AES Indiana — Wärtsilä — Investor Presentation (September 2022)
10 slides from AES Indiana's investor presentation, Sep 19, 2022
Slide 1: AES Indiana IRP Stakeholder Workshop #4
AES INDIANA IRP STAKEHOLDER WORKSHOP #4 SEPTEMBER 19, 2022 BHAWRAMAETT BROEHM WÄRTSILÄ NORTH AMERICA BHAWRAMAETT.BROEHM@WARTSILA.COM 1 © Wärtsilä
Slide 2: Wärtsilä in a Nutshell
WÄRTSILÄ IN A NUTSHELL 74 GW 12,000 100 Power plant capacity Engines delivered across Power plants delivered in the delivered to 180 countries 5,000 power plants USA 180 80+ Countries and power systems Energy storage and optimisation modelled worldwide systems installed globally 1834 Leading innovat
Slide 3: Flexible, Resilient Generation for Today & Tomorrow
RECIPROCATING ENGINE POWER PLANTS FLEXIBLE, RESILIENT GENERATION FOR TODAY & TOMORROW Responsive – Synchronized to grid in 30 seconds, full power in a little as 90 seconds, AS capable, low minimum operating level, no start costs, no minimum uptimes or downtimes Resilient – Operates on low gas pressu
Slide 4: Flexible, Resilient Generation for Today & Tomorrow
RECIPROCATING ENGINE POWER PLANTS FLEXIBLE, RESILIENT GENERATION FOR TODAY & TOMORROW Fuel Resiliency – Ability to use multiple fuel types capable of online switching and operating with low or fluctuating gas pressures without impacting generator output Fuel Flexible – Capable of using different fue
Slide 5: Diving Deeper into Real-Time Power Systems
Diving Deeper into Real-Time Power Systems • Wärtsilä partnered with Ascend Analytics to study how dispatching resources to more volatile 5-minute prices uncovers the flexibility value of reciprocating engines compared to more traditional gas turbines. • Determine the “flexibility premium” realized
Slide 6: Quantifying Benefits of Real-Time Flexibility
Quantifying Benefits of Real-Time Flexibility Calculation of Net Present Value of Market Revenues less Costs (Variable & Fixed)* A. DA Only ($M) B. 5-Minute Dispatch ($M) C. Residual Revenue Requirement ($M) [A+B] Tech RICE AERO HDGT RICE AERO HDGT RICE AERO HDGT 20 Year NPV** ($159) ($129) ($125) $
Slide 7: © Wärtsilä
Utilise P2X and flexible FRONT-LOAD NET ZERO a ’ carbon neutral long-term storage a) PHASE OUT FOSSIL FUELS Keep adding renewables supported Running hours of legacy by flexibility power plants decrease. + i NVERT TO USTAINABLE Curtailment of RES / FUELS increase due to system ‘ infloxbilty. 2 PHASE
Slide 8: Key Takeaways
Key Takeaways • RICE units have valuable characteristics for renewable integration • Fast ramping and efficient • No start-up or shut-down costs • No min-up or min-down times • Utilizing sub-hourly modeling in high renewable systems ensures the most appropriate generation resources are chosen to kee
Slide 9: Key Takeaways
Key Takeaways • As utilities add more variable resources, the benefit to ratepayers of RICE technology will continue to grow. • The value of RICE units relative to turbines increases as load, renewable generation, and price volatility grow (more efficient and can turn off as needed) • Utilities shou
Slide 10: Wärtsilä
re, WARTSILA