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The resilience, inclusion or life-cycle costing
issues for a combined cycle power plant
Background
 Location: The case power station is located in Iraq. Iraq's economy is
dominated by the oil sector, which has traditionally provided about 95%
of foreign exchange earnings. Though Iraq has a lot of oil, the electricity
industry is poor and low efficiency.
 Case Power station description:The power station construction is
divided into two stages. First stage is a simple cycle power plant, which
consists of 4 x GE Fr. 9E gas turbines (PG 9171) , and the capacity is
500MW (at ISO conditions). After the simple cycle power plant put into
service in several years, the owner continued to construct the add-on
conversion plant which comprises four (4) x HRSGs(boiler) & two (2) x
Steam Turbine by increasing the capacity of 250MW (at ISO conditions),
and total production capacity of the whole plant increase to 750 MW (at
ISO conditions).
1 Resilience
2 Inclusion
3 LCC issues
4 Suggestions
CONTENTS
1-Resilience
 Potential climate change impacts considerations
QII Principle 4 highlights that infrastructure should be resilient against both natural hazards and human-made risks.
The simple cycle power plant which consists of 4 x GE Fr. 9E gas turbines (PG 9171) ,the efficiency is around 32.5%. But the add-on conversion
plant which comprises four (4) x HRSGs & two (2) x Steam Turbine can use the exhaust flue gas from the gas turbines, which can increase the
efficiency to around 49%. Firstly, the combined cycle plant improve the usage of the fuel. Secondly, it reduce the pollution of the high
temperature flue gas. So it is much more beneficial to the climate change impacts.
 Environmental concept considerations
QII Principle 1 emphasizes maximizing the positive impact of infrastructure to achieve sustainable growth and development. QII Principle 3
mentions that Integrating environmental considerations in infrastructure investments should be taken into account. QII Principle 5 mentions
that Integrating social considerations in infrastructure investments should not be neglected. During the simple cycle plant design period, waste
water treatment system was not considered. But during the combined cycle plant design period, industrial waste water treatment plant and
sewage waste water treatment plant were designed. The waste treatment system is fully considered the sustainable, environmental and social
effect, which is beneficial to the society.
1-Resilience
2-Inclusion
 Inclusion considerations
QII Principle 5 suggests that accessing to infrastructure services in a non-discriminatory manner.
First of all, the contractors and subcontractors as well as workers for the combined cycle power plant construction have come from various
countries, which shows the inclusive.
Secondly, the electricity which generated by the power plant is supplied to both men and women, without any gender gaps.
3-LCC issues
Another bad example in Iraq
There is no space for combine cycle extension area
 Costs consideration during planning period
QII principle 2 identifies the life-cycle cost approach as a key tool for balancing the short-term and long-term outcomes of infrastructure
investments.
During the simple cycle power plant planning period, the planner was fully considered the combined cycle space, which demonstrates life-cycle
approach is taken into consideration. Compared to the case study, a simple cycle power plant near Basra, Iraq has not considered the space of
extension, it should dismantle the water treatment plant to build the new HRSGs and turbine hall, which would waste a lot of money.
The power plant space
3-LCC issues
 Building Information Model
During the combined cycle power plant construction period, Building Information Model technology was used. It can reduce the conflict
between piping system and the structure and optimize the operation of valves. It can also reduce operational costs by identifying opportunities
for improving asset operations and maintenance processes, thereby improving efficiency and productivity and extending the asset’s life.
3-LCC issues
 Performance-based contracts
The combined cycle power plant EPC contract and power purchase agreement(PPA) are fully satisfied the Performance-based contracts concept,
and if the combined cycle power plant cannot achieve the performance guarantee, Liquidated Damages Claims procedure would be carried out.
This form of contract provides a strong incentive for the contractor to deliver efficient life-cycle outcomes within the scope of its responsibilities.
No. GT load Fuel type
Ambient air
temperature
Net power output
of ST for two units
Net power
output of
ST1
Net power output
of
ST2
Gross heat rate for Combined Cycle power
plant
1 100% NG 15℃
250MW
(guaranteed)
125MW
(guaranteed)
125MW
(guaranteed)
7463KJ/KW.h
(guaranteed)
3-LCC issues
 Public-Private Partnerships (PPPs
The simple cycle power plant is belonged to Ministry of Electricity(MoE), which is a department of Iraqi government. In order to consider
implementing a life-cycle approach and transfer risk and management responsibility to private party as well as budget consideration, MoE and a
private company signed a purchase power agreement to form the public-private partnerships .
 Value engineering consideration-a bad example
Value engineering consideration should be taken into account during the design period.
During the combined cycle power plant bidding and design period, EPC contractor suggested to cancel the start-up boiler which is used for
generating the auxiliary steam, in terms of the auxiliary steam can come from the HRSG, however, the Owner did not agree to cancel. Actually,
without the design of start-up boiler in the combined cycle power plant is the traditional design. During the actual operation, due to decreasing
the cost of fuel, the start-up boiler is seldom used. But the procurement and the construction has wasted a lot of money.
3-LCC issues
 Maintenance –a bad example
The simple cycle power plant is under a bad maintenance. The simple cycle power plant is designed to use natural gas and light diesel oil(LDO).
However, during the actual operation, only natural gas is used. But the light diesel oil system has not in maintenance these years, which makes
the LDO system cannot be used. When the combined cycle power plant puts into operation, the supplementary firing system should be
operated. So the owner should increase a large amount of money to repair the LDO system, which is not follow the LCC concept.
4-Suggestion
 Suggestions to Iraqi Government
The QII Principle 6 mentions governments should strengthen infrastructure governance to deliver on the vision of GRID.
Firstly, it is suggested that Iraqi government can combine its existing frameworks for infrastructure investment with the quality infrastructure
investment framework.
Secondly, it is suggested that Iraqi government should fully use the LCC concept to enhance the maintenance of the power plant.
Thirdly, there are many simple cycle power plant in Iraq, in order to satisfy the carbon neutral and climate change target , funds should be
invested to convert the simple cycle power plant into combined cycle.
Fourth, in order to realize the full value of infrastructure investments in delivering service outcomes, asset management concept should be
introduced by Iraqi government.
Thanks
2 2 2

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The resilience, inclusion or life cycle costing issues for a combined cycle power plant

  • 1. The resilience, inclusion or life-cycle costing issues for a combined cycle power plant
  • 2. Background  Location: The case power station is located in Iraq. Iraq's economy is dominated by the oil sector, which has traditionally provided about 95% of foreign exchange earnings. Though Iraq has a lot of oil, the electricity industry is poor and low efficiency.  Case Power station description:The power station construction is divided into two stages. First stage is a simple cycle power plant, which consists of 4 x GE Fr. 9E gas turbines (PG 9171) , and the capacity is 500MW (at ISO conditions). After the simple cycle power plant put into service in several years, the owner continued to construct the add-on conversion plant which comprises four (4) x HRSGs(boiler) & two (2) x Steam Turbine by increasing the capacity of 250MW (at ISO conditions), and total production capacity of the whole plant increase to 750 MW (at ISO conditions).
  • 3. 1 Resilience 2 Inclusion 3 LCC issues 4 Suggestions CONTENTS
  • 4. 1-Resilience  Potential climate change impacts considerations QII Principle 4 highlights that infrastructure should be resilient against both natural hazards and human-made risks. The simple cycle power plant which consists of 4 x GE Fr. 9E gas turbines (PG 9171) ,the efficiency is around 32.5%. But the add-on conversion plant which comprises four (4) x HRSGs & two (2) x Steam Turbine can use the exhaust flue gas from the gas turbines, which can increase the efficiency to around 49%. Firstly, the combined cycle plant improve the usage of the fuel. Secondly, it reduce the pollution of the high temperature flue gas. So it is much more beneficial to the climate change impacts.
  • 5.  Environmental concept considerations QII Principle 1 emphasizes maximizing the positive impact of infrastructure to achieve sustainable growth and development. QII Principle 3 mentions that Integrating environmental considerations in infrastructure investments should be taken into account. QII Principle 5 mentions that Integrating social considerations in infrastructure investments should not be neglected. During the simple cycle plant design period, waste water treatment system was not considered. But during the combined cycle plant design period, industrial waste water treatment plant and sewage waste water treatment plant were designed. The waste treatment system is fully considered the sustainable, environmental and social effect, which is beneficial to the society. 1-Resilience
  • 6. 2-Inclusion  Inclusion considerations QII Principle 5 suggests that accessing to infrastructure services in a non-discriminatory manner. First of all, the contractors and subcontractors as well as workers for the combined cycle power plant construction have come from various countries, which shows the inclusive. Secondly, the electricity which generated by the power plant is supplied to both men and women, without any gender gaps.
  • 7. 3-LCC issues Another bad example in Iraq There is no space for combine cycle extension area  Costs consideration during planning period QII principle 2 identifies the life-cycle cost approach as a key tool for balancing the short-term and long-term outcomes of infrastructure investments. During the simple cycle power plant planning period, the planner was fully considered the combined cycle space, which demonstrates life-cycle approach is taken into consideration. Compared to the case study, a simple cycle power plant near Basra, Iraq has not considered the space of extension, it should dismantle the water treatment plant to build the new HRSGs and turbine hall, which would waste a lot of money. The power plant space
  • 8. 3-LCC issues  Building Information Model During the combined cycle power plant construction period, Building Information Model technology was used. It can reduce the conflict between piping system and the structure and optimize the operation of valves. It can also reduce operational costs by identifying opportunities for improving asset operations and maintenance processes, thereby improving efficiency and productivity and extending the asset’s life.
  • 9. 3-LCC issues  Performance-based contracts The combined cycle power plant EPC contract and power purchase agreement(PPA) are fully satisfied the Performance-based contracts concept, and if the combined cycle power plant cannot achieve the performance guarantee, Liquidated Damages Claims procedure would be carried out. This form of contract provides a strong incentive for the contractor to deliver efficient life-cycle outcomes within the scope of its responsibilities. No. GT load Fuel type Ambient air temperature Net power output of ST for two units Net power output of ST1 Net power output of ST2 Gross heat rate for Combined Cycle power plant 1 100% NG 15℃ 250MW (guaranteed) 125MW (guaranteed) 125MW (guaranteed) 7463KJ/KW.h (guaranteed)
  • 10. 3-LCC issues  Public-Private Partnerships (PPPs The simple cycle power plant is belonged to Ministry of Electricity(MoE), which is a department of Iraqi government. In order to consider implementing a life-cycle approach and transfer risk and management responsibility to private party as well as budget consideration, MoE and a private company signed a purchase power agreement to form the public-private partnerships .  Value engineering consideration-a bad example Value engineering consideration should be taken into account during the design period. During the combined cycle power plant bidding and design period, EPC contractor suggested to cancel the start-up boiler which is used for generating the auxiliary steam, in terms of the auxiliary steam can come from the HRSG, however, the Owner did not agree to cancel. Actually, without the design of start-up boiler in the combined cycle power plant is the traditional design. During the actual operation, due to decreasing the cost of fuel, the start-up boiler is seldom used. But the procurement and the construction has wasted a lot of money.
  • 11. 3-LCC issues  Maintenance –a bad example The simple cycle power plant is under a bad maintenance. The simple cycle power plant is designed to use natural gas and light diesel oil(LDO). However, during the actual operation, only natural gas is used. But the light diesel oil system has not in maintenance these years, which makes the LDO system cannot be used. When the combined cycle power plant puts into operation, the supplementary firing system should be operated. So the owner should increase a large amount of money to repair the LDO system, which is not follow the LCC concept.
  • 12. 4-Suggestion  Suggestions to Iraqi Government The QII Principle 6 mentions governments should strengthen infrastructure governance to deliver on the vision of GRID. Firstly, it is suggested that Iraqi government can combine its existing frameworks for infrastructure investment with the quality infrastructure investment framework. Secondly, it is suggested that Iraqi government should fully use the LCC concept to enhance the maintenance of the power plant. Thirdly, there are many simple cycle power plant in Iraq, in order to satisfy the carbon neutral and climate change target , funds should be invested to convert the simple cycle power plant into combined cycle. Fourth, in order to realize the full value of infrastructure investments in delivering service outcomes, asset management concept should be introduced by Iraqi government.