Pictures of the Future      Spring 2008

Olympic Efficiencies

Generating capacity has long been regarded as the Achilles heel of China’s boom. But thanks to new technology from Siemens, power generation in the People’s Republic is becoming increasingly efficient, environmentally compatible, and sustainable.

For China, 2008 is just the latest in a whole series of big years. With posters for this summer’s Beijing Olympics plastered across billboards throughout the provinces, the Chinese look upon the Games as a golden opportunity to not only put on a huge sporting festival but also to showcase their country’s recent achievements. Despite having increased gross domestic product by a nominal factor of 13 over the period since 1990, the People’s Republic is determined to show the world that it still has a lot of potential.

The buzzwords of China’s latest wave of modernization are "efficiency, environ­mental compatibility, and sustainability"—disciplines in which China intends to excel every bit as much as in this summer’s sporting events in Beijing. The latest demonstration of China’s commitment to these goals—a commitment endorsed by the entire Beijing administration—is now on display in the Zhejiang province, south of Shanghai, which is home to China’s most modern power plant. The Yuhuan coal-fired plant consists of four 1,000-MW generating units, of which the two most recent—Units 3 and 4—entered service last November. The facility boasts an efficiency of 45 %, which is very much a winning performance in this field, even by international standards. The average efficiency of power plants in China is 30 %, a figure similar to that of the U.S., and even in environmentally-progressive Europe it’s only 38 %.

Not that there’s anything artificially enhanced about the performance of the Yuhuan facility, which is operated by Huaneng Power International Inc. Such efficiency is possible thanks to the use of so-called ultra-supercritical steam turbines from Siemens (see Turbine Materials), which make it possible to produce temperatures of 600 °C and a pressure of 262.5 bar in the main steam line. By way of comparison, the pressure in a car tire is around 3.3 bar. The generators are also from Siemens. "I’ve seen a lot of power plants over the last 25 years, but the design and performance of those at Yuhuan are really special," says Lothar Balling, Vice President Steam Power Plants at Siemens. The plant operator agrees. "We’ve known for a long time that Siemens supplies the very latest technology and high-quality systems," says Fan Xiaxia, Vice President of Huaneng Power International Inc. "Huaneng needs this kind of advanced technology to help it develop as a company."

On the other hand, Huaneng is relaxed about the prospect of Yuhuan soon being overtaken in the efficiency stakes. Indeed, it’s firmly hoped that the plant will lead the way for China’s other power generators. That’s because enhanced efficiency, environmental compatibility, and sustainability are a must for China’s electricity industry. "The Chinese administration has categorically said that the country’s economy can’t be allowed to grow at the expense of the environment," says Hu Shihai, Assistant General Manager at China Huaneng Group. "That’s why the 11th Five-Year Plan contains very strict targets on the reduction of pollution and improvements in energy efficiency."

Energy Appetite. China needs to overcome huge challenges if it is to remain on the path of economic growth. According to official statistics, the country's energy demand has risen by an average of 5.6 % every year since the start of the reform era at the beginning of the 1980s, and last year it leapt by a massive 20 %.

Back in 2003, China had a total installed generating capacity of 400 GW. Since then, this figure has risen to 720 GW and is forecast to top 1,000 GW by 2011. Last year alone, 174 coal-fired power plants in the 500-MW class entered service in China—in other words, on average, one every other day. Driving the country’s growth is not only industry but also private consumption, with most Chinese households now owning a refrigerator and TV, and many now investing in washing machines and air conditioning as well. However, per capita electricity consumption is still low by international standards and, according to a study by the International Energy Agency (IEA), was only around 1,780 kWh in 2005, substantially less than in Germany (7,100 kWh) or the U.S. (13,640 kWh). On the other hand, when this figure is compared to economic output, China is anything but frugal: for every unit of GDP, the People’s Republic consumes 3.5 times as much energy as the international average.

As much as 73 % of the country’s electricity is generated from coal, the only source of energy that China possesses in any considerable quantities and which therefore doesn’t have to be imported at high cost. In 2007, around 1.5 billion tons of coal were burned in Chinese power plants. Any improvements in efficiency will therefore have a substantial impact on the country’s consumption of resources, fuel costs, and greenhouse gas emissions. In fact, a rise of a single percentage point in efficiency brings fuel costs down by 2.5 percentage points. For a medium-sized power plant that has an installed capacity of 700 MW and operates for 7,000 hours a year, this translates into an annual ­reduction of 100,000 t of carbon dioxide.

"Efficient and environmental power plant technology has a big role to play in reducing CO₂ emissions," says Balling. "Our aim is to realize this potential worldwide." This approach fits perfectly with the political strategy of the People’s Republic. The country probably surpassed the U.S. last year as the world’s largest producer of greenhouse gases and is aware of the responsi­bili­ty that goes with this role. During initial negotiations for the follow-up to the ­Kyoto Protocol, China demonstrated that it takes the threat of global warming very seriously.

Record Efficiency. Last June Beijing published its own roadmap as to how to reduce emissions of greenhouse gases. The target is to raise energy efficiency 20 % by 2010, based on 2005 levels. In addition, by building more-efficient coal-fired power plants, the government plans to reduce carbon dioxide emissions by 200 million tons over the same period. "When you look at the most recent power plants in China, it’s obvious the country’s already long past the stage of being a developing nation," says Lutz Kahlbau, President of Siemens Power Generation China. "In fact, China’s most modern power plants are among the best anywhere in the world, with great efficiency and comparatively low CO₂ emissions."

Leading the way is the Yuhuan plant. "It’s the most energy-efficient and environmentally compatible coal-fired power plant anywhere in China," says Hu. "If we use the same technology for future projects, it will have a huge impact on the efficiency and environmental impact of China’s power industry."

Siemens is already targeting new records for future power plants. "The next generation of coal-fired plants will operate at steam temperatures of 700 °C and pressures in excess of 300 bar," Balling explains. "That should enable us to break the magical barrier of 50 % efficiency and thus significantly reduce CO₂ emissions compared to today’s levels." With so much potential for progress, 2008 won’t be the last big year in China’s calendar.
                                                                                                           Bernhard Bartsch