Alstom Power Industry Forum
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Leaders from the power generation industry discussed some of the most critical issues facing power generators today at the Alstom Power Industry Forum in Chattanooga, TN.
The panel featured George Vanderheyden, President and CEO of UniStar Nuclear Energy; Bill McCollum, Chief Operating Officer of the Tennessee Valley Authority; Mike Howard, President and CEO Elect of EPRI, and Tim Curran, President of Alstom Power in the U.S., with introductions from Alstoms Executive Vice President and President of Alstoms Power Sector, Philippe Joubert and Guy Chardon, Senior Vice President, Thermal Products, Alstom Power Sector.
The panel explored strategies and solutions to meet tomorrows power needs, deliver greater efficiency and satisfy new demands for clean, reliable and affordable power. Hot topics included the need for diverse electricity technologies, how to de-carbonize energy production and ways to tap into the promise of nuclear power. Learn more>
Speaker Topic Summaries
George Vanderheyden, President and CEO of UniStar Nuclear Energy, demonstrated how strong industry partnerships can achieve aggressive goals, such as the renewal of nuclear power options. We do everything big in the U.S., one of the largest power markets in the world. But our fleet is aging. We need a substantial build-out in nuclear power to meet new carbon reductions. When we show people comparisons of the carbon emission equivalents from various fuel sources, they are surprised to see that nuclear power is on a par with renewable technologies. He discussed UniStars critical role in developing next-generation nuclear power and the importance of federal policy that supports the first units of the new generation. The UniStar partnership is completing project engineering for the next fleet of nuclear units in the US. We looked for the best partners in the industry, and one of our most important contributors is Alstom, a company which has reopened U.S. manufacturing of nuclear technology. Now Alstom has shown that its commitment is big, its real and its here today, delivering ahead of schedule and under budget.
Providing insights on how the industry can meet the power challenges of the 21st century, Bill McCollum, Chief Operating Officer of the Tennessee Valley Authority, talked about TVAs strategies to reduce carbon emissions by expanding the use of low carbon technologies, and increase both production and end-use efficiency. He also noted that smart transmission will be a key element to integrating new renewable sources of energy.
On a personal level, he linked the new facility in Chattanooga with Alstoms roots in the city as Combustion Engineering. Its heartwarming to see the former nuclear component facility rise like a phoenix in Chattanooga, he noted.
McCollum compared TVAs portfolio to that of the country at large, noting that TVA currently generates energy from coal, nuclear and hydro fuel sources. However, to meet future demands, he said, While we arent predicting where carbon emission legislation will go, in order to determine our energy direction, we need to plan for the impact of carbon emission control on our rates. Therefore, the TVA intends to build additional nuclear and gas capacity, while increasing energy efficiency and retiring less efficient coal-fired units. At the same time, the TVA is also expanding its use of renewable where possible. As these plans are executed through 2029, TVA will then produce 53% of its energy supply via clean energy and renewables.
According to Mike Howard, President and CEO Elect of EPRI, the Electric Power Research Institute Future, sustainability of the worlds power supply is one of the most pressing issues the world faces today and will depend on the ability of the industry to de-carbonize the electricity infrastructure. That means one of our most important challenges is to make sure we have a suite of technologies a full portfolio to de-carbonize electricity in a way that is affordable for our ratepayers. EPRIs analysis showed that a 41% reduction in CO2 emissions by 2030 is technically feasible using a portfolio of power generation technologies. He compared two scenarios: 1) a limited portfolio with no new investment in nuclear power and no carbon capture and storage; and 2) a full portfolio featuring a balanced approach, including demand reduction, renewables, gas, nuclear power and coal coupled with carbon capture and storage. The analysis showed that the limited portfolio would increase the use of gas by 275% and require 50% in renewable sources to meet carbon goals. However, when you look at the economics, the limited portfolio approach would increase electric rates significantly, but 210%, vs an 80% increase from use of a full portfolio. I dont know about you, but I dont want to live in a world of 210% rate increases, he observed. While it is technically feasible to achieve the full portfolio scenario, he challenged the group to go further and INNOVATE to achieve the same carbon goals without any increase in electricity costs. Our actions today and over the next decade will establish where we are in 2050.
Tim Curran, President of Alstom Power in the U.S., ended the discussion with an overview of Alstoms clean power strategy in the U.S. He detailed how Alstom has put three core strategies into action: 1) balancing the generation portfolio with a broad technology mix, increasing the share of renewable and CO2-free technology, 2) increasing production efficiencies and energy management, and 3) integrating carbon capture and storage on fossil plant expected to fuel the installed base by 2030. He discussed how this comprehensive strategy will help the industry meet demand while reducing CO2 emissions.
Curran also detailed how Alstom is extending its North American manufacturing footprint across important technologies including wind, nuclear, gas and retrofit while developing partnerships for expansion into solar and tidal. In addition, continuing advances in generation efficiency and plant automation will help increase output from both new and existing plants. The scale-up and commercialization of CCS technologies contributes to the de-carbonization of fossil fuel generation and completes a strong offering. Curran concluded, We have service centers near every plant in the U.S., bringing logistics and solutions-based service close to customers. This implementation of our clean power strategy includes the investment in this new facility here in Chattanooga, expanding Alstoms capabilities and footprint to meet our customers needs here in North America.
These thought-provoking comments inspired additional questions and discussion.
Q: What is needed for the nuclear renaissance to happen?
A: Mr. Vanderheyden observed, We need financial options to break the barrier. But if we can get the first new nuclear plants built and financed, it will create a crowd and go a long way to move forward.
Q: How has the recent increase in projected costs of IGCC technology reflect on projected costs of nuclear and CCS. Considering that gas is so plentiful and the technology well-established, wont gas take a major role in the near term.
A: Mike Howard answered that you have to make sure that you keep the target of de-carbonized power. Gas will certainly have an impact and a role in the near term, he noted, However we cant achieve the level of carbon reduction with gas as the solution unless we use carbon capture on gas.
Bill McCollum explained that you have to think about optionality, to get the lowest cost over time. We shouldnt put all our eggs in one basket we have to be able to adapt to changing situations.
George Vanderheyden said, The simple answer is that in the short term gas is the easy choice. But CEOs are responsible for long term solutions, too.
Q: How do we meet the challenge of building public support for nuclear and CCS technologies?
A: Its down to a lot of old fashioned communication, said Mike Howard. You have to communicate in simple terms and draw a picture to help the public visualize the solution before they understand and embrace it. You have to show them how to measure reliability and cost. Bill McCollum echoed that idea, explaining, You have to give people the options and give them the facts so they can play with it. The more you get them comfortable with the facts, the more they see theres not one silver bullet.
Q: How can the technology providers help with education efforts?
A: Bill McCollum said that the whole industry has to be more proactive with education, not engaging only when we have to. No one wants to be told what to do, but we need to show people what we think the future could be. They want to know. George Vanderheyden said, I think what Alstom has done is develop a lot of options for customers and for the American public.
Q: If we consider solar thermal as part of the solution, what role can this technology play in the equation?
A: This is the most common question I get, Mike Howard observed. We see that while solar may have a small role now, we are seeing decreases in solar cost and we do expect to see some growth in thermal solar in the future. Maybe not a lot of photovoltaic, but central thermal solar. George Vanderheyden explained that one of the options UniStar proposes is how nuclear can back up solar power.
Q: How important will storage be moving forward, especially when it is hard to permit.
A: EPRI looks at energy storage across a variety of technologies as a game changer but it will take 20 years to get there, offered Mike Howard. Were the beneficiaries of a lot of work driven by the auto industry. Dont underestimate the impact of vehicles as a buffer source of storage, with a smarter grid to match.
Q: What are the water usage issues today and will these issues increase 10 years from now?
A: All agreed that water is a huge issue across many technologies, but Bill McCollum noted that Its not a game changer for shifting the mix because many technologies require water. And those without water have their own limitations. George Vanderheyden said desalinization is a future technology match.