Predictive Maintenance Strategy from Rockwell Automation Helps Energy Supplier Maximize Output and Meet Growing Demand

Genesis Energy's predictive maintenance strategy targets most critical equipment to ensure optimal availability

With breathtaking terrain ranging from snowcapped mountains to lush lowland plains, New Zealand is often described as a paradise by those who have experienced its unique beauty. Located approximately 2,000 kilometers east of Australia across the Tasman Sea, New Zealand's isolated location and rich natural resources have fostered a self-reliant culture.

Unable to tap into the power generated by neighboring countries, New Zealand must locally produce the electricity to meet its consumer and industrial needs — which in 2001, was approximately 34.88 TWh . As the country's industrial sector continues to develop and the population continues to grow, so does the demand for electricity. In fact, New Zealand's power generation capacity is continuously strained by ever-increasing demand.

Tasked with keeping the supply side of this equation in proper balance is Genesis Energy, New Zealand's largest provider of natural gas and electricity. By investing in new facilities and technology upgrades for existing facilities to increase capacity, Genesis is addressing the long-range needs of its island nation. However, that strategy doesn't address the challenge the energy provider currently faces. If a major interruption in production occurs due to equipment failure at any one of its facilities, Genesis could be forced to purchase energy from other suppliers at the current spot price to make up the short fall and puts the company at risk for financial penalties imposed by the system. Loss of

a typical Hydro unit could mean a loss in revenue of between $40,000 and $1,000,000 per day depending on the time of year and the spot price. As a result, maintaining power availability and optimizing the generation process is a core business goal. Through a reliability-centered maintenance (RCM) program supported by Rockwell Automation, Genesis can predict and prevent failures from occurring and extend the life of capital assets.

No Room for Error

• One of three state-owned enterprises, Genesis supplies 20 percent of the country's electrical needs through a diverse electricity generation portfolio, which includes Genesis' flagship thermal facility, the Huntly Power Station, five hydro power plants, and various wind farms and cogeneration facilities at large industrial sites. With the majority of Genesis' output generated from the Huntly Power Station and the hydro plants — some of which have been operating for more than 60 years — keeping these facilities properly maintained and operating at full capacity is key to achieving its business goals.

Huntly — With a current output capacity of 1,040 MW, Huntly is New Zealand's largest power station. The facility consists of four separate conventional boiler and steam turbine generation units, capable of burning coal, natural gas or a combination of the two. In 2005, the 22-year-old facility recorded 84 percent availability, but as the plant continues to age, higher levels of maintenance are anticipated to meet a sufficient level of production output. Recently installed on the same site is a 40MW simple cycle gas turbine generator

As part of its growth strategy, Genesis is building a high-efficiency combined-cycle gas turbine power plant, which will increase production capacity at the site to 1,425 MW. It is also retrofitting the existing control and instrumentation system — which involves migrating one unit from analog to digital controls during the 2005/2006 shutdown and the remaining 3 units in the next three years.

Hydro — Approximately 60 percent of New Zealand's electricity is generated by hydro production. Within Genesis, the company's hydro generation capacity consists of...(Read whole article)