Case PJM, USA:


5-MINUTE FLEXIBILITY

IS WORTH MORE

THAN 62% EFFICIENCY





































THE BUSINESS CASE BEATING THE BEST CCGTs IS HERE

In the world's largest electricity market, serving 61 million people, competition is fierce. Is extreme baseload efficiency really the key to winning? We have a better option. Read how we deliver superior value than the most advanced gas turbines.


Img-webinarPDF




 CASE STUDY



Looking for past webinars?

CLICK HERE




LATEST UPDATES

webinar pjm power pjm pjm





”From a technical standpoint, the fact that we’re dual-fuel,
natural gas and oil, gave us a substantial advantage
in dealing with the environmental situation.”

WILLIAM F MCLAUGHLIN, PRESIDENT OF TOWN COUNCIL, CHAMBERSBURG








FLEXIBILITY VS. EFFICIENCY?

The current investment trend in PJM is focusing on extremely efficient capacity, which in practice usually translates to combined cycle gas turbines (CCGTs). Logically, the higher the nominal efficiency, the more hours the owner will be able to sell. However, the trade-off for acquiring efficiencies north of 60% is that the flexibility suffers. In practice, this means that the owner will have to run through a substantial amount of low electricity prices as well. While this is not necessarily a major issue, a new study shows that there is a more lucrative option available!

With more flexible capacity, the owner is able to cherry-pick the most profitable settlement periods and avoiding every single unprofitable one. The lower efficiency of super-flexible assets will certainly affect the operational costs to some extent, so the question is: what has the greater impact on the internal rate of return (IRR)? Efficiency or flexibility?










 The volatility in PJM basically gives investors two options: either going for the most efficient technology, or selecting the most flexible assets.








FLEXIBILITY VS. EFFICIENCY?

The current investment trend in PJM is focusing on extremely efficient capacity, which in practice usually translates to combined cycle gas turbines (CCGTs). Logically, the higher the nominal efficiency, the more hours the owner will be able to sell. However, the trade-off for acquiring efficiencies north of 60% is that the flexibility suffers. In practice, this means that the owner will have to run through a substantial amount of low electricity prices as well. While this is not necessarily a major issue, a new study shows that there is a more lucrative option available!

With more flexible capacity, the owner is able to cherry-pick the most profitable settlement periods and avoiding every single unprofitable one. The lower efficiency of super-flexible assets will certainly affect the operational costs to some extent, so the question is: what has the greater impact on the internal rate of return (IRR)? Efficiency or flexibility?

The volatility in PJM basically gives investors two options: either going for the most efficient technology, or selecting the most flexible assets.

PJM graphic1




BEYOND THE DAY-AHEAD MARKET

When prices fluctuate heavily in real time, plants need to be able to react as quickly as the market demands.

Assets that are only efficient at full load and that cannot ramp up and down quickly enough, cannot capture the full value offered by real time markets. As opposed to this, flexible multi-unit power plants can create plenty of value because of their extremely quick ramp capability and its high part-load efficiency.

A multi-unit power plant can be run in various ways dependent on the situation at hand. Basically, there are two main operating principles:

In spinning mode, the gensets are synchronized and running, but at a reduced load. This way the plant is fully ready to take large, immediate load increases just in seconds.

In efficiency mode, the minimum amount of gensets are running at full load to meet the current load demand, thereby allowing them to operate at their best thermal efficiency. Still, the remaining gensets, which are in stand-by mode, can come online and reach full load in a matter of a few minutes to meet any unforeseen load increases.



 



In a multi-unit power plant the units can be started and stopped as per demand. It is possible to optimise the usage of each single unit by choosing to either provide spinning reserve or to run it flat-out to obtain maximum efficiency.

It doesn't matter if the market needs the full nominal power or just half of it: a multi-unit plant will provide it at its nominal efficiency by starting just half of the units.







   

There are often significant seasonal, weekly and daily variations in power demand.


 








Plant features in the two different operation modes, 50-100% load in <30s








BEYOND THE DAY-AHEAD MARKET

When prices fluctuate heavily in real time, plants need to be able to react as quickly as the market demands.

Assets that are only efficient at full load and that cannot ramp up and down quickly enough, cannot capture the full value offered by real time markets. As opposed to this, flexible multi-unit power plants can create plenty of value because of their extremely quick ramp capability and its high part-load efficiency.

A multi-unit power plant can be run in various ways dependent on the situation at hand. Basically, there are two main operating principles:

In spinning mode, the gensets are synchronized and running, but at a reduced load. This way the plant is fully ready to take large, immediate load increases just in seconds.

In efficiency mode, the minimum amount of gensets are running at full load to meet the current load demand, thereby allowing them to operate at their best thermal efficiency. Still, the remaining gensets, which are in stand-by mode, can come online and reach full load in a matter of a few minutes to meet any unforeseen load increases.

There are often significant seasonal, weekly and daily variations in power demand.

PJM graphic2

In a multi-unit power plant the units can be started and stopped as per demand. It is possible to optimise the usage of each single unit by choosing to either provide spinning reserve or to run it flat-out to obtain maximum efficiency.

It doesn't matter if the market needs the full nominal power or just half of it: a multi-unit plant will provide it at its nominal efficiency by starting just half of the units.

Plant features in the two different operation modes, 50-100% load in <30s

PJM graphic3




SATISFIED CUSTOMERS IN CHAMBERSBURG





“For more than one hundred years, the Borough Electric Department has been providing affordable and dependable electric service to the residents of Chambersburg. By signing this contract with Wärtsilä, we are taking the first step toward guaranteeing the same quality of electric service for the next hundred years. I have little doubt that future Councils will call on Wärtsilä to continue to expand this power plant’s capacity.”



Chambersburg-682








CHAMBERSBURG PRESS RELEASE


“For more than one hundred years, the Borough Electric Department has been providing affordable and dependable electric service to the residents of Chambersburg. By signing this contract with Wärtsilä, we are taking the first step toward guaranteeing the same quality of electric service for the next hundred years. I have little doubt that future Councils will call on Wärtsilä to continue to expand this power plant’s capacity.”


CHAMBERSBURG






“ By signing this contract with Wärtsilä,
we are taking the first step toward guaranteeing the same
quality of electric service for the next hundred years.”

WILLIAM F MCLAUGHLIN, PRESIDENT OF TOWN COUNCIL, CHAMBERSBURG






LET’S TALK

The real time & ancillary services markets and Smart Power Generation technology are a perfect 5-minute match, representing a remarkable business opportunity in the in the Pennsylvania - New Jersey - Maryland area.

We believe we have the best solution that will give you a strong edge over your rivals.


spp-lets-talk-4

MATTI RAUTKIVI
Origination, Americas




HOW DO YOU OPERATE AND MAINTAIN AN ENGINE-BASED POWER PLANT?

O&M-med5

O&M

Engine power plant operation and maintenance








SMART POWER
GENERATION
Power at the push of a button

















WÄRTSILÄ
ENERGY SOLUTIONS
The right amount of power at the right time