Renewables’ Makah Bay wave pi-

lot project in Washington State. So far this

year, four preliminary licenses have been is-

sued, including two to Pacific Gas & Electric

Co. wave projects off the coast of California.

Last year, though approved by the U.S.

House Science Committee, a marine renew-

able energy and development bill (H.R. 2313)

that would have appropriated $250 million

from 2008 to 2012 was seemingly abandoned

before the House vote. And, echoing the fate

of marine energy research and development

projects born in the Carter and Reagan eras

that lost their funding in the 1980s, the DOE’s

Energy Efficiency and Renewable Energy

2009 budget for its Water Power Program

proposes only $3 million—a 70% decrease

from the $9.9 million Congress appropriated

for 2008.

Marine energy’s futureIf marine energy is to thrive, the monster

hurdle that developers must overcome is the

cost factor. Following an 18-month initiative,

Carbon Trust found in a detailed study of the

cost-competitiveness and potential growth of

wave and tidal stream energy that marine en-

ergy will remain more expensive than other

forms of generation until the sector sees the

installation of hundreds of megawatts of ca-

pacity. Four routes may potentially reduce

costs: concept design developments; detailed

design optimizations; economies of scale; and

lessons learned from production, construction,

installation, operation, and maintenance.

Additionally, future growth of wave en-

ergy will be affected by a range of factors,

among them: strategic and security-of-sup-

ply considerations, the availability of financ-

ing for technology and project development,

technology and risks, electricity networks,

and environmental and regulatory factors. ■

11. Watery “energy island.” One scheme for “offshoring” energy storage uses an un-usual type of pumped energy storage that depends on a dike-enclosed lake—which is filled with water 105 feet to 130 feet below sea level. Courtesy: KEMA

Page 57: Powermag200805 Dl

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www.powermag.com POWER | May 200856

NEW PRODUCTS TO POWER YOUR BUSINESS

Upgraded flowmeters for hydroelectric generatorsUniversal Flow Monitors Inc. has upgraded its line of hydro-generation electronic meters used for processing cooling water to turbine bearings. CoolPoint vortex-shedding flow-meters now provide increased flow accuracy and repeatability to ensure consistent cool-ing. They also include a new totalizing capacity for improved process monitoring.

The flowmeters are available in pipe sizes ranging from a quarter inch to 4 inches. These provide 4-20 mA transmitter flow rates, ranging from 0.4 gallons per minute to 600 gpm. Unaffected by silt particles that can clog mechanical meters and erode their seals, the flowmeters are suited to applications where water quality is less than optimal.

Upgrades include a totalizing capability, which increases the device’s ability to measure, monitor, and control the total amount of water used in a process. A flow totalizer with reset button and six-digit LED is also offered as a special option on all CoolPoint pipe sizes. The flow totalizer features a pulse output and a display in either liters or gallons.

Flow accuracy margins of error in CoolPoint models have been reduced to 1% in ½-inch to 2-inch pipe sizes, and 2% on all other models. Flow repeatability differs within 0.25% of actual flow and is standard on all models.

Flow turndown of 20:1 is also an option on ½-inch through 2-inch pipes, up from 10:1 turndown in standard pipe sizes. (Turndown is the ratio of the maximum to the minimum flow rate that a flowmeter can measure.) The increased turndown ratio im-proves users’ capability to detect, read, and record low flow. This presents an advantage when batching and standardizing a single flowmeter model for multiple applications. (www.flowmeters.com)

Ultra-compact pressure transmittersThe new Ashcroft GC51 and GC52 gauge and differential pressure (DP)

transmitters offer the perfect economical alternative to network process transmitters when a digital protocol is not required.

The innovative design features an ultra-compact NEMA 4X/IP65 enclosure measuring only 2.65 inches in diameter. Stainless steel wetted parts accommodate either wet or dry media.

The GC51 is available in ranges up to 7,500 psig, and the GC52 offers DP ranges up to 400 inches of water. A built-in LED dis-

play and a 4-20 mA output provide both local indication and remote signaling. Ashcroft GC series transmitters are ideal for measuring fluid

levels in tanks and water towers and across DP membranes in water purifi-cation systems. (www.ashcroft.com)

O2 and CO2 in the same in-situ analyzerMRU Instruments Inc. recently introduced the OMS420 in-situ O2 and CO2 analyzer, a device that reduces O2 with increased efficiency over traditional O2 in-situ analyzers.

The OMS420 features a modern “hollow probe” design that allows sensors to be changed without removing the probe from the stack. Probes available for temperatures up to 1,200F are 18 feet long and constructed of 316 stainless steel. Probes for tem-peratures of 2,000F are 9 feet long and made of Inconel. (www.mru-instruments.com)

Page 59: Powermag200805 Dl

May 2008 | POWER www.powermag.com 57

NEW PRODUCTS

Inclusion in New Products does not imply endorsement by POWER magazine.

Wireless transceiver for point-to-point data acquisition and control The DR9031 wireless transceiver from Wilkerson Instrument Co. provides bidirectional analog and contact closure data transmission to a companion DR9031, where the data is re-covered. Analog data is recovered as two 4-20 mA outputs, and the switch data is provided by optically isolated NPN transistor outputs. The analog inputs available are dual-channel DC voltage or current, single-chan-nel RTD, or strain gauge bridge. The bridge version provides 10-VDC precision excitation for up to four 330-ohm bridges. For single-channel inputs, the two 4-20 mA outputs are both proportional to the single input.

The DR9031 gives users a choice of three radio fre-quencies: two in the 915-MHz ISM band and one in the 2.4-GHz band. All use spread-spectrum frequency-hopping technology. Each RF module offers seven hop se-quences. This allows up to 21 systems to operate in the same locale without interfering with each other. With proper antennas and installation, the 915-MHz units can function reliably over a 20-mile range. (www.wici.com)

High-temperature and high-pressure particulate sensorThe FilterSense Model PS 10 particulate sensor has ceramic insulation and a ceramic protective layer over the probe, making it suitable for harsh processes with high temperatures and high pressures. Temperature ratings of up to 1,600F and pressure ratings of up to 1,000 psi are available for applica-tions such as coal gasification, fluidized-bed reactors, and various combustion processes.

Like all FilterSense sensors, there are no active electronics in the sensor housing, which means high reliability. The sensor is mounted remotely to electronic control units with industrial temperature ratings of 160F. Applications include monitoring particulate emissions from fabric filters and particulate flow in process pipes. (www.filtersense.com)

Two-stage vacuum pump releasedGardner Denver Nash’s new liquid-ring vacuum pump, the AT3006, is a versatile industrial workhorse proven to increase dry air capacity up to 25% in the high vacuum range without an increase in power. Tests have shown that this model offers a higher operating efficiency than the AT3004. (www.gdnash.com)

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Gain information on the latest innovations in instrumentation, automation, security and business systems technologies in the power industry

The Pathway to Power Automation for the 2010 Decade

18th Annual Joint ISA POWID/EPRI Controls and InstrumentationConference and the 51st ISA POWID Symposium

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Page 61: Powermag200805 Dl

May 2008 | POWER www.powermag.com 59

Management • Technical • ContractNuclear • Fossil • Renewable • T&D

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Best Recruiters in Power!

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email: [email protected]

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Ray Dauria AssociatesSpecializing in recruiting forpower sector positions with a focus on Electric Generation and Transmission

[email protected]

POWER PLANT POSITIONS

Progress Energy Florida has expanded its generation and is currently seeking high-ly qualified Combined Cycle Combustion Turbine Technicians to operate and maintain state of the art Combined Cycle units at Hines Energy Complex located near Bartow, Florida. For more information or to apply visit our website at:http://www.progress-energy.com/aboutus/

employment/postings/jobs.cfm keyword Bartow

May 2008 | POWER www.powermag.com 59

READER SERVICE NUMBER 202

READER SERVICE NUMBER 200

Combustion, Energy and

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Specialists in the Valuation, Marketing, Sourcing, and

Relocation of Surplus Power Plant & Auxiliary Equipment

Tel: +44 (0)1856 851177 Fax: +44 (0)1856 851199 E.mail: [email protected] Web: www.cess.co.uk

READER SERVICE NUMBER 201

POWER PLANT BuyERS’ MART

0508 Power Classified.indd 59 4/22/08 2:05:50 PM

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www.powermag.com POWER | May 200860

READER SERVICE NUMBER 209

Boiler Cleaning ProfessionalsExplosive Deslagging Services • Camera Assisted On-line Blasting • Detonating Cord and Overhead Hazard Blasting • Introducing On-line Video Inspection/Recording of Bundle, Pendant and Wall DepositsGrit-Blasting • Electrostatic Precipitator Field Cleaning • UT and Boiler/Vessel Overlay Preparation• On-line Radiant Recovery  with “Shatter Blast” Bead Impact Deslagging“Big Water” High Pressure Washing • Air Pre-heater Baskets, Furnace + Boiler Washing• Heat Exchanger/Condenser Hydro-Laze, Pipeline CleaningVacuum Services, Wet + Dry • Fly Ash,  Sludges, Silo + Vessel EvacuationNumber One In Safety and Compliance. Privately Owned and Operated 24/7 Emergency Response From Many US Locations800-866-6247 • www.naisinc.come-mail: [email protected]

READER SERVICE NUMBER 206POWEREQUIPMENT CO.

444 Carpenter Avenue, Wheeling, IL 60090

wabash

24 / 7 EMERGENCY SERVICEBOILERS

20,000 - 400,000 #/Hr.

DIESEL & TURBINE GENERATORS50 - 25,000 KW

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WE STOCK LARGE INVENTORIES OF:Air Pre-Heaters • Economizers • Deaerators

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847-541-5600 FAX: 847-541-1279WEB SITE: www.wabashpower.com

FOR SALE/RENT

READER SERVICE NUMBER 203

READER SERVICE NUMBER 208

George H. BodmanPres. / Technical Advisor

Office 1-800-286-6069 Office (281) 359-4006PO Box 5758 E-mail: [email protected], TX 77325-5758 Fax (281) 359-4225

GEORGE H. BODMAN, INC. Chemical cleaning advisory services for boilers and balance of plant systems

BoilerCleaningDoctor.com

READER SERVICE NUMBER 205

READER SERVICE NUMBER 204

Want to:❖Store it in silos?❖Reclaim it easily?❖Do it safely?❖Control the flow?

The answer:❖Laidig Systems

TRONA STORAGE

www.laidig.com

Norm Harty - The First and Last Word in Professional Dynamiting, serving you since 1964. We have pioneered, perfected and proven the methods of explosive cleaning the worst of s\lag or ash out in a  matter  of  hours—in  all  boiler  areas.  We  specialize  in  Electric Utility  work  and  have  over  4000  jobs  to  our  credit.  Call  the   NUMBER ONE COMPANY for  the  quickest  response  and  most   efficient job for your emergency needs and scheduled outages.

N.B. Harty General Contractors, Inc.Phone: 573-624-4645 or 573-624-4588 l Fax: 573-624-4589E-mail: [email protected] l www.nbharty.com

READER SERVICE NUMBER 207

Ryan J.D. TitschPhone: 832-242-1969 Ext.: 311

Mobile: 713-202-7528Fax: 832-251-8963

[email protected]

POWERClassifieds

Get More Attention When You Add Color!

To inquire about Classified Advertising, please contact:

Power Plant Buyers’ Mart

0508 Power Classified.indd 60 4/22/08 2:07:21 PM

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May 2008 | POWER www.powermag.com 61

Need a Thorough Mix? Ash, coal, sludges, what do You need to mix?

Get a thorough mix with:Pugmill Systems, Inc.

P.O. Box 60 Columbia, TN 38402 USA

ph: 931/388-0626 fax: 931/380-0319www.pugmillsystems.com

READER SERVICE NUMBER 212

GEGU's - 750 KW Guascor - natural gas fired - 3/60/480 volts (Qty 2)

GTGU’s - 20 MW Brown Boveri oil fired “cheap”

BOILERS - 200,000#/HR Combustion Engineering package - 600# steam pressure - gas fired

- 25,000#/HR ABCO - 150# steam pressure - natural gas and propane fired (Qty 4)

We buy and sell transformers, boilers, steam tur-bine generator units, gas turbine generator units,

diesel engine generator units, etc.

INTERNATIONAL POWER MACHINERY CO.50 Public Square - Terminal Tower, Suite 834

Cleveland, OH 44113 U.S.A.PH 216-621-9514/FAX 216-621-9515

Email: [email protected] Web: www.intlpwr.comREADER SERVICE NUMBER 211

READER SERVICE NUMBER 213READER SERVICE NUMBER 210

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0508 Power Classified.indd 61 4/22/08 2:08:07 PM

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www.powermag.com POWER | May 200862

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READER SERVICE NUMBER 219

Need Cable? From StoCkCopper Power to 69kv; Bare ACSR & AAC Conductor; 

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Basic Wire & caBleFax (773) 539-3500 Ph. (800) 227-4292

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CONDENSER OR GENERATOR AIR COOLER TUBE PLUGSTHE CONKLIN SHERMAN COMPANY, INC.

Easy to install, saves time and money.ADJUSTABLE PLUGS-all rubber with brass insert. Expand it,

install it, reverse action for tight fit. PUSH PULL PLUGS-are all rubber, simply push it in.

Sizes 0.530 O.D. to 2.035 O.D.Tel: (203) 881-0190 • Fax:(203)881-0178

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OVER ONE MILLION PLUGS SOLDREADER SERVICE NUMBER 216

READER SERVICE NUMBER 217

READER SERVICE NUMBER 215

CFB Boiler  • Steaming Capacity: 700,000 lb/hr of     superheated steam  • Pressure: 1250 psig  • Temperature: 1000 °F at main steam     stop outlet valve  • Feedstock: PRB Coal    Fabrication is partially complete.    Reduce your project schedule by     purchasing the rights to this CFB Boiler.

For complete details please contact: Keith Schick, 720-945-0641

For Sale

Mention Ad #300 to receive 10% off your next order

• Externally mounted• Explosion proof• High accuracy• 2 wire loop powered• No maintenance

• Safe, most economicalway to measurelevel requirements

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design creates strongergauss field

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Magnetic Level Gage

13960 South Wayside Houston, Texas 77048Toll Free Tel:866.240.9906

Tel: 281.240.0440 Fax: 281.240.2440www.questtecsolutions.com

Magne-Trac

MTLT-5000Magnetostrictive Liquid

Level Transmitter

READER SERVICE NUMBER 220

PRODUCT Showcase

READER SERVICE NUMBER 221

www.powermag.com POWER | May 200862

POweR PlanT BUyeRS’ MaRT

0508 Power Classified.indd 62 4/22/08 2:09:22 PM

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Ashross. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .63 . . . . . . . . 27 www.ashross.com

Applied Bolting Technology . . . . . . . . . . . . . . . . . . . . . . . . . .17 . . . . . . . . 12 www.appliedbolting.com

Babcock & Wilcox. . . . . . . . . . . . . . . . . . . . . . . . . . . . .Cover 4 . . . . . . . . . 3 www.babcock.com

Cablesafe Hooks. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .16 . . . . . . . . 11 www.cablesafe.com

Detroit Stoker . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11 . . . . . . . . . 8 www.detroitstoker.com

Emerson . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6-7 . . . . . . . . 26 www.emersonprocess.com

Garlock Sealing Technologies. . . . . . . . . . . . . . . . . . . . . . . .19 . . . . . . . . 13 www.garlock.com

GE Energy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5 . . . . . . . . . 5 www.ge.com/energy

GE Sensing & Inspection Technologies . . . . . . . . . . . . . . . .15 . . . . . . . . 10 www.ge.com/phasorxs

Hach . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .41 . . . . . . . . 21 www.hach.com/power

Hitachi Power Systems. . . . . . . . . . . . . . . . . . . . . . . . .Cover 3 . . . . . . . . . 2 www.hitachi.us/hpsa

Lincoln Electric. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .25 . . . . . . . . 15 www.lincolnelectric.com

Magnetrol. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .23 . . . . . . . . 14 www.magnetrol.com

Membrana . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .45 . . . . . . . . 23 www.liqui-cel.com

Mobil Industrial Lubricants . . . . . . . . . . . . . . . . . . . . .Cover 2 . . . . . . . . . 1 www.mobilindustrial.com

Network International . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .34 . . . . . . . . 19www.onesiteforequipment.com;

www.networkintl.com

Orion Instruments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .37 . . . . . . . . . 9 www.orioninstruments.com

Otek Corporation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .38 . . . . . . . . 22 www.otekcorp.com

Parkline . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .43 . . . . . . . . 24 www.parkline.com

Power Systems Mfg. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .31 . . . . . . . . . 7 www.powermfg.com

Schmidt Industries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .30 . . . . . . . . 17 E-mail: [email protected]

Siemens Power. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .29 . . . . . . . . 16 www.siemens.com/us-sppa

The Shaw Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3 . . . . . . . . . 4 www.shawgroup.com

Turbine Energy Solutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7 . . . . . . . . . 6 [email protected]

Turbocare Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .55 . . . . . . . . 25 www.turbocare.com

United Brotherhood of Carpenters . . . . . . . . . . . . . . . . . . . .51 . . . . . . . . 20 www.ubcsuperintendents.com

Wärtsilä . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .35 . . . . . . . . 18 www.wartsila.com

ADVERTISERS’ INDEXEnter reader service numbers on the FREE

Product Information Source card in this issue.

Page

ReaderServiceNumber

CLASSIFIED ADVERTISINGPages 59–62, To place a classified ad, contact: Ryan Titsch, POWER magazine, 832-242-1969,

[email protected]

www.powermag.com POWER | May 200863

ASHROSS RUMig-Rail Car

Low profile, high speed railcar unloading system. In-ground system meant for stationary use.

ASHROSS RUM-Rail Car

Railcar unloading machine, train drives over the RUM, walks off the track by itself. Unloads anywhere, anytime with speed and efficiency.

ASHROSS RC-Reclaimer

Coal reclaimer. Use with dozer or other equipment. Moves the entire pile of coal and reclaims the coal in a fast and efficient manner.

ASHROSS 1260 C-Truck

Self-propelled, mobile, towable drive over unloading system for belly dump and end dump trailers.

ASHROSS ST-Truck

Stationary drive over unloading system for belly dump and end dump trailers.

530 South 250 West • Pleasant Grove, Utah 84062801-785-6464 • Fax; 801-785-6486

www.ashross.com • email: [email protected] Available

COAL HANDLING EQUIPMENTUnload railcars fast and inexpensively

Call today!

801-785-6464

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www.powermag.com POWER | May 200864

COMMENTARY

In mid-2006, a Google search of the term “Smart Grid” gen-erated around 2,000 responses. The same search this past month yielded more than 500,000 hits from a wide variety of

sources. The explosiveness of the concept is especially interest-ing because there is no universal agreement on what constitutes a smart grid—much less agreement on what value a smart grid will provide to the industry and its customers.

The challenges we face in defining and constructing a smart grid are deciding if we are designing a comprehensive smart grid and determining what about our design makes it smart.

Companies pursuing smart grid strategies have defined them as everything from smart meter/advanced meter infrastructure solutions to automated distribution management or integrated SCADA systems. The components being used to build various parts of the smart grid appear to be existing technologies that could be defined as vertical solutions for any number of challenges and opportunities facing our industry. But if we are truly building a smart grid, we need to explore the entire grid, from generation through transmission and distribution—all the way to consump-tion. Further, though creating additional data and information to supplement our operating models will no doubt improve industry performance, does that really make our grid smart?

When you consider other industries and the “smartness” of their products, you look to a cell phone. It identifies where it’s located, selects its signal from multiple options to maximize connectivity performance, and can repeat that process continu-ously while changing its location in a vehicle moving at 60 miles per hour. Though we now take this capability for granted, you’ve got to consider the cell phone “smart,” especially when you look at the size of the package that performs this feat and the lack of human intervention required to accomplish it.

Smart along all dimensionsThe electric grid can’t be considered smart until the entire sys-tem is integrated and we automate everything from generation dispatch to consumption response. Shouldn’t a truly smart grid:

■ Increase reliability by automatically adjusting the system to avoid device stress and failure?

■ Extend asset life and performance by protecting the asset from wide fluctuations in operating demand?

■ Automatically adjust demand to match available supply?■ Integrate environmental, cost, and reliability impacts with

consumer demand decisions?■ Horizontally integrate the grid with real-time data that con-

stantly adjusts the entire system to optimize its performance and our consumption of its output?

Consider how a fully integrated and truly smart grid could impact the challenges we face in the next 25 years. The benefit of providing consumers with a device that automatically adjusts their consumption based on the availability of renewable gen-

eration would mean the 12,000 MW of wind generation currently available in the U.S. wouldn’t require an additional 12,000 MW of available fossil-based generation to exist on the system.

Consider how the automated integration of supply and de-mand, coupled with automated, real-time demand response, could allow the industry to adjust its spinning reserves model. By integrating real-time system monitoring and signaling with customer preferences, we should be able to adjust operation of the system to immediately respond to shifts in demand load. Rather than have system spinning reserves respond to expected consumer demand, let’s consider the possibility that consumer demand responds to system capacity based on any number of inputs, including environmental, cost, or reliability data.

Consider how technology integrated into the devices that con-sume our product would enable consumers to preselect desired consumption levels based on cost and/or environmental impact preferences. While all indicators suggest that consumers are in-creasingly aware of and want to participate in the efficient man-agement of the environment and the cost of electricity, the lack of automated real-time response capabilities and appropriate rate structures significantly compromises their ability to do so.

Smart regulationThe development, deployment, and adoption of the smart grid will also require effective regulatory structures and policies. First we need to address how to support an effective R&D model. While consumers need to be protected from nonaccountable R&D expenditures, we also need to establish effective financial models that support inno-vation that benefits our industry and, ultimately, our customers.

Second, implementation of the smart grid will shift investment dollars from steel and physical infrastructure to technology and software. Effective cost-recovery models need to be established that recognize the difference between traditional infrastructure and technology investment—but first the industry needs to demonstrate that technology investment can be effective and beneficial to our customers.

Third, regulatory models need to incent participation in effec-tive utilization and demand-response programs. Rate structures need to reflect the costs and benefits of responsible consumption and pass those benefits and responsibilities on to consumers.

A change of mind requiredLeaders across our industry are addressing its many challenges by actively embracing the concept of a smart grid, and solution partners are investing in technology to achieve that vision. Let’s not squander the opportunities of the smart grid by remaining stuck in the mental gridlock of how we operate today. Realizing those opportunities requires collaboration and exploration of how we can operate tomorrow. ■

—Mike Carlson, vice president and chief information officer of Xcel Energy, oversees the utility’s smart grid initiatives, including

its first Smart Grid City—Boulder, Colo.

Smart Grid requires clearing mental gridlockBy Mike Carlson

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AQCS NUCLEAR SCR TURBINES

BOILERS

www.hitachi.us/hpsa [email protected] Power Systems America, Ltd. 645 Martinsville Road Basking Ridge, NJ 07920 Tel: 908.605.2800

... vertically integrated to meet yourtotal power and environmental generation needs.

HITACHI POWER SYSTEMS AMERICA

Visit us at

BOOTH 1017

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We call these tangible renewable energy credits.

Consider biomass as an energy source for electric power production. Energy from biomass is dependable,dispatchable and readily available. In addition, biomass is CO2 neutral and can reduce plant emissions.

Diversify your fuel portfolio and earn renewable energy credits.

Call 1-800-BABCOCK or visit www.babcock.com.

© 2007 The Babcock & Wilcox Company. All rights reserved.

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