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<p> BUSINESS AND TECHNOLOGY FOR THE GLOBAL GENERATION INDUSTRYApril 2008 Vol. 152 No. 4Vol. 152 No. 4 April 2008 www.powermag.com Plants compete for scarce waterWhen is a turbine technology mature?Developing the next generation of reactorsPlace Your Nuclear BetsYour most valuable employees are your equipment, so it only makes sense to treat them right. Conoco Hydroclear Diamond Class Turbine Oil is specially formulated for the harsh conditions of the power generation industryproviding superior rust, corrosion and oxidation protection while minimizing harmful sludge and varnish deposits. Its the kind of service your equipment demands, the kind of service you expect from Conoco lubricants. Gets it Donewww.conocolubricants.com 1-800-255-9556 Copyright 2008 ConocoPhillips Company. Conoco and the Conoco logo are trademarks of ConocoPhillips Company or its subsidiaries.Even a machine needs to be pamperedCIRCLE 1 ON READER SERVICE CARDApril 2008 | POWER www.powermag.com 1 Established 1882 Vol. 152 No. 4 April 2008 www.powermag.com COVER STORY: NUCLEAR POWER28 Super Tuesday, Super Bowl XLII, and the nukesThe consensus from a recent nuclear energy conference was that politics, probably more than engineering, will determine the fate of the alleged nuclear renaissance. SPECIAL REPORTS WATER MANAGEMENT34 New coal plant technologies will demand more waterWorldwide, competition for water resources is forcing power plant developers and owners to minimize water use. We look at some of the technical, regulatory, and politi-cal issues that shape the water-electricity debate. NUCLEAR POWER44 Developing the next generation of reactorsThe fourth generation of nuclear reactors promise to deliver everything the emerging Generation III+ models doplus the ability to support hydrogen production, thermal energy off-taking, advanced actinide management, and perhaps even water desalina-tion. Heres how the six technology contenders line up. PLANT DESIGN 54 Turbine technology maturity: A shifting paradigmEven if two gas turbines have the same model number, theyll operate differently if one has been modified in the factory or in the field and the other has not. Given the plethora of plant-initiated and OEM-implemented tweaks, accurately evaluating the results of turbine field performance when making a purchase recommendation is a challenge. FEATURES CYBER SECURITY66 Time to get serious about securityFERCs critical infrastructure protection standards force power generators to pro-actively deal with cyber security. And even though FERCs enforcement authority in this matter is being challenged, plants shouldnt take a wait-and-see position. Here are several things plants should be doing nowfor their own good. PLANT DESIGN70 Castejon 2: Ready to reign in SpainFlexibility is the advantage offered by this new combined-cycle plant, built in short order under Alstoms Plant Integrator approach. Fuel flexibility and operational flex-ibility enable its owner, HC Energa, to back up wind generation and to turn a profit under a wide range of market conditions. WORKFORCE MANAGEMENT74 The aging workforce: Panic is not a strategyThe real problem that utilities face is a knowledge crisisa transformation in how knowledge is valued, leveraged, and distributed in the marketplace. EVENTS80 ELECTRIC POWER 2008 offers access to the latest products and servicesTake a sneak peak at what awaits you on the exhibit floor this May in Baltimore. On the coverIllustration by Leslie Claire DEPARTMENTS 4 SPEAKING OF POWER 6 GLOBAL MONITOR 6 Tenaska proposes first new coal-fired plant with carbon capture 6 Concerns raised over growth of Chinas CO2 emissions 8 Sandia, Stirling Energy Systems set new world record 9 Indonesia orders first Wrtsil GasCubes 10 First wind turbines on Galapagos Islands cut oil imports 12 Harnessing waste heat for electricity 14 POWER digest 17 Correction 18 FOCUS ON O&amp;M 18 Tag-teamed seawater cleanup 20 New cooling towers to improve rivers health 20 Back to school 26 LEGAL &amp; REGULATORY 100 NEW PRODUCTS 112 COMMENTARY www.powermag.com POWER |April 2008 2 Now incorporating and EDITORIAL &amp; PRODUCTION Editor-in-Chief: Dr. Robert Peltier, PE 480-820-7855, editor@powermag.com Managing Editor: Gail Reitenbach, PhD Executive Editor: John Javetski Contributing Editors: Mark Axford; David Daniels; Bill Ellison, PE; Steven F. Greenwald; Tim Hurst; Jim Hylko; Kennedy Maize; Douglas Smith; Dick Storm Staff Writer: Sonal Patel Senior Designer: Leslie Claire Senior Production Manager: Tracey Lilly, tlilly@accessintel.com Marketing Manager: Jamie Reesby ADVERTISING SALES North American Offices Northeast/Mid-Atlantic/Eastern Canada: Matthew Grant, 832-242-1969, mattg@powermag.com; and Catherine Ryan, 516-978-3150, catheriner@powermag.com Midwest/West/Western Canada: Dan Gentile, 512-918-8075, dang@powermag.com Southeast: Matthew Grant, 832-242-1969, mattg@powermag.com South Central/Mexico/Central &amp; South America: Myla Dixon, 832-242-1969, mylad@powermag.comInternational Offices UK/France/Benelux/Scandinavia: Peter Gilmore, +44 (0) 20 7834 5559, pgilmores@aol.com Germany/Switzerland/Austria/Eastern Europe: Gerd Strasmann, +49 (0) 2191 931 497, info@strasmann-media.de Italy: Ferruccio Silvera, +39 (0) 2 284 6716, ferruccio@silvera.it Spain/Portugal: Tatiana Gana, +34 91 456 08 47, tatiana.gana@publistar-es.com Japan: Katsuhiro Ishii, +81 (0) 3 5691 3335 Thailand: Nartnittha Jirarayapong, +66 (0) 2 237-9471, +66 (0) 2 237 9478 India: Faredoon B. Kuka, 91 22 5570 3081/82, kuka@rmamedia.com South Korea: Peter Kwon, +82 2 416 2876, +82 2 2202 9351, gulfk@unitel.co.kr Malaysia: Tony Tan, +60 3 706 4176, +60 3 706 4177, nmedia@tm.net.myClassified AdvertisingMyla Dixon, 832-242-1969, mylad@powermag.comPOWER Buyers Guide SalesMatthew Grant, Account Executive, 832-242-1969, mattg@powermag.com AUDIENCE DEVELOPMENT Audience Development Manager: Terry Best Fulfillment Manager: George Severine CUSTOMER SERVICE For subscriber service: powermag@halldata.com, 800-542-2823 or 847-763-9509 Electronic and Paper Reprints: lyndsay.bahn@theYGSgroup.com, 717-666-3052 All Other Customer Service: 832-242-1969 extension 327 BUSINESS OFFICE TradeFair Group Publications, 11000 Richmond Avenue, Suite 500, Houston TX 77042 Publisher: Brian K. Nessen, 832-242-1969, briann@tradefairgroup.com President: Sean Guerre ACCESS INTELLIGENCE, LLC 4 Choke Cherry Road, 2nd Floor, Rockville, MD 20850 301-354-2000 www.accessintel.com Chief Executive Officer: Donald A. Pazour Exec. Vice President &amp; Chief Financial Officer: Ed Pinedo Exec. Vice President, Human Resources &amp; Administration: Macy L. Fecto Divisional President, Business Information Group: Heather Farley Senior Vice President, Corporate Audience Development: Sylvia Sierra Senior Vice President &amp; Chief Information Officer: Robert Paciorek Vice President, Production &amp; Manufacturing: Michael Kraus Vice President, Financial Planning &amp; Internal Audit: Steve BarberBUSINESS AND TECHNOLOGY FOR THE GLOBAL GENERATION INDUSTRYVisit POWER on the web: www.powermag.comSubscribe online at: www.submag.com/sub/pwPOWER (ISSN 0032-5929) is published monthly by Access Intelligence, LLC, 4 Choke Cherry Road, Second Floor, Rockville, MD 20850. Periodicals Postage Paid at Rockville, MD 20850-4024 and at additional mailing offices.POSTMASTER: Send address changes to POWER, P.O. Box 2182, Skokie, IL 60076. Email: power@halldata.com.Canadian Post PM40063731. Return Undeliverable Canadian Addresses to: Station A, P.O. Box 54, Windsor ON N9A 6J5.Subscriptions: Available at no charge only for qualified executives and engineering and supervisory personnel in electric utilities, independent generating companies, consulting engineering firms, process industries, and other manufacturing industries. All others in the U.S. and U.S. possessions: $59 for one year, $99 for two years. In Canada: US$64 for one year, US$104 for two years. Outside U.S. and Canada: US$159 for one year, US$269 for two years (includes air mail delivery). Payment in full or credit card information is required to process your order. Subscription request must include subscriber name, title, and company name. For new or renewal orders, call 847-763-9509. Single copy price: $25. The publisher reserves the right to accept or reject any order. Allow four to twelve weeks for shipment of the first issue on subscriptions. Missing issues must be claimed within three months for the U.S. or within six months outside U.S.For customer service and address changes, call 847-763-9509 or fax 832-242-1971 or e-mail powermag@halldata.com or write to POWER, P.O. Box 2182, Skokie, IL 60076. Please include account number, which appears above name on magazine mailing label or send entire label.Photocopy Permission: Where necessary, permission is granted by the copyright owner for those registered with the Copyright Clearance Center (CCC), 222 Rosewood Drive, Danvers, MA 01923, 978-750-8400, www.copyright.com, to photocopy any article herein, for commercial use for the flat fee of $2.50 per copy of each article, or for classroom use for the flat fee of $1.00 per copy of each article. Send payment to the CCC. Copying for other than personal or internal reference use without the express permission of TradeFair Group Publications is prohibited. Requests for special permission or bulk orders should be addressed to the publisher at 11000 Richmond Avenue, Suite 500, Houston TX 77042. ISSN 0032-5929.Executive Offices of TradeFair Group Publications: 11000 Richmond Avenue, Suite 500, Houston TX 77042. Copyright 2008 by TradeFair Group Publications. All rights reserved.Your formula for water analysis.To speak with a dedicated Industrial water expert, call 866-450-4248. Or take advantage of our Live Help option at www.hach.com/power. Innovative Process Instrumentation Expert Support and TrainingIntegrated Lab Solutionsand ChemistriesDependable ServiceSOURCE CODE: M083AS HAC-0225Products. Support. Expertise. Hach gives you the necessary tools to protect your critical components from scaling and corrosion. With over 50 years of experience delivering the right solutions for boiler and cooling water, Hach is your trusted partner in water analysis.Manage your chemistry. Protect your assets.Be RightTMCIRCLE 4 ON READER SERVICE CARD www.powermag.com POWER |April 2008 4SPEAKING OF POWERReducing gridlockNorth Americas electricity grid has been described as the worlds most complex machine. The grid is unique among utility infrastructure systems for its need to have supply and demandgeneration and loadbalanced at all times. There still are no technologies for storing large quantities of electricity akin to liquefied natural gas tanks, voice mail, or e-mail servers. Because power consumption is instantaneous, dispatching gen-erating capacity and switching feeders on and off are the only controls available to grid operators.The spoils of powerShort power outages are a mere inconvenience for the average American household, which has been spoiled by highly reliable electric service. But reliability is essential for large factories profitability. To them, any outageeven one of just a few mil-lisecondsmay cause a key manufacturing process to crash and shut down an entire assembly line.Longer outages take bigger tolls. Here are some examples of the big business impact of a major power failure. Hewlett-Packard recently estimated that a 20-minute outage at one of its wafer fabrication plants would cause the loss of an entire days produc-tion, valued at $30 million. In California, a blackout in June 2000 cost Silicon Valley businesses $100 million, according to the Sili-con Valley Manufacturers Group. According to the DOE, the great Northeast blackout of August 2003 cost the U.S. economy about $6 billion, including $4 billion in lost wages and profits. The joint U.S.-Canada task force assembled to determine why the blackout occurred put its cost at between $4 billion and $10 billion.As the complexity of the grid grows, so do the costs of a grid disturbance and the ease with which one can propagate.New grid sensitivitiesRecent events confirm that even the best-oiled machine wont operate at peak efficiency if an operator goofs or if Mother Na-ture decides to remind us whos really in charge.The Los Angeles Timess main headline on February 26 was Massive power outage in Florida affects millions. The ensuing story described a mid-day transmission glitch at a West Miami substation that knocked out electricity to three million people and tripped two reactors at the Turkey Point nuclear station. Florida Power &amp; Light later explained that an engineer had deac-tivated two levels of relay protection at the West Miami substa-tion to help diagnose a switch malfunction. While he was making measurements, a short-circuit knocked 3,400 MW off-line.That same day, Reuters lead story was Loss of wind causes Texas power grid emergency. ERCOT reported that the normally stable frequency of its grid dropped suddenly when the states wind production fell by more than 1,400 MW over 30 minutes. This loss of load forced ERCOT to go to Stage Two of its emergency electric curtailment plan and shave 1,100 MW of demand from in-dustrial customers. The emergency passed in about three hours.A 2007 study of the ERCOT grid noted that wind energy is anti-correlated with load, meaning that wind speedsand wind power generationusually drop sharply as the days load rises in the morning and then pick up again as day turns to night and demand falls. The study also concluded that putting more wind capacity on-line requires dispatching more conventional capacity to maintain grid voltage and frequency.The Texas legislature recently learned from ERCOT that the states reserve margin will be about 13% this summer but will fall below 12.5% next year. Overall, peak demand is expected to rise more than 25% over the next 20 years. ERCOTs CEO said at a March KEMA conference that the state must nearly double its generating capacity by 2026 to meet growth in demand and to replace retired plants. In other words, the 5,000 MW of wind projects in the ERCOT queue will do nothing to improve the reli-ability of Texas power.Smart vs. simpleModernizing Americas existing grid would enhance service reli-ability, increase transmission capacity, and even make U.S. in-dustry more productive. It is estimated that productivity losses caused by transmission constraints and other grid issues cost the U.S. economy...</p>