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October 19th, 2012                                                                         ECONOMICS
Parichart Suttiprasit
Electricity Generating Authority of Thailand (EGAT)
CEPSI 2012                                                                                 PERFORMANCE


                                                                                           EFFECTIVE
                                                                                           ASSET
                                                                                           MANAGEMENT




                                          Leading the way to Operational Excellence 2011
Introduction




               2
Leading the way to Operational Excellence 2011   3
Fuel Cost
(THB kWh)
                                                              Replacement
                                                              Energy Gain
                                               Merit Order
             Must Run

                                 Must
                                 Take             Marginal
                                                   Plant




                        Electricity Demand

                                        Coal        Natural
                                                     Gas       Oil


    A   B C D E F G H I         J K L M N O P Q R S T U V W
                                 Power Plants
                                                                     4
Duration      Correct
 Extend?        Seal !

                            OEM
                          Supervisor

 EGAT



How much are
 we losing?


               Leading the way to Operational Excellence 2011   5
Outlines
  Planned
 Outage: off-
    grid
Operation: on-
    grid
 Conclusion
Scheduling
Executing
Function Test
                Leading the way to Operational Excellence 2011
Scheduling   Unit:
             Baht /day




                8
Unit:
Scheduling               Baht /day

                    Year 2012
        AA-C20        11.18

 Mar    April    May     June
 8.18   11.18    11.85   6.75
                                     9
Unit:
Scheduling                                    Baht /day

                             Year 2012
       AA-C20                  11.18




                Leading the way to Operational Excellence 2011   10
Performance                                        Planning
                       Decrease of Efficiency
Heat Rate (kJ/kWh)




                     10300 -                         10285.72

                     10250 -
                                10216.37
                     10200 -
                                                       Current
                         19    199 199 200 200 200 2008
                         95    6   9    1     3
                                   Operation Time (year) 2010
                                                    6
         Assumption: Heat rate has been constantly increased since 1995.
         Source: EGAT production efficiency division, 2006
Decision Making
          Before Outage
          “If main turbine do not overhaul (not remove rotor)”
                                                                  Availability Payment
                                   +   Revenues                    Executing
                                                         Energy Payment
                                             Critical Path Management
                                                                          Replacement
                EP
                EP
           Entire Asset
                                                              Fuel Cost - Energy Cost
                                                                           $3.3 M USD
                                   -      Cost
                                                                          Performance
                                                            O&M Cost +         Lost
                                   - Capital                  Maintenance $2.3 M USD
                                                              -
                                     Charge                           Cost
Reference:                                                         $0.5 M USD
Parichart, S. (2008) Outage optimization of steam turbine and auxiliaries.                     12
Proceedings of 17th Conference of the Electric Power Supply Industry (CEPSI 2008), October. Macao.
Unit:
  Executing                          Baht /day

                            Year 2012
              AA-C20          11.18
     Mar       April    May          June
Duration
     8.18      11.18    11.85        6.75
Extend?
          Critical Path Management               13
Scheduling
Executing
Function Test
                Leading the way to Operational Excellence 2011
Economic Profit (EP) Driver Tree
Strategic Improvement Plan (SIP)


                  Leading the way to Operational Excellence 2011   15
EP Driver Tree &
      SIPs
         EE-C2
         CWPs, CT efficiency Increase
         AA-T1-4
         Fuel Optimize
         BB-C3
         Exhaust Gas Temp. Increase

         Station Service Reduction :
         AA-T2-4, BB-C3-4
         Adjust Fan Blade Angle
         CC-T1-10
         Pump Speed Reduce
         DD-H1-5
         Mini Hydro Turbine Install




                                        14
Strategic Improvement Plans
Year 2012 Forecasted economic profit (rE

              Fuel
            Reduction




Economic          kWh
                increment
  Profit


               PPA
                                   15
358.4
                                                             WN-C3 TIAC system
                                                             BPK-T2-4, BPK-C3-4 MM-T4-                 0.6
                                                             13 Station Service
                                                                                                       2.3
                                                             SNR-1-5 Mini. Hydro TB
                                                                                                     0.71


            Economic                                 kWh
                                                  increment
              Profit                                 408                   45.3 *

                                                                           Outside CAH



                                                PPA                                                   16
Remark: *estimate only generation from Hydro Power Plants according to Internal Power Purchase Agreement
399 *                               SB-C2 CWPs, CT                        4.4
 WN-C3 TIAC system
 BPK-T2-4, BPK-C3-4 MM-T4-      N/A                                BPK-T1-4
                                                Fuel               •Min. Gen.,                          59.4 *
 13 Station Service
 SNR-1-5 Mini. Hydro TB         1.7 *         Reduction
                                                                   •Fuel Optimize (Mixed Fire)
                                                                                                        3.26
                                                                   BPK-C3
                                 0.5                               Exhaust Gas Temp. Increase
                                                                                                        4.0
                                               534


           Economic                                                                        61.9 *

             Profit                                                                        SB-C3
                                                                                        Online Filter
                                                                                          Change


                                 This economic profit is one part of the whole
                                 Fuel Gain of Generation deputy.
Remark:

                                                 PPA
* present the fuel savings from both individual Power Plants and
  Replacement Energy Gain of all power plants                                                           17
Strategic Improvement Plans
Year 2012 Forecasted economic profit (rE

                Fuel
              Reduction

                534


Economic              kWh
                  increment
  Profit              408


           Total Economic Profit = 942 M THB
                 PPA
                                               18
Conclusion

1. Dividing 2 groups: PO and Operation
Key functions are changed depending on duration
                                               Replacement Energy
2. PO duration ;                                    Gain/Loss
Key function : Scheduling->Executing->Function Test

3.Operation duration; Key function is Efficiency & Productivity

     Critical Equipment                        EP driver tree and SIPs
         Series Type                                 are applied

                                   Leading the way to Operational Excellence 2011   19
• Parichart Suttiprasit
• parichart.su@egat.co.th
• Electricity Generating Authority of Thailand
  (EGAT)


                           Leading the way to Operational Excellence 2011

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How Economic Value Management can be Applied to Power Plant Management

  • 1. October 19th, 2012 ECONOMICS Parichart Suttiprasit Electricity Generating Authority of Thailand (EGAT) CEPSI 2012 PERFORMANCE EFFECTIVE ASSET MANAGEMENT Leading the way to Operational Excellence 2011
  • 3. Leading the way to Operational Excellence 2011 3
  • 4. Fuel Cost (THB kWh) Replacement Energy Gain Merit Order Must Run Must Take Marginal Plant Electricity Demand Coal Natural Gas Oil A B C D E F G H I J K L M N O P Q R S T U V W Power Plants 4
  • 5. Duration Correct Extend? Seal ! OEM Supervisor EGAT How much are we losing? Leading the way to Operational Excellence 2011 5
  • 6. Outlines Planned Outage: off- grid Operation: on- grid Conclusion
  • 7. Scheduling Executing Function Test Leading the way to Operational Excellence 2011
  • 8. Scheduling Unit: Baht /day 8
  • 9. Unit: Scheduling Baht /day Year 2012 AA-C20 11.18 Mar April May June 8.18 11.18 11.85 6.75 9
  • 10. Unit: Scheduling Baht /day Year 2012 AA-C20 11.18 Leading the way to Operational Excellence 2011 10
  • 11. Performance Planning  Decrease of Efficiency Heat Rate (kJ/kWh) 10300 - 10285.72 10250 - 10216.37 10200 - Current 19 199 199 200 200 200 2008 95 6 9 1 3 Operation Time (year) 2010 6 Assumption: Heat rate has been constantly increased since 1995. Source: EGAT production efficiency division, 2006
  • 12. Decision Making Before Outage “If main turbine do not overhaul (not remove rotor)” Availability Payment + Revenues Executing Energy Payment Critical Path Management Replacement EP EP Entire Asset Fuel Cost - Energy Cost $3.3 M USD - Cost Performance O&M Cost + Lost - Capital Maintenance $2.3 M USD - Charge Cost Reference: $0.5 M USD Parichart, S. (2008) Outage optimization of steam turbine and auxiliaries. 12 Proceedings of 17th Conference of the Electric Power Supply Industry (CEPSI 2008), October. Macao.
  • 13. Unit: Executing Baht /day Year 2012 AA-C20 11.18 Mar April May June Duration 8.18 11.18 11.85 6.75 Extend? Critical Path Management 13
  • 14. Scheduling Executing Function Test Leading the way to Operational Excellence 2011
  • 15. Economic Profit (EP) Driver Tree Strategic Improvement Plan (SIP) Leading the way to Operational Excellence 2011 15
  • 16. EP Driver Tree & SIPs EE-C2 CWPs, CT efficiency Increase AA-T1-4 Fuel Optimize BB-C3 Exhaust Gas Temp. Increase Station Service Reduction : AA-T2-4, BB-C3-4 Adjust Fan Blade Angle CC-T1-10 Pump Speed Reduce DD-H1-5 Mini Hydro Turbine Install 14
  • 17. Strategic Improvement Plans Year 2012 Forecasted economic profit (rE Fuel Reduction Economic kWh increment Profit PPA 15
  • 18. 358.4 WN-C3 TIAC system BPK-T2-4, BPK-C3-4 MM-T4- 0.6 13 Station Service 2.3 SNR-1-5 Mini. Hydro TB 0.71 Economic kWh increment Profit 408 45.3 * Outside CAH PPA 16 Remark: *estimate only generation from Hydro Power Plants according to Internal Power Purchase Agreement
  • 19. 399 * SB-C2 CWPs, CT 4.4 WN-C3 TIAC system BPK-T2-4, BPK-C3-4 MM-T4- N/A BPK-T1-4 Fuel •Min. Gen., 59.4 * 13 Station Service SNR-1-5 Mini. Hydro TB 1.7 * Reduction •Fuel Optimize (Mixed Fire) 3.26 BPK-C3 0.5 Exhaust Gas Temp. Increase 4.0 534 Economic 61.9 * Profit SB-C3 Online Filter Change This economic profit is one part of the whole Fuel Gain of Generation deputy. Remark: PPA * present the fuel savings from both individual Power Plants and Replacement Energy Gain of all power plants 17
  • 20. Strategic Improvement Plans Year 2012 Forecasted economic profit (rE Fuel Reduction 534 Economic kWh increment Profit 408 Total Economic Profit = 942 M THB PPA 18
  • 21. Conclusion 1. Dividing 2 groups: PO and Operation Key functions are changed depending on duration Replacement Energy 2. PO duration ; Gain/Loss Key function : Scheduling->Executing->Function Test 3.Operation duration; Key function is Efficiency & Productivity Critical Equipment EP driver tree and SIPs Series Type are applied Leading the way to Operational Excellence 2011 19
  • 22. • Parichart Suttiprasit • parichart.su@egat.co.th • Electricity Generating Authority of Thailand (EGAT) Leading the way to Operational Excellence 2011

Editor's Notes

  1. “เพิ่มผลผลิต” ดูในกรอบของการเพิ่มSpinning reserve  เพิ่มความมั่นคงของระบบ แต่ยังไม่ได้มองไปถึงว่าส่วนที่เพิ่มนั้นจะถึงปลายทาง ขายจริงได้หรือไม่ ขายได้ต้องเดินโรงนั้น ช่วงความต้องการเพิ่ม อาจเรียกเดินโรงไฟฟ้า IPPแต่เพื่อให้มองเห็นตัวเลขการเพิ่มมูลค่า จึงคำนวณแบบคาดการณ์ โดย 2.56 Baht/kWh (ของจริงคือ…..)c