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Power Plant Preservation Strategy

Providing Best Practice Insights


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Market circumstances for CCGTs are volatile; preparation

for preservation (Mothballing) scenarios are required
Market circumstances for modern CCGT plants are very challenging all over Europe.

In many markets, CCGT plants do not manage to earn back their long term running costs in the

Plan for the Worst; Hope for the Best: prepare for preservation in case market does not recover
Typical preservation modes are Wet short term, Wet mid term, Dry mid term, Dry Long term
Key question: what kind of preservation should be considered, under what circumstances,
what are the typical costs and how do such projects work (lessons learned)

UMS group combines technical & commercial insights

Decision models to link market developments with technical constraints
Reference values for various variants of preservation / mothballing
Best practices related to preservation
Decision models
Preservation protocols

UMS has experience in various energy markets and with various plant designs

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Overview Common Practices

Preservation can be done wet and / or dry

Guiding Questions:
Normal Which technical & commercial
Preservation Preservation Preservation
Operation circumstances influence the
Modus 1 Modus 2 Modus 3
(out for appropriate modus
days) Out weeks Out months Out year(s) How to prepare for going in for
each of the modi
What to do during preservation
Wet How to get out for each of the
What are common & best
Wet Wet Dry practices
How to do the Risk
Dry assessment
Trade off flexibility versus costs
What are the benchmarks for
costs, including personnel?

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Overview Common Practices

Optimal modus can be determined in a transparent and

consistent way

Optimal Preservation Modus is determined by three factors:

1. Technical considerations & risk appetite

Dry preservation is less risky than wet preservation
Cost savings while going into preservation may backfire when coming out of preservation

2. Costs considerations
Cost benchmarks (available from UMS)
Specific plant circumstances (staffing, risk appetite, etc.) need to be taken into account

3. Market considerations
Wet preservation is more flexible than dry preservation
what is the value of starting in days rather than weeks ?
Interaction with trading/portfolio management
Interaction with the System Operator & Regulator (REMIT legislation, national regulation)

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The optimal preservation modus depends on market,

costs* and risk appetite.
Modus Description Time Restart Costs going Costs - Restart Monthly costs Key Risks
horizon into during
Preservation preservation

1-Wet prolonged weekend stop. weeks hours Only some fuel Start up fuel BAU Waiting too long
Preservation under steam. costs costs to go to mode

2a-Wet Preservation under months~ days XXX YYY XY Corrosion, costs

Nitrogen. Keep water, year of consumables
avoiding oxygen in system.

2b-Dry Remove all water, focus months~ weeks ZZZ AAA ZA Low risk,
on avoiding moisture year Slower start

3-Dry Remove all water, > year months BBB CCC BC Long restart
disconnect, seal, minimize time (new staff
monthly costs etc.)

(*) Benchmark values available from UMS, including personnel costs, Long Term Service Agreement (LTSA)
costs, etc.

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Preservation Protocol provides guidance

Documentation Preservation VGB/EPRI
Original Equipment Protocol guidelines
Supplier (OEM)

Plant specific, but

oem- Plant Specific General

Action oriented
with few variants
Thin and In depth, with
general Costs, team, many variants
planning, check
list, etc.

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Plan for the Worst, Hope for the Best

UMS can help you with your preservation strategy

Topics include:

Commercial analysis
Technical analysis
Cost analysis & reference values (benchmarking)
Risk Assessment
Signposting / Risk Reduction

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UMS Group


Remco Frenken
Managing Partner

UMS Group Europe B.V.

Amstel Business Park
Joop Geesinkweg 901-999
P.O. Box 94013
1090 GA Amsterdam
The Netherlands

Mobile: +31-6-8397-0398
Office: +31-20-561-7033
Fax: +31-20-561-6666

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