REvision 2015 Removing the Barriers to RE Development in Japan

Renewable Energy & Technology Innovation March 4, 2015 Hideyuki Ohnishi Country Executive, Japan GE Power & Water Imagination at work.

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GE Power & Water: Renewable Energy Projects $27.6B in sales in 2014

>

40,000 No. of employees

Wind energy Solar energy

700 Bases

Energy storage

Gas engines

Distributed power

Renewable energy

Thermal power generation equipment

Unofficial Translation

Maintenance services for thermal power generation

Aeroderivative gas turbines

Nuclear power generation

Water processing technologies

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Statistics on GE’s Wind Turbines

25,000

38GW

No. of wind turbines

Gross installed capacity

Installed in

31 countries 98%

Availability

$2B

R&D investment 3

Unofficial Translation © 2015 General Electric Company

Product Strategies for the Japanese Market 2.85-103 Powerful wind turbines optimized for the wind conditions and environment in Japan

Electrical upgrades

2.5-100

2.85-103

2.50-120

Yaw backup power supply

Specifications compatible with Japanese situation

Control technology for high turbulence Ability to cope with high wind velocities, i.e. typhoons Protection against lightning which can strike in various regions in Japan Designs that conform to the Electricity Business Act and Building Standards Act

Specifications Technology

Annual Generation: Installed capacity:

12,159 MWh* 48.7*

Motion sound: 105 dBA

• Improved lightning protection function • Yaw backup power supply • Superior turbulence control function

Wind conditions • IEC Class IIb • Vref 55m/sec

* At 8.5m/s

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Unofficial Translation © 2015 General Electric Company

Evolution of GE Wind Turbines No. of turbines installed

1,000th 2.5s

Introduced model

1.5i

1.5s

(65m)

(70.5m)

’96

’02

2.5xl

(88m)

1.5xle

(77m)

’03

’04

2.75-100

(100m)

1.5sle

’06

’08

’09

2.5-120 2.50-120 2.85-103 3.2-103

2.75-103 1.85-82.5 1.85-87 1.6-100 1.7-100

1.6-82.5

(82.5m)

’05

20,000th

10,000th

5,000th

’10

’11

’12

2.3-107 1.7-103

’13

’14+

Entry into wind power generation market

1.5s

1.5sle

1.6-82.5

1.6-100

2.5-120

Evolution of product design with improved global standards for reliability 5 Unofficial Translation

© 2015 General Electric Company

Statistics on GE Jenbacher gas engines

+10,000 No. of turbines installed worldwide

46% Generating

efficiency (Type6)

290 10MW

No. of turbines in operation in Japan

Installed in energy center at 2012 London Olympic Games

Imagination at work.

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Unofficial Translation © 2011 General Electric Company

Statistics on Small-scale Gasified Biomass Power Generation in the World Denmark Harboore (1.5MW)

Gasification furnace: B&W Volund (fixed-bed updraft) Gas engine: Jenbacher J320 x 2 engines Operation hours: Over 69,000 (as of Sep 2014) Start of operations: Mar 2000

Denmark Skive (6.0MW)

Gasification furnace: Andritz/Carbona (bubbling fluidized bed) Gas engine: Jenbacher J620 x 3 engines Operation hours: 30,000 (as of Sep 2012) Start of operations: 2008

Austria Gussing (2.0MW)

Gasification furnace: VUT concept (circulating fluidized bed) Gas engine: Jenbacher J620 x 1 engine Operation hours: Over 67,000 (as of Sep 2014) Start of operations: Apr 2002

Japan Yamagata Green Power (2.0MW)

Gasification furnace: B&W Volund (fixed-bed updraft) Gas engine: Jenbacher J612 x 1 engine, J616 x 1 engine Operation hours: 30,000 (as of Sep 2014) Start of operations: 2007

(Source) Company websites Unofficial Translation

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GE Jenbacher Gas Engine

Variety of gas fuels can be used Landfill gas Coal mine gas Sewage gas

Jenbacher: LEANOX lean burn combustion control system The Jenbacher gas engine measures electric output,

Emergency power Natural gas

Petroleum MAP for air/fuel, and air/fuel temperature after the gas

intercooler. The air/fuel ratio is controlled with

LEANOX control in real time. Specialty gas Wood gas

Biogas (methane fermentation)

•

Can operate on pyrolysis gas from woody biomass that has large fluctuations in calorific value.

•

Can be used with hydrogen-rich gases.

•

Can control generation of NOx.

Highly backfire-resistant to unstable fuels Know-how on tar removal Ample engine size

(350kW ~ 8Mw)

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Aeroderivative Gas Turbine: LMS100 Load following capability, system stabilization, and capacity to deal with various fuels. Support for the introduction of renewable energy and redundancy in power supply.

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Example of 19 LMS100 turbines being used in Southern California to support the introduction of renewable energy

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99

Basic Functions Achieved with the LMS100

Peak cut

Load following capability

Emergency power Improvement of disaster prevention capacity

Co-generation

Frequency stabilization

Renewal of aging combined-cycle facilities

Used in over 20 companies in 11 countries Unofficial Translation

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Case Study #1 Support for the introduction of renewable energy and system stabilization with the LMS 1000

CPV Sentinel: 8 LMS100 turbines Site Features • Ability to generate a wide range of power from 50 MW to 800 MW. • Starts up within 10 minutes. Power control of 400 MW/minute.

• Power supply for various applications (spinning reserve, peak cuts, etc.) • No decline in output even at high temperatures with the installation of intake air cooling systems.

High-efficiency, simple cycle plant (800 MW) supports the stable operation of 3,000 wind turbines in the harsh environment of California.

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• Conforms to strict environmental regulations. Does not use water for reduction of NOx. Reaches 2.5 ppmvd (NOx)/5 ppmvd CO within 10 minutes after startup.

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Case Study #1

CPV Sentinel Site: Startup performance & high load following Advantages of high-speed start •Reaches rated value within 10 minutes. •Startup performance of 50 MW/minute/unit. High startup performance of 40% to 50% compared with other machines. •Fuel consumption savings at startup. •Ability to further improve output at peak times (option).

Gas turbine output (%)

capability

•Operable as backup of renewable energy. Elapsed time from startup (min)

Advantages of high load following capability •Ability to generate power only when necessary (optimized for multiple starts per day).

•Achieve high efficiency even with partial loads: Operable at high efficiency of 50%-100% (50 MW to 100 MW). •High flexibility to support frequency fluctuations: Ability to support fluctuations up to a maximum of 5%.

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Output (MW)

•Load following capacity of 50 MW/minute/unit: Ability to go from 50% load to 100% load within 60 seconds.

* Trademark of General Electric Company

Time (12-hour intervals)

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Case Study #2 Stable power supply with the LMS100

Achievements for the Sochi Olympics Overview

Two LMS100PB turbines were used

LMS100-PB •Latest DLE 2.0 burner •Water injection not used to reduce NOx emissions •World’s most efficient turbine •Reaches rated value within 10 minutes after startup •25ppm NOx •101 MW under ISO conditions

Client: Inter RAO (One of Russia’s largest power companies) Site: Dzhubginskaya power plant Equipment: LMS100PB x 2 Max. output: 200MW

Reasons for selecting the LMS100 - World’s most efficient gas turbine (World’s most efficient, simple-cycle gas turbine on the market. … by CEO of Inter RAO) -High load following capability (50 MW/minute) - Shorter maintenance times compared with other machinery Unofficial Translation

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Case Study #2

Diversification of Fuels (Gas & Liquid Fuel) Gas



LMS100 can use both gas and liquid fuel. The LMS100 is highly flexible and can use gas for normal operations and liquid gas in emergencies.

The following gases can be used.  Gas with sufficient calorific value  Gas maintained in gaseous state  Pure gas Most LNG (including share gases) can be used in the LMS100.

Liquid Fuel The following liquid gases can be used.  Liquid fuel with sufficient calorific value.  Liquid fuel that can be sprayed  Pure liquid fuel Heavy oil (corresponding to Class A heavy oils), kerosene, and light oil can be used in the LMS100. Unofficial Translation

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Removing the Barriers to RE Development in Japan Our surrounding environment  Changes in the environment surrounding energy can be “irregular.”  Diversification of power sources and technologies, as well as portfolio management, is important.  Technological innovation requires time, money, and long-term strategies.

Introduction of natural & renewable energy  Formulation of grand designs by the national and local governments, as well as continuous verification and revisions, are necessary.  Careful consensus building is needed to determine who will bear the costs when introducing new and renewable energy.  Programs to support policies and promote technological innovation for specific purposes are necessary (New Sunshine Plan?).  The industry is still in the early developmental stage, and therefore, should actively bring in examples from overseas, in particular the opinions of businesses.

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