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Konferenz Zukunftsmarkt Globale Nachhaltigkeit

Business Talk 3Energie und Klimawandel

Impuls Peter Stettner, Andritz Hydro

Peter Stettner, Market Strategy

Wirtschaft und Entwicklung-Konferenz 16.11.2016

Zukunftsmarkt Globale Nachhaltigkeit

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More than 175 years of turbine experience (1839)

Over 31,600 turbines (more than 434,600 MW) installed

Complete range up to more than 800 MW Over 120 years electrical equipment experience (1892)

Leading in service and rehabilitation More than 120 Compact Hydro units per year

Highlights ANDRITZ HYDRO

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We are a global supplier of electro-mechanical systems and services (“from water-to-wire") for hydropower plants and a leader in the world

market for hydraulic power generation.

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KVAERNER

Boving

NOHAB

Tampella Escher Wyss

Baldwin-Lima-Hamilton

GE HYDRO inepar GE HYDRO

Sulzer Hydro

Pelton Water Wheel

I.P. Morris Bouvier

Pichlerwerke

Hydro Vevey VA TECH HYDRO

Andritz VA TECH HYDRO

VOEST

ELIN

Ateliers de Constructions Mécaniques de Vevey (ACMV)

Charmilles

Andritz

Waplans

SAT

Finnshyttan

C.E.G.B.

Bell

KMW

VOEST MCE

Møller

KAMEWA

Dominion Engineering

Hemi Controls

Precision Machines

AFI

English Electric

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History ANDRITZ HYDRO

The pioneers created the foundation.

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Facts and figures ANDRITZ HYDRO

ANDRITZ HYDRO FIGURES 2015

ANDRITZ HYDRO C

entr

al F

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ion

Turbo Generator Large Hydro Compact Hydro Service & Rehab Pumps

Unit 2015

Order intake MEUR 1,718.7

Order backlog MEUR 3,640.9

Sales MEUR 1,834.8

EBITA MEUR 145.3

Employees (without apprentices)

8,230 Order intake Sales Order backlog

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Global presence ANDRITZ HYDRO

Spokane Vancouver

Peterborough Pointe-Claire Chambly

Charlotte

Morelia

Vevey Kriens

Ravensburg Linz

Vienna

Graz Weiz

Jakarta

Manila

Melbourne

Christchurch

Kuala Lumpur

Yangon

Bhopal Faridabad

Beijing

Foshan

Chengdu Hangzhou Hanoi

Lima

Bogota

Santiago de Chile

Caracas

Sao Paulo Campinas

Araráquara

Ankara

Tblisi

Glasgow

Madrid Porto

Kiev

Hammerfest Tampere

Moscow

Grenoble

Jevnaker Nälden

Johannesburg

Tehran Schio

Prague

Tiszakécske

ANDRITZ HYDRO location with manufacturing ANDRITZ HYDRO location

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Vientiane

Paris

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System and service scope of supply – “from water-to-wire” ANDRITZ HYDRO

1 Gates 2 Penstocks 3 Inlet valve 4 Turbine 5 Generator 6 Automation, Control & Protection 7 Medium voltage switchgear 8 Power transformer 9 High voltage switchgear 10 Transmission line

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Hydropower – Part of the Renewable Family

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Capabilities, global status & outlook

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The Strengths of Hydropower

Hydropower is a well-proven form of power generation

Water is a renewable source of energy

Hydropower contributes significantly to the reduction of greenhouse gas emissions

Hydropower is a clean form of energy and leaves no environmentally harmful residues

Hydroelectric power generation is cost efficient and not sensitive to fuel price increases

In many regions of the world, hydropower reservoirs are also vitally important for water supply, irrigation and flood protection

Civil works construction of hydropower plants creates local jobs and supports the regional economies

Hydropower conserves fossil fuel resources

Hydropower is the number one source of renewable energy for electricity generation today !

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Estimated Renewable Energy Share of Global Electricity Generation, End-2015 Renewables on the Rise

Source: REN21, Renewables 2016 Global Status Report

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World electricity Access and Lack of Access by Region, 2013 Billions suffering from Energy Poverty

Source: REN21, Renewables 2016 Global Status Report

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with huge future power demand Africa

Source: IEA

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with huge future power demand Africa

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Global investment in power generation, electricity networks and demand growth Renewables dominate .

Source: IEA - World Energy Investment 2016

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Electricity sector investment by region and technology Renewables dominate .

Source: IEA - World Energy Investment 2016

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A vast potential remains untapped Hydropower

Source: Hydropower & Dams World Atlas, 2016

Europe excl. Russia and Turkey

Technically feasible hydropower potential : ~ 15,700 TWh/year Hydropower generation: ~ 3,962 TWh/year

Technically feasible hydropower potential (GWh/year) Hydropower generation in 2015 (GWh/year)

Chi

na

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North America

South America

Africa

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Trends: Innovative solution for:

existing dams, gates, weirs, etc. greenfield projects

Usage of ecological flow for additional power generation

Highlights: Largest HYDROMATRIX® plant

45x 534 KW – Ashta I / Albania 45x 1,003 kW – Ashta II / Albania

Usage of abandoned shiplocks 5x 270 kW StrafloMatrixTM

Chievo / Italy

Low head applications for existing structures

Hydropower market outlook

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Trends: Technology for power generation from tidal lift and tidal currents

Tidal lagoon (energy island) Tidal array Tidal barrage

Highlights: World largest tidal power plant

10x 26 MW – Sihwa / South Korea Rehab of first tidal power plant

24x 10 MW – La Rance / France First commercial tidal current turbine

1x 1,000 kW (HS1000) – EMEC / UK First commercial array

3x 1,5 MW – MeyGen / Scotland New developments for tidal lagoons

Develop ocean energy Hydropower market outlook

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Trends: Solution as “battery of the grid” “from water-to-wire” (W2W)

Fixed or variable-speed Electrical grid compatibility

Grid code compliance

Highlights: First variable-speed pumped storage plant in Europe

4x 325 MW – Goldisthal / Germany (2x variable-speed units á 340 MVA)

High speed pumped storage (750 rpm) 2x 240 MVA – Reisseck II / Austria

Quick change (+540 / -540 MW in 20 sec) 3x 200 MVA – Kops II / Austria

Pumped storage power plants Hydropower market outlook

Measuring Hydropower Sustainability Hydropower Sustainability Assessment Protocol Life cycle assessment

Environment-friendly equipment

Fish friendly solutions Oil free operations Aeration of water

Improved infrastructure Huge investment in mitigation measures

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a driving force Sustainability

Source: Hydro Equipment Association – Global Technology Roadmap

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Hydropower is booming in South East Asia

Increasing energy demand, focus on clean Hydropower and unexploited potential are main driving forces

Technically feasible hydro potential is enormous, recognizing regional differences is essential

Africa will see similar growth if sector reform and capacity building continue

Summary Hydropower Market Outlook

The hidden trasures

Modernization and Upgrading of Hydropower plants

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Do you see a difference?

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The right picture differs from the left picture

with additional output of 132 MW!

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an enormous demand for upgrade and modernization 30% of installed hydro capacity is older than 40 years

Source: Hydro Equipment Association, 2016

Remark: realized turbine refurbishments considered > “real” age

an enormous demand for upgrade and modernization 30% of installed hydro capacity is older than 40 years

Source: Hydro Equipment Association, 2016

Remark: realized turbine refurbishments considered > “real” age

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ROUNA II, PAPUA NEW GUINEA Case Study

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Customer: PNG Power Limited Order Intake: 2006

31.6 MW Run-of-River Plant Year of Erection 1969

4 x 7.9 MW Francis

Major scope Automation & Control Excitation Power Plant Management Protection Synchronization Turbine Governor

Major features: Increased Reliability & Availability. Increased HS&E Standards. Reduced CAPEX due to alternative technical solution Community Involvement Increase of unit output by 30%

Service & Rehab References Rouna 2 / Papua New Guinea

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Location Papua New Guinea, power plant in a remote area, one „direct“ flight per week to Port Moresby Personal safety, security, travelling

Technical challenges

Delivery of equipment, limited access required specific design of the new generator Logistics, local transportation, reinforcement of bridge and repair of roads

Social aspects

700-1000 ethnic groups in PNG Support of local community

Benefits

Increase of output and efficiency Plant availability and reliability is important for the power supply of Port Moresby Optimized project costs

Challenges and benefits Rouna 2

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Transportation and Erection Challenges Rouna 2

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access during construction oulet channel ~ 2 km

power house cavern

Access during Rehab via

a vertical shaft ~ 170m

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Challenges

Understand and interface with specific social environments effectively to deliver successful projects in an unobtrusive manner

Respecting local cultures and needs to demonstrate visible local community interaction with the project

Develop a Project Social Responsibility plan for the support local community

Local added value and benefits for the local community

Use of local labor and services with a 60/40 split of the total contract value

Training and development of personal

Under the Project Social Responsibility Policy, the Rouna II Upgrade Project created and executed support projects in the local community (hospital)

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Project social context Rouna 2

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EDEA I, CAMEROON Case Study

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EDEA I / Cameroon / 2008 - 2011 Customer: AES Sonel SA Quantity: 3 Units (propeller) Original Suppliers: SFAC for units 1 and 2

ACMV for unit 3 (today ANDRITZ HYDRO)

First Commissioning: 1949 - 1955 Original Data: 11.4 MW (U 1&2) / 12.5 MW (U 3) New Data: 16.4 MW Head: 25.1 m Speed: 187.5 rpm Complete electro-mechanical rehabilitation

Total replacement of propeller turbines, governing systems, generators, power transformers, control system, electrical equipment, mechanical and electrical auxiliaries Supply of new gantry and swiveling cranes Refurbishment of power house cranes Refurbishment of draft tube stop logs, intake bulkheads and intake radial gates

Major features:

Output increase by 44% (units 1 & 2)

Output increase by 33% (unit 3)

Service & Rehab References Edéa

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The HEPP EDEA, located on the SANAGA River situated halfway from Douala, economic heart, and Yaoundé, Capital of the Cameroon, was built 59 years ago in three phases.

EDEA I, Units 1 to 3, 1949 – 1955

EDEA II, Units 4 to 9, 1954 – 1958

EDEA III, Units 10 to 14, 1969 – 1975

Location Edéa

HPP EDEA HPP SONGLOULOU

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Challenges Location in Cameroun, poor developing country, politically unstable, traveling is dangerous, local procurement almost impossible Climatic conditions, malaria threats Personal safety, security, evacuation plan Bureaucratic decisions Transportation of equipment difficult due to poor road conditions Plant in operation during rehabilitation

Benefits

Increase of the turbines output will strengthen the power supply in Cameroun Increase of output & efficiency and improve water management Increase availability and reliability of Edea 1

Challenges & benefits Edéa

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Where can the Austrians contribute? The Sustainable Development Goals