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CONTENTS

CARILEC
Demonstrating a Proactive Approach To Sustainable Engery Solutions
2 Cost Effective, Fast Tracked
Power Plant Relocation
An underlying tenet of modern Governments
throughout the world is that carbon-based
electric power generation must undergo 8 Developments & Future
a significant transition and integrate more
Expansions
sustainable solutions. Indeed, such belief has
been demonstrated by major changes in
the global electric energy landscape and
has influenced a drive towards establishing 18 Fuel Price Hedging
the “correct” institutional and governance The Lucilec Experience
structures to facilitate the realization of the
transition throughout the industry.
This sort of transformation however, has
introduced the new trilemma for electric
utilities: balancing cost, climate change and reliable electric energy supply.
30 Lineworker Training For
Consequently, unprecedented business, regulatory and operational Live-Line Work
challenges will be faced by the Caribbean electric power utilities, the
complexity of which will be determined by the dynamics of the existing
political, economic, and technological environment. In addition to this,
the electric utilities that are intent on pursuing energy diversification are 38 Recovered Energy Generation
confronted with a bewildering array of technologies while not all of those
technologies are particularly suitable to the Caribbean environment. From Internal Combuston
Engines Exhaust
In this context, CARILEC has exhibited a very proactive approach towards
collaboration among the energy stakeholders in the region and have
established meaningful partnerships in fostering sustainable energy in the
power utility industry. The Regional Association has voluntarily documented
and articulated its position regarding regulations and renewables and 46 The Future Of
has underscored the importance of incorporating its submissions in the
development of appropriate regional energy and regulatory policies and
Engine Control Is Here Today
associated regimes. This has been complemented with capacity building
efforts at the Secretariat level and the pursuit of an appropriate effective
utility business model to meet the challenges and aid the implementation CARILEC Industry Journal
of sustainable solutions in the electric power utilities. Is published in January and July annually
by Advertising & Marketing Services Ltd for
In this transitional phase, it will be advantageous for our governments to
CARILEC the Caribbean Electric Utility Services
formulate polices that will address the geopolitical barriers to regional
Corporation.
and sub-regional energy integration so as to realize economies of scale
and optimize the use of our indigenous renewable energy resources. It is
Editorial & Distribution: CARILEC
imperative for the decision-makers of the electric utility industry to have a
P.O.Box CP5907, Desir Avenue, San Souci,
thorough understanding of the current scenario and visualize the future
Castries, St Lucia, W.I.
energy framework so that they can devise innovative strategies & policies
Tel: 758 452 0140/41
and utilise sound judgement in facilitating the transition of their utilities.
Fax: 758 452 0142 / 458 0702
It is important to note that a number of our progressive utilities are Website: www.carilec.org
recognizing that they have a unique opportunity to fashion a new path
in the context of sustainable energy. They have begun to define their Editor: Andrew Thorington
commitment to environmental stewardship and corporate responsibility by Project Manager, CARILEC
adopting appropriate measures to diversify their energy mix and advance athorington@carilec.org
the deployment of renewable energy technologies. This can only redound
to the benefit of all stakeholders. Advertising Sales,Design & Production
Advertising & Marketing Services Ltd
Andrew Thorington, Editor P.O. Box 2003, Gros Islet, St Lucia, W.I.
Project Manager, CARILEC Tel: 758 453 1149
Fax: 758 453 1290
Email: mail@amsstlucia.com
Recognition for the emerging requirement for quick start peaking Units on the electrical system was identified
by AES. Subsequent feasibility studies, undertaken in early 2007 by AES, confirmed that such a decision would
be economically viable. The studies confirmed that Kilroot Power Station would be a suitable site due to its
spare flue capacity, available electrical connection, access to fuel storage and in-house OCGT operating
experience.

By late 2007, the decision was finally taken by AES’s management to relocate two of the three existing Units
with a target of 31 March 2009 set as the commissioning date.

Brief Description of the Frame 6 Units at Itabo, Dominican Republic


The existing three OCGT Units, as shown in Figure 1, are the Frame 6B Gas Turbine Generators (Model PG 6551-B)
with a site rated electrical output of 34 MW and were supplied and installed by GEC Alstom.

The Units were originally commissioned in 1997 with the following design features:

Figure 1 The three off Units at Itabo in the Dominican Republic 1. Modular units suitable for outdoor location;
2. Operated as peak lopping units;
3. Fired on distillate fuel oil;
Figure 1 The three off Units at Itabo in the Dominican Republic
4. Operated at 60Hz system frequency;

Cost Effective 5. Complete with a 9 metre high exhaust stack.

Fast Tracked
Mott MacDonald’s Involvement
In mid December 2007, AES engaged Mott MacDonald Ireland Limited (MMI), who are based in Dublin and
are part of the worldwide Mott MacDonald Group, as the design engineer for this challenging project. Shortly

Power Plant Relocation afterwards, MMI undertook an extensive condition survey of the Units in the Dominican Republic and produced
a specification outlining the technical requirements for rehabilitating and refurbishing the units to operate at
Kilroot which covered;
Abstract:
1. Repair of the minor corrosion.
This case study demonstrates how a multi-contract procurement strategy enabled refurbishment and
relocation of a Caribbean based power plant to produce a cost effective quality installation. It describes how 2. The nominal electrical output capacity of each unit increased from 34MW to 42MW as a result of
as designer, Mott MacDonald – the international engineering consultancy firm with offices in over 120 countries the lower site ambient conditions expected at Kilroot. Studies carried out by AES and MMI concluded
and Associate Member of CARILEC – partnered with AES - the +25,000 strong world leaders in energy, as project that the rating of the unit mechanical and electrical (packaged mounted) equipment was capable
manager, to derive maximum economic benefit by relocating 2 x Frame 6 Gas Turbines from the Dominican of operation at Kilroot without the need for any up-rating.
Republic to the Kilroot site in Northern Ireland. A description of the extensive condition survey undertaken on
the plant is given along with the specification of the requirements for rehabilitating and refurbishing the units, 3. Modifying the combustion system to allow for the injection of demineralised water as a primary
the requirements for converting the frequency of the units from 60 to 50 Hz operation and the requirements for abatement technique for NOx control.
integration of the plant, controls and auxiliaries into the operational plant at Kilroot.
4. Replacing the existing gearbox to allow for operation at 50Hz.
Acknowledgement: This article is based on the article published in Modern Power Systems in January 2010
entitled: “How AES Kilroot Power Ltd contributed to meeting the challenge for flexible power generation on
Northern Ireland’s electrical system” by Neil McIlwaine (AES Kilroot Power Ltd.), Brian Kinsella (Mott MacDonald)
and Stephen O’Gorman, (Mott MacDonald).
Major Technical Considerations that arose at Kilroot Power Station
Background
Environmental studies commissioned by AES had identified the need for the relocated Units to exhaust through
In 2007, AES Kilroot Power Limited (AES), the operator of a 538MW dual coal/oil fired power plant saw the two spare ducts in the existing 100m high four-flue stack. This then determined that the Units be located to the
opportunity to install Open Cycle Gas Turbine (OCGT) generators at their existing facility at Kilroot, situated close position in front of the storage facility as shown in Figure 2 below.
to Carrickfergus, Northern Ireland. As part of the +25,000 strong worldwide AES Group, AES saw the potential
with their sister plant at Itabo to relocate two under-utilised Frame 6 OCGTs from the Dominican Republic (DR)
to Kilroot. These Units were originally installed in 1997 but had little accumulated operating hours.

2| INDUSTRY JOURNAL
INDUSTRY JOURNAL |3
3. The fuel oil and demineralised water pipework was run on an existing pipe rack which required
careful co-ordination with the existing services.

Electrical Design
The high voltage element of the installation consisted of a 275/11.5/11.5 kV transformer and switchyard to
facilitate the connection to the NIE owned 275kV substation.

The major technical challenges encountered were;

1. The specification for a three winding 275/11.5/11.5kV step-up transformer with dual 11 kV windings for
the connection of both OCGTs arising from (i) space constraints and (ii) economic reasons.
2. The optimal transformer impedances were determined to limit the short circuit fault contribution on
the new 11.5kV switchgear.
3. The optimal transformer tap changer positions allowed the full power factor transformer range over
the entire voltage range to be achieved.
4. The final selection of the 275kV cable route minimised the diversion of existing external services and
accounted for the presence of asbestos, access ways and energised 275kV equipment within the
275kV NIE substation. This involved careful planning and coordination between many parties.
5. The design of a new LV switchboard fed from a new 50Hz unit auxiliary transformer to include
frequency inverters enabled the existing OCGT motors, fans, distribution boards and control panels to
remain operational at 60Hz.
6. The design allowed for intricate routing of four cores per phase of large diameter MV cabling within a
constrained space and through the oil tight transformer bund.
7. The transformer bund and fire wall was required to satisfy the requirements of NFPA 850 and to
comply with the terms of AES’s insurance requirements for a deluge system.
Figure 2 - Proposed location of the two relocated units at Kilroot
8. The design of the protection philosophy allowed incorporation of all of the project electrical
The selection of this area presented some technical challenges including; equipment (generators, three-winding transformer, 275kV cable and 275kV busbar) with the limited
number of existing protection instrumentation (CTs and VTs) in both the NIE substation and the OCGTs.
i) identifying, diverting and relocating existing buried services
ii) routing of the exhaust ducts from the relocated OCGTs and connecting to the flanges of the existing Transport to Kilroot
spare flues.
iii) demolition of some old structures, including removal of a disused buried fuel oil tank. The equipment was dismantled in the Dominican Republic and shipped to Belfast. Being a modular design
iv) running a 275kV underground cable from the new HV step-up transformer to the existing NIE meant that the various blocks could be transported by road from Belfast to Carrickfergus using specialised
(Northern Ireland Electricity) 275kV substation. This cable route crossed existing services and through heavy load moving trailers and associated traction units, refer to Figure 3;
the 275kV NIE switchgear building.

Procurement
From the outset and due principally to the tight time constraint for completion AES, as the overall project
manager, decided to approach the procurement on a multiple contract basis with the main contracts being;

1. Relocation, refurbishment, transportation, erection, testing and commissioning of the Units;


2. Construction of the civil works;
3. Supply and installation of the 275/11.5/11.5 kV step-up transformer;
4. Supply and installation of the 275 kV power cable;
5. Supply and installation of the mechanical systems;
6. Supply and installation of the electrical systems;
7. Modification of the existing 275 kV switchgear within the NIE. substation.

Mechanical Design
Some of the technical issues that arose were;

1. Although drawings of the existing stack existed it was, nonetheless, decided that a detailed survey
of the existing flanges of the spare flues be carried out to ensure that the new exhaust duct work
connected correctly.
2. As a cost saving measure, the Itabo fuel oil transfer pumps were relocated to Kilroot and so studies
were necessary to ensure that they were suitable for the new installation to accommodate the
electrical up-rating noted above.

Figure 3 – One of the two OCGT Units arriving at Kilroot.


4| INDUSTRY JOURNAL
INDUSTRY JOURNAL |5
Civil Design and Construction
The outcome of the geotechnical investigation, completed in April 2008, identified that the soil was of low
bearing capacity and therefore, in order to provide the required support and to achieve the minimum
deflections required by the design criteria, piling was adopted to support both the turbine generators and
step-up transformer foundation block.

Mott MacDonald had full responsibility for all the civil and structural design work. This included for the use of
specialist dynamic design involving finite element techniques for the turbine/generator blocks. The ambitious
timeline proved to be a challenge and prolonged curing periods of the foundation proved to be a major
player in the critical path of the project timeline.

One particular problem arose in relation to the design of the foundations for the new exhaust duct, particularly
where they were located in close proximity to the existing 100 metre high stack (piled) foundation and the
recently completed new turbine generator foundation blocks. Detailed analysis completed by Mott MacDonald
concluded that adopting traditional foundations would result in substantial and deep excavations which
would not be practical within the confines of a small site and would also not meet the demands of working to Figure 4 – Overhead view of the final installation at Kilroot.
a tight programme. It was, therefore, decided to install mini-piles to support the exhaust duct foundations and
this solution also ensured that the foundations would be independent and so no loadings would be transferred
from the new exhaust duct foundations to either the existing stack or the new generating block foundations. Mr. Brian Kinsella, MSc, Dip. Eng., C.Eng., MIEI, MIMechE, MNYAcadSc. is an Associate with Mott
MacDonald Ireland Limited with over 30 years experience in the electrical power generation and
Commissioning process industries. He has acted as project manager on numerous power generation projects
plants both in Ireland and abroad including the above project for AES.
The machines were ready for no load testing at the beginning of March 2009. With mechanical tests complete,
the machines were synchronised to the grid during April 2009. Both machines had to undergo a rigorous set
of tests to prove their performance capability for operation in compliance with NIE Grid Code characteristics. Mr. Stephen O’Gorman, BE. (Mech), MIEI, is a Project Engineer with Mott MacDonald Ireland
Limited and has several years experience in the power generation industry on projects in Ireland,
Programme Bermuda and Pakistan. Experience includes design, procurement, project management and
commissioning with detail design of mechanical BOP for the Kilroot project.
All aspects of programme co-ordination, monitoring, overview were successfully handled by a construction
team made up from the existing engineering staff at AES Kilroot. The units were finally commissioned and
operating in the market in April 2009.

Health and Safety


Near miss and incident reporting was monitored throughout the project with a high emphasis being placed on
contractor adherence to AES safety guidelines. This was a major challenge considering the tight confines of the
construction area, the large number of contractors at site and the need to maintain an existing power station
in full production. The non occurrence of any major incidents highlights the success of such stringent health and
safety guidelines utilised on this project.

Environmental
Detailed environmental studies were undertaken at the outset of the project particularly in relation to noise and
emissions. No environmental issues arose either during construction or commissioning.

During commissioning emission testing was carried out to ensure the machines complied with the specified
environmental limits.

Overview
The relocated Units were finally commissioned in April 2009 and a photograph of the final installation is included
in Figure 4 below;

The technical challenges incurred during the tight timeframe were significant and were successfully met by AES
Kilroot Power Limited, assisted by Mott MacDonald

The approach to procurement adopted by AES proved to be successful for this particular project, where
it is difficult to identify any shortcomings that arose. In fact, excellent lead times were achieved on major
components, which in turn led to a reduction of previously conceived installation times and, therefore, an
overall cut in the critical path of the programme.

6| INDUSTRY JOURNAL
Developments & Abstract
The EPAR

highestuse
system (red circle) for Paramaribo and
surroundings. The EPAR system has by far the
nergy in developing of countries
electric has riseninmore than

Future Expansions
consumption power Suriname
fourfold over the
(consumption past GWh/a);
of 1000 three decades and is expected
to continue increasing in the future. Electricity is one of
the
The most
ENIC important ingredients
system (purple circle)forforsocial and economic
New Nickerie in West
development in Suriname. The electric
Suriname, and the surroundings (consumption power growthof 50
rate in Suriname is approximately 10% annually, and is
GWh/a);
Development in the Electrical Power Systems of Suriname higher than in other countries in the region, which have
typical values Power
The District between 3% and(black
Systems 7%. There is a strong
circles) each
relationship
operating asbetween
an isolated economic
power growthsystem and energy
with one or
Author: usage. Therefore
more Diesel electricSets
Generator utility’s
in a dutylocal ispower
to facilitate
house
future growth by together
(total consumption assuring isaaround
reliable 24 and
GWh/a); secured
Samuel Mehairjan MSc supply of electric power. In this context there are
Co-Author: interesting
The Rosebeldevelopments
Gold Mines (green realized andwhere
circle) forthcoming
the Gold in
the electricity sector in Suriname. In this first contribution
Ravish P.Y. Mehairjan BSc Mine operations of IAMGOLD in the Brokopondo district
an
are overview of the
supplied with mainpower
electric characteristics
coming from of the utility
Afobaka
company in Suriname, N.V. E.B.S.,
Hydro power Plant (consumption 170 GWh/a); is given, followed by
developments that took place over the past 7 years
and
The expansion
Brokopondo potentials for thesystem
Distribution future. This(blue technical
circle)
article shares knowledge and experience
feeding some villages in the Brokopondo district for practical
from
and proven solutions
the 13.8/33 kV system in at
thetheelectricity
Afobaka powerHydro sector
Power of
Suriname. The business
Plant of about 7 GWh/a;sectors are given opportunities
to explore the possibilities in the demand and supply
business of the electric
Short History of EBS power industry in Suriname.

Introduction
EBS has its root back 100 years ago, established by the
Dutch. Similar power and gas companies are found in
The N.V. Energie
the Dutch Antilles,Bedrijven
Curacao,Suriname
Aruba, St.(EBS), theBonaire
Martin, Dutch
translation
etc. Suriname for was
Energy Companies
provided with gasof fired
Suriname,
lampsisforsince
the
3first
years
timeainutility member
the year 1909. of
TheCARILEC.
company The
wasEBS is a 100%
named the
government owned company
Nederlansch-Indische responsible(N.I.G.M).
Gas Maatschappij for the delivery
In 1928 of electricitywas
concession andgranted
gas in the coastal areas
to N.I.G.M. for theand for
supply
electricity in some interior areas of Suriname. The districts in Suriname, typically in the coastal
of power in Paramaribo over a period of 50 years and in 1929 they started to build a power station containing areas, are provided
Abstract with
3 dieselelectricity by EBS
generators witha independently
with total capacityoperated
of roughlypower systems.
1.19MW. Furthermore,
In the year 1953 the small power
name systems
was exist in
changed in
the
Overzeese Gas en Energie Maatschappij (OGEM). In 1972 the Government became the biggest stake by
interior of Suriname that is providing electric power to local villages, which are owned and operated the
holder
Energy use in developing countries has risen more than fourfold over the past three decades and is expected Department
and the name forwas
Rural Energy of
changed to the Ministry Bedrijven
NV Energie of NaturalSuriname
Resources (DEV).
(N.V. The operating frequency is 60Hz and
E.B.S).
to continue increasing in the future. Electricity is one of the most important ingredients for social and economic typical voltage ratings are 161kV and 33kV for transmission purpose and 12kV and 6kV for distribution purpose,
development in Suriname. The electric power growth rate in Suriname is approximately 10% annually, and is whereas
Growththe of customers
Electricity areDemand
provided with low voltage levels of 127/220V. A summary of the main power systems
in Suriname
higher than in other countries in the region, which have typical values between 3% and 7%. There is a strong are given below and depicted geographically in figure 1 [1], [2], [5]:
relationship between economic growth and energy usage. Therefore electric utility’s duty is to facilitate In the past 4 years the demand has been growing towards approximately 10% per year. Such growth rate is
future growth by assuring a reliable and secured supply of electric power. In this context there are interesting The EPAR
higher system
than other (red circle) countries,
Caribbean for Paramaribo and surroundings.
which have The
typical growth EPAR
rates system the
between has3%byandfar 7%
the[10].
highest
The
developments realized and forthcoming in the electricity sector in Suriname. In this first contribution an overview consumption of inelectric
high growth rate Surinamepower in
is a result
of the main characteristics of the utility company in Suriname, N.V. E.B.S., is given, followed by developments Suriname (consumption
of the fast economical of 1000 GWh/a);
development
that took place over the past 7 years and expansion potentials for the future. This technical article shares witnessed since 2000. This is due to the
knowledge and experience for practical and proven solutions in the electricity power sector of Suriname. The The ENIC system
development of the(purple circle)
oil industry, for
refinery
business sectors are given opportunities to explore the possibilities in the demand and supply business of the New Nickerie in West Suriname,
process, and growth in the mining sectorand
electric power industry in Suriname. the surroundings
especially the gold (consumption of 50
sector (IAMGOLD).
GWh/a);
Added to this the fast growth of new
Introduction housing schemes, the installation of air-
The District the
conditioners, Power Systems
tourist industry(black
(e.g.
The N.V. Energie Bedrijven Suriname (EBS), the Dutch translation for Energy Companies of Suriname, is since 3 circles)
Berg en each operating
Dal Resort), the as an sector
hotel isolated
in
years a utility member of CARILEC. The EBS is a 100% government owned company responsible for the delivery power system (Royal
development with one or more
Torarica Hotel,Diesel
Best
of electricity and gas in the coastal areas and for electricity in some interior areas of Suriname. The districts Generator
Western Hotel Sets and
in a Marriot
local powerHotel)house
and
in Suriname, typically in the coastal areas, are provided with electricity by EBS with independently operated (total consumption together
other commercial developments is aroundare
power systems. Furthermore, small power systems exist in the interior of Suriname that is providing electric power 24 GWh/a); more power. In figure 2 the
demanding
to local villages, which are owned and operated by the Department for Rural Energy of the Ministry of Natural electricity growth in the EPAR power system for the period 1966-2009 is shown. The fast growth is experienced in
Resources (DEV). The operating frequency is 60Hz and typical voltage ratings are 161kV and 33kV for transmission The Rosebel Gold
the Paramaribo Minesand
(EPAR) (green circle) where
Brokopondo grid,the Gold
while theMine operations
Nickerie of IAMGOLD
grid (ENICK) in the
is growing withBrokopondo
6% per year.district
In the
purpose and 12kV and 6kV for distribution purpose, whereas the customers are provided with low voltage levels are supplied with electric power coming from Afobaka Hydro power Plant (consumption
period of 1982 to 2006 load-shedding became an inevitable practice due to frequent shortage 170 GWh/a);
of supply in the
of 127/220V. A summary of the main power systems are given below and depicted geographically in figure 1 EPAR grid. This created inconvenience for business, industry and households. Since 2006 the load-shedding has
[1], 2 [5]: The Brokopondo
stopped Distribution of
as a consequence system (blue circle)and
the rehabilitation feeding some of
expansion villages in the
the power Brokopondo
plant of EBS, thedistrict from the
commissioning
13.8/33 kV system at the Afobaka Hydro Power Plant of about 7 GWh/a;
of the 161kV transmission infrastructures from Paranam to Paramaribo and the erection of a new IPP owned by
the State Oil Company (Staatsolie). |9
8| INDUSTRY JOURNAL Short History of EBS 9| INDUSTRY JOURNAL
INDUSTRY JOURNAL
Abstract Expansion of 36 kV network, EVP projects
nergy useof
Supply in Electricity in Suriname
developing countries has risen more than fourfold over the past three decades and is expected The driving forces for system modernization in Suriname are load growth, equipments no longer compatible with
to continue increasing in the future. Electricity is one of the most important ingredients for social and economic the changing requirements (short circuit capabilities), ageing of the system and technological developments.
development
The supply of in Suriname.is The
electricity electric by
generated power growthdiesel
premium rate in Suriname
with is approximately
diesel driven generators10% and annually,
nowadays andais In this context EBS has upgraded, expanded, retrofitted and installed a number of 36kV infrastructures. EBS
higher thanpart
substantial in other countries
is fuelled with Heavyin the Fuel region, which However,
Oil (HFO). have typical
the values
majoritybetween 3% and
of electricity 7%. There
in Suriname is a strong
is delivered is making more than 4000 new electric connection to customers each year. To do this EBS is expanding its
relationship
by hydro power betweenfrom theeconomic
Afobaka growth
Hydro and Power energy usage.Since
Plant (HPP). Therefore
1999 theelectric utility’s duty
contribution of hydrois topower
facilitate
to distribution network of 12kV overhead lines and 6 kV underground cables. Subsequently 50% of the substations
future
the growth
grid by assuring
is at least 700 GWh, a reliable
and in extraand secured supply ofthis
raining seasons electric
amount power. In this context
is increased with 15-20%there contractually.
are interesting of the EPAR power system are automated for control and command purpose with SCADA applications. This
developments
Suriname realized and
is a fortunate CARILECforthcoming in the electricity
utility member sectorwith
that is blessed in Suriname.
many rivers In this
and first contribution
plenty of fresh an overview
water. Due substation automation is helping the engineers in the command centre to control, take decisions and operate
of the
to main
this gift characteristics
Suriname is coveringof the utility
more company
than 80 % of in Suriname,
her electricityN.V. E.B.S., iswith
demand given,
this followed
renewable byenergy
developments
source the system much better and faster. Disturbances are detected sooner and where possible switching of circuit
that took place over the past 7 years and expansion potentials for the future. This technical article shares
for years. breakers is operated remotely. This practice is contributing to reduce the duration of failures and improve the
knowledge and experience for practical and proven solutions in the electricity power sector of Suriname. The availability of power.
business
In 2006 there sectorswere are given
some opportunities
extra dry monthsto explore the
in Suriname. possibilities
The Brokopondo in the
hydrodemand
lake couldand therefore
supply business of the
not acquire
electric power
enough water from industrytheinstreams
Suriname. that The EBS Reliability Tool
resulted in serious shortage of power.
Introduction
The government had to lease about EBS has recently developed a reliability program with a consultant to measure its reliability performances. This
30MW of rental power from a foreign new outage reporting program has been delivered in 2009. Starting in 2010 this tool will be used and as a result
The N.V. Energie
contractor Bedrijven
for 3 months Suriname
to cope with EBS will be able to follow the trend analysis of the SAIDI, CAIDI and SAIFI reliability indices. As a consequence
(EBS),inferior
this the Dutch translation
situation. for Energy
It should be EBS can start strategic reliability improvement programs. At the same time EBS will have the possibility to
Companies
noted that since of Suriname,
August 2009 is since
till April3 compare reliability statistics and to benchmark against other utilities in the region.
years aa long
2010 utilitydrymember
seasonofis CARILEC.
afflicting
The EBS is a and
Suriname 100% government
the hydro lake owned is EBS Dispatch Centre
company
slinking responsible
rapidly. SinceforAugust
the delivery 2009
of electricity
extra thermal and gas inof
power theaverage
coastal Table 1: Main characteristics of different power systems in Suriname [5] EBS has performed a technical study with a consultant to design a dispatch centre for the complete EPAR
areas
60MW and for electricity
is generated in the inthermalsome power system, the IPP’s and eventually for other districts. In 2011 this new dispatch centre with the latest
interior station
power areas of ofSuriname.
EBS and backed The districts
up byinSPCS Suriname, typically
(Staatolie Powerin the coastalSuriname).
Company areas, areSPCS provided
is an with electricity
IPP which is in SCADA monitoring and control application of 25 substations and 5 generation station should be into operation.
by EBS with
operation independently
since 2006 and is ownedoperated by power
the Statesystems. Furthermore,
Oil Company small power
of Suriname systems
(Staatsolie). exist in hydro
Although the interior
power of Together with this modernization of the control and monitoring applications additional new networks, radio
Suriname
is cheaperthat andis a providing
renewable electric
source, power to local
it should be villages, which
kept in mind aredry
that owned
yearsand canoperated by the Department
come unexpectedly so the and fiber-optic communication links will be installed. The main goal is to coordinate with all IPP’s and to
for Rural
utility Energy
should alwaysof the
haveMinistry
reserve of Natural
thermalResources (DEV). The
capacity installed to operating
meet the power frequencydemand is 60Hzforand
the typical
less wetvoltage
years. monitor the transmission and distribution for control of frequency, reserve spinning, voltage profiles, power
ratings
In are 161kV
the table and 33kV
1 the installed for transmission
capacity, peak demandpurposeand andconsumption
12kV and 6kV forfor2009distribution
are listed.purpose, whereas the flows and outage handling.
customers are provided with low voltage levels of 127/220V. A summary of the main power systems are given
Developments
below and depicted in geographically
the past 7 years in figure 1 [1], [2], [5]: Improve Dynamic & Voltage stability in the EPAR grid
The EPAR system
Conversion (red to
from Diesel circle)
Heavy forFuel
Paramaribo
Oil (HFO) and surroundings. The EPAR system has by far the highest Because of some recent large disturbances and the
consumption of electric power in Suriname (consumption of 1000 GWh/a); fluctuations in the lake levels at the Afobaka Hydro Power
In 2004, EBS decided to convert several diesel engines to HFO fueled engines. The savings would pay back Plant EBS became more aware of the importance of ensuring
The new
the ENIC conversion
system (purplecostcircle)
in less for
thanNew Nickerie
2 years. in Westwith
Together Suriname, and the fuel
the innovative surroundings (consumption
conversion, of 50
and additional the stability of the system during critical contingencies in
GWh/a);
fuel treatment units the whole EBS power plant was automated with a state-of-the art monitoring system, the the system. Consequently, EBS is performing a system wide
Power Data System. This system is helping the plant operators and engineers to manage engine performance stability study together with a consultant for the prediction
The District
better and Power
operate Systems (blackmore
the engines circles) each with
reliably, operating as an isolated
less damage power
especially system with
to cylinder one or more Diesel
heads. and improvements of frequency load-shedding settings.
Generator Sets in a local power house (total consumption together is around 24 GWh/a); These studies and analysis are performed using the ETAP
Expansion of the Generation Capacity engineering analysis software to create models and
The Rosebel Gold Mines (green circle) where the Gold Mine operations of IAMGOLD in the Brokopondo district simulations. With the implementation of the new SCADA the
are has
EBS supplied with to
decided electric
retrofitpower
biggercoming
and more from Afobaka
efficient Hydro
diesel power Plant
generator (consumption
sets in 170 GWh/a);
its power plants. Foundations on EBS wants to go for fast load-shedding based on frequency
piles that were more than 40 years old were partly excavated and new concrete was casted and engines decay [5]. Added to this study, a similar approach with
Thetriple
of Brokopondo
capacity Distribution
was installed system
and are (blue circle) feeding
operated. This was some villages
a costly, in the
however Brokopondo
efficient action district
in shortfrom
time the
to the ETAP software will be conducted for a voltage stability Figure 3: Artist impression of the
13.8/33 kV
increase system
the at the capacity.
generation Afobaka Hydro In thePower Plant of
ENIC system about is
15.6MW 7 GWh/a;
installed, while in the EPAR system 44 MW has analysis. A P-V analysis will be performed to determine the proposed power plant of EBS [5]
been installed by EBS. Three years ago the SPCS has installed 14MW and is now expanding with an additional maximum load that could be supported for a given network configuration without voltage collapse. This result
Short
14 MWHistory of EBScapacity.
of generation will provide important information from an operational and planning perspective.

High Voltage Transmission Line & Substation (161kV) Future Expansions Potential in Suriname
Summary of Some Business Opportunities
In 2004 the EBS signed a contract with L & T (Larsen & Toubro) from India to build 2 substations and a 27
km double circuit 16 kV transmission line of 150MW capacity to increase the transport of hydro energy from New 200 MW Electric Power Plant
Paranam to municipal city of Paramaribo, reducing transmission losses with 8% over this route, and increasing
reliability and flexibility for the overall EPAR grid. To meet the demand that is at a rate of 10% per year and to replace outdated generators EBS has identified a
new location in South-West of Paramaribo to build a new power plant. Environmental, geo-structural, technical
requirements and financial studies are performed. A 200MW station with reciprocating engines of 15 -20MW
will be installed. The first stage is to have 60MW in 2 years connected to the grid. And in following years more
generators and electrical installations will be installed.

10 | INDUSTRY JOURNAL

INDUSTRY JOURNAL | 11
Rice Husk Power Plant in District Nickerie Expansion of 36 kV network, EVP projects

This district is the Western border of Suriname with Guyana and the The driving forces for system modernization in Suriname are load growth, equipments no longer compatible with
main provider of rice in Suriname. About 90% of rice cultivation of the changing requirements (short circuit capabilities), ageing of the system and technological developments.
Suriname is in the district Nickerie. Currently approximately 160.000 In this context EBS has upgraded, expanded, retrofitted and installed a number of 36kV infrastructures. EBS
tons of rice is harvested annually. This will result in about 50.000 is making more than 4000 new electric connection to customers each year. To do this EBS is expanding its
tons rice-husk (the hard protecting coverings of grains of rice) is distribution network of 12kV overhead lines and 6 kV underground cables. Subsequently 50% of the substations
produced annually; this rice husk is presently considered as waste of the EPAR power system are automated for control and command purpose with SCADA applications. This
and being dumped in the rivers or burned in open air. While oil prices substation automation is helping the engineers in the command centre to control, take decisions and operate
keep rising and to mitigate the severe environmental problems, EBS the system much better and faster. Disturbances are detected sooner and where possible switching of circuit
wants to built a power plant using the rice husk biomass to fuel the breakers is operated remotely. This practice is contributing to reduce the duration of failures and improve the
Figure 4: Burning of rice husk in availability of power.
production of electricity [4], [7].
the open air in District Nickerie [7]
International Interconnection between Suriname and French-Guiana, EDB-bank The EBS Reliability Tool

During 1998-1999 the EBS and EDF


of French Guiana had intensified
technical relations on cooperation
and knowledge exchange
between the two electrical power
companies [1]. From this relation,
a plan had been developed to
perform an Interconnection Study
for the Suriname/French-Guiana
power system. This was performed
in the period 2005-2006. If at least
30MW of power, preferably hydro
power, would be reserved from
Suriname to be delivered to French-
Guiana, this interconnection and
related investment costs would
become feasible. There would be
additional technical, reliability and availability benefits arising from this interconnection. EBS and EDF would
need less installed and operated spinning reserves if interconnected. With the converter system a very precise
VAR control (reactive power compensation) and voltage regulation can be performed. In time of calamity on
one side, the neighboring side can deliver power from its reserves through the tie-lines and vice versa. Technical
provisions to be built in this project are: A 150 km of 161 kV transmission line from Paramaribo to Albina, a
converter station 60/50 Hz at the border and a 90 kV link to the French Guyana power system, 2 river crossing
of the Suriname river and the Marowijne river with submarine cables.

The Jai-Tapanahony Hydro Diversion plan

The Jai-Tapanahony is a multifaceted project of which the main intention is to develop extra hydro power
capacity. This plan is envisaged in the South-Eastern part of Suriname and comprises a group of dams and
hydro power plants which diverts part of the waters of Tapanahony River and Jai Creek into the existing Afobaka
Hydro Lake and generates energy by this procedure and increases the capacity in the Afobaka Hydro Power
Plant. Diversion systems and Dams will be constructed; generators in the dams and transmission lines will be
erected and connected to the Afobaka HPP to transport the power to the Paramaribo grid [1], [3], [11]. All
weather roads will be constructed to connect the Jai-Tapanahony expansion project. Together with the HPP at
the Tapanahony dam, 4 HPP at the other locations, Jai 1, Marowijne 1, 2, 3 will have a capacity of 305MW (see
figure 6). At Afobaka a second HPP will be constructed with a capacity of 116MW thus increasing the installed
capacity at Afobaka HPP to 305MW. In rain season the 5 Jai-Tapanahony-Marowijne creeks HPP’s will produce
305MW of power, and the water will be collected in the Afobaka reservoir. In the dry season there will be no
diversion of water from Jai-Tapanahony and the lake levels will be high enough for the 2 Afobaka HPP’s to
produce 189MW + 116MW = 305MW [1]. The cost of these projects is about 800 million USD. The cost of electricity
around USD 0.09 will be less than power produced from thermal generation. The construction time can be 6 to 8
years [1], [3]. This project illustrates the immense potential for developing hydro power even further in Suriname.
If realized, this project will secure Suriname of sustainable energy for many years. As stated by [11] this project
should shift from a desk study performed by a Brazilian Engineering Company (Camargo Correa) to feasibility
studies in short notice.

12 | INDUSTRY JOURNAL
Concluding Remarks create supply and transportation capacity to meet
Suriname’s economic growth requirements and at
The Kabalebo Hydro Power Project (West Suriname Hydro Power For Caribbean countries it is an important condition the same time fulfilling the need for security of supply.
Project) for their economic development to assure a secure The growth rate in demand for power is high (8 to
Since 1977 this Hydro Power Project in the Kabalebo River (West of and reliable supply of electricity. EBS is fully aware of 10 %) in the last 3 years and expected to progress
Suriname) is envisaged. The projected capacity will be 350MW to the important role that the electric power sector plays with this pace, which is the highest compared to
850MW [1]. In the first stage a dam and a 350MW HPP are planned for the development for Suriname. As utility member several other Caribbean countries. The coming
in the Kabalebo River. In the second stage diversion of water of the of CARILEC, EBS has better chances to benefit from year’s developments in the power sector of Suriname
Lucy River and the Corantijn River and a dam with HPP at Tijgervallen the important changes Caribbean power sectors are will be promising and inevitable. Proven identified
will extend the power production to 850MW. There is a bright future witnessing. This first contribution has shared knowledge projects like Jai-Tapanahony HPP, Nickerie Rice Husk
for renewable power capacity in Suriname, however it has to be and experience of proven and practical solution in the Power Plant, Bruynzeel Diesel/HFO Generating Plant,
weighed against other factors as well e.g. the inundation of land, Suriname electrical sector. Added to this it highlights introduction of photovoltaic energy for remote villages
high initial costs and health and risk issues associated with water the developments that the Suriname power sector and installation of Mini and Micro HPP are business
misuse and degradation. has undergone, and additionally gives a glimpse of opportunities. The installation of the dispatch centre,
expansions potentials. EBS is continually planning installation of SCADA applications, transmission and
Transmission & Distribution Expansions and implementing projects in order to improve and distribution infrastructure are projects that will have
In the EPAR, ENIC and Rural Areas transmission and distribution to be realized and create promising opportunities for
infrastructure, substations, transformers, lighting and metering will be
purchased and installed in the years to come. These investments, that
are necessary, will be implemented to meet the power demand in
the rapidly growing community and to ensure the reliability of supply
to the customer. It is a yearly investment of more than 15 million USD. Energy Supply in Suriname is provided for
approximately 80-85% by Hydro Electric Acknowledgments
Rural Electrification Power. The authors would like to
In the interior of Suriname there are about 112 villages that have a acknowledge Ir L. Boksteen, Dr.ir. V.S.
diesel generator unit varying from 10 to 500kW. Most of the villages Ajodhia, Eddy Frankel MSc (Power
are provided with diesel/gasoline fuel on monthly bases. There is no Manager Staatsolie), Feroz Habib
tariff regime in place and supply to the communities comes free MSc (Power Manager Suralco), A.
of charge. It is the policy of the government to continue delivering Bipat BSc (Engineer at EBS) and all
this kind of supply to the isolated people, Maroons and American departments and related engineers
Indians. It is for their social welfare and benefit to give power a few of EBS and Staatsolie for their
hours of the night and where possible longer. Transportation of fuel contribution and helpful advice,
across the rivers with waterfalls far in the interiors is very costly and which have been useful in writing this
time consuming [1], [5]. In the past some villages (Kwamalasumutu) technical article.
were supplied with solar power but did not last for long time due to
poor maintenance. In the future further application of solar power to
meet the demands for delivery of electrical power should be a priority References
for environmental and economic reason. The places where villages are near waterfalls the government should
install micro and mini HPP. Besides lighting this power can be applied for small scale industrial developments
1 Preliminary Assessment Report, SURINAME POWER 7 Presentations on Rice Husk PP Nickerie and Power
and refrigeration of meat and agricultural products. The existing diesel gen-sets can be used as back-up system
SECTOR ASSESSMENT AND ALTERNATIVES FOR ITS Demand and Supply for the Future, S. Mehairjan,
together with the solar power systems in the form of a hybrid connected system. Small wood fired steam
MODERNIZATION (ATN/SF-9038-SU), KEMA May 2008. Jan 2008.
generator sets can also be an alternative for the power production for the villages in the interior, since wood is
abundantly available and the villagers can collect this by themselves.
2 B Sc graduation report, “Find an alternative 8 Smart Grid, the Key Driver for a Sustainable
method to reduce the impact of long lasting Energy Future, Carilec Industrial Journal, Ravish P.Y.
Challenges outages on the 33/12 kV distribution transformers of Mehairjan & Evita N. Parabirsing, July 2009.
substation S/S-D and S/S-K in the Western part of the
Application of power efficient apparatus and lighting
EPAR network”, Ravish P.Y. Mehairjan, July 2008. 9 Energy Efficiency in the Power Grid, ABB Inc., 2007.
Efficiency is a simple concept which can perhaps best be summed up with the formula, “doing more with
less.” The focus is to comply with the international commitment to reduce power usage in future and to reduce
3 Presentation of Suralco L.L.C of the Jai- 10 Caribbean Regional Electricity Generation,
CO2 footprint. All customers will have to switch over to the energy efficient lights that are developing rapidly
Tapanahony Hydro Diversion Plan, Mr. Pederson, Interconnection, and Fuel Supply Strategy, Interim
nowadays. Energy saving apparatus and soft starting motor will have to be applied in every building and
2004-2005. Report, Nexant & World Bank, Jan 2010.
houses. And by using appropriate enabling technologies to link the above mentioned to the grid their potential
can be fully realized [8]. Starting with simple energy efficient apparatus is where EBS wants to initiate the journey
4 Study and presentation on Rice Husk PP, United 11 Interview with Ir. Lothar Boksteen, Engineer
towards an intelligent sustainable energy system in the end. Organizational, regulatory and policy issues are the
Engineering Calcutta, R. Gandhi, India. developing options for hydro power potential in
biggest hurdles to overcome in this topic before Suriname can make progress in this area of interest. The term
Suriname, Feb 2010.
“efficiency” is typically associated with how energy is consumed at the point of end use, but the concept of
5 Technical year reports and documents of N.V.
efficiency can also be applied to how energy is produced and distributed [9]. Using higher voltages in T&D, the
E.B.S. 12 Elektriciteit: Vraag, Aanbod en
application of high efficient distribution transformers and advances monitoring and control system EBS will be
Toekomstvooruitzichten, Business Seminar, (in Dutch),
able to reduce network losses. This contributes to CO2 reduction of the power grid. Greater energy efficiency
6 Lecture manuscript on Sustainable Power S. Mehairjan, Feb 2010.
in the T&D system means lower emissions in generation to deliver the same amount of consumed energy.
Engineering, Delft University of Technology, Prof. dr. B.
Ferreira, 2009.
14 | INDUSTRY JOURNAL INDUSTRY JOURNAL | 15
Abbreviations

EBS – Energy Companies of Suriname HPP – Hydro Power Plant


(Energie Bedrijven Suriname)
IPP - Independent Power Producers
SPCS – Staatsolie Power Company
Suriname SCADA – Supervisory Control And Data Acquisition

T&D – Transmission & Distribution SAIDI – System Average Interruption Duration Index

GWH – Gigawatt Hour SAIFI – System Average Interruption Frequency Index

MW – Megawatt CAIDI – Customer Average Interruption Duration Index

kW – Kilowatt EDF - Électricité de France

kV – Kilovolt EDB – European Development Bank (nowadays


Council of European Development Bank (CEB))
HFO – Heavy Fuel Oil

Samuel Mehairjan was born in Nickerie, Suriname, on


4 August 1956. He received a BSc in Electrical Power
Engineering in Suriname. In 1991 he received his MSc Your Source for
degree from Tennessee Technological University (TTU)
USA in Power Engineering. Until now he is for 29 years High Voltage
with the EBS and is currently Director of Generation Test Equipment
and Transmission. He has a clear view for the needs of ...a wide range of test systems available!
the people and solutions for the fast development of
the Power Industry in Suriname. At present he is also a AC Hipots Aerial Lift
3 kV to 1 MV Test Sets Contact us at
lecturer in High Voltage Engineering at the University 1-301-746-8118
of Suriname. He has been a member of IEEE for many info@phenixtech.com
years. 75 Speicher Drive
Accident, MD 21520
USA

www.PhenixTech.com

Transformer Test Systems 30+ Years


Distribution or Power Experience
DC Hipots/ C

Megohmmeters ISO RE 9001


6 kV to 160 kV
TIFIED

Ravish P.Y. Mehairjan was born in Paramaribo,


CABLE MOTOR

Suriname, on April 11, 1987. He graduated Cum Laude


as BSc in Electrical Power Engineering at the Anton CIRCUIT PORTABLE

de Kom University of Suriname in July 2008, where he


conducted a study for EBS. In this study he looked at
BREAKER
Rubber Goods Test Systems for
alternative methods to reduce the impact of long- Gloves, Sleeves, Overshoes, Helmets, Hoses, GENERATOR PROTECTIVE

Hoods, Switch Sticks, Bucket Liners, Blankets,


lasting outages in the West part of the Paramaribo + Rubber Goods Washers & Dryers
G
EQUIPMENT

power system. At present Ravish is working towards GIS RECLOSER

an MSc in Electrical Power Engineering with the


specialization in High Voltage Technology & Asset SWITCHGEAR

Management at the Delft University of Technology in INSULATION TRANSFORMER

the Netherlands. Ravish is member of the Energy Club MATERIALS

of Delft University of Technology, which is a student-


led club of academia and industry.

16 | INDUSTRY JOURNAL
FUEL PRICE HEDGING RECENT EVENTS

THE LUCELEC EXPERIENCE


Beginning in the middle of 2007 and up to the middle of 2008 there was significant volatility in the price of fuel
on the international market on a scale never experienced in recent history. As a result fuel prices reached
unprecedented highs causing severe stress to customers, the economy generally and to the Company.

All the major electricity generating companies in the region rely on fossil fuels as their prime or only source of
generation. This fuel is imported and purchased at market prices that are impacted by many factors out of the
utilities’ control. As a result customer tariffs can sometimes vary significantly from month to month due to these
external factors and due to the fact that under legislation the utility companies usually pass fuel costs on to the
customers via a “pass though” mechanism, that is, with no mark up.

THE CHALLENGE
LUCELEC recognized the issue some years ago and its impact on customers and the Company.
These included: - Figure 1

The price paid by the Company for fuel as shown in the graph (figure 1) above demonstrates the scale of the
• Fuel costs represented the single largest cost component for the Company. volatility that pertained during the period.
• The Company had no control of the price of this significant item. Under the Electricity Supply Act (ESA) the Company is authorized to carry out hedge activities and to pass on
the effects to its customers. In addition to the direct effects of the hedge programme the ESA also allowed the
• Prices paid impacted significantly on its customers’ monthly bills. passing on of costs directly associated with hedging activities. The exception to the authorization relates to
those costs associated with the early termination of hedge contracts.
• Fuel prices were inherently volatile, making it very difficult for the Company and its customers to manage
their costs.
• Constantly fluctuating prices negatively impacted upon customers’ perception of the Company as a WHY HEDGE
caring company.
The Company therefore decided to institute a fuel price hedging programme with the following objectives: -
• These negative perceptions damaged and set back efforts to improve customer satisfaction ratings.
• To stabilize the price of fuel that the Company paid
• The Company’s operations, activities and motives were questioned by the customers who
understandably did not appreciate or understand the fuel pass through mechanism and its impact on • To pass on this measure of price stability and reduced volatility to the tariffs
their bills.
• To assist customers in managing and planning their electricity spend in a more efficient manner
• Business customers were experiencing extreme difficulties as the cost of electricity forms a significant
cost component of their operations and they were unable to predict with any degree of accuracy • To provide relief to the economy generally through a greater degree of predictability in
what their monthly bills were likely to be. electricity costs

• Certain businesses which engage in highly competitive operations and for which forward pricing is • To assist business customers to manage their costs, price their goods and services and generally plan
a significant aspect of their business were forced to give up their margins or incur losses due to fuel price and forecast with a greater level or certainty and assurance
movements.
• The pass through cost for fuel purchases have a significant impact on the Company’s cash flow as • To allow LUCELEC to manage its cash flows and deliver improved service to its customers
costs are recovered 60 to 90 days after they are incurred.

18 | INDUSTRY JOURNAL INDUSTRY JOURNAL | 19


HOW TO HEDGE?
LUCELEC purchases its fuel at spot prices under the terms of a supplier contract with HESS Oil St. Lucia Ltd. Any
hedge activities, therefore, had to be based on price and not on the physical product.

The Company also needed to make a decision on its risk tolerance level in terms of the type of hedge instruments FUEL PRICE HEDGING - THE LUCELEC EXPERIENCE
to be used. There are a large number of tools available, from the simple to the very complicated, including
Fixed Price Swaps, Collars, Options, Futures, as well as variations of these.

Consideration for selection of the relevant hedge instrument also rested on the experience of the staff, hedge
THE PROCESS
objectives, risk potential, the impact on human and other resources for monitoring and managing the hedge,
Management secured the services of experienced resources in the field and the following were undertaken or
all tied in with the strategic objective underlying this initiative.
implemented: -

• An in depth analysis of price hedging including the risks, benefits, processes, financial and operational
GOVERNANCE AND REPORTING impacts.
The Board of Directors, following approval of the price hedging programme delegated authority for the
• A Fuel Risk Management Committee was set up to manage the process and ongoing activities. This
operation and implementation of the programme to a committee of senior officials of the Company – the Fuel
committee comprised some members of the Company’s senior management team.
Risk Management Committee (FRMC).
• A Risk Policy document was approved outlining the scope for the programme including authority
The authorities and procedures of the Committee are governed by the Board Resolution and policy details
limits, procedures, reporting procedures, analysis, etc.
documented below.
• A Hedge Strategy document was developed outlining the rationale for the programme.
Governance is exercised by the Audit Committee of the Board of Directors to which the FRMC is required to
report on all aspects of the programme at each of Audit Committee meetings (usually 4 times a year).
• A formal Request for Proposals (RFP) was prepared for potential hedge counterparties.

• The evaluation, analysis and selection of an appropriate counterparty to carry out hedge activities
with were done.

• The Company formally engaged a counterparty to conduct hedge activities with.

• The review and negotiation of relevant agreements to commence activities:-

o ISDA Master Agreement – The “boilerplate” agreement pertaining to all contracts.

o Schedule to the ISDA Master Agreement – A separate contract to accommodate variations


to the ISDA Master Agreement in respect of negotiated items, exceptions, items that are
not applicable, etc.

o Credit Support Annex – An Agreement to cover mainly financial terms such as credit limits,
valuation periods and computations, settlement terms, etc.

o Board Resolutions – Extract from the relevant Board of Directors meeting that must clearly
indicate authority and scope.

o Legal opinions – Local external counsel opinion usually accepted by counterparties but it
must provide the requisite comfort.

• Ensuring that the relevant conditions were met for the proper adoption of accounting
treatment and reporting.

• A review and sign off by the Company’s external auditors.

• Discussions and agreement with the Company’s bankers with respect to the requisite financial
arrangements that may be required.

• Ensuring that the appropriate operational arrangements were in place for all aspects of the
process.

20 | INDUSTRY JOURNAL INDUSTRY JOURNAL | 21


PILOT PROGRAMME
Recognizing the complexities and intricacies involved in fuel price hedging, and as an integral part of its risk
management policy, the Company undertook a pilot programme for the period July to December 2009. Under
this pilot programme the Company hedged a limited amount of its fuel purchases (30% in the first instance) and FUEL PRICE HEDGING - THE LUCELEC EXPERIENCE
up to maximum of 75% for the last quarter of 2009.

The
pilot programme met its objectives of reducing risk, enabling company officers to educate themselves on .
the practical aspects of price hedging and to interact with counterparties and evaluate their potential and
deliverables. APPLICATION OF HEDGE – FIXED PRICE SWAPS

The pilot programme incurred some costs which, under the legislation were passed on the customers, including The FRMC was authorised to use only Fixed Price Swaps to hedge its fuel price. Fundamentally, this tool allows
fees related to legal, consultancy, programme development, governance policy, documentation, tender the Company to eliminate the daily fuel price fluctuations by committing to fixed prices with the counterparty.
evaluation, training and so on. This price is determined after taking several factors into consideration including the strategic objectives of the
programme, current fuel prices, projected prices and trends, and the Company’s risk appetite, among others.
THE FULL HEDGE PROGRAMME
Hedge contracts can be made for as far ahead as authorised, but generally the Company hedges on a
Following the pilot programme the Company moved to pursue a full-fledged hedge programme to cover the quarterly basis. That is, the FRMC always ensures that at least one quarter is fully hedged to the maximum
period 2010 utilizing Fixed Price Swaps and to cover 75% of volumes. authorised, though it may hedge smaller amounts for future periods. The Company pays its supplier at the
market rates as it purchases the physical product. On a monthly basis the market price that the Company paid
Request for Proposals were sent out to various institutions primarily including oil companies and financial houses. (excluding any local duties and taxes) is compared against the hedge price and one of the parties “makes up”
Responses were evaluated and a formal interview and selection process took place, aided by expert external the difference by cash payment. This is illustrated across:-
resources. Selection criteria were used to evaluate and rank all responses.

Certain main items were determined to be critical by the FRMC including: -


• Experience in hedging
• Experience in/knowledge of the oil industry
• Financial strength
• Favourable credit terms and security requirements
• Flexibility in meeting the Company’s requests
• Responsiveness to queries
• Ability to recommend solutions
• Level and quality of support at the front end, middle office and back office
• Willingness to meet the Company’s needs
• Availability of key personnel

A shortlist was prepared and as part of the process the parties selected were requested to make presentations
to the FRMC.

Further rankings were made after the face to face presentations as these allowed the Company to meet the
key people and to further evaluate their offers based on these presentations, interaction with LUCELEC staff
and general deportment.

The Company decided that in order to provide flexibility it required at least 4 counterparties and that these
would comprise a mix of industry players and financial houses to leverage the strengths of each.

After extended negotiations, agreements were signed with 4 counterparties for the full-fledged programme.

Figure 2 showing camparison of the Market Price and Hedge Price.

22 | INDUSTRY JOURNAL INDUSTRY JOURNAL | 23


FUEL PRICE HEDGING - THE LUCELEC EXPERIENCE

The average fuel price as computed on the hedged prices and passed through to customers.

HEDGE RESULTS TO DATE


From the pilot programme to date the results of the programme is shown.

In short, the programme has provided a certain measure of stability and reduced volatility for the customers.
Keeping in mind that 25% of volumes are not hedged (in accordance with prudent practice) and by the nature
of any hedged programme there is no guarantee that absolute elimination of volatility is possible.

The results shown below indicate the effects on the monthly average fuel price (figure 3) and three representative
tariff categories (figures 4, 5 & 6).

Figure 3

Figure 4
24 | INDUSTRY JOURNAL
FUEL PRICE HEDGING - THE LUCELEC EXPERIENCE

KEY IMPERATIVES FOR A HEDGE PROGRAMME

• Formulate and articulate a clear rationale for the programme.


• Document this in a Hedge Strategy document.
• Present a case and obtain formal approval of the Board of Directors or similar authority.
• Draw up a Risk Management document outlining matters such as risk tolerance, governance
procedures, levels of authority, scope of activities, reporting procedures, procedure for changes to
policy, and board requirements.
Figure 5
• Utilise independent external expert resources as early as possible to address the significant financial,
accounting, legal, negotiation and other elements required to commence the programme.
• Establish clear responsibility for day to day management of the programme.
• Start simple – this activity is very complicated and expertise is gained over a long period of time.
• Document all significant matters discussed, especially with parties willing to provide services.
• There are many counterparties that are willing to do business – have a clear idea of how many
parties that can be managed effectively.
• Ensure that the parties responsible for hedge implementation and management are clear on the
strategy so as to ensure that the objectives will be met.
• Obtain independent and expert recommendations and opinions on the accounting treatment for
hedge transactions.
• Ensure some measure of additional and independent oversight such as the Internal Auditor reporting
to the Board.
• Ensure acceptable credit terms and that the Company’s bankers are sensitized or involved as early
as possible.
• Establish clear contact procedures and guidelines with counterparties so as to ensure that
communication procedures are in accordance with good business practice.
Figure 6 • Ensure that training is sourced at the beginning of the programme and that this is continuous.
COMMUNICATION WITH STAKEHOLDERS • As much as possible spread knowledge among as many members of the Company as possible. This
helps in the establishment of a resource pool base and to assist in the staff and stakeholder sensitization.
As with significant matters such as this, it is important and critical that education and sensitization of stakeholders • Ensure that adequate time is allocated for hedge activities to ensure the success of the programme
form an essential part of the success of the initiative. These stakeholders include the Government, customers, key and to reduce the risk of an ineffective programme.
suppliers, the Company’s bankers, shareholders, external auditor, employees, industry and trade associations
among others. • Ensure that minutes are kept of meetings.
• Track hedge results monthly.
In addition to the activities conducted in the early stages of the programme, a wide ranging communications • Implement reporting guidelines for submission to Board or other authority.
programme is being rolled out commencing July 2010. This includes the use of various media, messages tailored • Utilise members of the hedge implementation group for different activities such as contacts with
for different target groups (including the staff) over a period of time so that all groups are kept up to date on
counterparties, market analysis, financial arrangements, hedge placement, monitoring credit
the Company’s activities.
limits, etc.

26 | INDUSTRY JOURNAL INDUSTRY JOURNAL | 27


FUEL
FUELPRICE
PRICE HEDGING
HEDGING -- THE
THE LUCELEC EXPERIENCE
LUCILEC EXPERIENCE
Jamaica’s
Partner
• Communication with all stakeholders, tailored to their needs, should be timely and continuous.
• Conduct counterpart evaluations in a structured manner and on a regular basis with all counterparties.
• Ensure that counterparties provide assurance and required information and authorities that the
Company needs.
• Address any counterpart breach of process or procedures immediately.



Face to face presentations provide a significant means of determining counterparty compatibility
and suitability.
Obtain independent advice on significant matters such as legal issues, market conditions, industry
in Progress
trends, hedge placements (price points and volumes), hedge tools, risk evaluations, selection
of counterparties, training, performance, evaluation techniques, and technical issues such as
correlation and credit exposure.

DOCUMENTATION AND REQUIREMENTS


For over 100 years the Jamaica
o Board Resolution authorizing hedge activity Public Service Company (JPS) has
o Regulatory sign-off
played a vital role in Jamaica’s
o Hedge Strategy document
o Risk Policy document
economic and social development.
o Legal opinion on contracts
o Sign-off by external auditor on accounting treatment We have built a team of
o Availability of adequate security – Standby Letter of Credit/ Cash professionals with the experience
and expertise to respond quickly
CONCLUSION
in times of emergency, and
Hedge activities, utilized as a risk mitigation strategy and customer service enhancement can assist the thoughtfully to the exciting
Company significantly. Fuel costs, being of such significance to customers and the economy, require attention possibilities of the future.
and to the extent that the negative effects can be mitigated this can redound to the benefit of the Company,
customers and the country as a whole.

The Company must be clear in its objectives and must be prepared to invest the resources required to
accomplish those objectives. It is also a significant opportunity to enhance the Company’s image and provide
another learning experience for the Company.

Jamaica Public Service Company (JPS) is an


integrated utility company that engages in the
generation, transmission, and distribution of
electricity. It is 80% owned by Marubeni TAQA
Caribbean Power Holdings and the rest by the
Government of Jamaica and a small group of
shareholders.

28 | INDUSTRY JOURNAL
www.jpsco.com
Lineworker Training Lineworker Training
For Live-Line Work For Live-Line Work
Increasingly, electric power utilities are expected to keep the electricity
FUEL PRICE HEDGING - THE LUCILEC
flowing, even during times of T&D maintenance. However, working on
EXPERIENCE
lines and equipment energized with high voltage electricity presents Identifying Exposed Live Parts and their Voltage Levels
significant hazards to lineworkers who are not properly trained. Working
on energized lines and equipment can be performed safely. To do so To be a qualified live-line worker, the employee must be able to identify
however, requires the lineworker to be considered ‘Qualified’ in live-line parts of the electric system that are ‘live’ (energized) or may accidentally
work. become energized. Knowing this information helps the worker to physically
The U.S. Department of Labor, Occupational Safety and Health locate the part, in relation to their working position, determine their proximity
Administration (OSHA) defines the term “Qualified Employee” in Standard to it (approach distance) and develop a mitigation plan for the particular
1910.269(a)(2)(ii) thus: hazard: do I insulate myself from the hazard; do I isolate myself from the
“… trained and competent in: work, the chance of a contact
hazard or both? (Insulate and Isolate factors are discussed in more detail
(A). The skills and techniques necessary to distinguish exposed live injury is negligible, when this work
later)
parts from other parts of electric equipment; is performed correctly.
The IEEE standard below lists two ‘live parts’ categories:
(B). The skills and techniques necessary to determine the nominal
The severity of contact injuries
voltage of exposed live parts; 1. Live parts at their normal operating voltage unless they are properly
varies based on a number of
(C). The minimum approach distances specified in this grounded
factors, but the possibility of
section corresponding to the voltages to
contact should be considered
which the qualified employee will be 2. Live parts at their normal operating voltage or less, since the
a serious hazard when
exposed, and voltage gradient is disturbed across them.
performing work on
(D). The proper use of the special energized systems or
precautionary techniques, on systems that have
IEEE Std. 516-2009, 4.9.1 Live Parts:
personal protective equipment, been de-energized
insulating and shielding materials The following are considered to be live parts at their normal operating
but could re-energize
and insulated tools for working voltage unless they are properly grounded:
through accident or
on or near energized parts of error.
• Conductors (bare)
electric equipment.
• Conductors (insulated, unless they have solidly grounded and
System short
tested shields)
Note: For the purposes of this section, circuits can cause
• Rigid bus
a person must have this training in order to an arc flash, which
• Bushings, surge arrestors, potential transformers, current transformers,
to be considered a qualified person.” is a second serious
and pothead energized ends and terminal connections
category of hazards to
• Circuit switching devices
live-line workers. Actually
hazards • Disconnect switch blade and terminals
Hazards Associated with the concept of electrical
most often • Wave traps and series reactors
Live-Line Work potential is largely to blame
encountered by • Workers and equipment bonded to the conductor
here, as well. Any time a high
the worker. (bare-hand work)
Most serious accidents involving voltage electricity arc suddenly
• Helicopters that support workers performing live-line work
lineworkers are caused by contact moves from one object to
In contact accidents, electricity • Rubber glove protectors
with energized lines and equipment. another, an immediate release of
Electrical flashes present a serious moves through the worker because of light and heat occurs. The light
‘potential’ differences. Potential, for our The following are considered to be live parts at their normal operating
hazard as well. This is not just the is so bright that it can damage a
purposes, can be defined as a condition voltage or less since the voltage gradient is disturbed across them:
case with live-line work, as might be worker’s retinas. The radiant heat
assumed, but with all powerline work. that determines the flow of an electrical released by the arc can reach
charge. Typically, a worker is at ‘ground • Support insulator
Even when lines and equipment are temperatures greater than those
potential’. When contacting power lines • Insulating sections of bushings, surge arrestors, potential transformers,
thought to be de-energized, either found on the surface of the sun,
or equipment at the potential required current transformers, and potheads
they are not or have suddenly become almost instantly. Most workers
by nominal system operation, electricity • Dry wood poles and cross arms without bonded or grounded
energized through some human error or can’t react quickly enough to
will flow through the worker if he or she insulator hardware, which may be part of the insulation system and
equipment malfunction. In such cases, avoid exposure, if close to an arc
is at a different potential. In this case, may have potential across them
workers suffer contact and flash injuries flash. The heat generated will
electricity must have an entry point and • Insulating boom of aerial devices in contact with the conductor
from supposedly ‘dead’ systems. burn most objects close to the
an exist point (to a source of different • Live working tools bridging the air gap
arc, including the worker.
potential) to pass through the worker. • Insulating ladders and platforms bridging the air gap
But certainly, with work performed while An important part of lineworker
Oddly, but correctly, when the worker is • Insulating rope between the conductor and a part at ground
the lines and equipment have been left training for live-line work is a
at the same electrical potential, such as potential
intentionally energized, contact with the thorough understanding of
during bare hand transmission work or • Link or lift sticks
lines or equipment and flashes caused the hazards the worker may
in the case of an equi-potential zone of • Strain pole
by electrical arcs constitute the two encounter.
protection on de-energized distribution • Cross arm extensions
main types of serious, life-threatening
Lineworker Training
For Live-Line Work
In addition to properly identifying exposed live parts, Minimum Approach Distance and Working
the qualified live-line worker needs to be able to Position
determine the nominal voltage present in those
energized lines and equipment. This rarely can be Flowing electricity, especially at high voltage, has
done visually with any assurance. The invisibility of the power to short circuit through the air from one
electricity is considered one of the hazards lineworkers point to another point with a different potential. This
must face. is called an arc flash, as discussed earlier. The higher
the voltage the farther the arc can jump. Obviously
Voltage testers are available to the lineworker to this means that air, our atmosphere, is acting as a
determine the existing voltage present on the subject conductor in these cases, allowing the electricity to
lines and equipment. This information is critical when pass through it. But oddly, air is also an insulator. Air
determining which insulating tools and equipment can actually provide an insulating barrier between an
to select to safely perform the work, as well as which energized part and the worker. But as the worker gets
PPE to select. Wearing Class I Rubber Gloves (rated closer to the energized part, the insulating value of
for a maximum of 7.5 KV), for example, would be

Add Regional Strength to


the air gets weaker, endangering the worker, if he or
dangerous when working on a 34.5KV line. Or, using she is at a different potential.
a line hose rated for 15 KV on a 34.5 KV line, foolish.
But unless the worker has actually tested the line for

Your Business
US DOL OSHA, using The Institute of Electrical and
nominal voltage present, it’s a guessing game that Electronics Engineers, Inc. (IEEE) Standard 516-2009,
may have tragic results. has devised a chart (Table R6)to assist lineworkers
in knowing safe working distances from energized
Even when performing work on de-energized lines parts, based on the voltage present. This is called the
and equipment, testing for the absence of voltage is a Minimum Approach Distance (MAD) Chart. The Chart
About FirstCaribbean International Bank
critical safety practice. Visually verifying that a circuit FirstCaribbean is a major Caribbean bank offering a full range of market-leading financial services in Corporate
illustrates how close an unprotected worker can get Banking, Retail Banking, Wealth Management, Credit Cards, Treasury and Investment Banking. It is the largest,
is open is an important step in many maintenance to an energized part, based on three variables:
operations, however testing for the absence of regionally listed bank in the English-speaking Caribbean, with assets over US$10.9 billion and market
voltage is considered essential in confirming that the capitalisation of US$2.5 billion. The Bank has over 3,500 staff, 60 branches, 22 banking centres, and seven offices
• Nominal Voltage in kilovolts (phase to phase) in 17 regional markets, serving 550,000 active accounts.
line and/or equipment is truly de-energized. Several • Phase to ground exposure
tools are available to the lineworker to test for the • Phase to phase exposure If your business requires access to Corporate Investment Banking or Treasury Services, come in and talk to us at
absence of voltage before any work is performed.
FirstCaribbean International Bank. We offer the strength of the region's largest publicly traded bank, strong
Safe working distances are shown in both feet / inches international experience, and extensive local expertise.
Training live-line workers to properly identify exposed and in meters.
live system parts and the voltage levels present, or
that may become present in the system, is critical to Our Portfolio of Services includes:
maintaining safety on the job site. • Structured Financing and Advisory Services • Energy Financing
• Mergers and Aquisitions • Inventory and Receivables Financing
• Debt and Equity Placements • Equipment and Vehicle Financing
• Bond Issuance/Underwriting • Leasing Financing
• Syndicated Loans and Project Financing • Other Medium to Long-Term Financing

US DOL OSHA Regulation •



Mutual Funds Investments
Certificates of Deposit
• Foreign Exchange Trading

For more information, please contact either of our regional offices at:
1910.269(L)(2) Minimum approach distances:
Bahamas – 1 242 356 1708 Jamaica – 1 876 935 4701
The employer shall ensure that no employee approaches or take any conductive object closer to exposed Barbados – 1 246 467 8723 Trinidad – 1 868 822 5071
energized parts than set forth in Table R-6 through Table R-10, unless:
(i) The employee is insulated from the energized part (insulating gloves or insulating gloves and sleeves
worn in accordance with paragraph (l)(3) of this section are considered insulation of the employee
only with regard to the energized part upon which work is being performed), or
(ii) The energized part is insulated from the employee and from any other conductive object at a
different potential.
www.firstcaribbeanbank.com

FirstCaribbean International Bank is a member of the CIBC Group.


The CIBC logo is a trademark of Canadian Imperial Bank of Commerce, used by FirstCaribbean International Bank under license.
32 | INDUSTRY JOURNAL
Lineworker Training
For Live-Line Work
If the worker is working above the energized part, for example, there may be a danger of falling into the line or
Table R-6 equipment. This may cause the worker to make contact with a part of his body not insulated. Additionally, a
working position above the energized line or equipment exposes the worker to a greater flash injury, since heat
rises. Best practices require the live-line worker to approach and work on energized lines and equipment from
Nominal voltage in Phase to ground exposure Phase to phase exposure below, whenever possible.
kilovolts phase to phase (ft-in) (m) Minimum approach distance and safe working position are both important training concepts for lineworkers
(ft-in) (m)
doing live-line work.

0.05 to 1.0 Avoid Contact Avoid Contact Insulate and Isolate

1.1 to 15.0 2-1 0.64 2-2 0.66 Two additional concepts that require a significant amount of training for live-line workers are correctly and
adequately insulating workers from electricity and how to correctly and adequately isolate workers from ground
potential. In both instances, performed in accordance with known best practices, workers can physically work
15.1 to 36.0 2-4 0.72 2-7 0.77 on most energized systems, safely.

36.1 to 46.0 2-7 0.77 2-10 0.85


Insulating workers can be categorized into Principal Insulation and Supplemental Insulation.
46.1 to 72.5 3-0 0.90 3-6 1.05
• Principal Insulation includes personal protective equipment such as rubber gloves, rubber
sleeves and rubber shoes, and insulating tools such as aerial devices and live working tools (hot-sticks,
72.6 to 121 3-2 0.95 4-3 1.29 auxiliary arms, mast poles, saddles, pole clamps, etc.).

138 to 145 3-7 1.09 4-11 1.50 • Supplemental Insulation includes cover-up (rubber blankets, line hose, hoods, pole and line guards),
barriers and shields and specially equipped helicopters used in transmission line maintenance.

161 to 169 4-0 1.22 5-8 1.71

230 to 242 5-3 1.59 7-6 2.27

345 to 362 8-6 2.59 12-6 3.80

500 to 550 11-3 3.42 18-1 5.50

765 to 800 14-11 4.53 26-0 7.91

Required Minimum Electrical Clearances


It’s important to note that the Chart was developed with certain assumptions about the position of the worker
and the system. This Chart is for alternating current only and represents sea level with normal barometric
pressures, moderate relative humidity and air that is fairly clear (no particulates). Other Charts are available
when working at an altitude, for example. In these cases, air is actually thinner which would require increasing
the safe working distances.

Of course there are conditions in which it is safe for protected live-line workers to actually touch and work on
energized parts. These conditions will be discussed later.

Safe working position is an additional important consideration for live-line workers, as well as safe working
distance. When working on energized lines and equipment, a lineworker may be using all the insulating PPE
correctly for the site conditions, however he or she may still be in danger of either a contact or flash injury based

34 | INDUSTRY JOURNAL
Lineworker Training
For Live-Line Work
Extensive training is required in the proper use, care An illustration of Step and Touch Potential is shown There is a special type of live-line work on extra high Additionally, some transmission live-line work can be
and maintenance of all insulating equipment. Live- below. Training for live-line work not only includes the voltage (EHV) transmission systems known as Bare- performed using helicopters with special platforms on
line workers must know the limits of such equipment worker performing the ‘hands-on’ work, but all workers hand live-line work. Special suits, equipment and which the worker sits while working on the transmission
and the specific voltages on which they are safely at the job-site. tools are required to safely perform this type of work line. Again, special suits, equipment and tools are
used. and extensive training for each worker must be required and the training is extensive.
conducted. Bare-hand workers are actually working
Isolating workers from ground potential includes the at line potential, in these cases, but will be totally Both of these types of live-line work are beyond the
use of insulated bucket trucks, insulated platforms isolated from sources of different potential, nearby. scope of this paper and warrant lengthy papers of
(Baker boards) and special grounding techniques The concept is similar to watching a bird sitting on a their own.
when performing work on de-energized lines that can powerline. As long as the bird touches nothing else of
accidently re-energize (equi-potential grounding). a different potential, he is safe.

Of special concern to workers that are part of the Conclusion


‘ground crew’ sometimes called groundmen or
helpers, is a shock hazard from a truck or crane Repairs and maintenance on energized, high-voltage lines and equipment can be performed safely when, 1.) workers
being used at the job-site. When an equipment are properly trained in the hazards present, 2.) workers know the nominal voltages of the systems on which they are
boom (bucket truck, digger boom or crane boom) is working, 3.) workers understand the safe working distances and positions required, and 4.) workers understand the
in the air, there is a danger of the boom contacting proper use of insulating and isolating techniques, and what to do in emergencies.
energized lines and equipment. If this happens with a
bucket truck boom, the live-line worker in the bucket US DOL OSHA standards given below and IEEE offer excellent resources concerning proper safety practices and
may be effectively isolated, avoiding serious injury, recommended techniques for safely performing live-line work.
but if the boom insulation fails, electricity may seek a
path to ground. When this happens, the truck body US DOL OSHA standards: 1910.269p (a) (2) Training; 1910.269 (a) (3) Existing Conditions; 910.269(I) (6) Apparel; 1910.134
may become energized as the current passes through (as of January, 2007)(f) Training; 1910.333 Selection and use of work practices; 1910.269 (I): (4) Working position;
the tires and outrigger pads, to the ground. Ideally 1910.269(p): (4) Operations near energized lines or equipment; 1910.333 (c) :Working on or near exposed energized
the bucket truck is properly grounded before work parts; 1910.269(J) : (j) Live-line tools; and 1910.269(j)(2): Condition of tools.
begins, in which case most of the current will flow
through the grounding cable. However, electricity will Only ‘Qualified’ live-line workers should be assigned jobs involving systems that will remain energized during repairs and
take all paths to ground. So, while most of the current maintenance. Initial and reoccurring training for lineworkers assigned to this type of work is critical for both the safety
will flow through the grounding cable, some current of the job-site workers and the safety of the electrical systems on which they work.
will likely exit through the truck body into the tires and
outrigger pads – and through the worker standing on
the ground, if that worker is touching the truck body
at any point. This is true of a digger or crane boom
contact, as well. All trucks and rolling equipment that
may come in contact with energized lines at a job- Ground Potential
site should be barricaded for the safety of the workers
and the public. No one should go near a piece of
Gradient
equipment with the boom in the air. Illustration
Associated with this type of hazard for the ground “Step and Touch
worker, is a concept known as ‘Step and Touch Potential” Ronald J. Schenk, COSS, Executive Director
Potential.’ As electricity flows from an energized
line into a truck boom through a ground rod, tire or Institute for Safety in Powerline Construction
outrigger pad, the current spreads out from that 5501-A John Eskew Blvd.
source. The current degrades quickly, causing a Transmission Bare-hand Work and Working
difference in potential within the soil. A natural from Helicopters Alexandria, LA 71303
reaction by a ground worker, should an accident such
as the one described above occur, is to run away Previously all discussion about training for live-line work 318-767-58022 June 2010
from the vehicle. As the worker steps away with one had referred primarily to work on systems with typical ron@ispconline.com
foot, he or she will likely be shocked by the current in distribution voltages (at or below 34.5 KV).
the soil. By having two feet on the energized soil, at a
different electrical potential, current will likely flow up
one foot, through his legs and out the other foot.
36 | INDUSTRY JOURNAL
INDUSTRY JOURNAL | 37
Exhaust heat is transferred to heat transfer oil in the The gas turbine exhausts are equally attractive for use
RECOVERED ENERGY GENERATION FROM waste heat recovery unit. Hot oil flows to the vaporizer
where it vaporizes the motive fluid. From the vaporizer,
with the ORC system. Table 2 gives the properties of
recovered energy from different types of gas turbines.
INTERNAL COMBUSTION ENGINES EXHAUST hot oil flows to the preheater where it preheats the
motive fluid. It is then returned by a pump to the
waste heat recovery unit. Motive fluid vapor drives
Yoram Bronicki, Ormat Technologies, Inc.
the turbine and generator. Motive fluid exhaust
Rising energy costs and concerns about the effect Ships using acetone as motive fluid in piston engines vapor enters a recuperator where, in series with the
of CO2 emissions on climate change have renewed were in service for some time between Europe and condenser, is condensed to a liquid. Motive fluid liquid
interest for efficiency improvement in fossil fuel the Amazons in the late 19th century. A small solar is pumped to the recuperator to begin the reheat
use as well as the utilization of locally available low turbine was operating in Libya during the thirties of the process. The reheat process is completed in the
or moderate temperature heat sources, such as last century [2]. preheater. The preheated motive fluid is then returned Table 2
geothermal, solar or industrial waste heat. into the vaporizer, completing the cycle.
In 1965 Ormat began research and development and * Gross at ISO conditions
This paper summarizes four decades of Ormat’s in 1967 started commercialization of the Ormat Energy
significant achievements in developing cycles, Converter (OEC) [3] [4] which uses a turbine driven by Figure 3 shows a typical installation on a
configurations and equipment for electricity the vapor of an organic motive fluid operating in a gas compressor site.
generation from industrial low grade waste heat and Rankine cycle. This was the first commercial use of
geothermal resources using the Organic Rankine ORC.
cycle (ORC).
After the energy crisis of 1977, a number of turbo
As of June 2010 Ormat has supplied over 20 such waste machinery companies and developers [5] anticipated
heat Recovered Energy Generation (REG) power a market growth of such systems entered the organic Table 1
plants having a power output from 300 kW to 7 MW Rankine cycle field [6]. However they abandoned this
totaling over 100 MW of capacity. In addition, Ormat field when their expectations were not realized due to * Gross at ISO conditions
supplied similar equipment for geothermal power low energy costs. [5] [6].
plants ranging from 200 kW to 130 MW in countries
such as the United States, New Zealand, Central Ormat continued to pursue this field, applying its 2.2 REG for Diesel and Gas Engines
America and Africa, totaling over 1100 MW. Of these technology first to small, high reliability, fossil fueled
plants Ormat owns and operates more than 500 MW and hermetically sealed power units [7] and, in the The exhaust gases from large reciprocating gas or
of capacity consisting of both geothermal and REG. last two decades, solar, geothermal and Recovered diesel engines are very suitable for the ORC unit. The
Energy Generation systems. By 2010 power production heat source is generally clean and easily accessible, Figure 3 – REG of 3.5 MW from Two Solar
1. INTRODUCTION capacity totaling about 1200 MW were built by Ormat and the vaporizer can be designed for several inches Gas Turbines
using its organic Rankine cycle technology. This paper of water pressure drop without upsetting the engine
Concerns regarding energy costs and climate change is an overview of the different applications of Ormat efficiency. Table 1 gives the potential recovered 3. THE ORMAT RANKINE CYCLE 3.1 Cycle Consideration
have renewed interest for efficiency improvement in Rankine Cycle in particular for the use of waste heat. energy from different engines. Figure 2 shows a typical The initial interest in the use of organic vapor, rather
fossil fuel utilization. References are provided for more detailed description REG unit installed on a 2 MW gas engine. than steam in Rankine cycles was driven by an attempt
of the specific applications. to simplify the turbine by reducing the tip blade
Locally available low to moderate temperature velocity by using high molecular mass motive fluids [2]
heat sources offer an important potential for fuel and 2. RECOVERED ENERGY GENERATION FOR Unfortunately, and contrary to steam, the expansion
emission-free electricity production. Such sources are of such vapors leads to excessive superheating which
INTERNAL COMBUSTION ENGINES increases the reinjection temperature substantially
readily available in many industrial process today as
waste heat streams. Renewable sources of low to above the condensing temperature allowed by the
moderate temperature are also available within the
2.1 Principle of Operation heat sink being either ambient air or water and,
earth, in the form of geothermal energy. consequently, a reduction of the cycle efficiency [4].

One form of energy conversion commonly used today A modified Organic Rankine Cycle (ORC) was
is the steam Rankine cycle. Conventional steam proposed where the rejected superheat is used in a
Rankine cycles present a number of drawbacks for recuperator to preheat the liquid in its path from the
the efficient utilization of such heat sources. Steam condenser to the vaporizer [3][4]. It was shown that the
Rankine cycles usually require constant replenishment resultant cycle is largely independent of the fluid; this
of the cycle’s motive fluid (water), are sensitive to opened the range of possible fluids which could be
operation beyond its design conditions, and require used. This energy feedback should not be confused
constant attention for operation and maintenance. Figure 2 - REG of 300 kW from the exhaust of with regenerative feed heating used in large steam
These cycles are more applicable to higher gas engines turbines. In these systems, steam is bled off the turbine
temperature heat sources. at various points during the expansion and is used to
The thermodynamic cycle of choice for low to 2.3 Jacket Water Heat Recovery Recovery of jacket preheat the feed water. In that case the steam bled
moderate temperature heat sources is the organic water heat from large engines of 5 MW and higher off does not continue through the turbine, so that it
Rankine cycle, using selected organic fluids. or clusters of small engines totaling 5 MW or higher, at does not perform all the mechanical work it could.
The use of organic fluids in Rankine cycle is not new [1]. least, can be used for preheating the motive fluid and In the present system, only exhaust vapor is used,
Figure 1 – REG using OEC add approximately 15% to the power output. This is not that is, vapor which has already done all possible
applicable to gas turbines. 2.4 REG for Gas Turbines mechanical work.
38 | INDUSTRY JOURNAL
39 | INDUSTRY JOURNAL
Better for air-cooled application
5. OPTIMIZING THE EFFICIENCY BY is now used in 17 gas compressor stations totaling
In locations where water is not available and air- MATCHING THE CYCLE TO THE HEAT above 70 MW, another 2 are under construction. The
cooling is required, as is typical of compressor stations SOURCE first system installed in 1999, have already logged
sites, the ORC plant’s air-cooled condenser would be 90,000 hours of operation.
much smaller and less expensive than an air-cooled The maximum available energy produced as work
condenser for steam duty. This is a direct consequence for electricity from any heat source is specified by the
of the order of magnitude difference in volumes second law of thermodynamics. Because the rate of
between hydrocarbons (pentane) and steam. the sensible heat carrying fluid is finite its temperature
decreases as it transfers heat to the heat engine. Thus,
No risk of freezing the overall process must be envisioned as a summary
of an infinite number of infinitesimally small engines.
Furthermore, since organic fluids have a low Any heat exchange stage destroys availability [8] [9].
freezing temperature, and so there is no freezing A temperature-heat transfer diagram (Fig.6) illustrates
in the condenser even at extremely low ambient the differences in the temperature drop between a
temperatures. Steam Rankine Cycle and an Organic Rankine Cycle.
Because of the lower heat capacity of organic liquids
Figure 4 – Temperature – Entropy Diagrams for Water Condensing near atmospheric pressure and their much smaller latent heat of vaporization,
and Organic Fluids these fluids lead to much smaller losses of availability
Hydrocarbons condense at higher pressure than Figure 7 – Example of Installation at a Gas Compressor
in the utilization of the low or medium temperature
The figure below shows the Ormat Rankine Cycle steam. By operating at near atmospheric condensing Station
predominantly sensible heat streams (Table 1).
using recuperation. The heat recovered by cooling pressures, the ORC turbine requires smaller blades,
the exhaust vapor from the temperature in 4” to fewer stages and the ingress of air into the system is
the temperature in 5”, is used to preheat, in the significantly minimized. The latter feature mitigates the
recuperator 13”, the liquid from T1 to T3. need for vacuum maintenance.

Not susceptible to freezing

Hydrocarbons freeze at temperatures below -73°C.


This allows the condenser to reject its heat at a
lower temperature than water-based systems and,
in doing so, increases output in cold weather. This
feature also eliminates the requirement to implement
procedures and controls to prevent freeze-up within
the condenser.
Figure 6 – Typical Temperature/Heat Transferred Diagram
High vapor turbine efficiency, no need for speed Figure 8 – Heat and Mass Diagram
reduction
6. OUTLINE OF A TYPICAL REG FOR GAS Figure 8 is a heat and mass diagram, a typical system
Both the topping and bottoming of the turbine is a
TURBINE DRIVEN COMPRESSORS in operation on the Northern Border Pipeline providing
multi-stage axial unit with impulse blading. The low
acoustic velocity of hydrocarbon fluids because of electricity to Basin Electric in North Dakota (Fig.9).
While steam technology used in combined cycle
higher molecular mass, compared to steam, provides
plants to recover the residual heat from gas turbines
good aerodynamic matching at low rotational speed.
Figure 5 – The Ormat Rankine Cycle in central station electric utility plants is cost-effective
Isentropic efficiency of 89% is achieved at 1500 or 1800
and in widespread use, the same cannot be said of
RPM. This enables direct drive of generators without a
gas turbines installed in compressor stations. The 100
4. FEATURES OF ORMAT’S RANKINE CYCLE gearbox.
MW class, double or triple pressure steam bottoming
cycles, used in today’s utility-size combined cycle
The use of the recuperated cycle removed the penalty Moisture-free turbine expansion
plants, are far less suitable for compressor station
of lower cycle efficiency of organic fluids and opened
operation. First, the compressor station gas turbines
the possibility to choose from a variety of fluids having Unlike steam, pentane remains dry during the
are about an order of magnitude smaller than
appropriate characteristics to achieve the following expansion from high to low pressure; a consequence
their utility counterparts. This leads to small steam
objectives in the plant design for specific conditions of the hydrocarbon’s thermodynamic properties.
bottoming plants, whose capacity cost, in $/kW,
of the heat source and heat sink temperatures as well This eliminates the possibility of moisture formation
escalates rapidly as scale diminishes. Then there is the
as flow rates: and the likelihood of erosion damage when high
issue of insufficient water supply (compressor stations
speed droplets collide with the turbine’s buckets and
are often installed in very remote areas where in-situ
Economical in smaller sizes nozzles. Thus, the ORC can accommodate part load
water sources normally do not exist) and third there
operation and large transients more effectively than Figure 9 – 4 x 6.3 MW OECs at the Northern Border
is the issue of operating costs, where steam-licensed
Hydrocarbons, such as pentane, have a lower specific steam turbines, without requiring a super heater. Pipeline Company’s Natural Gas Pipeline, the Dakotas,
operators are very costly, on a per kWh basis, in small
volume than steam. This results in smaller turbines, USA
plant sizes. The Ormat Rankine Cycle using n-pentane
smaller diameter exhaust piping and smaller diameter
tubes in the air cooled condenser.

40 | INDUSTRY JOURNAL 41 | INDUSTRY JOURNAL


Geothermal Energy – Totally or partially renewable
heat energy from deep in the earth. It originates from
In this utilization, the heat in the gas turbine exhaust the earth’s molten interior and the decay of radioactive
is used to heat DowThermTM Q, a synthetic organic materials, and is brought near the surface by deep
heat transfer fluid. The heat transfer fluid is then used circulation of ground water.
to vaporize the organic working fluid, pentane, at high
pressure, in a secondary heat exchanger. The pentane Geothermal Resources – Sources of geothermal
expands through a turbine-generator and condenses energy: hydrothermal; geopressured; hot, dry rock (HDR);
in an ambient air-cooled condenser and recuperator. and magma. All are suitable for heat extraction and
This process requires a small amount of auxiliary electric power generation.
electricity to operate fans and pumps. The output of
this power plant depends on load of the Rolls Royce HROH - Heat Recovery Oil Heater.
RB211 gas turbine and on the ambient temperature as
show in Fig. 10 and Table 3.
Figure 13 – Air-cooled Binary Geothermal Power Plant ISO Conditions - International Standard Organization
Conditions
Figure 11 – Power Generation from Waste Heat at
Heidelberg’s Cement Plant, Lengfurt, Germany
MW - Mega Watt.

MWe - Mega Watt electric.

Organic Rankine Cycle (ORC) – A Rankine cycle


operating with an organic liquid motive fluid (instead of
water). Renewable Energy – Energy source which is not
exhausted by use with time.

Renewable energies include direct solar energy,


energy from geothermal sources, wind, hydroelectric
figure 10 plants, biomass, ocean energy, etc.

Figure 14 – 84 MW Steamboat Complex, Nevada, USA RH - Relative Humidity in %.

9. ENVIRONMENTAL BENEFITS TS Diagram - Temperature Entropy Diagram


Figure 12 – Power Generation from Waste Heat in a
Cement Plant 1 MW REG, in addition to fuel savings, will annually avoid 12. REFERENCES
the emission (at full load) of up to: 8000 Tons of CO2 12
8. GEOTHERMAL POWER FROM HOT BRINE [11]
Tons of NOX 50 Tons of SO2 [1] Wilson, S.S., and Radwan M.S., 1977 “Appropriate
[12] Thermodynamics for Heat Engine Analysis &

Ormat Rankine Cycle power generation


10. SUMMARY AND CONCLUSIONS Design”, Int. J. Mech. Eng. Educ., 5.
[2] D’Amelio, L., 1935, “Limpiego di Vapiri ad Alto
technology enables sustainable, cost effective, and Peso Molccolre in Piccole Turbine”, Napoli..
The Ormat Rankine Cycle configurations developed
environmentally benign electricity generation from [3] Tabor, H.Z., and Bronicki, L.Y., 1962, Patent
and implemented in geothermal and heat recovery
geothermal resources. [13] [14] #3040528.
applications have proven their adequacy in about
Table 3 – OEC Net Output as a Function of Gas The primary considerations of this technology are: [4] Tabor, H., and Bronicki L.Y., 1961 “Turbine for Small
90 power plants worldwide totaling about 1200 MW
Turbine Load Solar Power Package”, UN Conference, New
of capacity. The high reliability, low maintenance,
Diagram of Fig. 13 shows the key elements of a Sources of Energy, Rome.
environmental benefits and load following characteristics
power plant using spent brine from an existing steam [5] Sternlicht, B, 1984, “Development and Prospects
7. WASTE HEAT RECOVERY IN A CEMENT PLANT demonstrated the economics of the use of these plants
geothermal plant. The temperature heat diagram
for waste heat recovery. In geothermal power plants they for Organic Rankine Cycles (ORC’s) and Heat
is shown in Fig. 4 when the brine inlet temperature is
Over the last two decades Ormat applied the basic have improved the efficiency of use of the resource and Pumps”, Proceedings of the International
160°C. The plant produces 2.2 MW at an ambient
cycle described in Paragraph 2 to different applications their sustainability by 100% reinjecting of the fluids. VDI-Seminar, Zurich.
temperature 30°C.
matching the fluid and the cycle configurations to the [6] Bronicki, L.Y., 1994, “Innovative Geothermal and
characteristics of the heat stream available from hot 11. NOMENCLATURE Heat Recovery Power Plants Experience to Date”,
The original features of such plants are:
exhaust gases, or hot geothermal brine and mixtures CEPSI, New Zealand.
of steam, water and non condensable gases. Main [7] Bronicki, L.Y., 1972, “The Ormat Rankine Power
• 100 percent re-injection of the geothermal fluid Binary Geothermal Power Plant – A power plant in
examples are given. Unit”, IECEC, San Diego, USA.
and its component for fluid mass balance which the geothermal fluid provides the heat required by [8] Bronicki, L.Y., “Organic Rankine Cycle
the organic working fluid. Configurations for Utilization of Low Temperature
• No surface discharge
Heat Sources”, ASME Proceedings of ESDA 2008.
• air cooling for nearly zero environmental
Energy Conversion – Conversion of one type of energy [9] Bronicki, L.Y., 2002, “Geothermal Power Stations”,
to another such as the heat of a geothermal resource to Encyclopedia of Physical Science and Technology,
impact
electricity, etc. Third Editions, 6, Academic Press, San Diego.

42 | INDUSTRY JOURNAL INDUSTRY JOURNAL | 43


one generator is a time-consuming Case Study: able to effectively manage the
task; a project site with thirty to forty Bonaire Island power factor as well as stabilising
generators on it will require the the voltage across the island.
contractor to purchase trucks and In November 2007, a consortium of And by utilising a rental power
staff simply for refuelling. Therefore, Dutch and German environmental solution as a part of their project
the use of rental specialist who companies called EcoPower plan for a complete power
includes refuelling in the rental Bonaire BV reported that they package upgrade, WEB was able
package can be an attractive had been awarded a contract by to concentrate their efforts on
option for customers. Bonaire’s power utility, Water en constructing and commissioning
Energie Bedrijf Bonaire, (WEB) to a ground-breaking new power
Another factor in the rental build and to operate a technically system.
versus purchase argument is the advanced sustainable wind/diesel
element of human capital. All power plant. As a part of phase Power on Demand
major equipment purchases will one, EcoPower BV installed a
require employees to run the new 330 kW Enercon E-33 wind power Bonaire is not the only Caribbean
equipment, either by allocating turbine on the south east of Bonaire utility which is choosing to use
existing staff to the project, or Island at Sorobon. The new turbine Aggreko’s rental power solutions
by hiring new employees. If a replaced an obsolete wind turbine as a part of their energy strategy.
utility does not have employees that had not been used since 1996. In 2008, the company provided a
available with the technical The installation of the E-33 wind 10 MW power package to Antigua
knowledge to run the equipment turbine commenced in early 2007 and Barbuda, which helped to

Rental Power in the Caribbean


they may be forced to hire new and the turbine was commissioned alleviate load shedding on the
staff. This means that the use of a in May 2007. islands. Currently, Aggreko is
company which provides turn-key
operating a 17 MW power project
rental services can be invaluable to

K
Increasingly, power rentals are in Curacao and a 10 MW project
nown for its natural beauty and warm weather, the Caribbean is renowned as a tourist haven, bringing a utility which requires equipment playing more of a strategic role in in St. Kitts and most recently, the
in hundreds of thousands of visitors each year to enjoy the sandy beaches and azure waters of the but simply doesn’t have the skilled the planning processes of power company has signed a 100 MW
Caribbean Sea. Few visitors give any thought to the utilities who operate on the islands, providing power and experienced staff to operate utilities as they strive to maintain contract to provide rental power
to everything from hotels and restaurants to dive shops and cinemas, but ensuring reliable power for small it. the essential power supplies to to Panama.
islands is a task with many challenges, as the utility providers in the region can attest.
their customers at all times. In this
At times it is tempting for utilities to instance, a power rentals solution With the recent economic
Although the islands vary in size, the challenges faced by the utilities in operating isolated grid systems for try to save money by minimizing was employed during a ‘planned downturn having resulted in a
relatively small populations are similar. Limited economies of scale, lack of financing and environmental the number of staff they require outage’ by Bonaire’s power utility greater emphasis on keeping
concerns are some of the issues that are faced by Caribbean utility companies as they seek to provide power for operating the equipment, WEB so that the island’s population capital available and with rental
to residents and tourists, as well as expanding their industrial bases and attracting investors to the region. however, this short-term solution and its businesses would not providing benefits such as lowered
often leads to greater problems suffer in any way. A rental power capital expenditure, flexibility and
Faced by these challenges, many Caribbean utilities, as a part of the diversification of their energy portfolios, in the long run. Heavy equipment contract was awarded to Aggreko risk management, the option of
are choosing to rent rather than purchase power generation equipment. There are many advantages to using such as generators require regular for the turn-key provision of a 15 renting as opposed to purchasing
power rentals: renting power generation equipment eliminates the need for capital expenditure on equipment, servicing and maintenance MW power package. equipment is becoming a viable
incurs no large down payments or interest costs and preserves borrowing capacity. In addition, power rental in order ensure that they are
consideration to utitlies across
guarantees fixed and regular payment schedules over an agreed term with options to extend the rental period operating a peak efficiency; a Aggreko generators are provided the world. And although the
if required which improves cash flow and allows for more accurate budgeting. poorly maintained generator will in containerised units which each question, ‘Is it better to buy or to
have greater fuel consumption, provide 1250 kVA of power; by rent’, will continue to be asked
higher emissions and may even linking the generators together, by utilities contemplating large
Hidden Costs and Human Capital break down entirely, negating any the company can provide large- equipment purchases, many will
cost benefits that may have come scale power projects. For Bonaire, likely find themselves deciding that
When making the decision between purchasing and renting equipment, it is important for utility companies from reducing the number of Aggreko provided power at ownership may not be worth the
to evaluate the decision in light of the many hidden costs that are incurred when equipment is purchased. technicians working on a project two locations on the island and hassle.
Insurance is one item which is often overlooked by utilities looking to purchase power packages. In addition, site. Through a rental provider, utilised WEB’s existing transmission
there are many spare parts and ancillary items that need to be purchased regularly to ensure that the
equipment is able to operate. Not only do items such as spare parts need to be purchased, but they also
all service and maintenance is
included in the rental package,
and distribution system to deliver For more information:
the required power together Regional Office for the Caribbean
require storage space to house them. With a rental solution, all spares and ancillary items are the provision of ensuring that the equipment is with surplus power for back-up. +1.281.848.1400
the rental provider, enabling the customer to budget more effectively. always running at peak efficiency. By splitting the power into two Hub for the Americas +507.340.9610
separate packages, Aggreko was aipp@aggreko.com
Refuelling is an additional cost which is often forgotten when the decision is made to buy equipment. Refuelling

44 | INDUSTRY JOURNAL
Wärtsilä’s large reciprocating diesel and gas engines
have, during the last decade, undergone a generation
change in terms of control, whereby mechanical and
hydraulic devices have gradually given way to electronics
and software. Unique in many aspects, the Wärtsilä Unified
Controls (UNIC) system introduces the only truly flexible
and fully scalable control solution for large reciprocating
diesel and gas engines. UNIC is a set of controls that are:

• Reliable – featuring system redundancy which


provides a high fault tolerance level electrically
and mechanically

• Ready when delivered – featuring a complete


engine control concept with fast and
predictable installation on site

• Cost efficient – featuring low total cost of


ownership

• Capable and flexible – featuring design • A common interface with integrated


for Wärtsilä’s engines, but due to its cutting automation systems for engines, pipe modules,
edge technology and flexibility it can be feeder/boosters and other related machinery
adapted also to non-Wärtsilä engines equipment.

• Direct replacement for WECS – featuring direct • Real time diagnostics for trouble shooting and
replacement for WECS controls (2000, 3000, accurate time-stamping for cause and effect
8000) analysis.

UNIC is cost-efficient and flexible • “Hot swapping” and auto configuration of


control modules that reduce the system’s off-
Reliability has been the fundamental design requirement line time to a minimum.
for the UNIC system. However, in order to support different
The future of engine control is here today applications and usage, the flexibility and scalability of • Common spare parts, common tools,
the system are also very important. These not only allow common service personnel, training etc.
the system to be applied to all types and sizes of engines,
The operation of modern 4-stroke machinery installations is operate. They have alerts that indicate whenever systems, but also allow the use of the rugged embedded control • Flexibility in the technology used.
largely dependent upon advanced embedded electronic like sensors and EM stop solenoids fail as well as backup in related applications, depending on need. This is also
control. This is true not only for obvious engine types, such as systems as an essential safety component. reflected in the system name, UNIC, Unified Controls, where Reliability is the leading star
the spark ignited (SG) and dual-fuel (DF) gas engines and a unified embedded control platform is emphasized. The
the common rail (CR) engines, but also for conventional The damage caused by the failure of safety systems due total system concept for UNIC is built on the following For demanding applications like industrial power
mechanical diesel engines and their auxiliary equipment. to a lack of maintenance can be serious, not only in “blocks”: hardware, software, functionality, sensors and generation, reliability is an obvious requirement. Reliability
All are today benefiting from advanced control for safety, technical terms, but also from a business perspective. actuators, interfaces, maintenance, configuration and is commonly associated with fundamentals such as safety
supervision and performance. Wärtsilä Unified Controls If existing electrical or pneumatic systems, for example, validation. and the commercial feasibility of the operation. Reliability,
(UNICTM) provides a reliable electronic control system for are not modernized or replaced in time, it will become however, also impacts other factors such as ease of use,
rugged industrial automation needs. increasingly more difficult / expensive to obtain spare parts For 4-stroke diesel engines in power plants, this flexibility service schedules, skill requirements, and so on, with far
for older systems as research and development continues is then translated into automation products in a scalable reaching consequences.
When you have made a substantial investment in a power to produce new generations of electronic equipment way. The levels of flexibility are divided into a basic level
plant or a marine installation, it goes without saying that (and spare parts). for liquid fuel gensets, an extended level for liquid fuel UNIC was designed with the sole purpose of providing
you want your installation to work properly and generate plants and an advanced level for SG/DF plants. excellent reliability, even during the most extreme
revenue for your business. To keep the installation running Ultimately, therefore, the cost of renewing your control conditions. This is an essential element in meeting the
smoothly you need to be able to control and monitor system is negligible compared to the cost that any Different engine applications are covered by different demands of challenging industrial environments. This
how the engines operate. Preferably that would be done damage will cause by taking your engine out of operation. system variants, UNIC C1 (basic), C2 (extended) and C3 reliability is achieved by using some rather unique designs
through some type of automation system. Power plant owners’ requirements for performance (advanced), with the hardware, software and functionality and solutions that are not readily available elsewhere.
and functionality have been on the increase for quite a scaled accordingly. The same features as used in the One example is the sensors. Sensors, being relatively
The environment in which automation systems operate while. With “smart” control, it is possible to measure and basic systems are also reused in the more complex ones. inexpensive and available off the shelf, are often
is normally harsh, with vibration and high temperatures control engines better, faster and with less equipment In order to achieve this scalability, the system is bus-based, somewhat neglected when designing engine control
causing systems to degenerate. The older the system, than ever before. The possibilities offered by smart control where functionality can easily be added, and the system systems. In practice, however, the reliability of the sensor
therefore, the more necessary it is for it to be frequently are also continuously evolving, allowing more data to be extended to cover more complex demands. is extremely important to the system. This is partly due to
checked, which can be a time‑consuming, labour- retrieved from the same measurements as before, better the number of sensors on an engine, but also because the
intensive task. performance achievements from the same actuators, The UNIC system is not applicable to engine controls sensors are typically mounted in difficult locations and are
and more logical and simpler ways for the operator to only, but is widely applicable to rugged applications. frequently in direct contact with hot surfaces, vibrating
Modern systems, on the other hand, have self-check handle the installation. Advantages of the integrated approach include: components, and aggressive chemicals.
facilities, require less maintenance and are easy to
INDUSTRY JOURNAL | 46 INDUSTRY JOURNAL | 47
The standard solution for all diesel engine driven power plants is the embedded monitoring as provided by
the extended level of the UNIC C2 system, where fault tolerant safety functions guarantee the system’s high
availability, while simultaneously providing proper protection. Advanced signal diagnostics avoid spurious
false alarms, while alerting the operator to possible failures in, for example, the sensors. The extended level is
designed for a highly automated system control with WOIS (Wärtsilä Operator’s Interface System) and WISE
(Wärtsilä Information System Environment) systems. This could typically be used in applications with the Wärtsilä
32 and Wärtsilä 46 engines.

On a common rail diesel engine or gas engine, the advanced level of the UNIC C3 system provides optimal
performance with advanced control algorithms for the fuel injection. Algorithms adapting to existing fuel
properties, multiple maps for various fuels for example, direct cylinder pressure analysis, and functions such as
split injection, allow these engines to deliver the utmost performance possible. The UNIC C3 system also contains
advanced diagnostics that easily detect upcoming failures on components such as gas valves or fuel injectors,
and which analyze the combustion process and engine behaviour. This ensures that engine performance is
maintained, even in varying conditions. The advanced level is designed for a highly automated system control
with WOIS and WISE systems. This could typically be used in applications with the Wärtsilä 34SG, Wärtsilä 32DF
and Wärtsilä 50DF engines.

Operation and maintenance


The UNIC system is a flexible buildup of multiple components. In its simplest form, the system will provide safety
and monitoring functions. Additional components can be added to include engine management, or in its most
advanced state, we can provide electronic combustion control.

When evaluating sensor failures, it is clear that one of the main causes is actually not the sensor itself, but rather the If a customer installs a UNIC system today, and at a later date decides to upgrade the engine and requires
connector mounted on the sensor. In UNIC, all the sensors have been redesigned for utmost reliability by removing combustion control, this module can easily be added to the existing UNIC system. UNIC modules include:
the connector, and using a fixed attached cable instead. This cable, known as a flying lead, connects directly to
the electronics. As a result of this design, the reliability of the numerous sensors on the engine has been significantly
• Power Distribution Module (PDM) • Engine Safety Module (ESM)
improved.
• Main Control Module (MCM) • Local Control Panel (LCP)
Other components that heavily influence reliability are the connectors and cables. So called wire harnesses with a lot • Local Display Unit (LDU) • Input/Output Module (IOM)
of connectors, unshielded wires, and numerous fragile plastic parts, as commonly used in the automotive industry for
example, are not used. Instead, the wiring concept is based on rugged point-to-point cables that are very robust and • Combustion Control Module (CCM) • Speed Controller (MCM-10)
easy to repair and replace in the field.
Standardized components across the
Reliability is also a result of proper design and mounting of the electronics. By using over specified electronics with whole Wärtsilä portfolio means streamlined
integrated diagnostics, mounted on vibration dampers in metallic junction boxes, the lifetime of the electronics can spare parts logistics, while guaranteeing
meet even the most stringent requirements. that spare parts are available immediately
all over the world. The same spare parts
As large diesel or gas engines typically are in operation some 8,000 hours per year for 20 to 30 years, it is clear that the are relevant to different Wärtsilä products,
expected lifetime for the electronic components will also need to be quite long. For UNIC components, a lifetime of at thus minimizing stock requirements,
least 50,000 operational hours is the estimated target. while the common system design allows
operators and maintenance personnel to
efficiently service any type of Wärtsilä unit.
Performance through three concepts
With the standardized design, it is also easy
The performance of modern diesel and gas to modify installed engines for, among
engines installed in power plants is heavily other things, different types of fuels, as
dependent upon advanced electronic market demands require. In addition to
controls. Even conventional diesel engines new engines, it is also possible to retrofit
benefit from the advanced electronic older engines with different UNIC variants
speed control provided by the basic level when the need for modernization arises,
of the UNIC C1 system. The UNIC C1 system thereby also bringing the same UNIC
is also available with an integrated start/ system benefits to an existing engine base.
stop system, minimizing the external systems
needed for engine operation. The basic The advanced bus-based communication
level concept works very well in e.g. stand- to UNIC C2 and C3 engines also allows good opportunities for increasing operating efficiency, since remote
by applications or in-line engine projects. A supervision with, for example, accurate time-stamping features, is readily available. The engines are also ready
typical application could be with a Wärtsilä for direct connection to the Wärtsilä condition based maintenance (CBM) system, and support also remote
20 and Wärtsilä 32 L engines, and Wärtsilä 20 access from the maintenance tool, allowing tuning and fault tracing - even via a remote connection. CBM
power skid/container solutions. extensions to machinery are also available.

48 | INDUSTRY JOURNAL INDUSTRY JOURNAL | 49


So to conclude this we can state that UNIC is a
distributed and bus based system that provide
monitoring and control functions placed close to the
point of measurement and control. Both the on and
off engine wiring is significantly simplified. Advanced
functions in the system, for example, diagnostics
and control, provides outstanding performance
and reliability, so the need for off engine systems is
significantly reduced. UNIC meets even the highest
requirements for reliability, with selective redundancy
and fault tolerant designs.

With unmatched power, the UNIC system provides an


UNIC’s unique position unbeaten performance for engine control. Modern
control provides high engine output, low emissions,
UNIC has a unique position in the market for high efficiency as well as steady and rapid load
embedded controls. The system, which has been acceptance.
gradually introduced on Wärtsilä 4-stroke engines
since 2005, is robust – providing many years of service WÄRTSILÄ® is a registered trademark.
in demanding conditions, as well as being flexible and
scalable for use in any type of application. The system
not only provides new engines with better control, Captions in order of appearance:
higher performance, and increased reliability, it also
supports both old and new installations during the 1. Wärtsilä is concepting a new type of power
full lifecycle. It offers opportunities to follow market plant control rooms.
demands for fuel flexibility, increased efficiency, and
optimal operations and service. The system flexibility 2. The Wärtsilä Unified Controls – UNICTM provides
also allows for streamlining, not only on the engine, but a unique scalability for engine applications.
also, for example, of the total machinery installation.
3. Pressure-transmitters and pressure-switch are
Wärtsilä now has several hundred UNIC systems in installed on the concerned main pipe. This
actual operation around the globe and that number reduces the risk of signal failures and the
continues to grow every month. The system has number of pipes on the engine.
proven to offer remarkable reliability. Nearly all new
Wärtsilä engines rolling off our production lines are 4. General machinery control concept based
using the UNIC platform and we have trained Field on the UNIC technology.
Service Engineers in all parts of the world to support
the system. 5. The Wärtsilä Land & Sea Academy offers
electrical and automation training for power
The new system has got a very positive reception also plant operators.
in the Caribbean. Many power plant owners have
inquired about the system and the advantages it 6. The combustion controle module mounted on
offers. Presently we are in the midst of installing several engine side.
systems in Jamaica. Installations are underway also
in the United States, e.g. at a generating facility in
central Texas.

About the author:

The author Rainer Ahlvik is presently Business Writer/Editor for Wärtsilä Corporation, Services. He
started in 1993 within the internal communications department of Wärtsilä Finland Oy. In 2002 he
moved to the Services headquarters to take up a position as Web Editor for both internal and
external purposes within the Marketing and Communications department. And now for about
one year he has the position of Business Writer/Editor for both external and internal purposes. The
educational degree of Rainer Ahlvik is Master of Arts from the University of Vaasa in Finland.

50 | INDUSTRY JOURNAL