Thursday, December 28, 2017

GE Turbine Problems Hit Power Generation at 3 Pakistani Plants

Pakistan's Central Power Purchasing Agency's report shows that General Electric's 9HA-Class turbines produced only half of their capacity this August, according to Reuters. Power executives and government officials in the country said the GE turbines had operational issues like long outages and production delays.

GE Turbine Problems:

Bhikki Power Plant, Punjab, Pakistan
The GE turbine problems affected three key plants – Bhikki of Punjab government and Balloki and Haveli Bahadur Shah of the federal government – with a total capacity of 3,600MW that are considered crucial to end load shedding within the ruling PMLN's 5-year term ending middle of 2018.

Consequences For Pakistan:

Pakistan's government is failing to deliver on its promise to end load-shedding this year because of serious issues with GE's 9HA-Class turbine.

"It had terrible consequences because we lost a lot of power which would have come to the grid during the peak summer," Yousuf Naseem Khokhar, a top official in Pakistan's Energy Ministry's power division, told Reuters. "It is now up to General Electric to rise to the challenge and to take care of these issues ... before next summer starts," he said.

Pakistan is recognized as a major growth market for power turbine makers because its booming economy has a well-developed gas infrastructure. General Electric has lost a lot of credibility after its failure to deliver in Pakistan. The country awarded its most recent power contract to Siemens, after bidding by several companies, including GE.

Impact on GE Business:

General Electric claims its 9HA-Class turbines are highly efficient turbines which have secured place in the Guinness World Records of 2016, for the amount of electricity they have produced from natural gas at a power plant in Bouchain, France. The Bouchain plant has had 26 forced outages in the 15 months ending November, according to data published by operator Electricite de France (EDF).

JPMorgan analyst Stephen Tusa has warned GE's Pakistan problems could affect other plants around the world, where GE has already "sold" 30 units. GE dismissed criticism, saying the turbines were merely experiencing setup challenges. But the problem could be another setback in a year of plunging stock and "horrible" third-quarter results for the company whose stock has already suffered a major decline this year.

Summary: 

General Electric 9HA-Class gas turbines are not delivering the power Pakistan was counting on to end unscheduled power outages in the country.  These problems could hurt election prospects for Pakistan's ruling PMLN party if they are not fixed soon and the party fails to keep its promise to end electricity load-shedding.

Related Links:

Haq's Musings

Pakistan Among Fastest Growing LNG Markets

PMLN to End Load Shedding 

CPEC to Create 2 Million New Jobs

Pakistan's Booming Economy







7 comments:

Ahsan H. said...

A country that has acute power shortage
does not need turbines with operational
issues.

19640909rk said...

Ahsan H. said...
"A country that has acute power shortage does not need turbines with operational issues".

I would re phrase it. " A country that has acute power shortages cannot afford to have incompetent engineers maintaining and running sophisticated turbines". They must hire best brains. Knowing Pakistan, they might have recruited the relatives of powerful politicians as engineers.

Riaz Haq said...

19640909rk : "Knowing Pakistan, they might have recruited the relatives of powerful politicians as engineers"


Please read the post again. It's the manufacturer's problems with rolling out its new technology, not a maintenance issue.

The Bouchain plant in France using the same GE turbines has had 26 forced outages in the 15 months ending November, according to data published by operator Electricite de France (EDF).

JPMorgan analyst Stephen Tusa has warned GE's Pakistan problems could affect other plants around the world, where GE has already "sold" 30 units

RA said...

So how much bribes did they take from GE to buy untried turbines?

Anonymous said...

An interesting sidelight of the energy situation is the fact that till around 1990, industrial power consumption exceeded domestic power consumption; henceforth, the situation has reversed. For the last two-and-a-half decades, domestic power consumption has been rising faster than industrial power consumption. This reflects the basic feature of the economy – consumption rather than production.

Riaz Haq said...

Anon: " domestic power consumption has been rising faster than industrial power consumption."

Here's the electricity consumption share of various sectors as reported in economic survey of Pakistan 2016-17:


Domestic 50% up from 46% in prior year

Commercial Industrial 8% up from 7%

Agriculture 10% up from 9%

Industrial 26% down from 27%

Misc 6% down from 11%

http://finance.gov.pk/survey/chapters_17/14-Energy.pdf

Domestic consumption reflects rising middle class and rising standards of living of even the poorest 20% in the country

http://www.riazhaq.com/2017/12/rising-share-of-income-for-poorest-20.html

Z Basha Jr said...

Americans taking us for a ride again.. Are there any Chinese proven technology we can use?