Presentation on theme: "INNOVATIVE SMALL HYDRO TECHNOLOGIES"— Presentation transcript:
1 INNOVATIVE SMALL HYDRO TECHNOLOGIES Upgrading & Refurbishments (Modernization)Niels M. Nielsen, P.Eng.Manager, Sustainable Energy SolutionsBC Hydro EngineeringWaterpower XIII July 2003
2 Introduction INTRODUCTION Of the 30 hydroelectric sites (up to 2,700 MW) operated by BChydro, 8 have a capacity < 20MW.The total capacity of these projects is 53MW - roughly 0.5% of the BChydro Generating Capacity (10,008MW). Alternatively, the largest 5 projects contribute roughly 84% (8,383MW)Small hydro plants pose a special problem as part of a large utility:Small revenue streamHigh unit cost based on large scale utility processes (Union effect vs. IPP approach)Can have a high environmental/risk profile
3 IntroductionThese sites require special considerations when modernizing:Must follow business practices to ensure profitability and maximum valueModern equipment (including automation and remote control) is required.Low Operation and Maintenance (O&M) costsMinimal environmental / risk profile.
4 Innovative Approaches to Modernizing Small Hydro Plants OUTLINEModernization DriversProcess to select Modernization PlanInnovative Approaches (examples)Management Approaches (asset planning software, implementation, risk management training)Summary
6 Innovative Approaches to Modernizing Small Hydro Plants Small Hydro Asset Life CycleAcquire New AssetOperateMaintainMonitorDecision PointReplace ComponentModernizeRun to FailureAge (years)EffortStage ofDiminishing Returns
7 Innovative Approaches to Modernizing Small Hydro Plants The Modernization DriversModernization provides the best opportunity to make changes; the drivers include:Licensing/regulatory requirementsIncreased profitability (improved dependability)Reduced labour and/or costs (reduced O&M)Competition in the Electricity MarketNew products (ancillary services)New technology/existing equipment obsoleteChanging customer/stakeholder requirementsRisk reduction
9 Innovative Approaches to Modernizing Small Hydro Plants Prioritizing Small Hydro FacilitiesCoreDoes the plant provide system stability?StrategicDoes the facility increase supply in a supply constrained region?Does the facility belong to a river system?Non StrategicFinancial contributors
10 Innovative Approaches to Modernizing Small Hydro Plants Establish Need for Capital InvestmentCriterion used to establish value of each small hydro facility
11 Asset Management Process to Modernize Hydro Plants Collate Contemporary Practice (Expert knowledge and Literature Review)Support process with condition,performance and risk informationPopulate model with technicaland financial informationLink engineering knowledgewith financial decision makingModernizeHydroPlantAsset ManagementDecision Support ToolMechanicalElectroAuxiliaryElectricalCivil andother worksAutomation,Protection& ControlUtility, Approachand BusinessConsiderationsScreening andPrioritizationLife ExtensionandModernizationPlanInstitutional &RegulatoryPortfolioFeasibilityProject DefinitionImplementationVOLUME 1VOLUMES 2 TO 7Approach for MultiPlant Portfolio
12 Innovative Approaches to Modernizing Small Hydro Plants Life Extension & Modernization Plan4-24-84-94-104-14-54-64-7Input utility'sbusiness objectives(from Section 1.0)4-11Review Life Extension andModernization Plan (periodically)Collect and analyze data onperformance and conditionDocument Life Extension andModernization PlanInspect equipment andstructuresIdentify needs and opportunitiesAlign needs and opportunitieswith plant strategiesAssign costs, benefits andtiming to selected needs andopportunitiesModel financial parametersDevelop plant strategies"PlantSurvey"4-34-4Identify risksPlan Plant Survey
13 Innovative Approaches to Modernizing Small Hydro Plants Plant Survey Methodology for Assessing Needs & Opportunities
17 Case Histories - Aberfeldie Aberfeldie Penstock
18 Case Histories - Aberfeldie Aberfeldie Turbine Runner
19 Case Histories - Aberfeldie Status Quo5MW powerhouse built in 1922 (80 years old).Requires $20M of investment to continue to operate.Original dam suffered severe deterioration due to ice build-up and avalanches - rehabilitated in1953 and now meets all current dam safety standards.Penstock at end of life.
20 Case Histories - Aberfeldie Potential SolutionsThree Options:Redevelop to 30 MW with 120 GWh per annum (F2006).Refurbish at 5MWRun to failureRefurbishment is not economicRedevelopment is more economic, but not as economic as other BC generation development options.Recommend different operation. For example, contract out routine work.
22 Case Histories - Falls River Status QuoTwo unit powerhouse totaling 7MW - built in 1930Requiring $13 M of investment to continue to operate.End of the line, isolated and difficult to access (50km south of Prince Rupert)Significant rehabilitation work completed in 1992:Dam stabilized with rock anchorsPlant automated (This is a remote plant and existing operators were retiring)
23 Case Histories - Falls River RecommendationRedevelop to 20 MW with 78 GWh per annum (F2008).Transmission lines capacity constraints may be an issue - Brown lake (operated by IPP) is also on this line.Recommend different operation. For example, contract out routine work.
24 Case Histories - Shuswap Shuswap Penstock (summer)
25 Case Histories - Shuswap Shuswap Penstock (winter)
26 Case Histories - Shuswap Status Quo6MW powerhouse built in 1929.Project comprises of Wilsey and Sugar Lake Dam located at 35km and 55km east of VernonChallengesDownstream of the plant is a fish hatchery in addition to a high value natural salmon streamDeteriorating wood stave penstock and surge tank on failing rock fill foundation (also rock-fall hazard at tunnel/penstock interface)Rehabilitation of low level outlet in dam was required
27 Case Histories - Shuswap SolutionsBypass Valve installed for reliable water release at facility if unit trips (low level outlets are not automated)In 1993, the facility was refurbished/rebuilt:one penstock was rebuilt in steel. The surge tower was eliminated - not required for steel penstock.Generating unit refurbished during penstock rebuild.Low level outlets refurbished
28 Case Histories - Woodfibre Woodfibre penstock, screen house and surge tank
29 Case Histories - Woodfibre Woodfibre mill built in 1955 is located near Squamish, BC. The electricity needs of the mill are provided by a 2.5MW Pelton wheel impulse turbine.Age related efficiency lossesReduced output 2.1 MW (1955) to 1.5 MWDeteriorating penstock (16%)Reduced turbine efficiency (1%)Realigned penstock (additional 90 degree bends and valves - following slide) (1%)Increased mill use of high pressure water (10%)
30 Case Histories - Woodfibre Penstock realignment for Mill Expansion
31 Case Histories - Woodfibre Generation/water supply challengesLong penstock for mill water supply - too expensive to replace for turbine use only.Penstock realignment is not cost effective.New Pelton wheel marginally cost effective.SolutionsBenefits from improved management of the source of high pressure mill water and adjustment to turbine operating point.Run until end of life. At this point, penstock replacement is justifiable.
32 Case Histories - Butlers Gorge Tasmania, Australia
33 Case Histories - Butlers Gorge Status Quo12.7MW powerhouse commissioned in 1951Static Head of 50m (Butlers lake)The water from the lake also supplies Tarraleah power station via a tunnel then canal. Before entering the tunnel, energy is dissipated via an energy dissipater valve (next slide).RecommendationsDevelop a mini hydro project to take advantage of lost energy. Replace energy dissipater valve with a 2.5MW turbine.
34 Case Histories - Butlers Gorge Energy dissipater valve in operation
36 Facility Asset Planning 1. General Facility and Contact Information2. Strategic Intent of Facilitymaintain status quoupgrade / modernizerun to failure3. Spending initiatives (OMA / Capital)4. Performance Measures5. Accountability Review6. Risks7. Mitigation StrategiesSources of InformationCondition SurveysPlant EvaluationsWork Management SystemsAnnual Operation, Maintenance & Administration Funding (OMA)Reliability Centered MaintenanceEnvironmentalDam SafetyProject Management SystemsAPTUS1 Annual Budgeting - AnnualOperating & Capital Dollars2 Long Term Spending3 Decision Support4 Proforma Financial Statements5 Capital Operating Project Analyses6 Value Based Management Assessments
37 Asset Management APTUS Asset Planning System APTUS is a software tool that streamlines the Asset Planning process.APTUS uses a discounted cash flow that recognizes economic and financial methods to provide decision support regarding capital and operating investment decisions. It also addresses non-financial issues using multiple account analysis.APTUS has the ability to analyze the value of a portfolio of assets in a market context, and hence the value added from asset enhancements or risk reduction initiativesInformation from engineering assessments is stored and used as input.Report provide a ranking of projects based on standard criteria; NPV, PV of EVA, B-C and value weighted non financial criteria.Model has flexibility to interact with enterprise software packages (PeopleSoft, SAP, JD Edwards etc.) It can also be used on a stand alone basis.
42 Innovative Approaches to Modernizing Small Hydro Plants Investment Risk MinimizedReview Economic, Technical, Environmental &Social ViabilityContracting StrategyPotential PartnersScope of Work & Perf. CriteriaUpdateBusiness CaseEvaluationBuildDetailed Design2Exit Ramps1Concept’l Design, Est.’s, & Deliv’blesPhase 1Phase 2
43 Risk ManagementStrategic Objective (overall goal for each small hydro project)Project Objectives, covering safety, financial, power quality, dependability, compliance, etc.Risk Assessment of likelihood and consequences of plant not meeting objectivesRisk Management includes measures to ensure objectives met.
44 Innovative Approaches to Modernizing Small Hydro Plants TrainingThe application of knowledge is a crucial part of a change process. To learn and benefit from new approaches to modernization, two initiatives are available:Through a management consulting arrangement with roll-out of a modernization plan on a specific plant and hands on training for future work.Classroom workshop & simulation training to promote understanding of the methodology.
45 Innovative Approaches to Modernizing Small Hydro Plants SummarySmall Hydro plants age and eventually require modernizationPresent technical and business drivers can be markedly different to original considerations.Opportunities often available to increase value.Systematic processes lead to greatest gains (asset management).Innovative and new approaches can improve modernization outcomes.