Wartsila Oyj Abp · OMXHEX:WRT1V
Wartsila Oyj Abp — Wärtsilä — Investor Day (November 2021)
24 slides from Wartsila Oyj Abp's investor day presentation, Nov 18, 2021
Slide 1: Capture growth in balancing solutions and services
Capture growth in balancing solutions and services Sushil Purohit, President, Wärtsilä Energy & Executive Vice President November 18, 2021 1 © Wärtsilä
Slide 2: Capture growth in balancing solutions and services
Capture growth in balancing solutions and services Significant value Leading position in Set for performance creation opportunity as thermal balancing, through services the transition to energy storage and growth and project renewables power system excellence accelerates optimisation 2 © Wärtsilä
Slide 3: Transform – The future is renewable
Transform – The future is renewable 3 © Wärtsilä
Slide 4: The energy future is renewable – balancing solutions are needed to achieve net zero
The energy future is renewable – balancing solutions are needed to achieve net zero by 2050 Share of renewables in global electricity generation Key steps to achieve net zero (%) Renewables Other Renewable generation 8X1) Phase out fossil fuels Convert to sustainable fuels Phase out inflexible 88% p
Slide 5: Power system optimisation - Day
Power system optimisation - Day On sunny and windy days, renewables provide most of the electricity and excess energy can be stored. 5 © Wärtsilä
Slide 6: Power system optimisation - Evening
Power system optimisation - Evening Electricity demand is at its highest. When the sun goes down, quick ramp up of balancing power is needed. 6 © Wärtsilä
Slide 7: Power system optimisation – Night
Power system optimisation – Night No wind and empty batteries, thermal balancing provides electricity. 7 © Wärtsilä
Slide 8: Power system optimisation – Night
Power system optimisation – Night Wind starts blowing, engine can be switched off quickly compared to inflexible sources. 8 © Wärtsilä
Slide 9: The 3 Cs - balancing solutions reduce CO2, curtailment and capex
The 3 Cs - Our balancing solutions are complementary and provide: Reduction in CO2, Curtailment and Capex Optimal system with thermal balancing Inflexible system Curtailment 9 © Wärtsilä
Slide 10: Wärtsilä is the go-to partner in power system modelling
Careful planning of future energy systems will save billions of euros and rapidly reduce CO2 emissions – Wärtsilä is the go-to partner in power system modelling Power system modelling ▪ Wärtsilä has carried out over 150 country and system studies worldwide ▪ A rapid worldwide shift towards net zero
Slide 11: Perform – Capture growth in balancing solutions and services
Perform – Capture growth in balancing solutions and services 11 © Wärtsilä
Slide 12: Balancing market growing 10X – capturing the opportunity
Balancing market growing 10X – capturing the opportunity in thermal balancing, energy storage and services Power system optimisation for the lowest energy cost, highest uptime and reliability Tap into thermal balancing & energy storage growth 1 opportunities and maintain top 3 market position Therma
Slide 13: Thermal balancing market will grow by 30% per year
Thermal balancing market will grow by 30% per year – driven by increase in renewables and coal-phase out Baseload – (Global #1-51)) Thermal balancing (Global #1-31)) Outlook Addressable annual market (GW) Addressable annual market (GW) ▪ Increased market activity, - +30% p.a. thermal balancing inclu
Slide 14: Success in thermal balancing demonstrates the strength of our engine portfolio
Our continued success in thermal balancing demonstrates the strength of our engine portfolio – installed base increasing to 8 GW Recently awarded contracts for > 1 GW ▪ Brazil three contracts totalling 150 MW awarded for reserve auction ▪ Latin America two contracts totalling 600 MW and valued at 48
Slide 15: Reciprocating internal combustion engine is the best technology for thermal balancing
Reciprocating internal combustion engine is the best technology for thermal balancing 1 Continuous ramp-up/down for renewables 2 Cycling several times per day with no cost impact Modularity – multiple units with high efficiency 3 4 Catching price spikes 30+% better than competition 5 Avoiding negati
Slide 16: Our energy storage business is growing rapidly
Our energy storage business is growing rapidly, by leveraging our power system competence and integration capabilities Order intake Energy storage (Global #1-3) Outlook Order intake (MWh) Addressable annual market (GWh) 1) ▪ Maintain top 3 market position +30% p.a. +500% p.a. ▪ 2021 order intake for
Slide 17: Deep know-how in power systems and strong project execution create differentiation
Deep know-how in power systems and integrating generation assets, plus strong project execution capabilities creates differentiation Energy storage roadmap Power system optimisation ▪ Combine our deep understanding of different technologies and software, integrating generation assets, and maximising
Slide 18: Power system optimisation creates value across multiple customer segments
Wärtsilä’s power system optimisation and asset integration creates value across multiple customer segments AGL 250 MWh - Australia RWE Renewables 80 MWh - USA “We are pleased to IntelliBidder auto- work with Wärtsilä on bidding solution this project, who bring maximises value to critical expertise a
Slide 19: Moving up the service value ladder with performance-based agreements
Moving up the service value ladder with performance-based agreements – fuel conversions provide a notable growth opportunity Operating installed base Net sales Outlook Installed base (GW) & agreement coverage (%) MEUR ▪ Complexity of power systems drive need for optimisation +2% p.a. +11% p.a. servi
Slide 20: Capture growth through agreement coverage, performance-based agreements and conversions
Capture growth through increased agreement coverage, performance-based agreements and conversion projects Increasing agreement coverage ▪ Power system optimisation software optimises all generation assets while ensuring reliability of the plant & grid ▪ Optimisation services reduce customers’ CO2 em
Slide 21: Perform – Rigorous focus on project excellence
Perform – Rigorous focus on project excellence 21 © Wärtsilä
Slide 22: Rigorous actions taken to deliver project excellence and robust performance
Rigorous actions taken to deliver project excellence and robust performance ▪ Risk and requirement management for capturing and executing projects ▪ Project management and resource planning for robust execution ▪ Sales and operations planning to improve productivity ▪ Leadership and performance mana
Slide 23: Capture growth in balancing solutions and services
Capture growth in balancing solutions and services Significant value Leading position in Set for performance creation opportunity as thermal balancing, through services the transition to energy storage and growth and project renewables power system excellence accelerates optimisation 23 © Wärtsilä
Slide 24: Wärtsilä
re, WARTSILA