Wartsila Oyj Abp · OMXHEX:WRT1V
Wartsila Oyj Abp — Wärtsilä — Investor Presentation (2018)
30 slides from Wartsila Oyj Abp's investor presentation, 2018
Slide 1: Towards a 100% Renewable Energy Future
TOWARDS A 100% RENEWABLE ENERGY FUTURE 1 © Wärtsilä
Slide 2: Contents
Contents 1. Smart energy vision – executive summary 2. Renewable energy is changing the market 3. Building the path towards 100% renewable energy 4. Wärtsilä’s role as the energy system integrator 2 © Wärtsilä
Slide 3: Our Vision: Towards a 100% renewable energy future
OUR VISION Towards a 100% renewable energy future The energy landscape is in transition towards more flexible and sustainable energy systems. We envision a 100% renewable energy future. Wärtsilä is leading the transition as the Energy System Integrator – we understand, design, build and serve optima
Slide 4: The path to a 100% renewable energy future
THE PATH TO A 100% RENEWABLE ENERGY FUTURE 100% RENEWABLE ENERGY Flexible thermal capacity provides RENEWABLE BASELOAD seasonal back-up, daily energy Energy storage becomes variations managed with storage TIPPING POINT affordable, enabling increase in REALITY Existing thermal capacity renewable ener
Slide 5: The 100% renewable energy system requires multiple forms of flexibility
INCREASING ROLE OF FLEXIBILITY The 100% renewable energy system requires multiple forms of flexibility SEASONAL WEEKLY Fuel as a form of energy storage DAILY to balance seasonal variation Longer duration energy balance • ”Shift” solar energy from summer and system reliability is ensured Daily variat
Slide 6: Renewable energy is changing the market
RENEWABLE ENERGY IS CHANGING THE MARKET 6 © Wärtsilä
Slide 7: Wind and solar cumulative installed capacity will increase from 14% in 2017 to 48% in 2040
MARKET OUTLOOK Wind and solar cumulative installed capacity will increase from 14% in 2017 to 48% in 2040 Engines and storage will enable the transition Annual gross capacity additions (GW) 2017-2040 Source: Bloomberg New Energy Outlook 2017 700 600 500 400 300 200 100 0 2017 2018 2019 2020 2021 202
Slide 8: Flexible capacity by application type
MARKET OUTLOOK Flexible capacity by application type Annual gross capacity additions (GW) 2017-2040 Source: Bloomberg New Energy Outlook 2017 80 70 60 50 40 30 20 10 0 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 Other flexib
Slide 9: Price for renewable energy has reached a tipping point
Price for renewable energy has reached a tipping point – all across the world Prices of renewables continue to drop UNITED STATES CHINA LCOE ($/MWh, 2017 real) LCOE ($/MWh, 2017 real) 140 140 120 120 COAL 100 100 80 80 CCGT 60 60 CCGT 40 40 COAL Tracking PV Tracking PV 20 Onshore wind 20Onshore wind
Slide 10: Massive potential in renewable energy to cover demand
THERE IS A MASSIVE POTENTIAL IN RENEWABLE ENERGY TO COVER DEMAND Engines and storage will provide the needed reliability and ensure affordable cost of power systems Wind 23–70 TWy/year Coal 900 TWy (total) OTEC 3–11 TWy/year Solar Ocean Thermal Energy Conversion 23’000 TWy/year Biomass 2–6 TWy/year
Slide 11: Main energy sources in a 100% renewable energy world
MAIN ENERGY SOURCES IN A 100% RENEWABLE ENERGY WORLD A high renewable world will require massive amounts of solar and energy storage PV will become the main energy source in the Sun Belt with 22 TWp global capacity for the power sector Solar PV based system Wind turbines based system Hydro power bas
Slide 12: Building the path towards 100% renewable energy
BUILDING THE PATH TOWARDS 100% RENEWABLE ENERGY 12 © Wärtsilä
Slide 13: Impact of renewable revolution on utility business
IMPACT OF RENEWABLE REVOLUTION ON UTILITY BUSINESS Renewables are eroding the existing business model where centralized large units made the money and it was all about economics of scale Investments define and lock in the company strategy for many years WE’RE HERE ACTION SELF-CONFIDENCE Building the
Slide 14: Role of technologies in the energy transition
ROLE OF TECHNOLOGIES IN THE ENERGY TRANSITION RES 0% RES 20% RES 80% RES 100% Good old days Tipping point Renewables as baseload Final push Renewable Energy Renewables expensive Renewables reach grid parity Renewables become Excess renewable energy seen as compared to fossil fuels with traditional g
Slide 15: How energy systems change with higher share of renewables
HOW ENERGY SYSTEMS CHANGE WITH HIGHER SHARE OF RENEWABLES RES 0% RES 20% RES 80% RES 100% Good old days Tipping point Renewables as baseload Final push Political Drivers Subsidized for Grid parity of renewable energy achieved, Targets set globally Affordable electricity seen as raw renewable energy
Slide 16: Wärtsilä Energy Solutions: the leading energy system integrator
WÄRTSILÄ ENERGY SOLUTIONS THE LEADING ENERGY SYSTEM INTEGRATOR ENGINE POWER ENERGY STORAGE RENEWABLES GAS-TO-POWER PLANTS AND INTEGRATION Ultra-flexible internal Utility-scale energy storage Utility-scale solar power Small and medium scale combustion engine solutions and advanced plants integrated w
Slide 17: Capacity vs peak demand
TOWARDS A 100% RENEWABLE ENERGY FUTURE Capacity vs peak demand The transition to a 100% renewable system requires massive investment in new capacity. Existing baseload capacity is replaced with flexible thermal capacity. Energy storage is used to shift energy within the day, while flexible generatio
Slide 18: Case Philippines: Optimal path towards 100% renewable energy system
CASE PHILIPPINES Optimal path towards 100% renewable energy system 85% 80% RES 60% RES 20% RES RES 64 271 50 572 MW Storage: 44 000 MWh 37 321 MW Storage: 24 000 MWh 24 735 MW Storage: 4328 MWh Storage: 0 MWh Installed capacity Renewables Baseload gas Coal Flexible gas Source: Wärtsilä Energy Soluti
Slide 19: Case Philippines: Optimal path towards 100% renewable energy system
CASE PHILIPPINES Optimal path towards 100% renewable energy system 100% Biogas, synthetic gas 80% RES 60% RES 20% RES RES 64 271 50 572 MW Storage: 44 000 MWh 37 321 MW Storage: 24 000 MWh 24 735 MW Storage: 4328 MWh Storage: 0 MWh Installed capacity Renewables Baseload gas Coal Flexible gas Source:
Slide 20: Wärtsilä's role as the energy system integrator
WÄRTSILÄ’S ROLE AS THE ENERGY SYSTEM INTEGRATOR 20 © Wärtsilä
Slide 21: The energy system integrator
THE ENERGY SYSTEM INTEGRATOR Wärtsilä creates optimal paths towards 100% RENEWABLE ENERGY SYSTEMS As an energy system integrator Wärtsilä understands the role of different technologies as part of our customer’s power systems, and puts the assets of the customer together through software, full EPC of
Slide 22: The world's path to 100% renewables: generation capacity
THE WORLD’S PATH TO 100% RENEWABLES Comparing generation capacity today and in a 100% renewable energy world The transition towards a GENERATION CAPACITY sustainable electricity system will demand a radical 6,2TW transition of the power system. TODAY This is a fantastic opportunity for Wärtsilä sinc
Slide 23: The world's path to 100% renewables: storage capacity
THE WORLD’S PATH TO 100% RENEWABLES Comparing storage energy capacity today and in a 100% renewable energy world STORAGE ENERGY Energy storage CAPACITY technologies will become an inevitable part of the power system, both capacities and throughout 1,3 TWh TODAY of storage will increase hundredfold.
Slide 24: Case Public Service of New Mexico (PNM)
CASE PUBLIC SERVICE OF NEW MEXICO (PNM) • New Mexico in the USA is one of the best location for 100% renewables due to good wind AND solar resources • Modelling results showing the optimized path towards 100% renewable energy system • Significant increase in flexible gas capacity and energy storage
Slide 25: Alternative paths for the PNM case example
ALTERNATIVE PATHS FOR THE PNM CASE EXAMPLE Comparing two alternative scenarios in an energy system with good wind and solar conditions What if you choose the optimal path vs. still investing in inflexibility ALTERNATIVE CAPACITY ENERGY MIX, % CO2 INTENSITY, G/KWH LEVELIZED COST OF MIXES, MW ELECTRIC
Slide 26: Tucson Electric Power, Arizona
TUCSON ELECTRIC POWER, ARIZONA LARGE INVESTOR-OWNED UTILITIES ARE INVESTING IN SMART POWER GENERATION TOGETHER WITH ENERGY STORAGE Wärtsilä was selected to provide a Smart • Improved overall efficiency of the plant, Power Generation natural gas power plant reduced emissions of nitrogen oxides by wit
Slide 27: AGL Energy Limited, Australia
AGL ENERGY LIMITED, AUSTRALIA THE FIRST UTILITY-SCALE RECIPROCATING ENGINE POWER PLANT IN AUSTRALIA’S NATIONAL ELECTRICITY MARKET Wärtsilä will deliver a 211 MW Smart Power • Flexibility of our power plants is a key Generation power plant to AGL enabler for utilities in an electricity market with hi
Slide 28: Liddell coal plant replacement in Australia by AGL
LIDDELL COAL PLANT REPLACEMENT IN AUSTRALIA BY AGL AGL is planning to replace Liddell coal plant with renewables and additional 750 MW of flexible gas capacity RENEWABLE ENERGY 1600 MW 1000 MW 106 INFLEXIBLE FLEXIBLE 83 GENERATION TRANSITION GENERATION 750 MW VALUE ENERGY STORAGE 250 MW Coal Flexibl
Slide 29: Potential energy – Power to Gas
Potential energy – Power to Gas And the impact to the role of gas in the future 29 © Wärtsilä
Slide 30: Wärtsilä
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