Exciting Times, Exciting industry
Collaborating to build innovative
Generations
Dr Nina Skorupska
Director, Technology Services
RWE npower
Presentation to the IET/MEI Conference 21st May 2007
Content
 Introduction to RWE npower
 History of the power industry
 Exciting times!
 The people agenda
 Shortage, what shortage?
 Addressing the issue
 Educational engagement
 Industry wide action
2
RWE npower
RWE npower is a leading integrated UK energy company
Generation and
 Over 8,000MW
of generation
Renewables
capacity in the UK
 17 wind farms with a total capacity
of more than 390MW
 14 hydro sites in the UK
 Strong in-house operations and
engineering capability
 Electricity
Retail and gas retail business,
around 6.5 million customer
accounts
 Domestic green energy product,
npower Juice, has over 50,000
customers
 RWE Power International
3
Generation and Renewables
Fossil fuel plants - Coal
Didcot A
Coal
Aberthaw
Coal
Tilbury B
Coal
4
Generation and Renewables
Fossil fuel plants - Gas (Combined cycle
and open cycle)
Little Barford
CCGT
Great Yarmouth
CCGT
Didcot B
CCGT
Didcot A
Coal
Tilbury B
Coal
Aberthaw
Coal
Cowes
OCGT
5
Generation and Renewables
Fossil fuel plants - Oil
Little Barford
CCGT
Great Yarmouth
CCGT
Didcot B
CCGT
Didcot A
Coal
Littlebrook
Oil
Tilbury B
Coal
Aberthaw
Coal
Cowes
OCGT
Fawley
Oil
6
Generation and Renewables
Cogen
•
•
16 cogeneration plants on customer sites with
2,000MW of total energy capacity
Supplies power and heat to industrial customers as
diverse as universities and refineries
Rhodia Chirex
BASF
Rhodia Whitehaven
Conoco Phillips
Lancaster University
Lindsey Oil Refinery
SCA Tawd Mill
Huntsman Tioxide
Bridgewater Paper
Millenium Chemicals
Rhodia Oldbury
Whitegate Refinery
Georgia Pacific
Aylesford Newsprint
Dow Corning
7
ESSO
Renewables business
 RWE npower, is one of the UK’s leading
renewables developer and operator, in the wind,
hydro and biofuel generating sectors
 Operates c340MW of onshore wind and 60MW
of offshore wind over 18 sites
 Through pioneering green domestic electricity
product “Juice” (first non-premium product of its
type in the UK market), npower renewables set
up the npower juice fund, which provides
support to the development of emerging marine
renewables technologies (wave and tidal
stream)
 Through the juice fund we have invested
£1million recently in 7 marine projects in the UK
 We are also the UK’s most recognised green
energy supplier with about 54,000 juice
customers
8
RWE npower’s heritage
Pre-1990
1990
2000
May 2002
Central
Electricity
Generating
Board
(CEGB)
Innogy became part of
the RWE Group of
Companies and was
re-named RWE
npower in August
2004.
9
Power generation has experienced
challenging days in the UK
Power Price £/MWh
NETA
Strong
Fundamentals
50
45
40
Short run marginal cost
Competition
and “dash for gas”
35
Enron collapse, withdrawal of
US IPPs
Price cap
30
Distressed Generators
25
20
15
1990
Privatisation
1992
1994
1996
1998
2000
2002
2004
2006
10
Sector has Moved from Oligopoly1 at
Privatisation in April 1990
30
Capacity (GW)
25
20
15
10
5
0
Nuclear Electric
National Power
PowerGen
ScottishPower
Hydro-Electric
1) Oligopoly: A market condition in which sellers are so few that the actions of any one of them will materially affect price and have a measurable impact on competitors.
Others
11
Healthy prices led to many new entrants
28 UK generators in
2001
Good spreads
British Energy
EdF
Innogy
SPO
Powergen
AEP
AES
BNFL
SSE
Centrica
Mission
International Power
TXU
Saltend Cogeneration
ETOL
Barking Power
Coryton Energy
Total FinaElf
Entergy
BP
Rocksavage Power
Enfield Energy Centre
NRG
Corby Power
South Coast Power
Alcan
Derwent Power
Lakeland Power
12
… and is now consolidating in hands of
the “Big VI”
12
Capacity (GW)
10
8
6
4
2
0
British Energy
EdF Energy
RWE npower
Centrica
E.ON UK
Others
ScottishPower
I PPs
SSE
13
Exciting times
 Climate protection high profile debate
 Large Combustion Plant Directive
 Government‘s Energy Review
- published in July 2006
 Security of gas supply
 Recent publication of the Stern Report
14
More progress on reducing carbon
dioxide emissions!
Carbon emissions by Sector and the 2050 goal
180
Goal
140
Services
120
Residential
100
80
Industry
60
Transport
40
Electricity Generation and
Refineries
20
20
50
20
40
20
30
20
20
20
10
20
00
0
19
90
Millions of tonnes of Carbon
160
15
Growing demand for energy
End use of energy by sector of the Economy in 2004
Other
13%
Domestic
30%
Industry
21%
Compared with 30 Years
ago, we use nearly TWICE
as much energy in
transport and over 20%
more in heating our homes
and powering our
appliances!
Transport
36%
16
“To quench the world’s thirst for
energy requires a cumulative
investment in energy-supply
infrastructure of over $20,000
billion in real terms over 20052030”
07 November 2006 London
17
Fundamentals indicate over the
short, medium and long-term, we need
to build NEW POWER STATIONS!
100
25%
90
80
Renewables
20%
CHP
15%
50
40
10%
30
Capacity Margin
Pumped Storage
60
Interconnectors
Oil
OCGT
Nuclear
Coal (opted-out)
Coal (opted-in)
CCGT
Peak Demand
20
5%
Capacity Margin
10
19
20
17
20
15
20
13
20
11
20
09
20
07
0%
20
05
0
20
Capacity, GW
70
18
Outcome of the changes and challenges
on the `people’ agenda
New build (MW)
 Peak
energy investment in 1970’s resulted in
6000
strong recruitment of a then young, and now
ageing
5000workforce
4000 support declined
 University
3000
 Throughout 1990’s privatised industries
2000
downsized
and took on few graduates
1000
 Now seeing significant infrastructure renewal in
electricity,
0 water, railways and demand for skilled
1966
1970 1974 1978 1982 1986 1990 1994 1998 2002
resource
is increasing
CCGT
Coal
Oil
19
UK market review resource issues
UK wide
LCPD upgrades
New thermal
New Nuclear
Offshore wind
ASCRs
SCRs
South Wales
Port Talbot CCGT plant
Milford Haven CCGT 1,500MW
Pembroke CCGT 2GW
Uskmouth CCGT 800MW
New LNG terminal
Refinery upgrades/expansion
South England
Langage CCGT 800MW
Marchwood CCGT 800MW
AWE Aldermaston
CHP/biomass plants
Chemical plant upgrades
Aircraft carrier new build
(2006)
Scotland & the North
Peterhead CCS/EOR project
North Sea spend
BP Grangemouth upgrades
Glasgow Airport rail link
Renewables
Drakelow CCGT
Bacton interconnector
Gas storage projects
Refinery upgrades/expansion
London & South East
Wembley Stadium
Heathrow T5 and upgrades
Stanstead expansion
Gatwick expansion
Olympics
London new build civil
The cross rail link
Isle of Grain phase II LNG
Isle of Grain CCGT
Felixtowe port expansion
20
RWE npower’s generation business
– age profile
Under 18
18-24
25-29
30-34
35-39
40-44
45-49
50-54
55-59
60+
21
Shortage, what shortage?
 35% of companies do not expect to
be able to recruit sufficient technical
staff this year. Senior engineers are
the most difficult to find – IET
 45% increase in engineering
graduate recruitment in 2006
 20% did not recruit desired number
of graduates – AGR
 “The power sector faces an acute
shortage of engineers” - DTI
22
Where will the future engineers
come from?
 Drop in A-level maths students
 Number of engineering and
technology graduates remaining
static
 Fewer than half of engineering
graduates take up jobs as engineers
 Concerns identified over the longterm pipeline of young talent going
from schools onto university
engineering courses and
subsequently into engineering firms
– Royal Academy of Engineering
23
STEM A-level stats
70000
60000
50000
40000
2005 Totals
1996 totals
30000
20000
10000
24
0
Biology
Chemistry
Physics
Other Sciences
Maths
Choosing to study STEM A-levels
 In 2004
– 55,500 students were awarded GCSE in
Physics
– 49,000 students studying Chemistry
 Science less likely than Maths and English
to be seen as necessary for a good job
 Students lack understanding about SET
careers. Large majority see engineering in
terms of working with machinery
 80% of students in Year 9 already have an
interest in working in a specific area and
consider option choices appropriate for
that area
25
What are we doing to address
shortages - medium term?
 Increase graduate intake
 November 2006 - Launch of npower
graduate recruitment campaign at Science
Museum
 Broad exposure in graduate recruitment
publications and web sites
 npower graduate website re branded –
new style recently launched
 2006 Careers fairs complete
 More than 500 applications received so far
– sixteen weeks into campaign
26
What we’re doing to address
shortages - long term?
Power
Days
Free
resources
Education
organisations
Power
station
guided tours
Education
Cricket
Work
Experience
Sponsorships
Links with
local schools
www.npower.com/
education
Staff
volunteering
Staff
development
27
Enthuse
 Targeted at Year 9 (ages 13 -14)
 Aim to increase interest/curiosity about
engineering and science
 enthuse will be an activity day
– Practical activities
– Teamwork and Problem solving
– Excitement and competition
 Learn By Design – Primary developer
(including design and delivery) – Power
Days
 Days would be delivered with the
assistance of npower Graduates and
Apprentices
28
Enthuse pilot day
 Morning Q1: Are you interested in a career in engineering?
Yes 23%
No 77%
 Afternoon Q1: Are you now interested in a career in engineering?
Yes 47%
No 53%
29
Enthuse pilot day
 Morning Q2: Do you think you know enough about engineering to consider it
as a career?
Yes 4%
No 96%
 Afternoon Q2: After what you've experienced today, do you think you know
more about engineering to consider it as a career?
Yes 96%
No 4%
30
Enthuse pilot day
 Morning Q3: Do you think your science lessons are relevant to your
everyday life?
Yes 60%
No 40%
 Afternoon Q3: Do you now think your science lessons are relevant to your
everyday life?
Yes 82%
No 18%
31
“Shape the future”
 Influencing the influencers
 Teacher experience days – hosted by industry
 Supported by government funding
 Littlebrook power station was one of the first in the
UK
 15 teachers visited – reaching over 3000 students
 Excellent feedback from Teachers, RAE and
Education Business Partner
 Next event at Littlebrook Power Station again in
June
 Potential to influence is enormous
32
Science Engineering Ambassadors
 Supported by SETNET, The Science, Engineering, Technology
and Mathematics Network that promotes Science Technology
Engineering and Mathematics (STEM) awareness, especially
among young people
 SEA scheme underpins promotion of STEM subjects
 2006 graduates encouraged to become SEAs
 SETNET will deliver bespoke training to npower in January and
February 2007
 npower has been instrumental in encouraging IMechE and IET
to include reference to education engagement as contributing
towards competence E.
33
Industry wide action
 Major problem for Power Generating
Industry
 Can’t be solved by one company alone
 All need to engage – lots of great work
already being done throughout industry
in this field
 Need close links with educational
institutions
 All need to be ambassadors for
engineering and power industry
34
Exciting Times, Exciting industry
Collaborating to build innovative
Generations
Dr Nina Skorupska
Director, Technology Services
RWE npower