# AES Corporation

New Source Performance Standards

May 13, 2014

# • **Introduction to**  **AES** • **Proposed NSPS for GHGs, Issues for Consideration** • **Electrical sy stem**  **need for flexibility** • **Market’ s need for standardization**  

# Agenda

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# The **AES Corporation**

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# • Fortune 200 global power company 

# • Operations in 21 countries on 5 continents 

# • 9 Utilities 

# • 37,761 MW’ s of generation 

# • Serve 1 1 Million customers 

# • 25,000 global workforce Improving lives by delivering safe, reliable and sustainable energy in every market we serve.**Ma y 13, 2014**  **3**  2,010 MW o f gas fired utility boiler steam generation  ~10% capacity factor and 75% service factor  2013 – 1,340 lb CO 2 / MW h

**Al amitos**   452 MW o f gas fired utility boiler steam generation  290 MV

AR from synchronous condensers  ~20% capacity factor and 80% service factor  2013 - 1,290 lb CO 2 / MW h

- 430 MW + 290 MV

AR **Huntington Beach**   1,356 MW o f gas fired utility boiler steam generation  ~5% capacity factor and 40% service factor  2013 – 1,650 lb CO 2 / MW h

**Redondo Beach** 

### • **3,818 MW of c**  **ritical generation in W estern Los**  **An geles**  **Reliability Ar** **ea** • **AE S**  **acquired the plants from Southern California Edison in 1998** • Commercial operations commenced betw een 1942 - 1969 • **Once -**  **through ocean cooling compliance date of 2020 for all units** • Phased repow ering plan w ith natural gas fired CCGT s 

# AES Southland **- California** 

##  **Load follow ing**  **natural gas combined cy**  **cle pow er**  **plants** • “flexible resources with the right operational characteristics in the right location”  **Consistent rule referenced**  **to standard set of conditions**  • Ef ficiency and output dependent on ambient conditions • Consideration of environmental constraints • Tu rbine degradation and size 

# Proposed **NSPS for GHGs Issues for Consideration** 

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### Regional and Local Electricity Markets and Systems **are Fundamentally Changing as States and Utilities Mov** **e to Low**  **C arbon Energy Systems** 

**Ma y 13, 2014**  **5**  Mandates Affecting Generation, Tr ansmission and Distribution:  33% RPS requirement by 2020; Legislators discussing increases up to 40% - 50%  CO 2 1990 levels by 2020  80% of 1990 levels by 2050  Utility restrictions on out of State coal fired generation contracts “coal by wire”  Ocean water cooling policy / Once - Through Cooling (OTC) phase - out  Mandates for distributed generation, energy efficiency, demand response  Electrification of transportation and goods movement **California’ s**  **Green Energy O**  **bjectives**

 Increase in renewable resources and other loading order products changing system dynamics  Transmission constrained densely populated coastal regions  OTC replacement generation required to support local reliability  End of nuclear: SONGS (2,250 MW ) 2012, Diablo Canyon (2,200) 2025??  Load characteristics shifting from industrial demandto residential and transportation **Need for Sy stem**  **and Local Reliability**  **In California long**  **- term pow**  **er generation requirements can be characterized**  **by t**  **ension between**  **green energy g**  **oals and objectiv es and the need for sy** **stem reliability** 



### Existing infrastructure w **ill not support or enable the desired future resource mix and demand**

## California’ **s Need for Generation Flexibility**  **Starts in 2015**

**Ma y 13, 2014**  **6** Source: California Independent System Operator, 2013

# CAISO **Actual Net Load**  **May 1**  **2, 2014**

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## • **Fast start/stop capability**  • **Fast upw ard**  **or dow nw**  **ard ramp**  • **Maintain heat**  **rate across**  **wi de**  **operating capacity** • **Start and stop multiple**  **times per day**  • **Air cooled, limited wa**  **ter consumption**  • **Noise mitigation in densely**  **populated area** 

# AES CCGT T

**echnology Solution: Ma**  **naging a low** 

**- carbon intensive grid** 

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# Steam cycle design to access **flexibility inherent in gas turbine**   Simple single pressure design  330 MW in 10 minutes  Ramp up: 1 10 MW/minute with entire plant in service  Ramp down: 250 MW/minute from full load  Shutdown: 5 minutes from any condition  Sacrifice heat rate to optimize flexibility

# CCGT designed for operational objective

**Ma y 13, 2014**  **10 FP**  **-1 0 v**  **s 3x1 M SG**  **v s LM**  **S 1 00** 

7, 000 7, 500 8, 000 8, 500 9, 000 9, 500

0 100, 000 200, 000 300, 000 400, 000 500, 000 600, 000 **Ne t**  **Si te**  **Out put**  **, k W** **N e** **t S** **i t** **e H** **e a** **t R** **a t** **e (** **L H** **V )** **, B** **T U** **/ k** **W -** **h r**  FP -10 3x 1 MSG LM S 1 00



### Projected Dispatch Range 1 

### ISO **Conditions New**  **a nd clean**  **1,000 lb CO**  **2 /**  **MWh**

### • **Flexible and state -**  **of -**  **the art natural gas combined cycle pow er stations best fit**  **for future grid** • **Heat rate impacted by:** • Multiple starts/stops per day • Need for voltage regulation and w here unit is “parked” by ISO • Tu rbine degradation • Cooling technology • Ambient conditions 

## • **AES Huntington Beach CCGT net**  **GHG emission rate**  **1,054 lb CO 2**  

## / **MWh for projected**  **operating profile**  **under site specific conditions**  • **Smaller and more nimble CCGT s w**  **ill be the foundation**  **for greater RPS resulting in less total carbon mass emissions**  • **California, Oregon and W ashington hav** **e set performance standard at 1,100**  **lb/ MWh**  **for plants operating at greater than 60% capacity**  

# NSPS should **recognize paradigm shift** 

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##  **Exempt intermediate load**  **- follow**  **ing natural**  **gas combined cy cle** 

**generation below** **a n annual capacity**  **factor less than 60%**   **In the alternative, set the performance**  **standard at 1,100**  **lb CO 2**  

## / **MWh**  **Performance standard**  **referenced to standard**  **conditions** • Cooling technology • Site constraints impacting heat rate • Correction for ambient conditions 

# Recommendations **for a revised NSPS**

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