Case NYISO, USA:


FLEXIBILITY PAYS OFF









































































































WHY ENGINE-BASED POWER PLANTS MAXIMISE
RETURNS IN NYISO?

Electricity markets now reward flexibility throughout North America, including NYISO. This should be taken into account in investment analysis. By choosing the most flexible technology for new-build power plants, the owner maximises returns.

According to a value analysis by Wärtsilä, a 200 MW reciprocating engine power plant offers 21.5% equity IRR for plant owners in NYISO. For the gas turbine options the IRR is 11.6-15.7%. Fast-reacting engine power plants simply generate more revenue in the day-ahead, real-time and ancillary services markets. In a nutshell: the fastest machines make the most money.


get_a_higher_ROI_with_wärtsilä_in_NYISO


CASE STUDY



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“Since the real time marketplace came into play,
we have seen our running hours of our 170 MW
Smart Power Generation plant growing 10-fold.
That’s due to the flexibility of the engines.”

GEORGE HESS, VICE PRESIDENT OF PRODUCTION, GOLDEN SPREAD ELECTRIC COOPERATIVE.







Power plants based on large reciprocating engines are de facto the most flexible generation technology out there. Unlike gas turbine alternatives, they are capable of, for example

• Feeding megawatts to grid in 30 seconds
• Starting to full load in 5 minutes
• Starting several times daily without extra costs
• Operating efficiently on low and partial load

The value analysis was made a with a combined back-cast analysis of 2011-2014, and a 20-year future outlook. Wärtsilä 50DF dual-fuel engines were used in the analysis, enabling the use of natural gas as the main fuel and light fuel oil as back-up. Using the gas-only alternative, Wärtsilä 50SG, the IRR difference is even larger. This is due to higher unit output, lower heat rate and lower capex.



 






Agile engines are more capable of capturing revenue streams in the volatile market place. This translates into a higher equity IRR than for gas turbine options.





LET’S TALK

Reciprocating engine power plants maximise returns in NYISO compared to gas turbine options. This is because the market now rewards flexibility. The trend is very similar in other markets such as Southwest Power Pool.

Please contact us to learn more.

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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