Demand for Reliable Power Goes Global Stan Pukash Vice President, - PowerPoint PPT Presentation

Demand for Reliable Power Goes Global Stan Pukash Vice President, International Sales ASCO Power Technologies EGSA 2006 Annual Spring Convention March 20, 2006 – Sarasota, FL

Demand for Reliable Power Goes Global Presentation Outline • Worldwide Consumption of Electricity Increasing • Applications Driving the Demand for Reliability • Why Power Reliability is an Issue • Dramatic Increase in Genset Installations • Other Drivers and Summary 2006 Spring Convention 2

Worldwide Consumption of Electricity Increasing • Globally there is a “steady relationship between electric power consumption and economic development.” (EPRI) • The Energy Information Administration of the DOE estimates world consumption in 2003 (most recent data available) at 14,768 Billion Kilowatthours (or 14,768 Tetrawatthours). • For 2003 U.S. consumption estimated at 3,656 TWH, or about 25% of the total. • Electrification of the energy supply is now about 40% for the *OECD nations, and this will grow to 50 to 60% or more of total energy by 2050. (EPRI) *OECD: Organization for Economic Co-operation 2006 Spring Convention 3 Data: DOE/EIA July 2005

OECD Member Countries Organization for Economic Co-operation Australia Hungry Norway • • • Austria Iceland Poland • • • Belgium Ireland Portugal • • • Canada Italy Slovak Republic • • • Czech Republic Japan Spain • • • Denmark South Korea Sweden • • • Luxembourg • Finland • • Switzerland France Mexico Turkey • • • Germany Netherlands United Kingdom • • • Greece New Zealand United States • • • 2006 Spring Convention 4

Annual % Increase in Electricity Worldwide Electricity Consumption Consumption (billions of kWHs) 4.5% 15,000 4.0% 14,500 3.5% Billions kWH 3.0% 14,000 2.5% 13,500 2.0% 13,000 1.5% 1.0% 12,500 0.5% 12,000 0.0% 1999 2000 2001 2002 2003 1999 2000 2001 2002 2003 2006 Spring Convention 5 Data: DOE/EIA July 2005

Worldwide Electricity Consumption By Region 6000 2002 2003 5000 4000 Billions kWH 3000 2000 1000 0 NA CA / SA EMEA Far East SE Asia / Cent. Asia Aus 2006 Spring Convention 6 Data: DOE/EIA July 2005

% Increase In Electricity Consumption By Region From 2002 To 2003 9.00% 8.52% 8.00% 7.00% 6.34% 6.00% 4.90% 5.00% 4.00% 3.00% 2.17% 2.00% 0.78% 1.00% 0.00% 0.00% NA CA / SA EMEA Far East SE Asia / Cent. Asia Aus 2006 Spring Convention 7 Data: DOE/EIA July 2005

Worldwide Electricity Consumption By Region For 2003 (And % Increase from 2002) 6000 10.00% 8 .5 2 % 5000 8.00% Billions kWH 4000 6 .3 4 % 6.00% 3000 4 .9 0 % 4.00% 2000 2 .17 % 2.00% 1000 0 .7 8 % 0 0.00% 0 .0 0 % NA CA / SA EMEA Far East SE Asia / Cent. Asia Aus 2006 Spring Convention 8 Data: DOE/EIA July 2005

Latin America Needs 90,000 MW Of New Generating Capacity By 2012 • Mexico must be able to generate twice as much electricity in seven years. • 29,000 MW capacity in 2005 must increase to 58,000 MW. • Strong political opposition to opening Mexico’s energy sector to private investment. • The Brazilian Government says the capacity in their country must increase by more than 60% over the next eight years. • 59,300 MW capacity in 2005 must increase to 96,000 MW. • The outlook is positive as the government’s new energy sector model appears to be working. • Argentina, Venezuela, Colombia and Chile all will require big investments in their energy supplies. 2006 Spring Convention 9 Source: Platts

Will China Have Enough Power ? China’s installed capacity in 2004 is estimated at 237,000 MW • Rapid Economic Growth is Impacting the Supply / Demand • Situation. – 29,800 MW capacity shortfalls in 2004 • East China Grid: 20,780 MW • North Grid: 7,470 MW • Central Grid: 1,550 MW Consumption is growing. • – China’s economic growth is expected to be the highest in the world between now and 2010. – 1,671 Billion KWH in 2003 will grow by 68% to 2,800 TWH by 2010 Capacity is projected to be 320,000 MW by 2010. • – This will be a challenge for existing, inefficient state-owned utilities. The Three Gorges Dam project will add 19,000 MW by 2008. • Source: DOE/EIA and Platts 2006 Spring Convention 10

China’s Three Gorges Dam The Largest Construction Project Ever • Dam is 7,600 ft. across and 600 ft. high. • The world’s largest reservoir will be created. • The reservoir will be 385 miles long and have as much water as Lake Superior. • Will open Chongqing, a city of more than 30 million people, to ocean-going ships via the world’s highest locks. Data: Washington Post 2006 Spring Convention 11

China’s Three Gorges Dam The Largest Construction Project Ever 2006 Spring Convention 12

China’s Three Gorges Dam The Largest Construction Project Ever $25 Billion project will produce 19 Billion Watts (19 Gigawatts). • Begun in 1994, 40,000 workers, 24X7 will complete it in 2008. • 19 Gigawatts is 10% of China’s power needs (combined consumption of • Boston, New York and Washington, DC). 19 Gigawatts is roughly equivalent to 9,500 2-Megawatt Diesel Gensets. • At $25 Billion, that’s $2.63 Million per 2 MW Genset (but powering the • gensets on Yangtze river water would be very difficult). 2006 Spring Convention 13

Demand for Reliable Power Goes Global Presentation Outline • Worldwide Consumption of Electricity Increasing • Applications Driving the Demand for Reliability • Why Power Reliability is an Issue • Dramatic Increase in Genset Installations • Other Drivers and Summary 2006 Spring Convention 14

The Wave of Global Industrialization is Driving the Demand for Reliable Power Global demand for reliable power is driven by the following applications: – “Low Cost Country” Manufacturing – Outsourcing Facilities – Data Centers – Telecommunications Even 99.9% uptime – Financial Institutions can be devastating to – Airports manufacturers, data – Transit Systems handlers and other – Call Centers high tech operations. – Government Agencies – Retail Complexes – “Prestige Properties” 2006 Spring Convention 15

The Global Demand For Reliable Power is Growing • The availability of data storage and other high-tech equipment has surpassed that of the back-up power systems needed to support them. • Data Centers require high-availability, high-quality power, and lots of it ! • A typical 100,000 square foot server farm needs from 6 to 8 MW of nearly constant power. • Airports and transit systems require reliable power to operate traffic control and dispatching and safety devices. Source: Capital E and Energy User News 2006 Spring Convention 16

New Global Facilities Require Reliable Power The Industrial Age The Digital Age Motors, conveyor belts, etc. Computer servers, semiconductor • • manufacturing, digital equipment. • Servers won’t tolerate > 8 msec of Voltage fluctuations barley • outage; semiconductor mfg won’t noticeable. tolerate 20% voltage dips > 67 msec. • Only a complete outage would • Voltage sags are as perilous as cause an industrial process to halt. complete outages Process can resume as soon as • Takes 16 hours on average for IDCs • power is restored. to resume normal operations; Semiconductor mfg can take 32 hours to resume (plus damaged work will have to be scrapped). 2006 Spring Convention 17 Source: Energy User News

Record Number of High-Rises are Under Construction • More than 140 buildings under construction worldwide that are 200 meters (656 feet) or taller. • Of these, 25 will be over 300 meters (984 feet) and 7 will be over 400 meters (1,312 feet) tall. • There are also more than 130 proposed new skyscrapers that are 200 meters or higher. • Of these, 43 are to be 300 meters or taller. • All of these will demand an extraordinary amount of electrical energy for lighting, HVAC, elevators, and business equipment and computers. • All of these will demand reliable power, including standby gensets and switching equipment. Source: ENR 10/31/05 2006 Spring Convention 18

World’s Tallest Building: Taipei 101 • Located in Taiwan, it was originally called the Taipei Financial Center. Built in 1999-2004, opened on December 31, • 2004. • 101 stories above ground and 5 underground. 1,667 feet from ground to structural top. • • 1,470 feet from ground to roof (Sears Tower is 1,454 feet ground-to-roof). Two double-deck elevators are the world’s • fastest at 37.5 mph; visitors are brought from main floor to the observatory on the 89 th floor in under 39 seconds. Eight 4.16 kV, 2000 kW diesel gensets. • More than 40 MV & LV ATSs. • 2006 Spring Convention 19 Source: Wikipedia