In 2014, Alstom’s R&D teams concentrated on customer‑focused improvements to existing equipment, service solutions as well as new developments built on the “Voice of Customer” analysis, an in‑depth process aiming at capturing customers’ expectations, conducted by each business and product line:
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y gas turbine technologies for higher firing temperatures and longer service life;
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y combustion systems for more flexibility lower emissions compliant turn down;
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y further optimised Steam Turbine blade efficiency and stage loading; y
y plant configurations and layout for 700°c coal plants and associated materials validation;
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y higher power density and efficiency generator components and processes;
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y improved test facilities for components and complete systems and turbines;
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y service solutions for Alstom and non‑Alstom fleets.
Alstom Thermal Power’s R&D execution centres are located throughout Europe, North America and Asia. In addition to its internal resources, Alstom actively works with leading academic institutions to access facilities, expertise and research talent across the world. Alstom has active R&D collaboration relations with more than 350 universities and technology‑leading industry partners, and participates actively in all important associations and standard bodies.
In gas technologies, the R&D focus has been and remains on providing flexibility and increased combined‑cycle efficiency. Thermal Power continues to focus its R&D efforts on selected technological fields that are essential for the successful development of the next generation of gas turbines and upgrade packages: GT mass flow, innovative blades, cooling air reduction, ceramic thermal protection system and advanced manufacturing techniques. In 2014/15, together with partners, Alstom completed the construction of a combustor test facility as expansion of the infrastructure at the German Aerospace Center in Cologne. The aim of the combustor test facility is to further increase the temperature capability of combustors while at the same time significantly reducing exhaust gas and noise emissions from gas turbines.
For coal applications, the Sector’s R&D ambition is to reach over 50% efficiency with reduced emission levels for large power plants, thanks to a long‑term R&D strategic focus on advanced combustion, steam cycle and steam turbine blade technologies. In this area, Alstom’s ultra‑ supercritical (USC) circulating fluidised bed (CFB) boiler technology has progressed and large USC steam turbines are now operating in Germany (Neurath, Boxberg) with very high levels of reliability. This technology allows higher flexibility and performance. Moreover, all components support a grid with high levels of intermittent renewables.
Thermal Power has been carrying out an intensive R&D programme over the past years to meet the technological and economic challenges of capturing the CO2 created by fossil fuel‑based electricity production.
The White Rose 500 MW Carbon Capture plant in the UK was selected for the NER300 and UKCCS funding schemes as a large demonstrator of CCS technology.
The chemical looping technology under development (allowing both full combustion with Carbon Capture, and partial combustion to Syngas according to demand) will prepare the next generation for CCS application.
In the field of nuclear, the Sector is paving the way for steam turbine generators adapted to future fourth generation nuclear reactors. Innovative concepts for power conversion systems and modular steam turbine solutions for emerging small modular reactors are under investigation. On a more short‑term scale, a strong effort is focusing on design for manufacturability and cost reduction, but also turbine island modules and methodologies for short construction time.
In the Power Automation and Control Business, Thermal Power is focused on solutions that improve plant operation efficiency, enhance asset reliability and availability, support predictive maintenance strategies and optimise plant performance.
Another recent priority is plant availability improvement, through the development of fast inspection and repair technologies supported by advanced in‑house robotic capabilities and the development of additive manufacturing technologies.
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DESCRIPTION OF GROUP ACTIVITIES
DISCONTINUED OPERATIONS
Alstom Renewable Power
ALSTOM RENEWABLE POWER
Alstom Renewable Power offers the most comprehensive range of renewable power generation solutions for integrated power plants covering hydroelectricity, wind, geothermal, biomass, solar, as well as tidal stream energies. In addition, it provides individual components including all types of turbines and generators, and has a full range of services, including plant modernisation, maintenance and operational support.
INDUSTRY CHARACTERISTICS
The worldwide renewable installed power generation capacity was estimated in 2014 at around 1,680 gigawatts (GW), representing 28% of the total installed base.
RENEWABLE INSTALLED BASE, 2014
Source: Alstom
69%
Hydro8%
Solar photovoltaic19%
Wind4%
OthersMarket evolution
Renewable power markets have been strongly growing over the past decade, and are forecasted to represent 45% of the new power plants (in GW) to be ordered over the next decade (source: Alstom). New orders should be driven by existing markets such as hydro and onshore wind, but also by more recent ones such as offshore wind and solar.
The renewable power market as a whole has grown in 2014, and should remain solid in the next years (average ~80 GW expected without solar photovoltaic).
The new build hydro market rebounded in 2014 from low historical 2013 levels, despite postponement of large projects in China. A good level of orders in Latin America, Africa, Asia, Middle East and China more than compensated the limited activity in India and North America. China is expected to resume its large projects and land at an 8‑10 GW market level in the coming years. It will continue to be the largest
market, representing approximately half of the total new hydro orders in gigawatts (GW) over the next decade, followed by the Latin American market. Further growth in hydro will also come from the service and retrofit market driven by the ageing installed bases in North America, Europe and Russia. Roughly half of the overall hydro market in value is expected to be driven by service and retrofit activities.
The onshore wind market grew by around 10% in 2014, increasing in Europe, Americas and China. In the USA, the extension of the Production Tax Credit until the end of 2014 resulted in a strong market volume in the United States. Latin America saw a dominance of wind against hydro, and was also an active contributor to the onshore wind recovery, particularly in Brazil where wind power is now competitive with other energy sources. China remained the largest wind market in GW, followed by North America, Europe and Latin America.
The offshore wind market continued to develop, largely in Europe in 2014. Going forward, costs reduction through the learning curve will be the key driver to grow the technology over the next decade in Europe, China and Asia (source: Alstom).
The “new energies” markets (geothermal, biomass, solar and marine energies) moved up in 2014. In geothermal, the market was back to historical level after two low years on the row. In concentrated solar power (CSP), the market is still in its early phase with few orders in Africa and in Israel, where Alstom got its first reference order in CSP tower technology. The development of storage solutions, performance and cost optimisations as well as hybridisation will be key drivers in ensuring competitiveness and growth of this segment. Geothermal and biomass new power plant markets should increase by 50% over the next decade (source: Alstom). Finally, the ocean market, currently in the development phase with numerous announcements of pilot farms, is expected to reach around 500 MW per year within ten years, with tidal power to emerge predominantly over the period and wave technology possibly taking off later (source: Alstom).
DESCRIPTION OF GROUP ACTIVITIES
DISCONTINUED OPERATIONS
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Alstom Renewable Power
MEDIUM TERM GLOBAL POWER MARKET FORECAST AVERAGE 240-270 GW P.A. Source: Alstom Thermal Hydro Wind Other renewables Solar North America Latin America
Russia & CIS
Asia China India Europe Middle East / Africa
Market drivers
Demand for power generation equipment is mainly driven by environmental targets and regulations, subsidies and incentives schemes, as well as the ageing of the installed base. Other factors such as economic growth (especially for large hydro plants), fuel prices and availability, as well as energy management are also, to a lower extent, elements shaping the power market.
Harnessing renewable energy is a complex matter. For renewable power, in order to experience long‑term sustainable growth, developers must eventually target what is commonly referred to as “grid parity”, which is achieved when the price of electricity produced by solar, wind or any renewable energy equals the price of electricity from the grid. In remote or particularly favourable areas, electricity produced locally from geothermal, solar or wind energy is already cheaper than conventional sources of electricity requiring new distribution lines to be built and connected to the main transmission grid. But in most cases and technologies, this is not yet the case, and for now it can only be achieved through support schemes, such as feed‑in tariffs or tax incentives. The second challenge lies in the intermittent nature of most renewable energies. Typical examples are low solar radiation during cloudy days and varying wind patterns. The intermittency of renewables is pushing energy providers to look at ways of storing energy to guarantee stable supply or to have back‑up power ready to respond to weather conditions volatility. This characteristic of renewable energy becomes more evident as the share of grid‑connected renewables increases, spurring challenges
and developments in both energy management and grid infrastructure. Hydropower has a strong role to play as an efficient way to store energy on a large scale.