CRDenergy.

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PROTOTYPE FOR ю SPGP PROJECTS

Small Power

Generation

for Industrial Applications Economic and Technical Feasibility Assessment

Small Power Generation Plant

Small Power Generation Plant solution (SPGP) continues to be an important segment of Electrical Energy production. The increasing demand for energy has to be satisfied while considering the impact on the global environment. SPGP plays an important role in industrial applications. Small size cogeneration plants sited close to industrial energy consumption can deliver power with high fuel efficiency and low emissions, and with modest space requirements. CRDenergy can offer to its customers complete solutions from feasibility studies to the actual turnkey cogeneration plant construction, aftermarket services and customized financial solutions. We are using oil and gas industrial port city Port Harcourt city (PH) in Nigeria, African largest economy as a case study, with its complexity, it reflects the shortage of power or barriers and opportunity encountered in every growing economy . Avoiding the structural complexity of building large scale power plant; SPGP offers a flexible, realiable, close to consumer option that can be multipled in multiple units and easily transformed to negbourhood service station in industrial hubs.

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List of contents

1. The CRDenergy Initiative: An Overview

1.1. A small power generation plant Opportunities for PH

2. Energy Situation

3. Project Economic feasibility assessment

4. Project Capital requirement

5. Taxation

6. Financial Source

7. Actual Project cost

8. Annaul cost of runing installation

9. Cost of power generation

10. Revenue, pay back & subside

11. Power Sales Strategies

12. Alternative Power sales Strategies

13. Utility Grid Connection Proximity and Requirements

14. Additional Value Added Benefits

14.a. NERC Generation Tariff Methodology

15. Installation Site

16. Preliminary System Design

17. Plant Operations and Maintenance Cost

18. Project schedule

19. Environmental aspects

20. Electricity Generation License

20.1. Licensing Fees

21. Gas Consumption for SPGP

22. Gas Turbine Principle of Operation

22.1. Classification of Gas turbines

22.2. Types of Gas Turbines

22.3. Chosen Gas Turbine

23. Turbine Control

24. Balance of Plant Equipment

25. Characteristics Duty Long-permissible modes

25.1. Turbogenerator provides stable operation

26. Turbine Generator Excitation System

27. Quality and Warranty

28. Recommendations And Conclusion

29. Technical Recommendations

30. Environmental Recommendations

31. Economical Recommendations

32. Policy Recommendation

33. Diagram of Nigerian National Grid

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1.The CRDenergy Initiative: An Overview A SPGP is powered by gas turbine generator installed on an industrial site for the dual purpose of power generation and electricity reliability. A SPGP is most effective at producing electricity when industries in Port harcourt (PH) industrial hub need it most – for steady, continual productivity, 24hours-365 days. A SPGP can be installed quickly (3 - 6 months construction time), can generate immediate power that will not fluctuate in price, and can provide relief to the energy system during peak demand periods, such as those being experienced in Port harcourt(PH). A SPGP will provide Port harcourt(PH) industries with the opportunity to generate environmentally benign electricity and maintain local control over energy revenues (instead of exporting these funds to non-resident energy providers). CRDenergy has an opportunity to transform these innovative, environmentally benign, and economically viable power generating assets for the energy-stressed industries in Port harcourt(PH) industrial hub. 1.1. A SPGP Opportunities for Port harcourt. CRDenergy has taken the initiative to undertaken a detailed technology and economic feasibility study to determine the viability of developing up to a six megawatt (6+MW) SPGPs at different ports within the City. In addition, with expected continued shortfalls in electricity generation supplies likely, a SPGP could be a cost-effective means of enhancing electricity reliability and reducing electricity price volatility. This study has determined that a A SPGP can be an economically viable option for power production. It can be operate off-grid and runs as neighborhood power station or it can be easily integrated into national grid. 2. Energy Situation Energy prices hit new all time highs in January of 2015. Forecast of electricity demand is much higher than previously analyzied, as a result, retail energy prices are still well over 60% higher than the same period the previous year. In addition to rising energy costs, the scarcity of energy supplies throughout the state have resulted in an unprecedented number of power black out. There are a number of reasons that electricity consumers in PH may continue to experience black out and high energy prices, including: • Electricity demand is forecasted to continue to increase over the next five years in the Rivers

state; • New power plants planned for construction are not expected to keep up with the rising demand for electricity in the PH marketplace;

• The time lag for developing conventional power plants in PH is currently about 2-3 years;

• Nationwide, commodity prices for natural gas continue to increase as demand outstrips

supply;

• There are few available generation sites located near national grid transmission lines within

the state;

The use of Open Cycle Gas Turbine Plant, such as SPGP, can provide a long term solution to these concerns.

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Economic Analysis 3. Project Economic feasibility assessment This assessment was done in a systematic way. This included defining or evaluating the financial requirements of the project or capital investment required, which will be classified into different categories, namely Engineering, Procurement and Construction costs (EPC). Furthermore, the operations and maintenance cost of the SPGP were also taken into consideration. As a measure of its viability several factors were evaluated, namely; the project internal rate of return (IRR), payback period and the overall project net present value (NPV) at the end of the expected Plant life. 4. Project Capital requirement In order to simplify the analysis and as well as to use the standard economic evaluation that is normally done for any power plant, the overall plant capital requirement was determined using the plant capacity first. Hence, the capital requirement for a SPGP as defined in the review, ranges between USD$0.16,1528.00/kW and typically is USD$ 0.18.00/kW from experience. Thus for a 6 MW SPGP the Capital requirement is: Thus the Project total capital requirement is: USD$1,270,000.00. The Capital Requirement will be spread over six construction months, assuming equal investment in both years. 5. Taxation Company tax of 32% and annual depreciation rate of 33.3% as recommended by NERC 6. Financial Source

Amount (NGN)/ Million

1. Capital investment 310,798.00

. 2. Loan 952,500.00

Total cost USD$1,263,298.00

Term of payment & guarantee: Documentary letter of credit / Equity evaluation and Capital investment

on agreement with bank

A further economic evaluation will be undertaken by C&RD to elavuate long term economic

proxies before the implementation of the project;

1. Short term cash flow projection 2. Medium term cash flow projection 3. Funding arrangements 4. Asset base 5. Risk Management Strategy 6. Management experience and dep

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7. Actual Project cost

Amount (NGN)/ Million

1. Complete delivering set of Turbine generator T-6-2U3 air-cooled for

coupling to a steam turbine consisting of Turbo generator with air

cooler, support plate or foundation pins; Mounting accessories and

special tools; Installation materials to the generator; Hardware thermal 395,250.00

control; Cover sound proof; The pumps supplying water to the cooling

. coil; Excitation system

2. Logistic, Engineering and installation (ELSIB Russia experts on site) 34,448.00

3. Installation facility construction 52,000.00

4. Labour, transportation, miscelaneous, etc) 15,800.00

(The total number of employees in SPGP is 6. After the completion of the

new plant, it will keep the same organization. It consists of 2 engineers

. and 2 operators and 1 maintenance workers/transporter.)

5. O&M cost- water, chemicals, lubricants & training expenses 50,000.00

6. Insurance & Licencing 50,000.00

Total cost USD$550,698.00

This cost evaluation is approximated to six months of Engineering, Procurement and Construction

operational period and six months of active service. The SPGP starts generating revenue for operational

purpose after this period, revenue & pay backs and debit servicing will resume with 10 years to 20 years

till 40 years service line of SPGP.

8. Annaul cost of runing installation Amount (NGN)/Million

1. Labour, transportation, miscelaneous, etc) 35,800.00

2. O&M cost- water, chemicals, lubricants & training expenses 30,000.00

3. On average plus/minus cost of gas per annual will be

, 10 000 000m³/ 353 146 667ft³/10000000000L 600 000.00

Total cost USD$ 665,800.00

9. Cost of power generation

Cost of power in nigeria can valued in different catagory depending on your operating license and

distribution limits.

On average USD$0.17per kwh x 100 000 kWh per day average = USD$ 15, 000.00

(OFF GRID/DIRECT BLOCK MONTHLY SALES FOR INDUSTRIAL CATEGORY D2)

Muitply by 356 depends on annual consumption ratio = USD$5,340,000.00 per annual. This evaluation is

made with most minimal 33% power output ratio of 4000 Kwh per hour, actual value may be valued at

4000 kWh power out/ per minute, depending electricity power comsumption.

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On average USD$0.17.00 per kw x 4000 kw = USD$ 560.00/consumption ratio 75%

(GRID CONNECTED TCN SALE FOR INDUSTRIAL CATEGORY D2)

Muitly by minute depends on minute consumption ratio x 60 minutes = USD$ 33,600.00

Muiltply by hour depends on hour consumption ratio x 24 hours = USD$ 6,720.00

Multiply by 356 depends on annual consumption ratio = USD$2,392,320.00

This cost evaluation of this report is base on net minimal of USD$875,000.00 /33% power output ratio

per annual. If we reverse the value for residential category R2 assesment, the value will be half of the

this cost.

The Nigerian Electricity Regulatory Commission, NERC, has put into operation a Multi-Year Tariff Order,

MYTO, for the determination of the cost of electricity sold by distribution/retail companies for the period 1

June 2012 to 31 May 2017.

Consumers are charged in different categories, namely, residential, commercial, industrial, special and

street lighting.

Electricity consumption is measured in kilowatt-hour, kWh, and the energy charge is 2015,

USD$0.17.54, USD$0.17.24 per kWh in 2015 – 2016 and USD$0.16.13 in 2016 – 2017.

For PH Disco, the fixed monthly charge for industrial category D2 energy charge is USD$0.17 per kWh

in 2015 – 2016 and USD$0.15.39 per kWh in 2016 – 2017.

10. Revenue, pay back & subside

Total cost of investment USD$597,498.00 .

. Annaul cost of runing installation USD$665,800.00.

. Annual revenue generated USD$1,750,000.00

. Annual dividend USD$500,000.00

. Annual debt servicing/pay back USD$250,000.00

Economic Incentives The following sections detail the economic incentives available to increase the economic potential of the proposed SPGP system options. It should be noted that the availability and applicability of these incentives varies, and therefore a range of financial impacts is presented. 11.Power Sales Strategies This project is typically tailored for industrial customers that will purchases the output of the proposed SPGP, definitely the will experience an annual decrease in their utility bills, stability and non interrupted power flow. We evaluated different approach to transmitting electricity power to the industrial consumers.

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First approach, a direct sales strategy; with an NERC license to sale and NERC conditions met on transmission regulation, wiring, tec., SPGP operators will contract industries within her facility to deliver power utility directly to the industries. A uniform agreement should be drawn in line with NERC Multi-Year Tariff Order and tailored options will be considered in selling power blocks of 1000kWh per month (just under 15% of average industrial usage), the incremental cost on the consumers utility bill would be ~USD$100.00 per month. Further studies will be undertaken to evaluate procurement and installation of commercially sound metering, billing and collections by the utility (including the ability to disconnect customers who default on payments). Another alternative considered under the sales options was direct sales to industrial power marketers. While this scenario may warrant further evaluation, CRDenergy contacted several power marketers operating in Nigeria to determine their interest in purchasing electricity power resources from an independent SPGP. While all were interested in purchasing electricity power (since few industrial power marketers have any SPGP in their resource portfolios), none were willing to pay more than 10 cents/kWh. Selling directly into the industrial consumer or power marketers would be a high risk option, especially if future energy prices were to drop below the USD$0.34/kWh level; prices below this level would result in negative cash flow for the plant and would not accrue sufficient revenues to meet the finance payment requirement. In addition, selling into the market reduces one of the major benefits provided by electricity power - price stability. 12. Alternative Power sales Strategies SPGP operators may also want to consider the option of selling the output of the SPGP directly into the Power grid. While current market conditions indicate that selling the power directly into the Power grid may result in immediate profits and positive cash flow, the future of the PH electricity market is highly uncertain and extreme volatility in energy prices may continue to exist. The energy from a SPGP can be sold at fixed prices under long-term contracts. Fixed price long-term contracts are the lowest risk option since they guarantee a positive revenue stream from energy sales. This strategy also provides advantages to the customer by providing a long-term hedge against future price volatility - a value-added benefit in addition to any energy price savings resulting from the long- term fixed price contract. Under any of the direct sales strategies that require transmitting power through the grid, additional costs will be incurred for these sales including, but not limited to, power scheduling and transmission wheeling charges, administrative costs, and transaction costs. Discussions should be initiated with NERC to determine the amount of these additional costs if direct sales strategies are pursued. On the role of the Nigerian Bulk Electricity Trading Plc (NBET) established protocol in developing a model Power Purchase Agreement (PPA) for the IPP such that it is able to shore up credit enhancements provided through the Federal Ministry of Finance will ease investors’ consideration of the “project finance” option in investing in the sector. CRDenergy may pursuant to a 20-year power purchase agreement, sell the electric power generated at its power plant to NBET. NBET will make monthly capacity payments reflecting capital, equity return, and fixed operation and maintenance costs plus monthly energy payments reflecting a pass-through of fuel costs and variable operation and maintenance expenses in respect of energy delivered.

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13. Utility Grid Connection Proximity and Requirements An engineering feasibility study will be required by Transmission Company of Nigeria (TCN) & Nigerian Electricity Regulatory Commission (NERC) to determine interconnection requirements and line load capacity. SPGP facilities will be required to meet NERC standard interconnection requirements to tie-in to its transmission and distribution system. In addition, NERC will need to conduct analyses of each of the potential tie-in points to determine if the transmission or distribution line can accommodate the addition of up to 6 MW of capacity on these lines from the SPGP. At the completion of its study, NERC will provide the SPGP with tie-in and hook-up requirements and fees, detailed interconnection requirements, and the hourly availability and cost of reserving capacity on the line. It is recommended that the CRDenergy immediately proceed with the NERC studies for each of the proposed site options as soon as the system design parameters are finalized. A copy of the interconnection application form and interconnection requirements is available from NERC. It should also be noted that the system designs developed for this feasibility study utilized listed components accepted by the Nigeria Electricity Regulatory Commission (NERC). 14. Additional Value Added Benefits In additional value-added benefit is the voltage support distributed energy options such as SPGP provide to the local transmission and distribution grid. While this has no monetary value to the SPGP operators, NERC may accrue benefits on its stressed system through the additional localized voltage support provided by SPGP. While this additional voltage support is minimal from just one 6 MW SPGP, these benefits may become appreciable if additional distributed generation plants are brought on line in the future. While a 6 MW SPGP is unlikely to prevent a localized power black out, the proliferation of distributed energy options on the localized grid may have an impact in the future. As SPGP and other distributed energy options become valued on a more equal basis with conventional peaking power plants (such as natural gas combustion turbines) the value added benefits of SPGP are more likely to be transferred to tangible monetary benefits. The development of a SPGP at PH is an important first step in PH towards moving the market for SPGP technologies from small-scale electricity power applications to utility-scale power plant applications. 14.a. NERC Generation Tariff Methodology

NERC has determined that the price of electricity to be paid to generators will be at the level required by an efficient new entrant to cover its life cycle costs (including its short run fuel and operating costs and its long run return on capital invested). The Long Run Marginal Cost (LRMC) Method is in use here. LRMC involves calculating the full life cycle cost of the lowest‐efficient-cost new entrant generator, taking into account current costs of plant and equipment, return on capital, operation and maintenance, fuel costs, etc. LRMC is applied in Individual long run marginal cost for each generator: This sets prices for each generator according to its plant and site specific costs. However, individual (site‐specific) LRMC model requires each new entrant IPP that requires a tariff beyond the MYTO benchmark to apply to the NERC for approval. The IPP will open its procurement process, accounts and financial model to scrutiny by the NERC, which will then apply prudence and relevance tests to determine whether such plant and site‐specific costs should be allowed in the tariff.

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Technical Analysis The following sections detail the technical components of the proposed SPGP at PH and include the system siting requirements, system optimization characteristics, and preliminary design considerations. 15.Installation Site Two factors will determine the viability of location siting of SPGP; first is the closeness to national grid when projecting SPGP to be connected to national grid (but if SPGP operates off-grid or on direct sales to retailer/consumers, then the closeness to national grid is no factor. Secondly, closeness to gas pipeline, Open Cycle Gas Turbine Plants are fully gas powered and gas consumption is subsequently high. Base on this, it is advise to situate SPGP close to gas pipeline . As part of government/NERC initiative to boost the industry , each SPGP will procure its gas supply pursuant to a long-term gas supply agreement with the Gas Aggregation Company of Nigeria Limited (GACN). And Gas transportation services will be provided by the state-owned Nigerian Gas Company Limited. Fuel supply contract terms are relatively uniform across the sector. Technical data requirements for a new power station 1. Site Information of Power Station location map to scale showing roads, transmission line and transmission stations, if any. 2. Fuel supply arrangement (contractual, gas and oil pipelines-where available) 3. On the site map show area required for the following: • Fuel delivery point, • fuel storage space, • liquid waste disposal area,

Land Requirements for SPGP (6MW) As part of the site assessment for a 6 MW SPGP at the industrial complex. CRDenergy calculated the land requirements for the SPGP system under consideration. Based on the system designs developed for this potential project, a 6 MW SPGP would require approximately 200 meter width) by 200 meters (length) of available land. 16.Preliminary System Design As one of the first steps in conducting the feasibility study for the SPGP at the PH, CRDenergy developed preliminary system designs for the system. SPGP type and size was designed to optimize performance for annual energy output and to maximize reliability. 17. Plant Operations and Maintenance Cost The O&M cost were spilt into two main categories, which are annual Variable and Fixed O&M

expenses. The Variable expenses include; repair and replacement cost, water, chemicals &

lubricants. The fixed costs include management expenses, training expenses and salaries. The

table below will list the annual variable and fixed expenses and the respective cost.

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18. Project schedule

The time fram for procurement and installation of SPGP is six months. According to the project

schedule there is an intention to secure the supply of electric power by 2016. SPGP should start

their operation for the first time during 2016, and a half year later the remaining Gas turbine shall

be put into operation will start. 19.Environmental aspects

The SPGP as a fuel will use natural gas that will cause energy saving by an energy efficient

generation plant. The greatest effect is the CO2 reduction, and also reduction of acid rain

related substances, SOx and NOx. The gas turbine shall be equipped with dry low NOx

combustors in small amounts.

20. Electricity Generation License A generation license authorizes the licensee to construct, own, operate and maintain a generation station for purposes of generation and supply of electricity in accordance with the Electric Power Sector Reform Act, 2005. Subject to this Act, the holder of a generation license may sell power or ancillary services to any of the classes of persons specified in the license. -Distribution Licence • the connection of customers for the purpose of receiving a supply of electricity; • the installation, maintenance and reading of meters, billing and collection; and -Trading Licence A trading license authorizes the license to engage in the purchasing, selling, and trading of electricity. 20.1. Licensing Fees: off-grid operationws: One year license Application fee USD$50.00 & license fee USD$5,000.00 Grid-connected operations: 10 years license Application fee USD$250.00 & license fee US$2,500.00 Annual Operating levies: 1.5% of license charges/kwh Electrical installations/wiring: Five years license Catagory a(330/132kv Application fee USD$500.OO/License USD$25,000.00 Annual operating levy USD$2,500.00 Catagory a(330/132kv Application fee USD$250.OO/License USD$2,500.00 Annual operating levy USD$250.00 Catagory a(330/132kv Application fee USD$10.OO/License USD50.00

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21. Gas Consumption for SPGP Gas consumption for power generation is computed for each hour and for each unit according to the actual production of the single unit in that hour and to its heat rate at such a load.

Gas Comsumption Per hour = 2130m³cubic meter /75220.24ft³cubic foot/2130000litre

Multiply by 24 hours 25560m³ cubic meter /902642.88ft³ cubic foot /25560000litre per day

Muitiply by 356 days 9099360m³ cubic meter /317.832000404 ft³ cubic foot /9099360000litre per annual

on average plus/minus cost of gas per day will be

25560m³/902642ft³/25560000litre = USD$1,700.00

On Average Plus/Minus Cost Of Gas Per Annual Will Be

10 000 000m³/353 146 667ft³/10000000000L = USD$600,000.00

Fixed cost of gas in nigeria is USD$2.5 per 1000ft³ also same as 29m³ also same as 28316 litres

22. Gas Turbine Principle of Operation

A gas turbine is a type of internal combustion engine that uses gas as the working fluid. It is essentially

comprised of an upstream rotating compressor coupled to a downstream turbine, and a combustion

chamber in-between.

22.1. Classification of Gas turbines

Classification of Gas turbines can be done according to following criteria; path of working substance,

nature of cycle, process of heat absorption, mode of drive and function of rotational speed, pressure

drop in the gas turbine and physical location.

22.2.Types of Gas Turbines

There are two main types of Gas turbines; Aero-derivatives and Industrial Gas Turbines.

22.3. Chosen Gas Turbine

The least rated power requirement for the gas turbine is: 6MW/6000kw

The limit is based on establishing a SPGP with a rated power output which is at least 8000Kva. This is

based upon theoretical knowledge that the steam section will generate about 20% of the rated

capacity of the Gas turbine.

After going through the several options the best option was a setup of ELSIB Т-6-2U3 TURBO

GENERATOR.

The choice had several key Technical and economic attributes which included;

• Short starting period (10-20 minutes).

• High Thermal efficiency (42%) and low heat rates (low fuel consumption).

• Low emissions.

• Readily available on the market and available spare parts.

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23. Turbine Control

In order to ensure high efficiency, high plant availability performance and high safety standards; the

steam turbine Must be equipped with a control system. ELSIB makes this a simple task by packing

the turbine control system with the actual steam turbine.

24. Balance of Plant Equipment

For the Plant to function efficiently it requires other equipment or auxiliaries in addition to the gas

turbine. These include; the turbine inlet cooling system, the condenser, the boiler feed pump, the

water treatment plant, the cooling tower, and the exhaust gas stack. Therefore this section analyses

those other useful components of the SPGP.

Condenser - The steam from the steam turbine exhausts into the condenser which is a pressure of

10kpa. Boiler feed pump - The boiler feed pump must be able to raise the water to a pressure of

30Bars from 10kpa. Water treatment plant - The raw water from river needs to be treated, so as to

avoid tube scaling and damage to Turbine blades and pump impellers.Thus the plant will have a

Demineralization plant to remove the minerals which can corrode plant components. In addition the

plant will have water treatment ponds to allow for sedimentation to take place. Exhaust Gas Stack -

Exhaust stack design is important in reducing emissions. The stack should have the ability to cope up

with the exhaust gas temperatures of 194.9 and ensure that they are exhausted into the atmosphere

at a safe and lower temperature.

Complete delivering Package of Turbo generator delivery

- Turbo generator with air cooler, support plate or foundation pins

- Mounting accessories and special tools

- Installation materials to the generator

- Hardware thermal control

- Cover sound proof

- The pumps supplying water to the cooling coil

- Excitation system

- Spare parts to the extent agreed with the customer

Turbo Generator Technical characterics

25.Characteristics Duty Long-permissible modes Full Active Power Kva 6000 Active Power, Kva 7500 Power Factor 0.8 Voltage Stator 10500 Current A 412 Rotational Speed, Vol / Min 3000 Frequency, Hz 50 Efficiency,% 97.7 Connection Phases Of The Stator Winding "Star" The Ratio of Short-Circuit 0.47 Transient Inductive Reactance 0.17 Rated Temperature of Cooling Water Inlet Air Cooler, ° C 32 The Minimum Temperature of The Cooling Water Inlet Air Cooler, ° C 15

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Cooling water flow through coolers, m / h 42 In-let air temperature of 40 ° C in the generator, kW 6600 Temperature of the air entering the generator 40° C kW 7200 Operating Temperature, Co Stator Winding 125 Winding Rotor 130 Stator Iron 120 Weight, Kg General 18000 Stator 8800 Rotor 5300 25.1.Turbogenerator provides stable operation: - at a frequency of 46.0 Hz - for at least 1 s; - at a frequency of 47.0 Hz - for at least 40 seconds. The Turbogenerator is manufactured for operation at an altitude upto 1000 m above the sea level in the non-explosive environment at a temperature not lower than +5 C. The turbo generator has a closed design. Cooling turbo generator performed air in a closed circuit under the effect of the two axial fans mounted on the rotor shaft. The air is cooled by water in the air cooler that is integrated into the housing located above the stator of the turbo generator. The stator core is assembled from isolated segments of electrical steel. For cooling the windings and stator core in the core provided with radial ventilation channels that share the core along its length into individual packages. Outside diameter core made ducts for supplying air to the radial channels. The stator winding is a two-layer reel. The stator winding insulation thermosetting "Monolith" heat resistance class "F". Permissible temperature measured by the thermal resistance meter, laid in grooves 125C (heat resistance class "B"). The winding has six pins: 3 - linear, 3 zero. O are located at the bottom of the generator stator. The rotor is made from solid stainless steel forging, which provides mechanical strength of the rotor at all operating modes of the Turbo generator. The rotor winding is made of cold-continuous copper conductors and fit into grooves milled in the barrel rotor. Rotor winding insulation heat resistance class "F". Allowable temperature of the rotor winding, measured by resistance - 130 ° C (for temperature class "B"). On the console of the rotor shaft is set anchor brushless exciter with diode rectifiers. The voltage rectified current displayed on the slip rings are designed to control the rotor winding insulation. Stator end winding closed box-shaped shield. The panels are fixed bearings. On the side of the pathogen bearings and labyrinth seals are isolated from the "land". To monitor the thermal state of the Turbo generator is equipped with thermal resistance meters. Control devices can be connected to the PCS station.

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26.Turbine Generator Excitation System Brushless excitation system powered by a rotating anchor of the auxiliary AC generator through the rectifiers. The anchor of the auxiliary generator and the rectifiers are placed on the shaft of the Turbo generator. System power is provided from the exciter transformer connects to the turbine generator.

TECHNICAL DIAGRAM OF ELSIB Т-6-2U3 TURBO GENERATOR

27.Quality and Warranty Production and testing of turbine generators NPO "ELSIB" JSC carried out in accordance with the requirements of ISO-9001-2008. The Turbo generator meets the standards of RF and IEC recommendations. The company ensures compliance with the requirements of the Turbo generator standards, subject to improper use, transport and storage, set specifications. Warranty period of operation of the Turbo generator at least three years from the date of commissioning in the domestic supply or 1 year

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from the date of commissioning, and no more than three years since testing the Turbo generator across the state border of the Russian Federation in the supply of turbine generators for export.

28. Recommendations And Conclusion

In order for the full potential of the project to be realized a few but important factors have to be

noted in its implementation, and plant design and operation.

29.Technical Recommendations

A clear result that was obtained from the technical analysis is that the plant will have to operate in

a SPGP mode. This will result in high thermal efficiency and electrical power output. Furthermore,

another important design feature of the plant is the use of a ELSIB type heat recovery steam

generator in the steam section so as to reduce plant start-up time; this design is also much

cheaper as compared to the conventional steam drum type.

Furthermore, it is also recommended that the plant will have a turbine inlet cooling system (TIC)

which can use water as the coolant, as this will ensure uncompromised plant electrical output

during warm periods. It also recommended for the plant to use the latest ELSIB control system for

the gas turbine so as to ensure high plant thermal efficiency, low emissions, and overall securing

high plant availability performance. It is also recommended that the ELSIB T6-2 Gas turbine be the

gas turbine technology of choice due to its high thermal efficiency and low emission rates and from

the technical analysis it had the best specifications.

30. Environmental Recommendations

Although the above recommended technical factors ensure protection for the environment, it is

also recommended that several management technics must be adopted in the plant operation.

These include implementation of a Cleaner Production (CP) strategy at the plant and using

established international standards and overall using an Environmental Management System

(EMS) so as to ensure that the environmental goals are achieved.

31. Economical Recommendations

A lot of factors are putting into consideration in evaluating this assessment, general investment

opportunities and effective functioning of SPGP in Nigeria as a case study and Africa as a whole.

First, a favourable investment climate is characterized largely by the following: good repayment

record and investment grade rating; less (costly) risk mitigation techniques to be employed which

translates into lower cost of capital and hence lower project costs and more competitive prices;

potentially more than one investment opportunity.

The most critical areas in coherent power sector is planning linked to procurement and

contracting. Planning has built-in contingencies to avoid emergency power plants or blackouts;

responsibility for procurement is clearly allocated, plans are linked to procurement; technical and

environmental due-diligence on the proposed site is also essential, and the procurement process

is transparent and competition ultimately drives down prices. Finally, capacity is built to contract

and evaluate effectively.

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A final area which may make or break the long-term sustainability of this projects is: abundant, low

cost fuel and secure contracts. We have chosen a fuel option that is cost-competitive with other

fuels and anticipate to secure contracts of fuel supply for the duration of the project.

There are other factors that will directly effect the project or may help to facilitate a more

balanced outcomes, namely:

1) favourable equity partners;

2) favourable debt arrangements;

3) a secure and adequate revenue stream;

4) credit enhancements and security arrangements;

5) positive technical performance and finally,

6) strategic management and relationship building.

Favourable equity partners is defined as follows: where possible, the involvement of local partners

and equity as well as firms with development origins; appetite for the actual project risk and a

return on equity that is generally perceived by parties as a reasonable and fair.

Favourable debt arrangements are paramount for the long-term sustainability of projects and may

be characterized as follows: competitively priced financing, local capital markets; some flexibility in

terms and conditions (including possible refinancing). Of utmost importance is a secure and

adequate revenue stream, which is generally made possible via the following conditions:

commercially sound metering, billing and collections by the utility (including the ability to

disconnect customers who default on payments, be they Government ministries/departments or

parastatals); it should be noted that investors/financiers prefer markets where the off-taker is not a

vertically integrated utility with own generation stations; the revenue stream should be

safeguarded in a robust PPA, which stipulates capacity and energy charges as well as dispatch,

fuel metering, interconnection, insurance, force majeure, transfer, termination, change of law

provisions, refinancing arrangements, dispute resolution, etc

Taking various forms, credit enhancements and security arrangements are part of the muscle that

attracts and sustains IPPs, specifically: partial risk guarantees; political risk insurance and cash,

namely escrow accounts, letters of credit and liquidity facilities--all of which should be made clear

at the time of implementation.

Positive technical performance is an area where most IPPs have a clear advantage, however, it

should not be taken for granted; this encompasses high technical performance, including

availability, and also that sponsors anticipate potential conflicts (especially related to O&M, and

budgeting) and mitigate them.

Strategic management and relationship building is grease for the wheels and an integral part of

the balancing of development and investment outcomes. Sponsors should work to create a

positive image through political relationships, development funds, and effective communications.

Ongoing, strategic management of their contracts, especially in the face of exogenous stresses, is

critical.

CRDenergy.

www.crdenergy.com

32. Policy Recommendations

The plant will use fuel from Nigeria; therefore it is recommended that the government sticks to its

energy policy measures especially its commitment in ensuring a solid bilateral business

relationship with Nigeria. This is also pointed out in the energy policy where it's stated that the

country is committed to regional power system integration through supporting initiatives on system

integration, joint cross-border generation projects.

Small Power Generating Plants

Technical and Economical assessment

is conducted by Craig & Rupert Denis Limited Nigeria,

on request of Brainstorm utilities limited.

Craig & Rupert Denis Limited

Regus Embankment Tower

123317 Moscow, Russia

10 Presnenskaya Naberezhnaya, Block C

Tel.: № +7 (495) 722 44 75

Fax.: № +7 (495) 967 76 00

Email: enquires@crdenergy.com

www.crdenergy.com