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Harnessing the Ocean’s Energy

FROM THE OUTSIDE

Guangzhou, China
Commissioned in 2000, Guangzhou, in
China’s Guangdong province, is said tobe the world’s most powerful pumped
storage plant. It has an overall power
output of 2,400 MW. Four of its pumpturbine / motor-generator units were
supplied by Voith Hydro.
Take a look inside > page 35

2 | H Y POWER

EDITORIAL

A renewed look reflects
our renewed vision
IMPRINT

Published by:Voith Hydro Holding GmbH & Co. KG
Alexanderstr. 1189522 Heidenheim, Germany
Editor: Geraldine Schroeder
Editorial coordination: Marie-Luise Stepping,
Vesna Jerkovic, Elke Kleinknecht
Phone: +49 7321 37- 63 54
Fax: +49 7321 37-78 28
Marie-Luise.Stepping@Voith.com
www.voithhydro.com
In cooperation with:
Burda Creative Group GmbH
Print: Wahl Druck, Aalen, Germany

Photography: laif/Patrick de Wilde (cover, pg. 4 )Paper:The paper REVIVE 50 white silk
contains 50% recycled fiber.
Photographs:
All photos are from Voith Hydro,
unless otherwise specified.
Copyright:
No part of this publication may be copied,
reproduced or otherwise disseminated,
nor may any of the content in it be usedin part or in whole in other works in any
form whatsoever, without express written
permission of the editor.

Our renewable energy industry is surging with innovation andvigor. Increasing energy demand as well as the urgent request
to curb climate change have motivated a whole new generation
to reach for better solutions. At Voith Hydro, we have also
realigned our perspective in order to help our customers
envision and achieve more. As the new editor of HyPower, I
will be bringing you stories of these new developments andgiving you an up-close view of the challenges and successes.
Fittingly, we have given HyPower a fresh new look as well.
In this edition, you will read about how our innovativetechnology is helping harness the tremendous potential of theworld’s oceans, and how clients across the world are
benefiting from our global generator manufacturing network.
You will also gain an insight into how important hydro power– on every scale – is to emerging countries, providing thebasis for both economic and social progress. As much as I
hope the following pages will inspire you about what’s
possible, I believe you will be reassured by the 100-plus years’
expertise on which our thinking is based. Fresh perspectives
combined with expertise is a powerful combination.
I hope you enjoy the read, and we look forward to receiving
your feedback on the magazine. Please feel free to contact
me at Geraldine.Schroeder@Voith.com.
Best regards,

Geraldine Schroeder, Head of Communications

HyPower | 3

CONTENTS

03

10

IMPRINTEDITORIAL

08

05

10

14

W H AT ’ S N E W ?

Agenda setting
O U T L O O K The executive board looks to the future.
I N T E R V I E W CEO Dr. Roland Münch on the state of
the industry.
Powering the future
F O C U S In order to develop, the world needs
energy. As countries such as Brazil, China andIndia continue to grow rapidly, hydro power canplay an increasingly important role.
The right renewable for emerging countries
I N T E R V I E W Hydro power projects bring valuable
socio-economic gains, says the International
Finance Corporation, part of the World Bank.
Covering all the bases

16

20

C A S E S T U D I E S What makes Voith Hydro a true26

full-line supplier?

20

Generating excellence
G L O B A L E X P E R T I S E Exploring the keys tosuccess in generator manufacturing.

26

Fountain of knowledge
I N S I G H T How the Voith Hydro Engineering Centercollates valuable input from around the world.

28

T E C H N O L O G Y Charting the progress of two

Harnessing the power of the ocean
projects helping to make breakthroughs intapping the ocean’s energy reserves.

32

34

What does the future hold?
T H E L O N G V I E W Leading economist-turnedauthor Jeff Rubin discusses the impact risingoil prices will have on the energy industry
and our way of life.
Alternating views
C U R R E N T S Two Voith Hydro employees at
opposite ends of the experience spectrum.

4 | HyPower28

OUTLOOK

Agenda setting
The five members of Voith Hydro’s executive board met
recently to assess the state of the energy sector. See why
they are realigning their agendas for a greener future.

Green energy

Quality & security

The executive board of Voith Hydro,
from left to right:

Dr. Roland Münch: Hydro delivers
power stably, affordably and on anindustrial scale. It has tremendous
potential and will form the backboneof the global restructuring of ourenergy systems.

Stefan Schröder: Hydro power is not
only a renewable energy source, it isalso affordable and sustainable in an
economical, ecological and social
sense. Economical does not meancheap, though; we need quality thatcan be relied on.

Dr. Roland Münch Chief Executive Officer
Stefan Schröder Executive Vice President,
Chief Financial Officer
Jürgen Sehnbruch Executive Vice President,
Chief Marketing Officer
Dr. Siegbert Etter Executive Vice President,
Chief Technical Officer
Andreas Endters Executive Vice President,
Chief Operations Officer

Photography: Matthias Haslauer (6)See interview on page 6 for more

Growth potential

Innovation

Local know-how

Jürgen Sehnbruch: In Europe, hydropower has potential in both large andsmall hydro as well as in pumped
storage. We will be experiencing arenaissance of pumped storage as animportant stabilizing medium.

Dr. Siegbert Etter: We are in a fieldthat is technologically mature and yet
incredibly forward-looking. While weknow the traditional hydro plant inside
out, Voith Hydro has identified newareas, such as ocean energies, in which
we can develop the industry further.

Andreas Endters: Voith Hydro isconsistently improving its local
footprint across the globe in order toprovide its customers with expert
presence and first-class facilities.

OUTLOOK | 5

A positive
look forward
As we undergo a global shift in our approach toenergy, hydro power looks set to grow in importance,says Voith Hydro CEO, Dr. Roland Münch.

6 | HyPowerWhy is hydro power moresignificant than other renewableenergies in the long term?
It is both environmentally friendly andeconomical. Hydro doesn’t rely on
certain weather conditions, making it
unbeatable as a reliable generator ofindustry-sized amounts of electricity. The
efficiency of hydro plants is around 90
percent, making hydro the most effective
among the renewables. It is competitive
and affordable. What’s more, two-thirdsof the Earth is covered by water, so water
represents the largest source of energy.
Hydro is already indispensable, and it willdefinitely be at the core of the world’s
renewable energy mix in the future.

Photography: Matthias Haslauer

INTERVIEW

What role do renewable energies
play today?
A crucial one. And, within renewables,hydro power will certainly play a key roleworldwide. We are close to seeing a
global transformation in our energy
systems; fossil fuels are finite andbecoming increasingly expensive, andFukushima has led to a reevaluation of
nuclear power in several countries. The
concern about global warming andclimate change is leading to a rethink inlong-term strategy. In addition, power
consumption has increased enormously
and is continuing to rise, particularlyin emerging markets. According to a
study by the US Energy Information
Administration (EIA), global energy
demand will almost double by 2035. We
face the challenge of generating large
amounts of energy in an environmentally
sustainable way.

“Hydro is already indispensable, and it willdefinitely be at the core of the world’s
renewable energy mix in the future.”

Dr. Roland Münch

Why is hydro power so interestingfor emerging economies?
A reliable and affordable electricity
supply is a prerequisite for economic
and social development. For emerging
countries, investment in renewableenergies will pay off in the long term. It
will reduce the dependence on energy
imports and fossil fuels. In addition,hydro power will create added value,such as providing new jobs, and ensuresustainable growth.
The construction of the Belo Montehydro plant in Brazil has received
criticism from an environmental
perspective. Why is Voith Hydro
involved in the project?
Large-scale infrastructure projects,
such as those involving hydro power
stations, will always have proponents
and critics. However, in the case ofhydro plants, we believe the advantages
clearly outweigh the disadvantages,
especially in emerging countries, where
the demand for energy is high. Belo
Monte will be no different. The projectis part of the Brazilian government’s
enormously ambitious development
program. Once Belo Monte is put into
operation in 2019, it will be the thirdlargest hydro power plant in the worldand supply millions of Brazilians withpower. It will further help Brazil inmaintaining the pace of its economic
and social development. Despite its
undeniable impact on nature, it is clearthat hydro power is among the mostenvironmentally friendly forms of energy
in the long term. Also, at Voith, weare proud to provide cutting-edge
technology that minimizes the impact
on man and nature in each project.
The Organisation for Economic Cooperation and Development (OECD)plans to tighten environmental
regulations for the granting ofexport credit guarantees. What are
your thoughts on this?
As an environmental technology
company, we welcome all measuresdesigned to protect the environment.
Voith Hydro has been working for years
to ensure high standards in theimplementation of our projects, and wework closely with environmental anddevelopmental NGOs. For example, we
ensure that our employees are regularly
trained by the World Wide Fundfor Nature (WWF) on environmental
sustainability. But, at the same time, we
believe in equal rights for all, which is
why we are critical of the OECD’s plans.
If the testing and decision-making
procedures for large projects become
more complex, competitors from nonOECD countries stand to benefit. The
new requirements would therefore leadto a scenario where the OECD would be
involved less and less on major projects.
There must be a better solution. It would
be more useful to create a frameworkagreement with the same rules for all
key market players.
And what about as regards thefocus for Voith Hydro – what are thekey markets, then, for the company?
The industry’s focus is on emerging

markets, of course, plus the UnitedStates and Canada. But don’t forget
Europe! After all, Germany is where
we started. With refurbishment andmodernization, we could generate up
to 16 percent more energy from existinghydro plants by implementing minorchanges or additions to the equipment,
without having a major impact on theenvironment. There will be a growing
demand for greater energy efficiencies
because the wind turbines currently
being built need balancing. Pumped
storage plants will, and should, be
there to stabilize the grid. Overall, we
estimate that hydro output in Germany
can be increased by up to 30 percent.
We must use this potential if we are to
succeed in transitioning to renewableenergy sources.
What are the biggest challenges weface in the future?
According to studies conducted by theIntergovernmental Panel on Climate
Change, 77 percent of energy could be
generated from renewable sources by
2050. Our biggest challenge will be toleverage the huge, untapped potentialof hydro power from the sea. We are
currently the only company actively
developing both tidal current and wave
power technologies. In terms of bothreliability as well as availability, thesetechnologies can now meet commercial
standards. In order to make oceanpowered energy accessible, investment
in technology for new renewables, suchas tidal current turbines and wave
power stations, will be necessary.
INTERVIEW | 7

Iceland’s Tungnaá River, seen here frozen in a spectacular aerial
shot, will help to generate power at the new plant.

ICELAND In its first major infrastructure project since theeconomic and financial crisis of 2008, Iceland has contracted
Voith Hydro to supply the new hydro power plant Búðarhálswith all its electro-mechanical equipment, excitation
systems, turbine governors, mechanical and electricalauxiliary systems. In addition, it will also deliver powerhousecranes, the machine control system and automation system,
as well as handling both erection and commissioning. A
distinct focus on optimization of the plant’s annual energy
output was the major success factor in Voith Hydro’s
technical solution.
8 | HyPower

Alongside its technical expertise, Voith Hydro was able tooffer hydro power plant operator Landsvirkjun tailored, longterm and attractive financing.
For Búðarháls, Voith Hydro will cooperate with partners
and sub-suppliers from Iceland – supporting a high domestic
content within the project.
The important new order for Búðarháls continues thelong business activity by Voith in Iceland. The first Voith
supply to Iceland for the Fjarðarsel power plant took place
as early as 1912/1913 and it is the oldest power plant still in
operation in Iceland.

Photography: Prisma / Juan Carlos Muñoz

Hydro projects ready to flow again in IcelandW H AT ’ S N E W ?

Voith Fuji Hydro
strengthens position
on Japanese market
J A PA N Voith Fuji Hydro – a joint ventureof Fuji Electric and Voith Hydro – willtake over the complete hydro turbine
business of the industrial machinery
manufacturer Ebara Corporation,
beginning 1 June 2011.
“For more than 100 years, Japan
has been an important market for Voith
that we feel strongly commited to,particularly in these difficult times after
the tragic events in northeast Japan,”commented President and CEO of
Voith Hydro, Dr. Roland Münch.

Swiss pumped storage
Representing its firstmajor order from French-speaking
Switzerland, Voith Hydro will provide
Forces Motrices Hongrin-Léman S.A.
(FMHL) with two new vertical five-stage
pumps coupled to Pelton turbines for its
FMHL+ project in the municipality of
Veytaux. To double its current generating
capacity of 240 MW to 480 MW, FMHL isconstructing a new underground cavernnear its existing one, as well as installing
two additional pump-turbine groups. By
the end of 2014, the pumped storagehydro project will use 420 MW of a total
capacity of 480 MW for operations, with
60 MW being kept in reserve.

Alden Model Turbine
in the HydraulicLaboratory in York.

SWITZERLAND

Celebrating milestones
C H I N A Voith Hydro and the China Three Gorges Project Corporation recently
celebrated a milestone for the Xi Luo Du project, located at the border between
Sichuan and Yunnan provinces – the delivery of the first turbine runner at the end ofJune. Voith Hydro supplies the equipment for three 770 MW Francis units at thehydro plant, which is located on the Jinsha River, including generators, turbinesand support equipment. After completion in 2015, the Xi Luo Du hydro power plant
will have an overall power output of nearly 13.9 GW and will be one of the mostpowerful in the world.
In a country that is already one of the world’s major hydro markets, the Chinese
government is laying the groundwork to more than double its already impressive
share of renewable energy from hydro power (22 percent) to a total of 380 GW by
2020. Voith has a 100-year tradition in helping China meet its power demands
through sustainable energy.

From left to right: Chen Guoqing, Vice President Voith Hydro Shanghai; Fan Qixiang, Vice President
China Three Gorges Corporation; Martin Andrä, President Voith Hydro Shanghai; Chen Fei, President
China Three Gorges Corporation; Tang Xu, Executive Vice President Voith Hydro Shanghai; Zhao
Musen, Secretary Xi Luo Du Construction Bureau.

Alden Turbine:
environmental
innovation
U N I T E D S TAT E S Voith Hydro presented
its newest technological developments
in a recent conference on environmentallyenhanced hydro turbines, hosted by the
U.S. Department of Energy and theElectric Power Research Institute in
Washington, D.C. In front of a selectionof industry experts, the conference
offered Voith Hydro the opportunity toshow some of its proprietary technologies,
including the Aerating Runner for
dissolved oxygen enhancement, and the
Minimum Gap Runner to enable safe
passage for fish.
Also, the new Alden Turbine wasprominent – a technology expected to
produce fish survival rates over 98%. The
turbine features a three-bladed Francistype runner that operates at a slower
rotational speed to minimize fish strike.
Alden Research Laboratory, developer ofthe concept, recently collaborated with
Voith Hydro to further improve the fishpassage characteristics in addition to
optimizing turbine performance.
Last year, a scale model was tested
in Voith’s Hydraulic Laboratory in York,
Pennsylvania, with very competitive
results; the turbine is now ready to
be deployed as the industry’s latest
environmental innovation.
W H AT ’ S N E W ? | 9

All lit up: Rio de Janeiro glows in thenight sky; the success of the Itaipúhydro plant (below) has paved theway for more vital hydro projects inemerging nations.

10 | HyPowerFOCUSPowering
the future
China, India, Brazil; countries all
characterized by rapid economic andsocial growth. As a source of reliable andrenewable electricity, the role of hydropower looks set to play an increasingly
vital role in their continued development.

Photography: Gettyimages / Antonello, mauritius images / Alamy

H

ydro power may account for around one-fifth of the
globe’s current electricity supply, yet its potential in
the developing world has barely begun to betapped. Unexploited hydro capacity in developing
countries totals nearly four times the capacity currently
installed in Europe and North America, and nearly double theinstalled capacity worldwide. According to the World Bank,
the total economically feasible hydro power capacity inemerging economies is more than 1,900 GW, only 30 percentof which has been developed.
Finding environmentally and socially sustainable ways ofmaking use of this vast energy resource has become crucial
as emerging economies continue to outpace the developed
world in GDP growth.
The Economist predicts that China, which has an estimated
9.5 percent average GDP growth, and India, with 8.2 percent,will be the world’s fastest-growing economies between 2011
and 2015. Brazil, where GDP grew by 7.5 percent in 2010,
already ranks among the 10 biggest economies on the planet.

Growth at these rates goes hand-in-hand with an insatiable
demand for energy, and given volatile energy prices andgrowing concerns about the environment, more and moredeveloping countries are stepping up their investment inrenewable energies to power their future. Hydro power stands
out among the renewables for its added-value benefits,
including clean drinking water, irrigation and reliable energy
reserves. And within this sector, Voith Hydro is a clear leader:a quarter of all electricity generated by hydro plants aroundthe world is produced by the company’s turbines andgenerators, of which Voith has installed more than 40,000
across the globe.
Partner of choice in Brazil
Voith Hydro has participated in some of the world’s mostambitious hydro power projects in rapidly developing countries
such as Brazil, India and China, and continues to work
successfully in these and many other developing areas. The
expertise and advanced technologies are helping to provide
energy, create jobs, and ensure social, economic andenvironmental sustainability.
In Brazil, where Voith Hydro has been present for over a
century, hydro power accounted for 83.9 percent of thecountry’s electricity production in 2009, and almost half ofBrazil’s hydro capacity is in plants using Voith equipment.
Located on Brazil’s Madeira River, the 3,150 MW Santo
Antonio plant, which is set to begin operating in early 2012,
is part of the government’s growth-acceleration program.
F O C U S | 11

“Voith Hydro has a brilliant future in
Brazil, where hydro power will remain
the best choice for producing energy.”
Antonio Canina, Head of Modernization for Latin American and Brazil“Santo Antonio represents the beginning of a new energy
matrix, since the north of Brazil is considered to be thecountry’s most promising source of electrical energy
production,” says Fernando Fernandes, Santo Antonio Project
Director for Voith Hydro. “This power plant will also offer a
range of other benefits, including supporting the social andeconomic development of northern Brazil, particularly the
Porto Velho region.”
Limiting environmental impact
The technology is making a major contribution to limiting theSanto Antonio project’s environmental impact. “Santo Antonio
will employ Voith Hydro’s bulb-type turbines, allowing thisproject to be a run-of-the-river power plant, and therefore
greatly reducing the impact on the Amazon forest and local
communities,” Fernandes says. “Santo Antonio’s reservoir
covers 271 sq km, which is only slightly more than the naturalriverbed at flood stage and is much smaller than what would
be required by another turbine type.”
Voith Hydro technology is also crucial to the 11,233 MW
Belo Monte project, which will be among the largest hydro power
plants in the world when it goes into service in 2019. “Voith
Hydro is the responsible party with the consortium for thetechnical direction of the Belo Monte site, and will supply

Rising rapidly – world marketed energy consumption
1990–2035 / quadrillion British thermal units

History

Projections

800
700
600

495

500
400

355

374

1990

1995

406

300
200

generating units, automation and protection systems, andfurther electrical and mechanical equipment,” explains Nilo Faria,
Project Director. The project will create thousands of jobs in aregion where employment opportunities are currently limited.
Increased capacity
Further demonstrating its long-term commitment to Brazil,
Voith Hydro recently opened a new manufacturing shop in
Manaus to complement its plant in São Paulo, which began
production almost 50 years ago. The new plant increases thecompany’s annual manufacturing capacity in Brazil to overone million hours a year.
The Manaus plant specializes in serving the big hydropower projects underway or planned for northern Brazil.
“Establishing the plant in Manaus demonstrates Voith’s drive
for logistical efficiency and better customer service,” comments
Luciano Savieto, Industrial Director at the plant. “Almost all ofa turbine’s mechanical parts can be produced here.”With training programs taught by experts from Voith’s São
Paulo facility, the new workshop is also providing benefits forthe local labor market in line with the firm’s commitment totraining and hiring local human resources. Voith Hydro can
now supply complete hydro power plants in Brazil with anational content of over 90 percent and with Brazilian
management, engineering and labor.
Established success
Proof of Voith’s success in bringing high quality and innovation
to the Brazilian energy sector is reflected in the venerable
Itatinga power plant, which has been operating since 1907
and still generates 80 percent of the energy used by the
Santos seaport. Antonio Canina, Head of Modernization for
Latin America and Brazil, explains, “Developing the capability
and reliability of older power plants is very important inmeeting future energy demands, and Voith Hydro will continue
to make a key contribution to this effort in Brazil.” He adds,“Voith Hydro has a brilliant future in Brazil, where hydro power
will remain the best choice for producing energy.”

100
0
2000

2007

2015

2020

2030

2035

Source: EIA, International Energy Statistics database (as of November 2009);
projections: EIA, World Energy Projection System Plus (2010)12 | HyPower

Stimulating regional development in India
Voith Hydro is also expanding its role in India’s rapidly evolving
energy sector; with around 840 GW of hydro potential, it isranked seventh in the world in exploitable hydro power. In

Photography: Voith, Gettyimages / Claus Meyer

Working in the foundry of the São Paulo workshop (left); the mighty Amazon river is a valuable source of hydro power (right).

partnership with local player Jaiprakash, Voith Hydro recently
supplied the electrical and mechanical equipment for the new
520 MW Omkareshwar plant. “Both partners are committed
to making Omkareshwar a long-term success. We will repeat
this successful partnership approach for other projects,
including Karcham Wangtoo,” explains Werner Kellner,
General Project Manager, Voith Hydro Heidenheim.
Omkareshwar, finished in just 48 months, not only serves
as a reliable source of power for the Madhya Pradesh region,
but also provides irrigation for agriculture, boosts the fishing
resources of the Narmada River, and creates significant
employment opportunities for locals. “The Omkareshwar
plant fosters the region’s industrial, private and agricultural
sectors in a balanced way,” says Kellner. “We are deeplycommitted to accompanying India on its path to an energy
mix that is largely based upon hydro power, as well as toimplementing environmentally friendly technology and aholistic approach to make sure that our projects benefit the
local environment and society.”
Supporting the Chinese boom market
Still very much surfing a wave of rapid transformation andgrowth, China has become one of Voith Hydro’s key markets
in recent years, although the company has been active there
for over a century. China’s latest national plan calls for a€550 billion investment in renewables between 2011 and2016 alone. In addition, the country’s 220 GW of installedhydro power capacity is expected to rise to 380 GW by 2020
– a clear sign of the potential for further development.
Current focus is the massive Xi Luo Du project, which atjust under 13.9 GW will be China’s second-largest hydropower plant when it begins operating in 2015 (see page 9 formore on the project). “Xi Luo Du is crucial for the major westto-east electricity transmission project and an important move
to develop China’s resource-rich western region as well as
fostering growth in eastern and central China,” says Martin
Andrä, CEO Voith Hydro Shanghai. “In addition to energy
generation, the benefits include sediment and flood control
as well as improvement in downstream navigation.”
Added value
As this and other projects prove, powering the future,
particularly in developing countries, means much more thansimply providing electricity access. It requires imagination,
innovative technologies, international cooperation and acommitment to protecting natural and human resources overthe long term.
Hydro power comes with risks and challenges, but whendeveloped conscientiously, it provides added value as well as
reliable energy to countries most in need. As its work in Brazil,
India and China shows, Voith Hydro is ready to help emerging
economies satisfy their fast-growing energy needs throughsustainable, socially and environmentally responsible hydropower projects.
F O C U S | 13

INTERVIEW

Hydro power:
the right renewable for
emerging countries
The International Finance Corporation (IFC) – part of the World Bank Group – hashelped to launch many private-sector hydro plants in developing countries. We talk tothem about the advantages and challenges of hydro power for developing nations.

Tonci Bakovic, a native of Bolivia, is the Energy Specialist for the IFC, dealing with the

Jorge Villegas, from Colombia, is a specialist in the IFC’s Environmental and Social

revenue side of its energy projects all over the world, including its 40 hydro power projects.

Development Division, where he performs extensive due diligence on the environmental

Bakovic previously served as Dominion Energy’s Manager for Business Development inand social impact of IFC projects. He previously worked with the World Bank, the United

Latin America, and, before that, he worked with Ernst & Young’s energy group.

Nations and the Colombian government.

International Finance Corporation
World Bank Group, Washington, D.C.
HyPower sat down with Tonci
Bakovic, IFC Energy Specialist,
and Jorge Villegas, Specialist
at IFC’s Environmental and Social
Development Division.

direct benefits to local communities,
such as a percentage of revenues.
Every developer of a hydro project must
minimize the negative impacts andenhance the positive ones.

What is the rationale behind IFC’s
support for hydro projects
in emerging economies?
Bakovic: Without power, developing
regions cannot grow. In fact, in somecountries, two percent electricity growthis needed to achieve one percent GDP
growth. Of course, we need to balancea need for power with concerns for theenvironment, and hydro power is aclean, reliable energy source. IFC has
been involved in 40 hydro plants withan average capacity of around 100 MWthat add up to a total 4,000 MW ofenergy. These hydros currently displacearound 10 million tons of CO2 emissions
every year.

How is IFC helping contributetoward this aim?
Bakovic: IFC has devised policy andperformance standards for the socialand environmental sustainability of our
projects, and these standards havebecome the international benchmark.
Nearly 70 international commercial
banks and financial institutions haveadopted the Equator Principles, which
are based on IFC environmental andsocial standards.
Villegas: When a large commercialbank that is a signatory to the Equator
Principles finances a power project inan emerging market, it will use IFC
standards as a reference. Developers
willing to apply these standards will
have easier access to financing.

Illustration: Margarethe Illustration / Guy Billout

What advantages does hydroelectricity have over otherrenewable energies?
Bakovic: Hydro is currently the mostefficient among the renewables. Until
researchers achieve a technologicalbreakthrough in solar energy, hydro is
the best choice for countries that haveadequate hydro resources. Solar andwind plants can cost as much to build
as hydro plants, but produce lessenergy as they have lower plant factors.
As well as bringing power to local
residents, what other advantages
can hydro projects provide
developing countries?
Villegas: Benefits can include better
irrigation systems downstream as well
as flood control. They can also offer
significant cost savings for power,
particularly for countries without theirown oil and gas reserves. Job creation
during the construction phase isanother valuable short- to medium-term
benefit. In the long term, some countries
require project developers to provide

What are some of the challenges
that hydro power faces?
Villegas: Location is the key when it
comes to minimizing the negative effects
of changing a water course. Ideally,
companies would identify places withfew or no inhabitants and where theproject will not require flooding large
areas. Companies should also avoid
environmentally sensitive places asmuch as possible.
What about resettlement?
Bakovic: Avoidance of displacementof people and adequate resettlement isa critical issue in hydro developments.
IFC pays particular attention to thisissue, applying the lessons that wehave learned in past hydro projects.
This global experience in social andenvironmental issues is very muchvalued and appreciated by our clients.
So far, our relatively small hydroprojects have been located in areas
with low populations.

IFC, a member of the World Bank Group,is the largest global development institution
focused on the private sector in developing
countries. Its aim is to create opportunity
for people to escape poverty and improvetheir lives by providing financing to help
businesses employ more people and supply
essential services, by mobilizing capital fromothers, and by delivering advisory services
to ensure sustainable development. IFC’s
new investments climbed to a record $18
billion in fiscal year 2010.
> www.ifc.org

Where are the main markets forinvestments in hydro power?
Bakovic: Around 80 percent of today’s
feasible hydro power projects in the
US and Europe have already beendeveloped. That is not the case for
Latin America and Asia. In Africa,
almost no hydros have been built,
despite the continent’s huge resource
potential. We need to encourage morehydro power investors to go outside
their home regions. Of course, investors
have to be able to count on clear rulesof the game before they enter a market.
Villegas: Most of the places where wework in Africa mainly require power forpeak times. In many cases, a hydropower project in Africa will not require
a huge reservoir, and there are plenty ofopportunities for smaller projects. If a
project does have a large reservoir, it
makes sense to focus on a regional
market rather than just a local one.
How has investment in hydro powerchanged over recent years?
Bakovic: Twenty years ago, mostinvestment came from governments.
With privatization and reforms, theprivate sector has become more
involved. The IFC has had considerable
success with small and medium-sizedhydro projects. These plants will last
100 years, and many are on a buildown-transfer basis. Hydro power is anefficient option that, when developed
responsibly, will bring power and social
benefits to developing countries as wellas help to protect the environment.
I N T E R V I E W | 15

CASE STUDIES

Covering
all the bases
Hydro-electric systems are a vital component in the global race to develop moresustainable and efficient power supplies. They can also be daunting in their scopeand scale, with some taking up to a decade to plan and build. Delivering hydroprojects requires commercial acumen, deep technical knowledge as well as skill
in managing multiple suppliers, tight timelines and large workforces.

An able full-line supplier must be able to meet an array ofneeds for clients in a way that consortia or consultancies
cannot. Voith Hydro’s manufacturing knowledge, its largescale project management expertise, and its planning,
implementation and service skills give it a comprehensive
command of the sector; from spare parts supply right up to
turnkey project delivery.
“The more information you have, the more support you
can offer the client,” says Herbert Vergé, Chief Operations
Officer for Voith Hydro Germany. “As a full-line supplier, we
get much more information from the market than if we were
only a manufacturer – for example, knowledge of the impacts
between different systems, of how components interact andof how to optimize our own key components. From the client’s
16 | HyPower

perspective, using a turnkey supplier of all services simplifies
things considerably, and the time schedule will typically be
shorter. Good project management is the key factor in
determining timely delivery and completion of a contract interms of quality and cost.”
Voith Hydro’s involvement across all aspects of thesector also helps ensure continuous improvement andnurtures innovation. “Full-line service is highly competitive;
you are always under pressure in terms of costs andtechnological development,” comments Vergé. “To survive
long-term, an organization must constantly look to develop
and improve. An effective information flow is vital in helping
to refine products and processes as well as provide excellent
future solutions.”

With 15 percent of Portugal’s electricity
coming from wind power, variable-speed
pumped storage units, such as those
supplied for Frades II, are vital in helping
to stabilize the grid.

CASE STUDY I

Providingstability to
the grid

Photography: Energias de Portugal

P

ortugal’s plans to revolutionize
its electricity grid are welladvanced. Increasingly poweredby a vast expansion in renewableenergy generation – mostly from wind
power – the country needs a uniquely
responsive grid in order to cope withthe problematic surges and dips inpower that wind energy poses.
Central to this is a new generationof hydro power systems incorporating
technologically advanced variablespeed pumped storage. One of the
keystones will be Frades II ( formerly
Venda Nova III ), due for grid connection
in 2015. At the heart of this system,
Voith Hydro is responsible for thedelivery of the electro-mechanicalequipment, com-prising two reversible
pumped storage units, which are thelatest in variable-speed technology.

significant element of wind power,”says Jörg-Peter Albrecht, Head of Global
Sales for Voith Hydro Heidenheim.
“Being able to vary the pump speedmeans you can put energy in or takeenergy out of the grid. It allows you tobe flexible and gives the customer astable, secure grid.”

Flexibility and agility
The first variable-speed system in
Portugal, and the largest one in theworld, the system has two 380 MW
power turbines and two asynchronous
motor-generators, with a rated capacityof 420 MVA. Voith Hydro will also
supply the frequency converters, thecontrol system and the hydraulic steel
structures.
“The variable speed capability ofthe project will give enough flexibility
and agility to cope with the fluctuations
that are inherent in a grid supplied by a

Breaking new ground
The project is not without its challenges.
Being in compliance with the demanding
Portuguese grid code, for example, is amust, says Albrecht. “The requirement
is to inject into the grid a certain amountof reactive current with a maximum
delay of 30 milliseconds, which means
the machine has to react to external
impacts instantly and keep the gridfrequency stable.”
Voith Hydro’s status as a full-line
supplier has given the firm the project
and technical expertise to enable it to

deploy such a solution effectively andhas several advantages for EDP.
“Being a full-line supplier permits
you to think about the overall efficiencyof the plant. We can shorten lead andexecution times, making the project
more profitable for the client.”
The experience on Frades II should
benefit future clients, believes Albrecht.
“Finding cutting-edge answers totechnological challenges and providing
a range of added benefits goes hand inhand for us.”
Frades II
Location: Portugal
Services supplied:
Reversible, variable-speed pumped storage
units including pump-turbines, motorgenerators, converters, control system andhydraulic steel structures
Timeline:
Grid connection in 2015

C A S E S T U D I E S | 17

Located by the idyllic Loch Ness,Foyers’ pumped storage plant is key
to Scotland’s grid stability. Voith’sregular monitoring and maintenancesecure its accurate operation.

Successfully
overcoming
challenges

FoyersLocation: Scotland
Services supplied:Electrical refurbishment, control system,
governor and switchyard controls,
project management and maintenance
Timeline:
Operational since 200918 | HyPowerF

ive years into an electricalrefurbishment led by Voith Hydro,
the 300 MW Foyers pumped
storage facility on the southeastern
shore of Scotland’s Loch Ness has
been providing much needed stability
to the Scottish grid.
The two 150 MW Francis pumpturbines, from operator Scottish andSouthern Energy, play a vital role instabilizing the grid at 50 Hz; no easytask given the nature of the local grid,
which has long transmission lines anda lot of intermittent electricity generated
by the region’s wind farms.
Such conditions called for a highly
responsive, reliable solution when theplant was overhauled. Voith Hydro wastasked with installing a HyCon 400
control system, a digital/mechanicalgovernor and 18 KV switchyard controls– all inside three months.
Challenging conditions“The Foyers project schedule wasvery tough,” recalls Wolfgang Hörger,
Manager for Sales and Marketing in
Automation for Voith Hydro Heidenheim.
“There were 114 people on site at thesame time, which was a challenge. We
had to take out 25 tons of old cabling
and add completely new cables,
sensors and governors. Nevertheless,we successfully managed both thepeople and the handling of materials onsite in that extremely short time.”
The requirements reflect pumped
storage plants’ operation profile intimes of increasing use of renewableenergies, which can often meanintermittent energy production. “Theunit had to be ready to supply energy
to the grid inside a minute and be able
to function with 500 mode changes permonth, which is a huge requirement interms of flexibility and reliability. We had
to build in full redundancy for thecontrol system and governors so that if
one fails another can take over.”Constant monitoring
Voith Hydro also services and maintains
the facility, which involves yearly on-sitechecks. The maintenance contract
includes a hotline service, and Voith
can monitor the unit performance from
Heidenheim, providing preventive checks
and field testing, as well as the ability tobring units quickly back into service
should problems arise.
“We know the day-to-day behaviorof the units, so we are able to identify
how best to conduct preventive
maintenance,” concludes Hörger. “Thissecures a highly stable service for theoperator.”

Photography: Scottish and Southern Electricity, Geno Della Mattia

CASE STUDY 2

The Waneta Expansion willbuild on the success of theexisting Waneta Dam.

CASE STUDY 3

Maximizing efficiencyT

he $900 million Waneta Expansion, in Canada’s British Columbia province, will see Voith
Hydro take a leading role in the optimization of a second 335 MW power
plant at the Waneta Dam on the Pendd’Oreille River.
One of Voith’s key Canadian contracts,
the site is located immediately downstream from the Waneta Dam and its
existing plant. It will share the existing
dam’s hydraulic head and generate powerfrom flow that would otherwise be spilled.
Voith Hydro is responsible for supplying the turbine, generator, governor
and excitation equipment, including thegenerator breaker and isolated phasebus. It will also assist with plant optimization and work in close cooperation
with the customer SNC-Lavalin, which isthe design and build contractor for theplant’s future owner Waneta Expansion

Limited Partnership, formed by Fortis
BC, Columbia Power Corporation andColumbia Basin Trust. Together, Voith,
SNC-Lavalin and civil subcontractor
ASL will develop the plant’s design inorder to achieve the highest efficiency
possible, says Lawson Crichton, Western Canada Business Development
Manager for Voith Hydro. “In order tosuccessfully deliver a project that meetsthe expected return on investment, andcan be maintained efficiently and safely,
it’s very important for all involved tohave a team that understands this end
goal and how best to achieve it.”
Proven success
Voith Hydro’s extensive track record indelivering large projects, as well as its
technical expertise, give it the capability
to meet the challenges of the project.
“Our standardized process, which ispart of the company’s culture andmindset, lays out a detailed roadmap
for the implementation team of how
to put together a large proposal. It
helps ensure that nothing is missed,
whether it be safety and environmental
factors or details of machine reliability,”
Crichton explains.
Engineering and construction workfor the Waneta Expansion is alreadyunderway, and the new facility is expected to go into commercial operationin the spring of 2015.
Waneta Expansion
Location: Canada
Services supplied:
Turbine, generator, governor, excitationequipment, powerhouse optimization
Timeline:
Commercial operation in 2015

C A S E S T U D I E S | 19

GLOBAL EXPERTISE

The generator
manufacturing plantin São Paulo isvital for both local
and international
business.

Generating
excellence
Genuine global reach combined withtechnical expertise are helping
Voith Hydro cement its reputation asa leading generator manufacturer.

now has a global mandate for the supply of Micalastic coils,
which replace the Thermalastic resin system it employed there
until recently. And, while most Voith Hydro stator windings still
come from Brazil, the new Shanghai factory is now producing
them for export, as well as its own use.

F

Quality is paramountDr. Udo Erich Wunsch, Voith Hydro’s Head of International
Production, emphasizes that “all new equipment and the
production technology employed is identical in every facility,
no matter where it is located. This results in identicalcomponents and identical performance,” he explains.
While operational decisions are made locally, Wunschadds, Voith Hydro retains a complete overview of channel
activities worldwide from its headquarters in Germany. The
approach is testimony to Voith Hydro’s strategy of putting
proximity to local markets first. For Voith Hydro, the client
relationship counts every bit as much as high-end products
and quality.
Locating production facilities closer to the primarymarkets they intend to serve yields significant customer
benefits, explains Thomas Hildinger, Voith Hydro’s Head ofGenerator Engineering. Reducing logistics expenses andensuring speed of response to customer needs are two
extremely important ones, he notes.

Homogeneous expertise
The heart of the generator business is the Corporate
Technology Division in Heidenheim, Germany, which is
responsible for the research and development of homogeneous
products. Ensuing manufacturing is the responsibility of fourlarge generator manufacturing units, which are located in
Heidenheim, Brazil’s São Paulo, Mississauga in Canada andthe Chinese city of Shanghai (see map, right).
Each of the longer established facilities has a legacy ofspecialization, but individual plants are increasingly developing
their own expertise. São Paulo still produces all its own
components, for example, including all the generator bars used
by Voith Hydro worldwide. Mississauga, on the other hand,

Voith Hydro’s four main generator facilities

or nearly a century and a half, the name Voith has been
associated with hydro power technology. Voith Hydro
has a strong pedigree in design and manufacture ofboth turbines and generators.
The company’s position as a world leader in full-line hydropower solutions is due, in large part, to a combination of
genuine global reach coupled with innovative technicalexcellence.
As a generator manufacturer, Voith Hydro established ajoint venture with Siemens in 2000 and enjoys a reputation
for producing the world’s largest and most powerful units. The
company has installed generators well above 800 MVA inplants such as Itaipú, in Brazil/Paraguay, Three Gorges, in
China, or currently the world’s largest air-cooled units for Guri
II, Venezuela, as well as the future record-holding machinesat Xi Luo Du. It has also provided variable-speed motorgenerators for Portugal’s ongoing Frades II project – thecountry’s first variable-speed units.

20 | HyPower

Global network of excellence

Heidenheim

Mississauga

ShanghaiSão Paulo

One of the six generators
Voith Hydro is supplying
for the modernizationof Furnas, Brazil. It has
a diameter of around
11 meters. Each of theunits has a power
output of 162 MVA.

“The aim is to ensure that at every step along the way goodideas and lessons learned are shared in a well coordinatedand efficient manner accross the whole organization.”
Dr. Udo Erich Wunsch

From Shanghai to
Heidenheim, Voith Hydro’s
generator manufacturing
network combines
engineering excellence fromaround the globe.

Different opportunities
In some markets the greatest opportunity lies in the provision of
new hydro power equipment. This is true with China, forexample. However, in long-established, more mature markets,
such as the United States and western Europe, modernizationof existing plants represents a significant proportion of business,
especially in generator manufacturing. Overall, approximately 65
percent of Voith Hydro’s production activity worldwide is currently
devoted to new installations, and 35 percent to modernization.
The continuing challenge is to extract the most usableenergy possible from a given source at the lowest cost. Today’s
generators consistently achieve efficiencies greater than98 percent.
Voith Hydro expects to receive its first orders for 1 GW
generators in the relatively near future from customers in China
and Russia. At this scale, even very small increments inefficiency toward 99 percent can be highly meaningful from the
all-important perspective of operator cost per kilowatt. Other
technical improvements, such as making generators morecompact and more reliable, also bring customer benefits.
Sharing expertise
One of the keys to Voith Hydro’s success lies in theextraordinary degree of communication that takes place
between both customers and local plants, and between local
plants and the Corporate Technology Division.
“The aim,” Wunsch stresses, “is to ensure that at every
step along the way good ideas and lessons learned areshared in a well coordinated and efficient manner across thewhole organization. There is absolutely no reason why amistake made in one location should ever be repeated inanother, nor why a solution identified in one place should not
become rapidly available to every production unit.”
Voith facilitates the necessary communication in a numberof ways. There is a constant exchange of people and flow of
information between the operating units and the technicalteam in Germany. A company process standard provides adetailed description of all procedures, including forms andtemplates, to ensure a standardized approach throughout theorganization. Design standards are set by the Voith Hydro
24 | HyPowerEngineering Company (see pages 26-27 for more), which
undertakes a systematic approach to the collection of ideas
from group leaders and ensures that designers always haveready access to the latest version of the standards.
William Malus, Chief Operations Officer of Voith Hydro in
Mississauga, gives an example of how best practice is identified
and shared: “Cycle time is very important to us,” he states. “Weput a lot of effort into being first to market and we are doing
everything we can to improve cycle time and reduce cost inorder to deliver the greatest value possible to our customers.
“To ensure we maintain excellent standards, we are partof a high-performance manufacturing consortium of about 16
companies in southwestern Ontario, Canada,” continues
Malus. “We meet once a month to exchange ideas on how tobe ‘best in class.’ Of course, these ideas don’t stay with us;
our steering holding in Heidenheim chairs factory coordination
meetings at least twice a year, involving all manufacturingleaders, and these drive a process of continuous improvement.”
Long-term partnerships
Specification of any contract invariably begins with close
consultation between the local operating unit and the potential
client prior to tendering. “Armed with detailed knowledge ofthe potential customer’s precise requirements, the respective
local unit then becomes the client’s representative in dealing
with Corporate Technology,” explains Marc Jermann, who is
Head of Generator Engineering at Voith Hydro’s German
operating unit.
“We have a very good process, with a design phase anddesign review, using our knowledge of the customer tonegotiate with our colleagues in Corporate Technology in atrusting environment.”
These design principles are valid for all locations. “Everygenerator built reflects the design philosophy of Voith Hydro,
but often the customer is also included directly as a codesigner, bringing their own expertise to the process,” says
Thomas Hildinger.
This approach reflects the core values of the Voith brand:
innovation, delivering superior reliability and developing fairlong-term partnerships with customers.

GLOBAL EXPERTISE – CHINA

The future is looking bright for Voith Hydro’s
generator manufacturing plant in Shanghai.

While Voith Hydro’s presence in China can be traced
back to 1909, the local unit in Shanghai expects avariety of future projects, both in China andinternationally. Of particular interest is the Xi Luo Du dam,
located on the Jinsha River in China’s southwest. Voith Hydro
will supply three turbines and generators, including thehighest capacity generators it has built to date at 855 MVA.
“The Chinese market requests localized turbine andgenerator solutions,” says Voith Hydro Shanghai’s CEO Martin
Andrä. “It was essential, therefore, that we locate a newgenerator facility here to bring the company’s expertise ingenerators directly into the Chinese marketplace.” The 3,500 sq
m workshop is equipped to manufacture generator poles andstator bars as well as the largest generators ever built by Voith
Hydro anywhere in the world.

Extraordinary dimensions
In China, the focus for the near future is on large machines:
power units of 1,000 MW. Design and manufacturing of big
generators such as these require expert know-how as theextremely high voltages and the extraordinary dimensions
create new challenges. Voith Hydro is already able to provide
the technical solution, emphasizes Martin Andrä: “Ourinsulation standard for generator coils makes them particularly
durable, thus enhancing efficiency.”
Strong prospects
Voith sees many opportunities ahead. Growth in Chinesedemand for hydro capacity, around six to seven percent a
year, is expected to remain strong for the foreseeable future.
The current national installed capacity of 220 GW is forecastin the latest national plan to rise to 380 GW by 2020.
Significantly, China’s aim is to change the balance of energy
production over this period from four-fifths coal-fired/one-fifth
renewable to approximately two-thirds/one-third, indicatingstrong perspectives for hydro power.
G L O B A L E X P E R T I S E | 25

INSIGHT

Fountain of knowledge
For over 100 years, the Brunnenmühle – headquarters of the Voith Hydro Engineering
Center – has been synonymous with state-of-the-art research and development in hydropower. Under the new leadership of Dr. Norbert Riedel, it is well equipped to continue tomeet the challenges of the future.

M

ore than 240 engineers work for the Center at its
headquarters, in Heidenheim, and its international
offices in the United States, Brazil and Sweden. Asa center of excellence, the Brunnenmühle collects know-how
gained by its global operating units, fits the pieces together,and disseminates information back to its regional offices touse for design, problem-solving and optimization.
More than a quality control center, the Brunnenmühle isa knowledge hub that unites its international competencies,
positioning Voith Hydro as a leader on the global hydromarket. “The tremendous advantage of the location is thatengineering of the entire power unit – both turbine andgenerator – is carried out under one roof,” says Dr. Riedel of
his new mandate.
26 | HyPower

Before taking over as Managing Director of the R&D laboratory
in 2010, Riedel was Chief Engineering Officer at Voith Hydroin York, Pennsylvania. It’s a homecoming of sorts for theaerospace engineer, whose first position after university wasat the Brunnenmühle.
Spectrum of expertise
The interdisciplinary expertise found under the Engineering
Center’s umbrella makes it possible for the Heidenheim
headquarters to offer anything from a complete power unit tostorage housing or shaft lines. Whether it’s hydraulic,mechanical, electrical or ventilation engineering, theBrunnenmühle has raised the bar, offering expertise incomputational fluid dynamics, structural mechanics, strengthEmployees at Voith Hydro’s
Engineering Center tackle
complex design challenges withthe help of a virtual reality wall.

calculations, coatings and materials research. It also provides
a portfolio of competencies that includes expert commissioning
support, field service and plant measurement. And having
their colleagues in plant engineering located just a stone’s
throw away is a tremendous catalyst for brainstorming andproblem solving.
Local knowledge, global reachNot all expertise at the Engineering Center is concentrated in
Heidenheim, however. In North America, for example,
rehabilitation projects such as Bath County, Bonneville and
Wanapum have increased demand for York’s expertise. Within
pre-existing geometries, the York plant is subject to very
unique parameters, often requiring its machines to meet thechallenges of increasingly enhanced performance. Suchprojects are approached as a redesign.
However, when an installation is being newly designed,
engineers can tap into the collective know-how at theBrunnenmühle or approach another operating unit that has
amassed expertise in the new project’s singular complexities.
“That’s why the German-Swiss project at Eglisau wasengineered in the United States,” says Riedel. “With theirhelp, we were able to increase electrical production from246 GWh to 314.5 GWh a year. That’s enough electricity tosupply some 80,000 households.”
Optimal processes“Deciding which of the operating units should be responsible
for the design of a specific power unit or even a single
component requires making an assessment of the machine’s
complexity and the operating unit’s practical experience,”says Dr. Siegbert Etter, Chief Technical Officer at Voith Hydro.
The advantage of having local teams in place is that they
have closer contact with the customer and to the project
itself. But being part of the day-to-day business has its
advantages and disadvantages. By optimizing labor amongst
its international offices, the Voith Hydro Engineering Center isable to harness its very fertile network of competencies,
thereby ensuring the company’s technological superiority.
“For instance, if the lead operating unit has gained
experience in only a limited number of designs based on very
specific parameters, then the project manager can draw on
the Brunnenmühle’s wealth of experience and know-how.”
For Riedel, integration means bringing the right teams
together so that Voith Hydro can provide its customers withthe very best results. “The secret is in the mix,” he says. “AndI am firmly convinced that we have the right one.”

INTERVIEW

Voith Hydro Engineering
Center’s new Managing
Director Dr. Norbert Riedelon coming home andthe appeal of the hydropower industry.

What was it like to return toGermany after a five-year stint in
the United States?
I enjoyed my years in the United States,
but Germany is my home. It is alsomuch easier for me to get out into thegreat outdoors here than it was in the
York area. It’s something I really enjoy.
The biggest challenge in returning toGermany, however, was importing my
American car. Getting it through inspections … now I know everything
there is to know about EU regulations
on automobile lighting!
How is it that an aerospaceengineer become involved in thehydro power industry?
Hydro power technology is a lot morealluring than one might think. The
aviation industry is incredibly regulated.
In the hydro power business, the individual engineer can work closely withboth cutting-edge technologies andday-to-day business.
How would you summarize
your first 100 days?
The Voith Hydro Engineering Center has
an incredible team of over 240 highly
motivated, highly trained and highly
specialized engineers. They bring thekind of intellectual curiosity any goodengineer is going to need to come up
with the very best solutions, thereby
steering the company into the future.
I N S I G H T | 27

TECHNOLOGY

Harnessing
the powerof the ocean
How Voith Hydro is making technologicalbreakthroughs that are helping
tap into the oceans’ vast reserves of energy.

28 | HyPowerThe LIMPET facility (left) has
proved a great success. It
boasts over 65,000 hours ofoperation, feeding electricity ofindustrial scale into the grid.

T OTA L P O W E R O U T P U T

Wave Power Plant
Mutriku, SpainOn the remote Scottish island of Islay, you’d be
forgiven for not giving a second glance to a modest
shoreline concrete structure that looks like a slightly
oversized concrete culvert. The eerie sighing and sucking
sounds as the waves wash in and out of the structure suggest
this is more than just a storm drain, however.
Going commercial
For 10 years, the Land Installed Marine Powered Energy
Transformer (LIMPET) has been supplying power to the
Scottish grid and testing a wave generation technology that isalready leading the world in terms of reliability and robustness.
Now, the technology developed by Voith Hydro Wavegenis fully commercial. Over 1,000 km south, in the Basqueseaport of Mutriku, between Bilbao and San Sebastian, a new
facility has been integrated into the newly constructedbreakwater. Built for client Ente Vasco de la Energía (EVE), it
consists of 16 Wells turbines, each 750 mm in diameter, rated
at 18.5 kW and capable of generating almost 300 kW in total.
The Mutriku plant was officially inaugurated on 8 July this year.
Ahead of the competition
The importance of the event should not be underestimated,says Matthew Seed, Head of Voith Hydro Wavegen. The
technology is far ahead of rival wave power alternatives,
which are at much earlier stages of development and whichhave completed a fraction of the hours of testing that the
LIMPET has undergone.
“The Islay demonstrator unit has more than 65,000 gridconnected turbine hours; a pretty strong number. None of theother technologies have generated energy for longer than a few
weeks and have then been decommissioned or idled,” he says.

300
kilowatts

Such exhaustive and lengthy testing and operation results invery high reliability. The turbine, which uses the action of the
waves to push and pull air through turbines, is simple, with
one moving part, no gearbox, no contact with water and awide operating range. “It can be built into breakwaters or new
harbor walls, which makes the plant easily accessible,”
explains Seed. “It also keeps operation and maintenancecosts low and resolves the accessibility problem other similarsolutions pose.”
The design of the unit has been upgraded since the initialinstallation to improve the aerodynamics of the turbine, theT E C H N O L O G Y | 29

High availability
Availability, the amount of time the device is operational, is animpressive 98 percent (whole year 2010). Such a high number
will reassure potential investors in the technology as they will
be able to create viable investment models based on
demonstrable guarantees. “The availability number isimportant for investors, and we are confident we can deliverthat with the commercial projects.”
The Mutriku project has helped Voith Hydro find ways toreduce costs from the first iteration in Scotland. “We’ve used
our experience to engage in value engineering. We decided
to put a large safety margin into thefirst machines to be sure they would“We see these as
stepping stonesdeliver long-term operations in all sea
toward larger projects
conditions including heavy storms,”
in the order of more
Seed explains. “Having learned morethan 100 MW– enough to coverabout the loads on the units, we’ve
the requirements ofnow been able to scale some of thistens of thousands
safety margin back to save costs. Weof households.”
also expect scale effects to apply. The
Dr. Jochen Weilepp
costs of concrete structures are, to alarge extent, fixed, and being able to distribute the costs overmore turbines reduces the cost per kilowatt hour.” Seedbelieves the technology has the potential to be extended
beyond near-shore applications as well. “It could be
implemented in floating offshore structures and has thepotential for utility scale projects.”
Tidal currents
In addition to the progress made with wave power, Voith ispioneering a second technology – the conversion of kinetic
energy contained in tidal flows.
Part of a joint venture formed in 2006 with Korean partner
Renetec, the first 110 kW demonstrator unit is now beingcommissioned. It represents the first important step towardthe 200 MW Sea Turtle Tidal Park, currently under developmentin the Jeollanam-do Province in South Korea. Voith Hydrodeveloped and built the demonstrator unit at its headquarters
30 | HyPowerin Heidenheim, and while it was transported to Korea in 2009,
delays with the installation of a sea cable, beyond the control
of Voith, put the installation of the device back to 2011.
Despite these setbacks, the unit has now been successfully
installed and commissioned.
“The technology is focusing on intrinsic simplicity, and,ideally, no maintenance will be necessary,” explains Dr.
Jochen Weilepp, Managing Director of Voith Hydro Ocean
Current Technologies. “We needed a turbine concept that
could work flexibly with two flow directions, without any
adjustment, and we abandoned the idea of dynamic seals forthe generator: the water just passes through the generatorwater gap. Moreover, we chose a design that allows forseawater lubrication – no oil or grease is needed. First test
runs showed brilliant results, which meet all theoretical
expectations,” he says positively.
“We will test it for another six months to see how thetechnologies work. We see these as stepping stones toward
larger projects in the order of more than 100 MW – enoughto cover the annual power requirements of tens of thousandsof households,” Weilepp concludes.
Enormous potential
When the project off the coast of the Jeollanam-do Province
is complete at the fully installed 150 MW, it will be the world’s
largest tidal current power park. Testing the full-size units
intensely represents an essential step toward a fullcommercialization of the technology. Voith has reserved aConsistently improving performance levels
Availability of Mutriku test machine
100

90%

80
64%

93%

96%

98%

2009

2010

70%

60
40
20
0

2005

2006

2007

2008

Source: Voith Hydro

efficiency of the turbine blades and to cut parasitic losses.
The modifications have boosted efficiency by more than 25
percent, adds Seed. “That’s a really big step and is driving
down the cost per kilowatt.”

TOTA L P O W E R O U T P U T ( W H E N F I N A L I Z E D )Sea Turtle Tidal Park
South Korea

150
megawatts

berth at the European Marine Energy Centre, on the Scottish
island of Orkney, and plans to install a 1 MW plant there by
the end of 2012. The first fully commercial deployments
should happen in 2014-15. An additional aim, says Weilepp,is “to get the cost curves down and to gain the trust of
potential investors.” Then, the firm can look at new projects
and at extending the reach of the technology.
Although the potential application of tidal current poweris smaller globally than that of wave power, owing to the needfor specific locations where tidal currents are strong andconditions are suitable, its advantage is high predictability:“You can calculate thousands of years in advance when it willproduce electricity,” Dr. Weilepp confirms.
The potential to deploy both of Voith’s technologies – forwave and tidal current power – in countries blessed with theright marine resources is as great as the energy potential of theoceans is enormous. Around 15 percent of the world’s energy
demand could be met through the use of wave, tidal or ocean
current power, according to the World Energy Council. The
UK’s Carbon Trust predicts these resources could supply

around 20 percent of the nation’s energy demand, for instance.
But these are still early days for a sector that is at a muchearlier stage of development than other forms of renewableenergy generation, cautions Dr. Weilepp. “With wave andtidal, the industry is 20-25 years behind wind in terms ofdevelopment, and we are at least 100-200 GW behind interms of global installation. Technical convergence is not yet
happening in terms of devices, as we are seeing totallydifferent approaches being taken.”
While other challenges remain, not least the need forcountries to finance and build the grid infrastructure required
to transfer the electricity that is generated, the marine energy
sector stands to benefit from some of the synergies andtechnologies the onshore and offshore wind industries havealready developed.
There is little doubt that the will exists to tap the ocean’svast reserves of energy as part of the global bid to securesustainable sources of power generation, Dr. Weilepp says.
“In time, ocean energy will be as important as wind energy.
These are not competing technologies. We need them all.”T E C H N O L O G Y | 31

THE LONG V IEWWhat does the
Mr. Rubin, please tell us more
about your predictions that highoil prices will cause people tomove back to the cities and begin
to produce and consume locallybecause transport costs will be
prohibitively expensive.
The way that we’ve organized our
economy today is a model based on
low oil prices. When prices reach $200
a barrel, as I predict, people will beforced to understand that distancecosts money. The whole idea of having
your factory halfway around the worldfrom where you sell goods will quickly
become a bad bet. We’ll see a major
restructuring in society as soon as theprices are too painful to continue
avoiding the switch, or as soon as
another recession hits. I think that by
the end of 2011, we’ll have a newworld record for the price of oil. The
current record is $147 a barrel. The
only thing that stands in the way of$200-per-barrel oil is another recession.
Tour me through the suburb of
tomorrow in a Western country.
There are hardly any sidewalks forwalking or biking. Mass transit isbasically non-existent?
Maybe down the road the suburb you
describe simply won’t exist anymore.
We’re going to see increasing urban
density as the counterpoint to past
suburban sprawl. In time, cities
in North America will

Illustration: Bernd Schifferdecker

Former economist Jeff Rubin is the author of the book
Why Your World is About to Get a Whole Lot Smaller:
Oil and the End of Globalization. We talk to him about
how rising oil prices will transform the way people live
in developed countries and what it means for the futureof the energy industry.

“We must re-engineer our lives toadapt to the contours of a muchsmaller world,” says Rubin.

future hold?
develop a public transit infrastructure
like that of cities in western Europe. In
addition, places like Canada and theUnited States are going to have to
become a lot more self-sufficient infood. In the world I’m describing, foodprices will go up rapidly, maybe evenmore rapidly than oil prices. And all ofa sudden, it’s going to be a lot more
economically viable to convert thatsprawling, now-abandoned suburb
back into farmland.
How fast might this happen?
Within the next five years, people may
begin to abandon the suburbs. Prices
are the messengers of the economy.
Prices are going to tell you what to do.
When oil is $200 a barrel, certain things
are no longer economically possible
and other things – like solar, wind orhydro power – become more economically
viable. Living in those far-flung suburbs
and having fresh tangerines in the
middle of February won’t be an option
any more. Things will change very, very
quickly, and the change will bepermanent. We’re not going back to aworld of cheap oil.
In your book, you discuss positivechanges, too. What do you foresee?
I expect to see the return of long-lostmanufacturing jobs back to developed
economies. We thought that these jobs
were gone forever. But you won’t haveto compete head on with the wages ofworkers in China and India to keep yourfactory. For a number of regions, that’s
a much brighter future. I also expect
the revitalization of domestic agriculture– a rebirth of farming. And because
production and consumption are going

to be more local, we’ll see far greater
differentiation in consumer tastes. Callit a renaissance of local and regional
culture, if you will. Within the global
economy, we just made one productthat was sold everywhere in the world.
Coffee tasted the same in Tokyo in
Frankfurt or in Cincinnati. But local
tastes and preferences will come backto the fore. In fact, your major comparative advantage as a producer will

viewed from an economic standpoint.
Biomass, solar, wind and hydro power
will play a much greater role in theenergy supply.
Where is this all heading?
The only answer is conservation. Higher
prices must ultimately compel us to use
less energy – in cars, in homes and in
production. What really makes countries
like Denmark green is not so much that“As all energy prices rise,
more money will be invested
in alternative energy.”
once again be your proximity to andknowledge of your local customer.
That’s certainly a different model ofdoing business than we know today.
Are there any other positive points?
Whether we want to or not, we will
have a considerably greener society
and a much greener economy. People
don’t say it, but the best way to reduce
emissions is a recession. When theeconomy is not growing, neither are
emissions. And certainly in the worldof triple-digit oil prices, the global
economy is not going to be growing atfour to five percent, particularly global
industrial production in smog-emitting
places like India and China.
What does this mean foralternative energy?
As all energy prices rise, more money
will be invested in alternative energy,
which will be increasingly viable as

it gets 20 percent of its power fromwind, but rather that power costs 30
cents per kilowatt hour. People in
Copenhagen use a fraction of thepower that people use in Toronto.
When prices accurately reflect thelimited supply of energy that we have,people will finally be forced to wean
themselves off energy consumption.
And, in the process, they may enjoy asimpler, stiller life in cities that are notenergy wastelands but hubs ofcreativity and community.
Jeff Rubin is the former
chief economist at leading
Canadian investment bank
CIBC World Markets.
He was one of the firsteconomists to successfully
predict the huge rise in oil
prices in 2000. Since leaving CIBC in 2009,he has turned his attentions to writing andas well as his recent book, he is also a
regular blogger.
> www.jeffrubinssmallerworld.com

T H E L O N G V I E W | 33

CURRENTS

Alternating views“I grew up aroundthe ocean with a concern
for the environment.”“What still excites meis that I can’t say
I know everything.”

Maila Sepri, Resource Analyst, Ocean Current Technologies

Otto Kienle, Head of Commissioning Field Service

American Maila Sepri is a newcomer to Voith Hydro and is bristling with ideas,
while Otto Kienle is one of the company’s most experienced and knowledgeable
employees. Together, they bring different perspectives to the industry.
Why did you decide to work in hydro power?
I met a Voith representative at a job fair during my graduate
studies. I was already studying wave energy as a renewable
resource, but hadn’t yet decided to work in hydro power. I
really wanted to try working abroad, and I was lucky to finda job related to my studies.
What is your defining impression of the industry?
The challenges we face during construction work in harshconditions offshore. Tidal energy sites usually lie in locations
attacked simultaneously by various extreme conditions. Thismeans operations have to be quick and efficient, but can be
expensive. The future of the industry hinges on resolving
those challenges effectively.
What particularly excites you abouthydro power?
I grew up around the ocean in an area of
sensitive environmental habitats, andwith a concern for the environment. A
professor of mine once pointed out thesense of striving for self-sustainability inpower, based on resources available
locally; even comparably small sources of energy can beused to contribute to a sustainable energy balance.
What might be the next big technological advancement?
Any progress to minimize the need for maintenance andinstallation costs of instruments and structures in remotemarine locations will carry large benefits.
34 | HyPowerWhy did you decide to work in hydro power?
A friend of mine asked if I was interested in joining Voith
because it was very interesting in his department. It wasn’t
just design, it was the overall package of the system. It wasa very exciting time to join the company because we did thecalculations, then the manufacturing, then we tested theequipment and also went out for the commissioning
What is your defining impressionof the industry?
My first big job in the office, in theengineering department. 1973 was thetime for changing from the mechanicalgovernor to the electronic governor – ananalog governor. This was the time I
started my career, and I was able to
make this step from mechanical to electronic output. Key was
the development of the moving coil – it was a real breakthrough.
What particularly excites you about hydro power?
What still excites me is that I can’t say I know everything. Eachday is a new challenge. We have so many different power
stations, especially in our business. We have different projects,
and each project is different from another. It’s certainly not boring!
What might be the next big technological advancement?
Our target is higher turbine efficiency, though we are nearsaturation, and higher efficiency for generators. I think the next
big step forward is likely to be on the electronic/digital systems
side, in automation or sensors. This will be the future.

FROM THE INSIDE

Guangzhou, China
Facts
Power

2,400 MW

Turbines

Construction time

8 x 300 MW
pump-turbineunits
11 years

Take a look from the outside > page 2

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