The Power Plant Controls Market in China
In an email interview with POWER, Xue Wei, manager for Emerson Process Management Power & Water Solutions, China Business Development, provided some insight into the current state of control systems for Chinese power plants. His responses, edited for style, follow.
POWER: How widespread are “state-of-the-art” control systems (yours and others) in new generating plants in China?
Xue Wei: More and more, we’re seeing new generating plants using “state-of-the-art” control systems from different vendors, including Emerson, ABB, Siemens, Invensys, Hitachi, etc. Large units (above 300 MW) in particular are turning to internationally known control system brands. Chinese customers are very competitive as well as innovative. A large percentage of power plant owners are willing to invest in the most advanced control systems in order to take advantage of the newest technologies from name brands. For this reason, there is a fairly large market for “state-of-the-art” control systems in this country.
How common is it for existing plants to retrofit with current control technologies?
More and more, the older systems on aging units—those typically more than 10 years old—are being retrofitted with the latest control technologies. Power producers are consistently looking for new technologies and solutions to replace their existing controls. This is done for a number of reasons, such as improved reliability, easier operation and maintenance, and better service.
What are the drivers for such installations at both new and existing plants?
The primary drivers for the introduction of the most advanced technologies include improved reliability, and increased efficiency and effectiveness, which are needed to retain competitiveness.
What percentage are Chinese-designed systems?
Currently, Chinese-designed systems are primarily used to control smaller units. While it is difficult to provide an accurate number, we estimate that less than 10% of large units (above 300 MW) and more than 60% of small units (300 MW and below) rely on Chinese-designed systems.
Do you see Asia broadly and/or China specifically as a major growth market (especially relative to North America)?
It is a growth market. From 2006 to 2012, the total power generation capacity in China has increased dramatically—from 623 GW to 1,146 GW, representing an annual increase rate of 10.68%.
Are the latest distributed control system (DCS) technologies finding their way into all generating plants, or mostly nuclear or coal or gas plants?
The latest DCS technologies are primarily utilized in fossil power plants (coal and gas), nuclear plants, and some other types of plants, such as biomass and waste incinerator power plants. At this time there is very limited application in wind and hydro power plants.
What challenges do you face with DCS installations in China?
The biggest challenge is the fierce competition within the Chinese market, mainly from local competitors. Customers are becoming more price sensitive, and the lowest price is always the most important factor for bidding evaluation.
Is there anything going on in the area of instrumentation and control in China that is more advanced than what is commonly happening in North America? If so, specifically what and why?
Due to the fast development of the power market in China, there is a greater requirement for power generating process reliability, flexibility, and availability as well as pollution control. As such, advanced technologies, including advanced algorithm control technology, digital bus technology, 1,000-MW ultrasupercritical unit generation and APS (Automatic Plant Startup/Stop) are becoming more popular applications.
—Gail Reitenbach, PhD is editor of POWER (@GailReit and @POWERmagazine).