andritz hydro capital market days 2011,...

Capital Market Days 2011, AustriaANDRITZ HYDRO

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2 ANDRITZ HYDRO – Wolfgang Semper – Capital Market Days 2011, Austria

Contents

ANDRITZ HYDROand benefitsof hydropower

Demandsof the future

Segmentation of the global hydropower market


Francis, 1849, James B. Francis, USA Pelton, 1879, Lester Pelton, USA Kaplan, 1913, Victor Kaplan, Austria Bulb, 1970 Straflomatrix, 1995 Tidal current turbine, 2003

Power generation from waterTurbine types


High head (150-2,000 m), low flow Typical turbine type: Pelton, Francis,

pump turbine Storage, pumped storage Peak power generation, regulation, and

balance energy Example: Kops II, Austria, 3 x 180 MW, 826 m

Medium head (15-150 m), medium flow Typical turbine type: Francis, Kaplan Run-of-river, storage Base-load supply, short- and mid-term balancing Example: Guri II, Venezuela, 5 x 770 MW, 144 m

Low head (< 15 m), medium flow Typical turbine type: Kaplan, Bulb Run-of-river, diversion plant Base-load supply Example: Freudenau, Austria, 6 x 36 MW, 10 m

Power generation from waterTypes of power plants


Power generation from waterHighest operational efficiency

Example: TasmaniaHouseholds equivalent:4,000 kWh for Austria (Verbund AHP)

Plant Type Example

Installed Capacity

(MW)

Full load operating hours equivalents /

year

Produced Energy (GWh)

Hauseholds equivalent * Remarks

High Head / Pumped Storage Limberg II, Austria 480 500-1000 - - balancing, no net generationHigh Head / Storage Kaprun-Hauptstufe, Austria 240 990 237 59 000 Medium Head / Storage Hieflau, Austria 63 4 500 284 71 000 Low Head / Run-of-River Leoben, Austria 10 5 000 50 12 500 Low Head / Run-of-River Ybbs-Persenbeug; Austria 236 5 600 1 336 334 000

Wind global average equivalent (2008) 236 1 814 428 107 000 back-up necessarySolar PV global average equivalent (2008) 236 796 188 47 000 back-up necessary

Sources: Verbund – AHP; IEA - World Energy Outlook 2010; IEA – Projected Costs of Generating Electricity 2010


Typical energy costs include investment costs, operation and maintenance costs, are levelized over respective lifetime, and exclude all subsidies and policy incentives.

HydropowerThe most cost-efficient renewable energy source

Status of renewable energy technologies: characteristics and costs

Source: REN21 – Renewables 2011 Global Status Report


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ANDRITZ HYDROFull product offering from water to wire

1 Gates2 Penstocks3 Inlet valve4 Turbine5 Generator6 Automation, control, protection7 Medium-voltage switchgear8 Power transformer9 High-voltage switchgear

10 Transmission line


Installed turbine capacity and ANDRITZ HYDRO fleet310 GW out of 937 GW

ANDRITZ HYDRO is either the Original Equipment Manufacturer (OEM) or has refurbished around one-third of worldwide installed water turbine capacity, i.e. 310 GW out of 937 GW.

Source: World Atlas Hydro Power and Dams 2011; ANDRITZ references; figures without pumped storageEurope includes Turkey, Russia, Armenia, Azerbaijan, Georgia, Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, Uzbekistan,Africa includes Near and Middle East

Total 324 GW

58 GW 18%

Total 44 GW16 GW 35%

Total 258 GW

114 GW44%

Total 170 GW

69 GW41%

Total 141 GW

49 GW 35%

Share ofANDRITZHYDRO


ANDRITZ HYDRO is either the Original Equipment Manufacturer (OEM) or has refurbished 25-30% of worldwide installed turbine capacities of pumped storage plants.

45% of Europe’s pump turbine capacities are related to ANDRITZ HYDRO.

Pumped storageInstalled turbine capacity and ANDRITZ HYDRO fleet

Figures include pump turbines and turbines in pumped storage plants (pumps/pump capacities not considered)

Worldwide:Total 110-140 GW

33 GW 25-30%

Europe:Total 45 GW

20 GW 44%

Share ofANDRITZHYDRO


1920 1940 1960 1980 20202000

static

dynamic

Economical, domestic source of energy

Combination of irrigation, navigable rivers, etc.

Renewable, clean energy

Pumped storagefor long time storage

Fast controlled ability, Hydro = stabilizing the grid

Hydro as wind- and solar-compensator (new boom for pumped storage)

Hydro = smart grid player

Benefits of hydropowerThe role of hydropower has changed over time


Contents





Current segmentation of the global hydropower market:~ 7.5 bn. EUR business for electromechanical equipment

Source: ANDRITZ estimate

New technologies (ocean, matrix, etc.): ~ 0.3 bn. EUR (200-300 MW/a)Pumped storage: ~ 0.7 bn. EUR (4-6 GW/a)

Rehabilitation, modernization, upgrade: ~ 1.0 bn. EUR (~ 10 GW/a)

Small/Compact Hydro (< 30 MW): ~ 0.5 bn. EUR (2-3 GW/a)

Large Hydro (> 30 MW): ~ 5.0 bn. EUR (30-40 GW/a)

~ 7.5 bn. EUR


Large Hydro

New technologies (ocean, matrix, etc.): ~ 0.3 bn. EUR

Pumped storage: ~ 0.7 bn. EUR

Rehabilitation, modernization, upgrade: ~ 1.0 bn. EUR

Small Hydro (< 30 MW): ~ 0.5 bn. EUR

Large Hydro (> 30 MW): ~ 5.0 bn. EUR

~ 7.5 bn. EUR


Large HydroThe backbone of renewable energies

Large Hydro (units > 30 MW) will remain the dominating segment within the hydropower market in the future

Most of the increase of hydropower occurs in non-OECD countries (Asia, especially in China and India, as well as South America)

Main focus on medium sized plants (100-500 MW)

Avg. number of installed turbines (> 30 MW): ~ 130-210/a

Source: IEA, World Energy Outlook 2010

Incremental renewables-based electricity generationby region in the new policies scenario, 2008-2035

Investment in renewables-based electricity generation by technology in the new policies scenario

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

2010-2020 2021-2035$2

009

billi

on

Concentrated Solar Power

Solar Photovoltaic - buildings

Solar Photovoltaic - large scale

Geothermal

Wind - offshore

Wind - onshore

Biomass

Ocean

Hydro - small

Hydro - large


Large HydroMinimum operational costs – high efficiency

Market drivers Increasing demand for electricity Renewable energy mix Avoidance of import dependency No fuel costs Predictable operating costs (independency

of fuel cost fluctuations)

Minimum operational costs

Benefits Long-term usage with unrivaled operating costs

Efficiency 90% – highest technical efficiency of all energy

sources Best capacity factor of all renewables

Investment decision triggered by payback period Typically 15-20 years (for complete

hydropower station)

Eurelectric/VGB levelised costs of electricity (at 5% discount rate)

0

50

100

150

200

250

Nuclear EPR

Coal Bk

Coal Br

Coal Bk USC w/CC(S)

Gas CCGT

Onshore wind

Offshore wind (C

lose)

Offshore wind (F

ar)

Hydro large (River)

Hydro Large (Pump)

Solar PV

Solar therm

al

US

D /

MW

h

Investment costs O&M Fuel costs Waste management Carbon costs


Large HydroReferences

▼ Guri II, VenezuelaClient: EDELCAOutput: 5 x 770 MWDiameter: 7,300 mm

Mica, Canada ►Client: British Columbia Hydro & Power AuthorityOutput: 2 x 520 MWHead: 169.7

◄ Rio Madeira, BrazilClient: Energia Sustenável do Brasil

Santo AntonioOutput: 12 x 75.55 MWDiameter: 7,500 mm

JirauOutput: 8 x 76.55 MWDiameter: 7,500 mm


Large HydroReferences

▲ Ruacana, NamibiaClient: NamPowerOutput: 240 MWnew Unit 4: 1 x 92 MW

Nam Theun II, Laos ►Client: Nam Theun Power Company (NTPC)Output: 1,070 MW

Boyabat, TurkeyClient: DOĞUŞ İNŞAAT VE TİCARET A.Ş.Output: 3 x 176 MWHead: 125.5 m


Small Hydro






~ 7.5 bn. EUR


Small HydroThe share of small units in the grid will continuously grow

Communities in urban areas Self supply/energy autarchy

Industry Utilities – for local/regional

grid supply Industry – self supply

Decentralized

Example Austria 480 MW from plants

with generationcapacities between 0.1 and 5 MW


Small Hydro: ANDRITZ HYDRO is the world market leader in Small/Compact Hydro

Modular water to wire solutionsup to 30 MW per unit

Every week another two ANDRITZ HYDRO small/compact hydro units start energy

production somewhere around the globe

Clean and renewable energy

Low environmental impact

Low investment cost

Pre-assembly at workshop

Single source of supply

Modular design

Short installation and commissioning

Investment decision triggered by payback period: typically < 10 years(for complete hydropower station)


Service and rehab

▲ Diagnosis

▲ Analysis

▲ Therapy





~ 7.5 bn. EUR



Service and rehabFavorable potential for rehabilitation

Source: Alstom; Platts – UDI

30% of plants worldwide older than 40 years: ~ 37% of plants in Europe ~ 43% of plants in North America

Today’s “10 GW rehab rate” is notsufficient to stop aging of existing fleet!


Service and rehabVarious benefits

Enhanced plant performance and higher rate of return Increased plant availability, reliability, plant lifetime,

and safety Reduced Operation & Maintenance (O&M) costs;

risk of standstills reduced Reduced environmental impact Remote control ability

Costs No additional buildings needed; quick implementation Usually no environmental impact assessment

requested/no or minor interference with nature

Additional renewable energy For each 30 GW upgraded per year and for each 5%

of increase of performance, rehabilitation programs willcreate 1,500 MW of renewable and predictable energy

Investment decision triggered by payback period Typically < 10 years (for complete hydropower station)

Rel

ativ

e ef

ficie

ncy

[%]

Turbine output [MW]

- after uprating- before uprating

Increased output

Better efficiencyin partial load


Service and rehabANDRITZ HYDRO upgrading with seven month payback period

ProjectInfiernillo, Mexico, 2006-2010

CustomerComisión Federal de Electricidad (CFE)

ScopeModernization and upgrading of four Francis turbines

ResultCapacity increase by 28% additional 180 MW in total

Payback period7 months!


Service and rehabFurther references

Ambuklao, PhilippinesClient: National Power Corporation (NPC)Output: 75 105 MW

Kindaruma, KenyaClient: KenGenOutput: 40 72 MW

▼ Bajina Basta, SerbiaClient: Drin So Limske He Bajina Basta (DLBB)Output: 370 420 MW

Grand Coulee, USA ►Client: Bureau of ReclamationOutput: 3 x 130 MW


Pumped storage

▲ Kops II, Austria

Upper pool

Lower poolPump turbine

Motor generator


Pumped storageHow to make the energy mix green?

Wind and solar power have tremendously increased their rolesin the European power generation mix; trend continuously growing

Europe has the highest installed capacities for solar and wind:~ 86 GW installed capacity wind (mainly in Germany, Spain,Netherlands, Denmark) and ~ 27 GW installed capacity solar(mainly in Germany and Czech Republic)

Typical characteristics of wind and solar:Intermitting, poor predictability and reliability, not controllable

Backup for base load and peaks “Green battery”Pumped storage (2011: 45 GW)

Source: Energinet.dk

Load profileRES generation

Time

Pow

er

Example Energinet.dk

MW

week weekweek

MW

week weekweek

Wind capacity in Denmark 2008: 3,100 MW 2025: 6,500 MWRest is mainly gas, coal,and import/export


Pumped storageDevelopment of pumped storage in the Alps since 2000

Germany

Italy

Feldsee 70 MW

Nestil 142 MW Kops 540 MW

Limberg II 480 MWHintermuhr 75 MW

Avce 180 MW

Nant de Drance 600 MW

Limmern 1000 MW

Kühtai II 200 MW

Grimsel 3 400 MW Sambuco 960 MW

Verzasca 300 MW

Kozjak 400 MW

Reisseck II 420 MW

Tauernmoos 130 MW

Cavaglia II 105 MW

Somplago 115 MW

Val d‘Ambra II 70 MW

Limberg III 480 MW

Atdorf 1400 MW

implemented

planned

Kaunertal 220 MW

Germany

Italy

Feldsee 70 MW

Nestil 142 MW Kops 540 MW

Limberg II 480 MWHintermuhr 75 MW

Avce 180 MW

Nant de Drance 600 MW

Limmern 1000 MW

Kühtai II 200 MW

Grimsel 3 400 MW Sambuco 960 MW

Verzasca 300 MW

Kozjak 400 MW

Reisseck II 420 MW

Tauernmoos 130 MW

Cavaglia II 105 MW

Somplago 115 MW

Val d‘Ambra II 70 MW

Limberg III 480 MW

Atdorf 1400 MW

implemented

planned

Kaunertal 220 MW

Selected pumped storage power plants in the Alpine Region

▲ Limberg II,Austria

Including ANDRITZ HYDRO supplies


Pumped storageReferences

◄ Hongrin-Leman, SwitzerlandClient: Forces Motrices Hongrin Léman SA (FMHL)Output: 2 x 118.8 MWHead: 804.7 m

Bemposta II, Portugal ►Client: Energias de Portugal (EDP)Output: 193 MWHead: 65 m


New technologies

New technologies (ocean, matrix, etc.): ~ 0.3 bn. EURPumped storage: ~ 0.7 bn. EUR



~ 7.5 bn. EUR



New technologiesIntensive R&D . . .

Hydromatrix®

Utilization of existing structures or new buildings with very low heads

235 modules since 1987, thereof currently under implementation: Ashta, Albania: 90 units Lower St. Anthony Falls, USA:

16 units Austrian State Prize 2010 for the

Chievo project, Italy

ECOBulb™ Very compact, ecological and

economical bulb turbine without gear, lubricants, and voltage regulation

22 ECOBulb™ units supplied since 2003, e.g. for Stanley Adamson, Canada


New technologies. . . for tapping the untapped resources

Tidal power plants Seawater-proof bulb turbines World’s largest tidal plant in Sihwa,

South Korea (10 x 26 MW); commis-sioning in 2011

Tidal stream power plants Distributed underwater installation

on the seabed HS300 (300 kW) – Hammerfest,

Norway: World’s first installation

synchronized to the grid Successfully in operation since

2004 (9,500 h, 98% availability) HS1000 (1 MW) – EMEC, Scotland:

Commissioning in October 2011


Contents





ANDRITZ HYDROPrepared for the demands of the future


Nuclear

Thermal (gas,oil, coal, lignite)

Households

Industry



Nuclear


Households

Industry


Pumpedstorage(smart ready)

Storage(smart ready)

Small hydro(smart ready)

Run-of-river(smart ready)


Nuclear

Households

Industry






Large solar

Tidal

Tidal streams

Wave energy

Hydromatrix®



Nuclear

Households

Industry






Large solar

Tidal

Tidal streams

Wave energy

Hydromatrix®

Small solar

e-mobility

Compact ocean pump(wind/solar)

Energy island(pump-wind)

Compact PSP (wind)

Transport


µ-Hydro** Hydropower plants < 100 kW


Nuclear

Households

Industry






Large solar

Tidal

Tidal streams

Wave energy

Hydromatrix®

µ-Hydro

Small solar

e-mobility

Compact ocean pump(wind/solar)

Energy island(pump-wind)

Compact PSP (wind)

Transport



Certain statements contained in this presentation constitute ‛forward-looking statements.’ These statements, which contain the words ‛believe’, ‛intend’, ‛expect’ and words of similar meaning, reflect management’s beliefs and expectations and are subject to risks and uncertainties that may cause actual results to differ materially.

As a result, readers are cautioned not to place undue reliance on such forward-looking statements. The company disclaims any obligation to publicly announce the result of any revisions to the forward-looking statements made herein, except where it would be required to do so under applicable law.

Disclaimer

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