Establishing a UK Supply Chain RWE and RegenSW v01
Establishing a UK Supply Chain John F Hill GE Power Conversion regenSW RWE Offshore Supply Chain Event Exeter 2012
Copyright Statement ©COPYRIGHT 2010-2012 GE ENERGY (USA), LLC AND/OR ITS AFFILIATES. All rights reserved. The information contained herein is GE Energy Proprietary Technical Information that belongs to the General Electric Company, GE Energy (USA), LLC and/or their affiliates, which has been provided solely for the express reason of restricted private use. All persons, firms, or corporations who receive such information shall be deemed by the act of their receiving the same to have agreed to make no duplication, or other disclosure, or use whatsoever for any, or all such information except as expressly authorized in writing by the General Electric Company, GE Energy (USA), LLC and/or its affiliates.
2
Class I (Public)
GE Power Conversion regenSW RWE Offshore Supply Chain Event John F Hill, version 01, Nov12
Wind Supplier – Tier One • The opportunity – Just how big? • The company – A capability to match the curve • The offer – Capital equipment in product volumes • The plan – Growth founded on innovation 3
Class I (Public)
GE Power Conversion regenSW RWE Offshore Supply Chain Event John F Hill, version 01, Nov12
Challenging sector backdrop There is no UK, utility scale turbine maker… yet. Tier Three
Tier Two
A UK onshore maker is unlikely. There are a dozen offshore contenders. Who will survive?
Tier One
Turbine Maker
4
Class I (Public)
GE Power Conversion regenSW RWE Offshore Supply Chain Event John F Hill, version 01, Nov12
UK is good at difficult things Wind has unique economic, quality and reliability requirements Pin Ventilated™ Laminations GE Power Conversion patented technology
UK heritage and future - the solutions to uncomfortable, urgent needs 5
Class I (Public)
GE Power Conversion regenSW RWE Offshore Supply Chain Event John F Hill, version 01, Nov12
The UK power station update FACT 1 – This generating capacity is being retired between now and 2030 DECC Electricity Market Reform Analysis, courtesy: Redpoint Energy Ltd
6
Class I (Public)
GE Power Conversion regenSW RWE Offshore Supply Chain Event John F Hill, version 01, Nov12
The UK power station update FACT 2 –Wind energy is crucial to the 2020 mix EU national energy targets courtesy: European Commission EuroStat
Technology operational, fuel supply secured, and offshore wind generally welcomed 7
Class I (Public)
GE Power Conversion regenSW RWE Offshore Supply Chain Event John F Hill, version 01, Nov12
Joining the supply chain Map Crown Copyright
FACT 3 Z1 Z2 Z3 Z4 Z9 Z5 Z6 Z8 Z7
Aberdeen
Moray Firth Firth of Forth Dogger Bank Hornsea Irish Sea Norfolk Hastings Bristol Channel Isle of Wight
Fife Tyneside Teesside Humber Great Yarmouth
Investment already started
Sheerness 8
Class I (Public)
GE Power Conversion regenSW RWE Offshore Supply Chain Event John F Hill, version 01, Nov12
The shape of the segment Rationally, government concludes that wind offers over 30% of 2020 3MW Direct Drive Permanent Magnet Generator
Technology operational, fuel supply secured, and offshore wind generally welcomed
9
Class I (Public)
GE Power Conversion regenSW RWE Offshore Supply Chain Event John F Hill, version 01, Nov12
Wind Supplier – Tier One • The opportunity – Just how big? • The company – A capability to match the curve • The offer – Capital equipment in product volumes • The plan – Growth founded on innovation 10
Class I (Public)
GE Power Conversion regenSW RWE Offshore Supply Chain Event John F Hill, version 01, Nov12
GE Energy Management
11
Class I (Public)
GE Power Conversion regenSW RWE Offshore Supply Chain Event John F Hill, version 01, Nov12
Global footprint Operating in over 80 countries
5,600 employees
Local presence in 19 countries, with 12 engineering centers and 45 regional business centers 8 converter factories, GE Power Conversion 3 electrical machines factories regenSW RWE Offshore Supply Chain Event Class I (Public) John F Hill, version 01, Nov12
12
UK capability
Glasgow, Scotland Low to Medium Voltage Converters and Switchgear
Rugby, Warwickshire System Design & Project Management
Kidsgrove, Staffordshire Low Voltage Wind Converters
Rugby, Warwickshire Generators and Motors 13
Class I (Public)
GE Power Conversion regenSW RWE Offshore Supply Chain Event John F Hill, version 01, Nov12
Renewables Onshore wind • Wind turbine drive train • Power quality
Offshore wind
Offshore • Turbine driveWind train • Wind farm architecture and power quality
Solar PV • Photovoltaics farms Solar P (>500kW, architecture and power quality)
Wet renewables • Tidal/current/wave farm architecture and power quality
Our offering • Wind converters (for doubly fed, full power) • Generators (Permanent magnet generators, direct drive, hybrid and standard speed) • Solar inverters • Power conditioning systems (grid compliance) • Power collection and farm level architecture • Marinised solutions (Wet)
14
Class I (Public)
GE Power Conversion regenSW RWE Offshore Supply Chain Event John F Hill, version 01, Nov12
Committed to helping our planet
Green energy • Leading supplier of power converters and generators for wind, solar and wet renewables: around 26 GW of converters installed • Key player in high power renewable solutions to accelerate costeffectiveness vs. fossil fuel generation
Green technologies • Innovative motors and variable speed drives, able to reduce power consumption by 30% vs. fixed speed • Key player in high speed motors as an environmentally friendly replacement for gas turbines in O&G
CO2free base load generation • Supplier of electrical machines and variable speed drives for CO2 emissions-free base load generation • Active in nuclear fusion with leading edge power supply systems.
15
Class I (Public)
GE Power Conversion regenSW RWE Offshore Supply Chain Event John F Hill, version 01, Nov12
Services Spare parts and repairs • Spare parts availability • Obsolescence management • Component repairs and rotating machine refurbishment
Our offering
Field services
•45 Regional Business Centers to support global customers
• Installation, commissioning and start-up • Maintenance, technical assistance and expert support • Training services
Revamping/upgrades
•Full range of lifecycle services for entire offering
•Risk management: from preventive maintenance to safe modernization and upgrades
• Life extension projects • Performance improvement • Capacity upgrades
Long term service agreements • From basic time and material to performance based contracts Long Term Service and Agreement • Remote monitoring diagnostics (VISOR) • Fleet management (Marine, Offshore, Navy) 16
Class I (Public)
GE Power Conversion regenSW RWE Offshore Supply Chain Event John F Hill, version 01, Nov12
Wind Supplier – Tier One • The opportunity – Just how big? • The company – A capability to match the curve • The offer – Capital equipment in product volumes • The plan – Growth founded on innovation 17
Class I (Public)
GE Power Conversion regenSW RWE Offshore Supply Chain Event John F Hill, version 01, Nov12
GE Power Conversion We're applying the science and systems of power conversion to help drive the electric transformation of the world's energy infrastructure. Class I (Public)
18 GE Power Conversion 18 regenSW GE Proprietary Information RWE Offshore Supply Chain Event GE © 2012 – All Rights Reserved John F Hill, version 01, Nov12
Innovation is our DNA • More than 2000 engineers and R&D associates • Collaborating with GE Global Research Labs to advance fundamental power conversion technologies • Pioneering developments in superconductivity, energy storage, subsea power systems, high-speed motors, permanent magnet generators, and HVDC systems
SiC Power Devices High Temperature Superconductor Machine
Power supply for one of the leading global particle physics centres
Class I (Public)
Ultra-High Energy Density Battery 19 GE Power Conversion regenSW RWE Offshore Supply Chain Event John F Hill, version 01, Nov12
Complete solution offering + Mechanical equipment
Electrical machines
+ Variable speed drives
Automation and control
Electrical grid
• Continuously advancing technology in critical components • Helping to optimize the whole system architecture • Mastering interfaces
20
Class I (Public)
GE Power Conversion regenSW RWE Offshore Supply Chain Event John F Hill, version 01, Nov12
The converter product
Grid power production in a modern variable speed wind turbine 3.6MW Liquid Cooled Delta Fully Rated LV power converter
1.5MW Liquid Cooled Delta Doubly Fed LV power converter 21
Class I (Public)
GE Power Conversion regenSW RWE Offshore Supply Chain Event John F Hill, version 01, Nov12
The converter product
The ability to scale up wind 8MW MV7000 Medium Voltage power converter
22
Class I (Public)
GE Power Conversion regenSW RWE Offshore Supply Chain Event John F Hill, version 01, Nov12
The generator product
The Permanent Magnet Generator Hybrid (Intermediate Speed ) PMG Housed and integrated with a planetary gearbox
23
Class I (Public)
GE Power Conversion regenSW RWE Offshore Supply Chain Event John F Hill, version 01, Nov12
The generator product
Class I (Public)
24 GE Power Conversion 24 regenSW GE Proprietary Information RWE Offshore Supply Chain Event GE © 2012 – All Rights Reserved John F Hill, version 01, Nov12
The fully DC architecture P L C
AUX
MAIN
Low Mass DC turbine (Active Stator)
LUBE
KEY:
Fully protected DC wind farm RED BLUE -
APC OTHER SUPPLY, FREE ISSUE TO APC BLACK - OTHER SUPPLY
HVDC multi-terminal transmission network P L C
Power collection efficiency System stability €
KEY RATING DATA
C O C O NT N T R R O OL L
x
AUX DISTN
AUX DISTRIBUTION
U P S
HVDC SOCKET
25
Class I (Public)
GE Power Conversion regenSW RWE Offshore Supply Chain Event John F Hill, version 01, Nov12
Wind Supplier – Tier One • The opportunity – Just how big? • The company – A capability to match the curve • The offer – Capital equipment in product volumes • The plan – Growth founded on innovation 26
Class I (Public)
GE Power Conversion regenSW RWE Offshore Supply Chain Event John F Hill, version 01, Nov12
Joining the supply chain
A measure of the impact of economic uncertainty 12
UK take-up of this opportunity has been slow
Forecast EU deployments 10
Annual Deployment Capacity (GW)
Source: BVG Associates report for The Crown Estate Q2/09
Manufacturing capacity w ith long term industry confidence Manufacturing capacity w ithout long term industry confidence
8
6
4
2
0 2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
27
Class I (Public)
GE Power Conversion regenSW RWE Offshore Supply Chain Event John F Hill, version 01, Nov12
GE Energy Management – a partner Who we are
What we do
• Deep heritage dating back to 1899
Generate Transform
• ~$7B business
Convert
• 60% global
Transmit
• ~27,000 employees
Distribute
• ~4,000 engineers
Protect
• Programs ~5% of sales
Sense
• $4B+ of new capital deployed… 14 acquisitions and JV’s
Control Create mechanical motion
Assembling and scaling a competitive business 28
Class I (Public)
GE Power Conversion regenSW RWE Offshore Supply Chain Event John F Hill, version 01, Nov12
Joining the supply chain
Even investing in the technology after next High Temperature Superconducting Rotor GE Energy Power Conversion, Advanced Technology Group
The world’s first High Temperature Superconducting Renewable Energy generator 29
Class I (Public)
GE Power Conversion regenSW RWE Offshore Supply Chain Event John F Hill, version 01, Nov12
Energy
Class I (Public)
30 GE Power Conversion 30 regenSW GE Proprietary Information RWE Offshore Supply Chain Event GE © 2012 – All Rights Reserved John F Hill, version 01, Nov12
Copyright Statement ©COPYRIGHT 2010-2012 GE ENERGY (USA), LLC AND/OR ITS AFFILIATES. All rights reserved. The information contained herein is GE Energy Proprietary Technical Information that belongs to the General Electric Company, GE Energy (USA), LLC and/or their affiliates, which has been provided solely for the express reason of restricted private use. All persons, firms, or corporations who receive such information shall be deemed by the act of their receiving the same to have agreed to make no duplication, or other disclosure, or use whatsoever for any, or all such information except as expressly authorized in writing by the General Electric Company, GE Energy (USA), LLC and/or its affiliates.
2
Class I (Public)
GE Power Conversion regenSW RWE Offshore Supply Chain Event John F Hill, version 01, Nov12
Wind Supplier – Tier One • The opportunity – Just how big? • The company – A capability to match the curve • The offer – Capital equipment in product volumes • The plan – Growth founded on innovation 3
Class I (Public)
GE Power Conversion regenSW RWE Offshore Supply Chain Event John F Hill, version 01, Nov12
Challenging sector backdrop There is no UK, utility scale turbine maker… yet. Tier Three
Tier Two
A UK onshore maker is unlikely. There are a dozen offshore contenders. Who will survive?
Tier One
Turbine Maker
4
Class I (Public)
GE Power Conversion regenSW RWE Offshore Supply Chain Event John F Hill, version 01, Nov12
UK is good at difficult things Wind has unique economic, quality and reliability requirements Pin Ventilated™ Laminations GE Power Conversion patented technology
UK heritage and future - the solutions to uncomfortable, urgent needs 5
Class I (Public)
GE Power Conversion regenSW RWE Offshore Supply Chain Event John F Hill, version 01, Nov12
The UK power station update FACT 1 – This generating capacity is being retired between now and 2030 DECC Electricity Market Reform Analysis, courtesy: Redpoint Energy Ltd
6
Class I (Public)
GE Power Conversion regenSW RWE Offshore Supply Chain Event John F Hill, version 01, Nov12
The UK power station update FACT 2 –Wind energy is crucial to the 2020 mix EU national energy targets courtesy: European Commission EuroStat
Technology operational, fuel supply secured, and offshore wind generally welcomed 7
Class I (Public)
GE Power Conversion regenSW RWE Offshore Supply Chain Event John F Hill, version 01, Nov12
Joining the supply chain Map Crown Copyright
FACT 3 Z1 Z2 Z3 Z4 Z9 Z5 Z6 Z8 Z7
Aberdeen
Moray Firth Firth of Forth Dogger Bank Hornsea Irish Sea Norfolk Hastings Bristol Channel Isle of Wight
Fife Tyneside Teesside Humber Great Yarmouth
Investment already started
Sheerness 8
Class I (Public)
GE Power Conversion regenSW RWE Offshore Supply Chain Event John F Hill, version 01, Nov12
The shape of the segment Rationally, government concludes that wind offers over 30% of 2020 3MW Direct Drive Permanent Magnet Generator
Technology operational, fuel supply secured, and offshore wind generally welcomed
9
Class I (Public)
GE Power Conversion regenSW RWE Offshore Supply Chain Event John F Hill, version 01, Nov12
Wind Supplier – Tier One • The opportunity – Just how big? • The company – A capability to match the curve • The offer – Capital equipment in product volumes • The plan – Growth founded on innovation 10
Class I (Public)
GE Power Conversion regenSW RWE Offshore Supply Chain Event John F Hill, version 01, Nov12
GE Energy Management
11
Class I (Public)
GE Power Conversion regenSW RWE Offshore Supply Chain Event John F Hill, version 01, Nov12
Global footprint Operating in over 80 countries
5,600 employees
Local presence in 19 countries, with 12 engineering centers and 45 regional business centers 8 converter factories, GE Power Conversion 3 electrical machines factories regenSW RWE Offshore Supply Chain Event Class I (Public) John F Hill, version 01, Nov12
12
UK capability
Glasgow, Scotland Low to Medium Voltage Converters and Switchgear
Rugby, Warwickshire System Design & Project Management
Kidsgrove, Staffordshire Low Voltage Wind Converters
Rugby, Warwickshire Generators and Motors 13
Class I (Public)
GE Power Conversion regenSW RWE Offshore Supply Chain Event John F Hill, version 01, Nov12
Renewables Onshore wind • Wind turbine drive train • Power quality
Offshore wind
Offshore • Turbine driveWind train • Wind farm architecture and power quality
Solar PV • Photovoltaics farms Solar P (>500kW, architecture and power quality)
Wet renewables • Tidal/current/wave farm architecture and power quality
Our offering • Wind converters (for doubly fed, full power) • Generators (Permanent magnet generators, direct drive, hybrid and standard speed) • Solar inverters • Power conditioning systems (grid compliance) • Power collection and farm level architecture • Marinised solutions (Wet)
14
Class I (Public)
GE Power Conversion regenSW RWE Offshore Supply Chain Event John F Hill, version 01, Nov12
Committed to helping our planet
Green energy • Leading supplier of power converters and generators for wind, solar and wet renewables: around 26 GW of converters installed • Key player in high power renewable solutions to accelerate costeffectiveness vs. fossil fuel generation
Green technologies • Innovative motors and variable speed drives, able to reduce power consumption by 30% vs. fixed speed • Key player in high speed motors as an environmentally friendly replacement for gas turbines in O&G
CO2free base load generation • Supplier of electrical machines and variable speed drives for CO2 emissions-free base load generation • Active in nuclear fusion with leading edge power supply systems.
15
Class I (Public)
GE Power Conversion regenSW RWE Offshore Supply Chain Event John F Hill, version 01, Nov12
Services Spare parts and repairs • Spare parts availability • Obsolescence management • Component repairs and rotating machine refurbishment
Our offering
Field services
•45 Regional Business Centers to support global customers
• Installation, commissioning and start-up • Maintenance, technical assistance and expert support • Training services
Revamping/upgrades
•Full range of lifecycle services for entire offering
•Risk management: from preventive maintenance to safe modernization and upgrades
• Life extension projects • Performance improvement • Capacity upgrades
Long term service agreements • From basic time and material to performance based contracts Long Term Service and Agreement • Remote monitoring diagnostics (VISOR) • Fleet management (Marine, Offshore, Navy) 16
Class I (Public)
GE Power Conversion regenSW RWE Offshore Supply Chain Event John F Hill, version 01, Nov12
Wind Supplier – Tier One • The opportunity – Just how big? • The company – A capability to match the curve • The offer – Capital equipment in product volumes • The plan – Growth founded on innovation 17
Class I (Public)
GE Power Conversion regenSW RWE Offshore Supply Chain Event John F Hill, version 01, Nov12
GE Power Conversion We're applying the science and systems of power conversion to help drive the electric transformation of the world's energy infrastructure. Class I (Public)
18 GE Power Conversion 18 regenSW GE Proprietary Information RWE Offshore Supply Chain Event GE © 2012 – All Rights Reserved John F Hill, version 01, Nov12
Innovation is our DNA • More than 2000 engineers and R&D associates • Collaborating with GE Global Research Labs to advance fundamental power conversion technologies • Pioneering developments in superconductivity, energy storage, subsea power systems, high-speed motors, permanent magnet generators, and HVDC systems
SiC Power Devices High Temperature Superconductor Machine
Power supply for one of the leading global particle physics centres
Class I (Public)
Ultra-High Energy Density Battery 19 GE Power Conversion regenSW RWE Offshore Supply Chain Event John F Hill, version 01, Nov12
Complete solution offering + Mechanical equipment
Electrical machines
+ Variable speed drives
Automation and control
Electrical grid
• Continuously advancing technology in critical components • Helping to optimize the whole system architecture • Mastering interfaces
20
Class I (Public)
GE Power Conversion regenSW RWE Offshore Supply Chain Event John F Hill, version 01, Nov12
The converter product
Grid power production in a modern variable speed wind turbine 3.6MW Liquid Cooled Delta Fully Rated LV power converter
1.5MW Liquid Cooled Delta Doubly Fed LV power converter 21
Class I (Public)
GE Power Conversion regenSW RWE Offshore Supply Chain Event John F Hill, version 01, Nov12
The converter product
The ability to scale up wind 8MW MV7000 Medium Voltage power converter
22
Class I (Public)
GE Power Conversion regenSW RWE Offshore Supply Chain Event John F Hill, version 01, Nov12
The generator product
The Permanent Magnet Generator Hybrid (Intermediate Speed ) PMG Housed and integrated with a planetary gearbox
23
Class I (Public)
GE Power Conversion regenSW RWE Offshore Supply Chain Event John F Hill, version 01, Nov12
The generator product
Class I (Public)
24 GE Power Conversion 24 regenSW GE Proprietary Information RWE Offshore Supply Chain Event GE © 2012 – All Rights Reserved John F Hill, version 01, Nov12
The fully DC architecture P L C
AUX
MAIN
Low Mass DC turbine (Active Stator)
LUBE
KEY:
Fully protected DC wind farm RED BLUE -
APC OTHER SUPPLY, FREE ISSUE TO APC BLACK - OTHER SUPPLY
HVDC multi-terminal transmission network P L C
Power collection efficiency System stability €
KEY RATING DATA
C O C O NT N T R R O OL L
x
AUX DISTN
AUX DISTRIBUTION
U P S
HVDC SOCKET
25
Class I (Public)
GE Power Conversion regenSW RWE Offshore Supply Chain Event John F Hill, version 01, Nov12
Wind Supplier – Tier One • The opportunity – Just how big? • The company – A capability to match the curve • The offer – Capital equipment in product volumes • The plan – Growth founded on innovation 26
Class I (Public)
GE Power Conversion regenSW RWE Offshore Supply Chain Event John F Hill, version 01, Nov12
Joining the supply chain
A measure of the impact of economic uncertainty 12
UK take-up of this opportunity has been slow
Forecast EU deployments 10
Annual Deployment Capacity (GW)
Source: BVG Associates report for The Crown Estate Q2/09
Manufacturing capacity w ith long term industry confidence Manufacturing capacity w ithout long term industry confidence
8
6
4
2
0 2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
27
Class I (Public)
GE Power Conversion regenSW RWE Offshore Supply Chain Event John F Hill, version 01, Nov12
GE Energy Management – a partner Who we are
What we do
• Deep heritage dating back to 1899
Generate Transform
• ~$7B business
Convert
• 60% global
Transmit
• ~27,000 employees
Distribute
• ~4,000 engineers
Protect
• Programs ~5% of sales
Sense
• $4B+ of new capital deployed… 14 acquisitions and JV’s
Control Create mechanical motion
Assembling and scaling a competitive business 28
Class I (Public)
GE Power Conversion regenSW RWE Offshore Supply Chain Event John F Hill, version 01, Nov12
Joining the supply chain
Even investing in the technology after next High Temperature Superconducting Rotor GE Energy Power Conversion, Advanced Technology Group
The world’s first High Temperature Superconducting Renewable Energy generator 29
Class I (Public)
GE Power Conversion regenSW RWE Offshore Supply Chain Event John F Hill, version 01, Nov12
Energy
Class I (Public)
30 GE Power Conversion 30 regenSW GE Proprietary Information RWE Offshore Supply Chain Event GE © 2012 – All Rights Reserved John F Hill, version 01, Nov12
