1. Quality Electric Power Infrastructure
EWG / ERTF / Moscow, Russia
APEC Guideline for
Quality Electric Power Infrastructure
Shinji ISHII
Agency for Natural Resources and Energy
Ministry of Economy, Trade and Industry (METI), Japan

2. APEC Initiative for Enhancing the Quality of Electric Power Infrastructure
Launched in June 2015 co-sponsored by the Philippines, Peru, Chinese Taipei and the United States,
In order to develop high-quality electric power infrastructure and provide stable supply of electricity in the region.
At the EMM12 in Cebu, APEC Energy Ministers welcomed the launch of the Initiative.

3. We have spent a long time discussing this guideline draft since EWG49.
Progress
We have spent a long time discussing this guideline draft since EWG49.
22 June 2015
EWG49 <Gyeongju, Korea>
Explain the overview of the initiative
25-26 August 2015
1st Workshop <Tokyo, Japan>
Discuss what should be considered in order to ensure its quality
13 October 2015
APEC Energy Ministerial Meeting (EMM) <Cebu, the Philippines>
APEC Energy Ministers welcome the initiative and instruct the EWG to formulate the guideline
16-17 December 2015
EWG50 <Hawaii, the United States>
Report the result of the 1st Workshop and the AMM
9-13 May 2016
EWG51 <Australia>
Explain the draft guideline to EWG members
30-31 August 2016
2nd Workshop <Tokyo, Japan>
Discuss the Draft Guideline
Late September 2016
Final Draft Guideline was circulated for EWG
October 2016
The Guideline was endorsed by EWG menbers

4. Visit thermal power plant
Holding Workshop <Aug. 2015, Aug. & 2016, Tokyo, Japan>
We shared each APEC economy’s experience in developing electric power infrastructure and discussed what should be considered in order to ensure its quality in the 1st workshop.
We explained the Draft Guideline to APEC economies and discussed the contents in the 2nd workshop.
1st Workshop
2nd Workshop
2nd Workshop
Visit thermal power plant

5. in securing the quality of electric power infrastructure.
What are the aims of the guideline?
to provide basic concept, framework, lessons learned, best practice and case studies
in securing the quality of electric power infrastructure.

6. Introduction
OBJECTIVES
Facilitate the readers understanding on how electric power infrastructure is built and operated.
Share the best practice of electric power infrastructure between readers
Provide and share useful suggestions of methodologies for securing the quality of electric infrastructure to readers
SCOPE
Main focus on thermal power plants while basic concept can be applied to other generators and T&D sectors
CONTENTS
Define its “Quality”
Provides elements and metrics to be considered for developing and operating it.
POTENTIAL
USERS
Electric power providers including IPP
Government officials involving electricity policy

7. Structure of the Guideline
The Guideline consists of five parts: Introduction, Part I to III, and four Appendixes.
Part I defines “the quality of electric power infrastructure”.
Part II and III provide factors to be considered to secure the “Quality” during FS/planning/construction phase and operation phase respectively.
Part I : Definition of the Quality, “Six Components”
Part II
FS/Planning/Construction phase
Part III
Operation phase
Appendix
1. Measurement of performance evaluation indicators that employer requires to applicant
4. Measurement approaches of performance evaluation indicators during business operation phase
2. Example of evaluation criteria for PQ
3. Example of qualification criteria in bidding specification

8. Part I SIX COMPONENTS of “the Quality Electric Power Infrastructure”
Performance
Initial Performance
Power Infrastructure
(Thermal Power Plant)
Output
Stable Supply
Cost
Operating Hours
Life Cycle Cost (LCC)
Ability to Smoothly Stop and Recover
External Factors
Environmental and Social Consideration
Environmental destruction, etc
Industrial accidents, etc
Safety

9. Part I Definition of six elements for Better Quality
Components
Definition
1. Initial Performance
Ability to commence operation as scheduled
2. Stable Supply
Ability to operate continuously as initially planned
3. Ability to Smoothly Stop and Recover
-Ability to prevent forced outage to the extent possible
-Ability to safely stop and immediately recover
for stable supply and damage prevention by forced outage
4. Environmental and Social Consideration
Ability to prevent or suppress environmental damages
Co-existence with the local community
5. Safety
- Ability to prevent or suppress damages to humans or facilities
6. LCC
- The total cost of the whole life, provided all five above factors are satisfied

10. High Quality Electric Power Infrastructure
Part I 3E+S and Six components
This six components are well corresponding to the basic framework of energy policy, namely “3E+S” (energy security, economic growth, environmental conservation and safety).
Components of the “Quality
3E+S
Ability to Smoothly Stop and Recover
Initial Performance
Stable Supply
Environmental and Social Consideration
Safety
Energy Security
Environment
High Quality Electric Power Infrastructure
High Quality
Infrastruct ure
Stable Supply of Electric Power
LCC
Economic Efficiency

11. Performance Evaluation Indicators
Part II Measuring the “Quality” -FS/planning/construction phase-
13 Indicators are identified to assess the six components of the Quality during FS, planning, construction phase.
Indicator are keyed to assessment of applicants’ ability.
Component
Performance Evaluation Indicators
1. Initial Performance
1) Number of completed constructions
2) Conformity with specified performance
3) Record of contract termination
4) Track record of faulty construction including delay in delivery
2. Stable Supply
5) Track record of faulty maintenance within the warranty phase
3. Ability to Smooth Stop & Recover
6) Track record of long term forced outage within the warranty phase
4.Environmental and Social Consideration
1) Number of projects meeting the guarantee performance in relation to environmental performance
7) Track record in relation to non-conformance with the environment protection law
8) Track record in relation to employment from the economy
5. Safety
1) Number of projects meeting the guarantee performance (in relation to safety)
2) Ability to meet required safety performance
9) Track record of fatal accidents
6. LCC
10) LCC considering all other five components
(Financial Ability)
11)-13) Turnover/liquid asset/soundness

12. Part II Elements for better bidding
preparing P/Q and bidding specifications which specify criteria of the “Quality” that a thermal power plant should satisfy
selecting applicants with sufficient ability to achieve the requirements
Bidding procedure is a decisive element for the “Quality”
requirements of employer and contractor communication for improved leadership and decision making
requirements of the employer for financial success of the electric power infrastructure
identification of required human resources of each phase
Additional issues to consider

13. Performance Evaluation Indicators
Part III Measuring the “Quality” - Operation phase -
13 indicators are identified to assess the Quality during business operation phase.
Indicators are mainly keyed to self-check for power providers.
Component
Performance Evaluation Indicators
1. Initial Performance
(N/A)
2. Stable Supply
1) Availability
2) Increase of heat rate
3) Ability to adjust power supply and demand
3. Ability to Smoothly Stop and Recover
4) Forced outage rate (FOR)
5) Long-term FOR
4. Environmental and Social Consideration
6) SOx and NOx discharge rate
7) CO2 emissions rate
8) Water quality
9) Noise/vibration
10) Waste recycle rate
11) Employment rate from an economy concerned
5. Safety
12) Number of deaths caused by industrial accidents
6. LCC
13) LCC considering all other five components

14. Part III Self-Elevating Mechanism ( Management System )
Introducing a management cycle, called “Self-Elevating Mechanism for Sustainable Operation and Management and Practice” is recommended to enhance the O&M quality.
The mechanism consists of the following six requirements.
Self-Elevating Mechanism for Sustainable Operation and Management and Practice
O&M Requirement
Definition
Measuring Ability
Ability to measure and collect data
Data Control Ability
Ability to comprehensively record, manage and store data
Analytical Ability
Ability to identify problems through comprehensive consideration and interpretation of the collected data
Problem-Solving Ability
Ability to identify and solve causes of unexpected problems / risk factors through use of analytical data
Organizational Reiteration
Ability
Ability to reiterate the entire process from measuring data to problem-solving
Sustainable Management Ability
Ability to design an organization which maximizes the potential of an electric power infrastructure

15. Part III Other elements for better O&M
sufficient initial training and daily-basis capacity development
a mid to long-term worker training plan
a O&M training manual (periodically reflect any issues solved
Worker training is also a decisive element for the “Quality”
standardize O&M based on the analysis of log data
timely convey the optimal O&M procedure to workers
convert tacit knowledge and skills to explicit ones, which enables their accumulation and smooth succession
help appropriate training to O&M workers
IoT can optimize O&M

16. Part III Other elements for better O&M
retaining skills and knowledge gained during the feasibility study, planning and construction phases for the operation phase
improving leadership and decision-making for the O&M phase
financial capability to identify operational funding
Additional issues to consider

17. Columns
This Guideline has 14 columns to provide examples of best practice for securing the quality of electric power infrastructure.
No.
Title 1.
Example of ECI - ESK River Hydropower Project in New Zealand 2.
ASEAN Clean Coal Technology Handbook 3.
Safety and health regulations for workers at power plants in the United States 4.
Cyber security measures to protect power infrastructure in the United States 5.
The trend of standardization in the field of control systems 6.
Mechanism of information exchange among utility companies in ASEAN 7.
P/Q standards regarding initial performance of thermal power plant in Malaysia 8.
Measures to improve the supply stability of thermal power plants in India 9.
Efforts to ensure workplace safety in Indonesia
10.
Example of calculating LCC of power plants by international agencies
11.
Bidding in comprehensive successful bid system for transmission line construction in Canada
12.
The measurement of increase of heat rate in Japan
13.
The measurement of actual FOR in Japan
14.
Training employees in thermal power plants in Thailand

18. We will introduce the Guideline to APEC region
Upcoming Schedule
We will introduce the Guideline to APEC region
22 June 2015
EWG49 <Gyeongju, Korea>
Explain the overview of the initiative
25-26 August 2015
1st Workshop <Tokyo, Japan>
Share each economy’s experience in developing electric power infrastructure and discuss what should be considered in order to ensure its quality
13 October 2015
APEC Energy Ministerial Meeting (EMM) <Cebu, the Philippines>
APEC Energy Ministers welcome the initiative and instruct the EWG to formulate the guideline
16-17 December 2015
EWG50 <Hawaii, the United States>
Report the result of the 1st Workshop and the AMM
9-13 May 2016
EWG51 <Australia>
Explain the draft guideline to EWG members
30-31 August 2016
2nd Workshop <Tokyo, Japan>
Discuss the Draft Guideline
Late September 2016
Final Draft Guideline will be circulated for EWG endorsement
October 2016
EWG52<Moscow, Russia>
Report the Progress of the Initiative for Quality of Electric Power Infrastructure Development
November 2016
APEC Ministerial Meeting (AMM)
Introduce the Guideline to APEC Ministerial Meeting
After publication of the Guideline
Disseminating Activities of the Guideline

19. Q&A