Thursday, March 11, 2010

Tunchbilek Thermal Power Plant

Dear Colleagues,

Total installed capacity of Tunçbilek-Kütahya Thermal Power plant is 430 MW. The annual availability of the power plant is around 35%. The coal reserves exist for a new additional capacity of 2x150 MW after privatisation.

There are 5 units in TunçBilek Thermal Power plant in Turkey.

1st and 2nd units were built by DurrWerke Germany in 1956 each with 24 MWe steam turbines by AEG of Germany.

3rd unit was constructed by SGP of Austria in 1966 with 65 MWe steam turbine by Elin of Austria.

The 4th and 5th units were delivered by Elektrim of Poland in years 1978-1979 each with 150 Mwe steam turbines by KWU of Germany.

In year 2002, Tunçbilek Thermal power plant administration opened an international tender to replace the old existing electrostatic precipitations (E/P or dust collectors) of their 4th and 5th units each with 150 MWe electricity output.

These 4th and 5th steam boilers were firing poor quality 2200 kcal/kg LHV coal with approximately 40% ash and 20% moisture from nearby local coal mines.

Earlier the E/P supplier company (Czech- Slovak?) received the order but in the end they could not meet the required dust collection requirements at stack exit less than 250 Milligrams per Nm3 dry basis.

The first Contract was cancelled. It is later retendered but this time to meet new stack dust emission requirement to be less than 100 Milligrams per Nm3 dry basis in accordance with new 2004 environmental regulations.

However since the first contract for 4th and 5th units was cancelled, the administration applied to the local courts for compensation.

The first contract price is not valid since the delivery could not meet the first requirement to have stack emission less than 250 Milligrams per Nm3 dry basis.

The second contract will not be comparable with the first since it is in compliance with new emission requirements which is set to be less than 100 Milligrams per Nm3 dry basis.

Please do note that in near future that figure will be less than 30 milligrams per Nm3 dry basis in accordance with new EU legislations.

This situation is not the first, and will not be the last in E/P replacement contracts in our power plants.

We have a similar story in Catalagzi-B thermal power plant where the original supplier has received the E/P replacement order without competitive tendering and in the end they could not meet the required emission limitations. Contract is cancelled. The case is in the local court. We have Kangal and Yenikoy E/P replacement contracts ongoing. We are not sure if they will be meeting the required emission standards. We have new Yatagan and Soma E/P replacement tenders soon.

TuncBilek thermal power plant is too old, and getting older every day. Its pulverized coal firing technology is outdated for the available low LHV local lignite coal. Its dust collectors are not sufficient to meet new EU emission regulations. There is no Flue gas desulphurization. The new ESP units will not help since there is no sufficient space to install them. New rehab works will not work in the long term operation. Moreover it is almost at the city center.

Please do note that first three units are not in operation. They are too old. Last two units need ESP for operation. Since we do not install the new ESP units in accordance with the new EU regulations, it is risky to run them. In the end we have a plant with no electricity generation, waiting idle for the ESP units to be installed. We have a downrated capacity but not in operation.

So the best thing to do is to close the plant, sell the equipment at scrap value, dismantle the plant and make the vacated plant space a green park for the public. Since we have available local coal, we can install a new thermal power plant far from city center preferably at a remote land, with capacity 4x150 MWe with new technology, CFB or even IGCC or CCS with full compliance to environmental regulations provided that we create jobs for local qualified workers, and more jobs for Turkish engineers and local contractors.

It is now your Sunday Puzzle. What should be the decision for appropriate compensation in Tuncbilek 4th and 5th units for the first contract as of year 2010?  Have a nice weekend.
Haluk Direskeneli,  Hamburg based Energy Analyst


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