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Energy Industry Times April 2017

THE ENERGY INDUSTRY TIMES - APRIL 2017 Egypt’s ‘Megaproject’ delivers 4.8 GW in 18 months combined cycle power plants, which will be the most efficient in the country. The three power plants have an identical design – each comprises four 1200 MW combined cycle blocks in a multi-shaft, or 2-on-1 configuration, i.e. two SGT5-8000H gas turbines, each with its own generator and HRSG, with steam from the HRSGs feeding a single steam turbine with its own generator. Each plant will have an electrical efficiency of over 61 per cent, which will improve plant economics. The more than 61 per cent efficiency of the CCGT blocks is significantly higher than the current efficiency of the installed capacity average and is expected to save around $1.3 billion per year in natural gas consumption. High efficiency also ensures low emissions. At base load, guaranteed values for NOx and CO are 25 ppm and 80 ppm, respectively. The high efficiency of the combined cycle blocks can be largely attributed to the H-class advanced gas turbines, which form the heart of the power blocks. The SGT5-8000H is a single- or mulit-shaft machine of single-casing design. It is one of the world’s most powerful gas turbines in commercial operation, designed to deliver about 400 MW in simple cycle operation and over 1200 MW in multi-shaft combined cycle operation. On March 2, German Chancellor Angela Merkel and Egyptian President Abdel Fattah El-Sisi officially inaugurated the first phase of a ‘megaproject’, which when completed will boost Egypt’s generating capacity by 45 per cent. The inauguration is a significant milestone in what is essentially the simultaneous construction of three massive combined cycle gas turbine (CCGT) power plants at separate locations. Most notably, however, it also sets a new industry benchmark in terms of modern power plant construction – the connection of 4.8 GW of new capacity to the grid in only 18 months. The megaproject will see Siemens and its local partners, Orascom Construction and Elsewedy Electric, build three 4.8 GW plants at Beni Suef, Burullus and New Capital for Egypt Electricity Holding Company. Siemens has overall responsibility for the design, delivery, supervision of installion and commissioning of the power plant equipment – 24 gas turbines, 12 steam turbines, 36 generators, 24 heat recovery steam generators, instrumentation and controls and 3 x 500 kV gas insulated substations (GIS) – while Orascom and Elsewedy are responsible for overall construction, engineering and procurement of most of the balance-of-plant (BoP). As part of the megaproject, Siemens will also deliver 12 wind parks with up to 600 wind turbines and a capacity of 2 GW. At a combined cost of €8 billion, the 16.4 GW megaproject represents the biggest ever order in Siemens’ history. More importantly, however, the megaproject will bring much needed power to 45 million people by boosting the country’s installed generating capacity by 45 per cent. For Egypt, the massive increase in new capacity is crucial. The country’s major urban centres started to experience power cuts in 2011, particularly in summer, and the situation reached a peak in September 2014 when the country faced an almost total blackout. At the end of 2012/beginning of 2013 the worsening situation led Siemens to look at how it could support the government in overcoming the energy challenge. Emad Ghaly, CEO, Siemens Egypt, recalled: “We developed a concept which we called the ‘Trusted Advisor’ where, together with our customers and the government, we worked on various energy mix scenarios that could fit the availability of natural gas and other domestic natural resources… we believed the energy landscape had to be transformed so it was sustainable, affordable and efficient.” It was a detailed exercise lasting about 18 months, at the end of which Siemens recommended a couple of scenarios based on introducing high efficiency combined cycle gas fired plant based on Siemens H-class technology as well as on renewables, i.e., wind and solar. “These were the two energy sources we thought would help Egypt overcome the power cuts while optimising the use of fuel in the overall power generation landscape,” said Ghaly. The proposal ties in with the government’s plans for diversifying its energy mix. Currently, more than 90 per cent of electricity generated in Egypt comes from fossil fuels, with the bulk – 70 per cent of the total – coming from gas fired plants. Less than 8 per cent is produced by hydropower, while wind and solar represent just 1 per cent. The government, however, has adopted a strategy aimed at boosting the use of renewables – mostly wind, as well as concentrated solar power (CSP). Egypt’s gas resources received a huge boost in August 2015 with the discovery of the Zohr gas field, the largest gas discovery made in the Mediterranean. Some 1 billion ft3 of gas from the field is expected to come on stream by the end of this year and produce 2.7 bcf/day by the end of 2019. With the development of the field, it is expected that this will boost the country’s gas export capabilities. Ghaly commented: “This will be a massive benefit to the economy and the energy system at large.” The Zohr field will certainly provide a cheap source of gas for the three Special Project Supplement Phase 1 of Egypt’s ‘Megaproject’ has been officially inaugurated. The connection of 4.8 GW to the grid in record time is a significant milestone in the construction of three massive combined cycle plants that support the country’s plans for sustainable development through a stable energy infrastructure. Junior Isles Burullus at night: one of three giant 4.8 GW CCGT plants under construction in Egypt


Energy Industry Times April 2017
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