en
Written by John Egan for Industrial Info Resources (Sugar Land, Texas)--The Tennessee Valley Authority (NYSE:TVE) (Knoxville, Tennessee) took a big step toward a greener future last week when its board of directors decided to permanently retire 2,700 megawatts (MW) of coal-fired generation capacity and finish construction of at least one partially built nuclear unit.
At its board meeting on April 14, the TVA board decided to close 2,700 MW of older coal-fired generation at three generating stations. Previously, TVA had said most of these 18 units would be "idled," meaning they could be restarted in the future. But last Thursday, TVA decided to permanently close two units at its John Sevier Power Station in Rogersville, Tennessee, six units at its Widows Creek Power Station in Stevenson, Alabama, and all 10 units at the Johnsonville Steam Power Station in Johnsonville, Tennessee. These units will be closed by 2017. Most of these generators date from the 1950s.
"These units are among the first built by TVA and have served us well over the years," TVA President and CEO Tom Kilgore said in a statement after the board's action. "But as times change, TVA must adapt to meet future challenges." TVA would have had to install expensive emission-control equipment to keep the 18 older coal-fired units running, but that approach was not economical, he added. Kilgore also said that other TVA coal-fired generators without advanced emission controls are being considered for idling, permanent retirement, or installation of additional emission-control equipment. Coal-fired generation currently accounts for more than half of TVA's generation mix.
On April 14 the TVA board also approved settlement of litigation with the U.S. Environmental Protection Agency (Washington, D.C.) (EPA) and several states and environmental organizations that would obligate TVA to invest between $3 billion and $5 billion over the next 10 years on new emission-control equipment and upgrades of existing equipment at its coal plants. TVA has invested more than $5.3 billion since 1977 to reduce coal-fired power plant emissions.
The agreement also obligated TVA to provide $350 million to fund a number of environmental improvement projects over the next five years. Those include efficiency upgrades to the electric grid and reducing power-plant greenhouse gas emissions through efforts such as waste-heat recovery, solar and landfill-gas energy installations.
To replace the 2,700 MW of coal-fired generation that will be retired, TVA will spend an estimated $2.5 billion to complete the partially constructed 1,150-MW Watts Barr Unit 2 nuclear generator, in Spring City, Tennessee. Construction will be complete by the end of 2012, according to TVA Nuclear spokesman Ray Golden. Bechtel is the project's engineering, procurement and construction (EPC) firm.
TVA's nuclear ambitions may go far beyond finishing Watts Barr Unit 2, Golden said in an interview: "The board approved adding a minimum of 1,150 MW of nuclear generation and a maximum of 5,900 MW of nuclear generation to TVA's long-term resource portfolio." The more expansive deployment of nuclear power would include completion of the partially constructed Bellefonte Generating Station Unit 1, about 55% complete, at an estimated cost of $4.3 billion, completion of Bellefonte Generating Station Unit 2, also about 55% complete, and construction of up to two new Westinghouse AP1000 grassroot nuclear projects.
Work on Bellefonte Unit 1, located in Hollywood, Alabama, could begin in 2012, after Watts Barr 2 is completed. Golden added that the partially complete Bellefonte Generating Station Unit 2 could also be finished, though he didn't give a specific start date for that project. Bellefonte Unit 2, which is about 50% complete, began construction in 1984.
"The TVA board has decided that it won't have more than one nuclear construction project under way at a time," Golden told Industrtial Info. He added that if TVA decided to build the grassroot AP1000 nuclear generators, "we would hope to improve on the economics" at the Alvin W. Vogtle nuclear expansion project, which is building two Westinghouse AP1000 units at a cost of about $8 billion each.
Golden said the TVA board did not adopt a single generation resource plan that specified how many megawatts of nuclear, gas, wind and solar generation would be built. Rather, he said, "The board gave management a compass, not a GPS. The board adopted a strategic direction and will leave to management the specific decisions about what type of new generation resources will be built at what date." For that reason, it was not immediately possible to determine the price tag of the generation options adopted by the TVA board.
TVA's 20-year integrated resource plan (IRP), titled TVA's Environmental and Energy Future, also called for building or acquiring between 1,500 and 2,500 MW of renewable energy resources, building between 900 and 9,300 MW of new gas-fired generation, and expanding energy efficiency and demand-response programs for customers. The natural gas figure includes a 900-MW combined-cycle gas generator under construction at the John Sevier Power Station, which has a total investment value (TIV) of $820 million.
The IRP seeks to position TVA to respond to a dynamic and evolving environment for the electric industry with resource options that increase its electric supply and reduce customer demand.
"Diversity proved to be the most prudent course in meeting future energy needs in all the various future scenarios we studied," TVA's Kilgore said. "A variety of electricity sources, rather than heavy reliance on any single source, reduces long-term risks and helps keep costs steady and predictable."
TVA has been developing its IRP for about two years. An earlier draft IRP called for idling, but not retiring, a number of coal-fired units. For more information on that earlier plan, October 20, 2010, article - TVA to Idle Coal, Build More Nuclear and Renewable Generation Over the Next 20 Years.
View Plant Profile - 1012635 1519033 1012736 1000407 1024885 1011962
View Project Report - 25002189 4001656 17001442 25002615
Industrial Info Resources (IIR) is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. IIR's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
At its board meeting on April 14, the TVA board decided to close 2,700 MW of older coal-fired generation at three generating stations. Previously, TVA had said most of these 18 units would be "idled," meaning they could be restarted in the future. But last Thursday, TVA decided to permanently close two units at its John Sevier Power Station in Rogersville, Tennessee, six units at its Widows Creek Power Station in Stevenson, Alabama, and all 10 units at the Johnsonville Steam Power Station in Johnsonville, Tennessee. These units will be closed by 2017. Most of these generators date from the 1950s.
"These units are among the first built by TVA and have served us well over the years," TVA President and CEO Tom Kilgore said in a statement after the board's action. "But as times change, TVA must adapt to meet future challenges." TVA would have had to install expensive emission-control equipment to keep the 18 older coal-fired units running, but that approach was not economical, he added. Kilgore also said that other TVA coal-fired generators without advanced emission controls are being considered for idling, permanent retirement, or installation of additional emission-control equipment. Coal-fired generation currently accounts for more than half of TVA's generation mix.
On April 14 the TVA board also approved settlement of litigation with the U.S. Environmental Protection Agency (Washington, D.C.) (EPA) and several states and environmental organizations that would obligate TVA to invest between $3 billion and $5 billion over the next 10 years on new emission-control equipment and upgrades of existing equipment at its coal plants. TVA has invested more than $5.3 billion since 1977 to reduce coal-fired power plant emissions.
The agreement also obligated TVA to provide $350 million to fund a number of environmental improvement projects over the next five years. Those include efficiency upgrades to the electric grid and reducing power-plant greenhouse gas emissions through efforts such as waste-heat recovery, solar and landfill-gas energy installations.
To replace the 2,700 MW of coal-fired generation that will be retired, TVA will spend an estimated $2.5 billion to complete the partially constructed 1,150-MW Watts Barr Unit 2 nuclear generator, in Spring City, Tennessee. Construction will be complete by the end of 2012, according to TVA Nuclear spokesman Ray Golden. Bechtel is the project's engineering, procurement and construction (EPC) firm.
TVA's nuclear ambitions may go far beyond finishing Watts Barr Unit 2, Golden said in an interview: "The board approved adding a minimum of 1,150 MW of nuclear generation and a maximum of 5,900 MW of nuclear generation to TVA's long-term resource portfolio." The more expansive deployment of nuclear power would include completion of the partially constructed Bellefonte Generating Station Unit 1, about 55% complete, at an estimated cost of $4.3 billion, completion of Bellefonte Generating Station Unit 2, also about 55% complete, and construction of up to two new Westinghouse AP1000 grassroot nuclear projects.
Work on Bellefonte Unit 1, located in Hollywood, Alabama, could begin in 2012, after Watts Barr 2 is completed. Golden added that the partially complete Bellefonte Generating Station Unit 2 could also be finished, though he didn't give a specific start date for that project. Bellefonte Unit 2, which is about 50% complete, began construction in 1984.
"The TVA board has decided that it won't have more than one nuclear construction project under way at a time," Golden told Industrtial Info. He added that if TVA decided to build the grassroot AP1000 nuclear generators, "we would hope to improve on the economics" at the Alvin W. Vogtle nuclear expansion project, which is building two Westinghouse AP1000 units at a cost of about $8 billion each.
Golden said the TVA board did not adopt a single generation resource plan that specified how many megawatts of nuclear, gas, wind and solar generation would be built. Rather, he said, "The board gave management a compass, not a GPS. The board adopted a strategic direction and will leave to management the specific decisions about what type of new generation resources will be built at what date." For that reason, it was not immediately possible to determine the price tag of the generation options adopted by the TVA board.
TVA's 20-year integrated resource plan (IRP), titled TVA's Environmental and Energy Future, also called for building or acquiring between 1,500 and 2,500 MW of renewable energy resources, building between 900 and 9,300 MW of new gas-fired generation, and expanding energy efficiency and demand-response programs for customers. The natural gas figure includes a 900-MW combined-cycle gas generator under construction at the John Sevier Power Station, which has a total investment value (TIV) of $820 million.
The IRP seeks to position TVA to respond to a dynamic and evolving environment for the electric industry with resource options that increase its electric supply and reduce customer demand.
"Diversity proved to be the most prudent course in meeting future energy needs in all the various future scenarios we studied," TVA's Kilgore said. "A variety of electricity sources, rather than heavy reliance on any single source, reduces long-term risks and helps keep costs steady and predictable."
TVA has been developing its IRP for about two years. An earlier draft IRP called for idling, but not retiring, a number of coal-fired units. For more information on that earlier plan, October 20, 2010, article - TVA to Idle Coal, Build More Nuclear and Renewable Generation Over the Next 20 Years.
View Plant Profile - 1012635 1519033 1012736 1000407 1024885 1011962
View Project Report - 25002189 4001656 17001442 25002615
Industrial Info Resources (IIR) is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. IIR's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
