Feasibility & Future Perspective - SQC · Saudi Aramco: Public Saudi Aramco: Public Saudi Quality...

Saudi Aramco: PublicSaudi Aramco: Public

Saudi Quality Council

Jeddah, May 19th 2016

Electrical Equipment Testing: Feasibility & Future Perspective

Saudi Aramco: Public2

Burning Desire

Opportunities in the MENA/GCC

Testing Lab Services & Features

Differentiation Factors

Risks & Mitigations

GCC Electrical Equip Lab

Outline


285 Fatalities in 2 yrs in Fire Incidents

SR 340 millions Damages

60% is originated by electric causes

Substandard/Fraud Electrical Devices

Power Failures & Losses

Safety


80% of Electric Devices are Counterfeit

33% of total Incidents’ causes

SR 41Bn Losses to KSA Economy

Customs: 125.5m Counterfeit Items

(2013)

Value: SR 8.6Bn, with 129% increase

Counterfeits

Saudi Aramco: Public

Cost of Reliability

US: $ 119 Bn/YearEPRI

US: $ 150-400 Bn/YearDOE

US: $ 79 Bn/YearBerkeley Lab

TANGIBLE

NONTANGIBLE


MENA’s Power Growth

Manufacturing

Knowledge Economy

Quality Safety Efficiency

Renewable Smart Grids & DC


Electric Utilities Oil & Gas

Water Desalination

Petrochemicals

R & DRenewable

7

Huge Market (Growth rate 8-10%)

Growing Electrical Equip Factories

50% Commodities not Manufactured

Assembling vs. Manufacturing

30% Local Share of Purchase Volume

Obsolescence/Aging Challenges

7

Opportunities in GCC Countries

http://www.google.com.sa/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=4QqK0UyvVpVw4M&tbnid=EwaRlijTSmbhJM:&ved=0CAUQjRw&url=http://www.water-technology.net/projects/shoaiba-desalination/shoaiba-desalination1.html&ei=ImejUo2VIIKr2gXe4ICwBA&psig=AFQjCNFlhJ1C4dGmeeVUm8zyriemF-DqBQ&ust=1386526862885328

http://www.google.com.sa/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=4QqK0UyvVpVw4M&tbnid=EwaRlijTSmbhJM:&ved=0CAUQjRw&url=http://www.water-technology.net/projects/shoaiba-desalination/shoaiba-desalination1.html&ei=ImejUo2VIIKr2gXe4ICwBA&psig=AFQjCNFlhJ1C4dGmeeVUm8zyriemF-DqBQ&ust=1386526862885328


Testing Investigation Calibration Training

and R&D

Transformers

Switchgears

Cables

Towers

Insulators

Renewable

DC Systems

UPS Systems

Efficiency

Transformers

Switchgears

Cables

Towers

Insulators

Renewable

DC Systems

UPS Systems

Efficiency

Disputes

Arbitration

Field

Design

Quality

Disputes

Arbitration

Field

Design

Quality

QA

O&M

PMT

Inspection

QA

O&M

PMT

Inspection

Training

Researches:

Environment

New Equip

Arc Flash

Training

Researches:

Environment

New Equip

Arc Flash

8

Lab Services Scope


Design and Feasibility

9GCC Electrical Equipment Testing Laboratory

DescriptionInvestment

[%]

Operation

[%]

Revenues

[%]

Margin

[%]

High Voltage laboratory 16 % 25 % 26 % 25 %

High Power laboratory 63 % 49 % 56 % 62%

Low Voltage laboratory 4 % 18 % 18 % 18 %

General infrastructure 17 % 8 % 0 -3 %

TOTAL 100 % 4.4 % 11.4 % 7.0 %


Lab Services Scope

Maximum Rated Values

Main equipment Standard [kV] [A] / [MVA] SC [kA]

HV circuit breakers IEC 62271-100 420 4000 A 63

HV switchgear IEC 62271-203 420 4000 A 63

MV circuit breakers IEC 62271-100 36 3150 A 31.5

MV switchgears IEC 62271-200 36 3150 A 31.5

MV Load Break switches IEC 62271-103 36 1200 A 31.5

Prefabricated substations IEC 62271-202 36 3 MVA 40

LV switchgears IEC 61439 0.69 6300 A 100

MV cables IEC 60502 36 550 A 43

HV cables IEC 60840/62067 420 2600 A 63

Distribution transformers IEC 60076 / IEEE 36 20 MVA -

Power transformers IEC 60076 / IEEE 145 100 MVA -

Power transformers IEC 60076 / IEEE 420 650 MVA -


Benefits to the GCC Countries

Improve Design Quality

Create Knowledge Economy

Localize Manufacturing

Create High-Skilled Jobs

Promote Applied R&D

Offering Localized Services

11


Quality, Time & Cost

Retrofit Solutions for Obsolescence

Failure Investigations/Studies

High-Class Technical Training

Specialized/Localized Support

12

Benefits to Manufacturers & Users


Ownership Model

13

13

ISO-17025.: "the laboratory should be able to demonstrate that it is impartial and that it and its

personnel are free from any undue commercial, financial and other pressures which might influence

their technical judgment. The testing or calibration laboratory should not engage in any activities that

may endanger the trust in its independence of judgment and integrity in relation to its testing or

calibration activities."

ISO-17025.: "the laboratory should be able to demonstrate that it is impartial and that it and its

personnel are free from any undue commercial, financial and other pressures which might influence

their technical judgment. The testing or calibration laboratory should not engage in any activities that

may endanger the trust in its independence of judgment and integrity in relation to its testing or

calibration activities."

CESI CPRI KEMA KERI Xihari

Country Italy India Netherland S. Korea China

StakeholdersPower Production & Utility companies, research Institutes

Government of India, Ministry

of Power

PowerProduction and Utility companies

Government sponsoredInstitute

Manufacturers,

Government assigned

13


Shareholder Participation

Shareholder Share

SEC 25 %

Saudi Aramco 20 %

PIF 20%

Dh Techno-valley KFUPM 15%

Mutabagah 5%

GCCIA 5%

Al-Fanar 4%

ACWA Power 2.5%

Saudi Transformers 2.5%

SEMSC 1%

Total 100%

Supported by:

14

15


Differentiation Factors

Favorable Geo-Economics

Strategic Shareholders

Strategic Location

International Recognition

Specialty (HV, HP, LV)

Regulations (GSO/SASO)

15


1. Company Established

2. 10 Companies Shareholders

3. Board is Formed

4. Land is reserved by Modon

5. Four Potential International Partners

6. Gov & Organizational Support

16

Progress Update

17


Reputation

Project Execution

WTO:

Subsidies & Countervailing

Measures (SCM)

Location WTO:

Technical Barrier to

Trade (TBT)

Impact

Like

ho

od

Know HowUtility

Risks & Mitigations

Financial Stand

Regulations

Know-HowRegulations Finance Management


What are your

Advantages?


THANKS


Lab Features

Trust &

Confidence

Quality &

integrity

Capability &

Delivery

Innovation

R&D


Industrialization

Urbanization


The Strategy Diamond

ArenasArenas

StagingStaging

Differentiators

Differentiators

Vehicles

Vehicles

Economic LogicEconomic Logic


2000 2015Growth

(%)2025

Annual

Growth

(%)

Generation

capacity [GW] 26 69 168% 110 6.8%

Renewable

capacity [GW] *

starting 2017

- - - 9.5 100

Total peak load

[GW]22 62 187% 97 7.3%

Transmission

network

[km-circular]

29,631 67,446 128% 104,423 5.6%

Distribution

network

[km-circular]

111,129 276,901 149% 847,902 6.3%


Investigation&

Arbitration

Testing

&

Certification

Calibration

R&D


1

Reduce Time & Cost of

Testing

2

Improvement of

Design Quality

3

Creation of

Knowledge Economy

4Localization of

Manufacturing

5

Creation of High Skilled jobs

6Motivating Investment in Electrical Infrastructure


GCC Electrical Equipment

Testing Laboratory

Saleh Al AmriCIGRE GCC Power 2015, Jeddah


المختبرأرض http://maps.modon.gov.sa/

http://maps.modon.gov.sa/

29

Saudi Aramco: Public 29

Possible Synergy with EIC

1

2

3

4

45

6

7

8

9

4

10

Community Entry Boulevard

New Rail

Spur

10

Acce

ss R

oa

d (

Gh

on

an)

3

2

4

5

6

1Light Industrial

Medium Industrial

Heavy Industrial

Logistics

Foundries

Drilling Fluids

7

8

Commercial

Labor Accommodation

Public

Training Institute9

1

0


Background – Feasibility Analysis


Company Participation

SEC 1,500,000 SR

ECRA 500,000 SR

Saudi Transformer Company 100,000 SR

Saudi Services For Electro Mechanic

Works (SSEM)

300,000 SR

ABB Electrical Industries Co. Ltd. 50,000 SR

Alfanar 300,000 SR

Riyadh Cables 200,000 SR

AREVA 100,000 SR

TOTAL 3,050,000 SR

Conduct by: &


1) Background – Development Committee


Name Affiliation Address

Dr. Abdullah Al-Shehri Governor ECRA

Eng. Saleh Al-Sohaibani Executive Director, Engineering & Projects SEC

Dr. Najeeb Al-Jamee Director, Electricity & Water Division GCC

Eng. Ahmad N. Swaidan President, Administrative Sector Saudi Transformer Company

Eng. Waleed A. Al-Rumaih Senior Consultant, Energy Studies (KAPSARC)

Eng. Awadh Aldigs Research & Development ManagerABB Electrical Industries Co.

Ltd.

Eng. Abdulla A. Hasan Head Substations Maintenance GCCIA

Eng. Majed Al Hamrani Electrical Systems DivisionConsulting Services, Saudi

Aramco

Dr. Nabih Al Saati Technical Executive Director Riyadh Cables

Dr. Luai Al-Hadhrami Director, Center for Engineering Research KFUPM

Eng. Khaled Al-Soufi Research Engineer KFUPM


Shareholder Participation

Shareholder Share

SEC 25 %

Saudi Aramco 20 %

PIF 20%

Dh Techno-valley KFUPM 15%

Mutabagah 5%

GCCIA 5%

Al-Fanar 4%

ACWA Power 2.5%

Saudi Transformers 2.5%

SEMSC 1%

Total 100%

Supported by:

32


2) Description of the Lab Facilities


• Land: 130,000 Square

meter

• Three independently

operated laboratories,

HV, HP and LV

• Power supply : 60

MW, 115 kV

Saudi Aramco: Public 34GCC Electrical Equipment Testing Laboratory

High Voltage Lab:

• Equipment UP to 420 KV

• Lightning Impulse Voltage:

1800 KV

• SWITCHING IMPULSE

VOLTAGE: 1600 KV

• AC VOLTAGE (50 / 60 HZ):

750 KV

Power Transformer:

• Voltage Rating 145 KV

• Lightning Impulse Voltage:

750 KV

• AC VOLTAGE (50 / 60 HZ):

275 KV



Circuit Breakers, Switchgear, Cables:

• Test Current 7000 A

• AC VOLTAGE (50 / 60 HZ): 750 KV

Distribution Transformer:

• Voltage Rating 36 KV

• Rated Power 10 MVA

• SC Impedance: <20%

• AC VOLTAGE (50 / 60 HZ): 275 KV



High Power Lab:

2 Generators

Rated voltage

kV

Test current

50 Hz 60 Hz

12 50 kA 50 kA

17.5 50 kA 50 kA

24 50 kA 50 kA

36 40kA 31.5kA

40.5 31.5 kA

31.5 kA



High Power Lab:

3 Phase Synthetic Tests

Rated voltage

kV

Test current

50 Hz

60 Hz

72.5

50 kA

50 kA145

245



High Power Lab:

1 Phase Synthetic Tests

Rated voltage

kV

Test current

50 Hz 60 Hz

245 63 kA 63 kA

300 63 kA 63 kA

420 63 kA 63 kA



3) Cost and Benefit – Cost Breakdown



[%]

Operation

[%]

Revenues

[%]

Margin

[%]

High Voltage laboratory 16 % 25 % 26 % 25 %

High Power laboratory 63 % 49 % 56 % 62%

Low Voltage laboratory 4 % 18 % 18 % 18 %

General infrastructure 17 % 8 % 0 -3 %

TOTAL 100 % 4.4 % 11.4 % 7.0 %


3) Cost and Benefit – Cost Breakdown



[1000 €]

Operation

[1000 €]

Revenues

[1000 €/yr]

Margin

[1000 €/yr]

High Voltage laboratory 17,438 1,127 3,019 1,892

High Power laboratory 66,154 2,242 6,798 4,556

Low Voltage laboratory 4,439 839 2,200 1,361

General infrastructure 17,117 374 0 -374

TOTAL 105,148 4,582 12,017 7,435


Survey details:

• Local Market size was quantified by means of questionnaires.

• The survey quantified the expected test days for the next 5 years

• Responses were received from 4 users, and 9 manufacturers

IRR = 5.6%

Types M Euro

Tests 12

Opex - 4.5

Total 7.5

Revenues Streams

Types M Euro

Land 7

Landscape & Roads 4

HV Power Supply 3.5

Facilities 2.5

Equipment 88

Total 105

Capex

IRR = 8.9%

Base Case

Best Option

Others

Consultancy +20%

+20%

Donation -33%

Soft Loan -33%

Funding 33%

3) Cost and Benefit – Revenue Streams


3) Cost and Benefit – Revenue Streams

Based on the responses, estimated Revenue is 7.5 M €, which results in lass than 20% utilization of the lab

With 100% of the lab, revenue, could reach to 90 M€.


3) Cost and Benefit – Market Size –

International


CESI CPRI KEMA KERI Xihari

Country Italy India Netherland S. Korea China

Testing & Certification X X X X X

Consultancy X X X

# Employees

Annual Turnover (2009) (Million Euro) 125 13 256 Unknown Unknown


4) Operation Strategy – Mgt. Structure



Evaluation SubjectsManufacturer

OwnedUser

OwnedGovernment

OwnedMixed Owned

Perceived Confidentiality - + + 0

Perceived Independency - + + 0

Acceptability - + + 0

Entrepreneurial + 0 - 0

International Orientation + 0 - +

4) Operation Strategy – Forms of Ownership

• Manufactured Owned is favored• Utility owned is Popular• Government Owned is available, but there is fear of stagnation• Mixed owned: users, manufacturers, research institutes, standardization institutes and/or

another independent third party laboratory. But, shares or votes of entities shall be divided in such way that no single manufacturer has the majority and may limit the combined participation of the manufacturers to less than 50%.


5) Implementation Roadmap


Realization of the LV laboratory

The HV laboratory:

Phase B.1 : MV test area

Phase B.2 : HV test cell (after installing the

second generator in the HP laboratory)

The HP laboratory:

Phase C.1 : realization of the first generator

Phase C.2 : simultaneous realization of the

second generator and the synthetic

installations (after the decision has been taken

to realize the HV test cell)

Phas

e A

Phas

e C

Phas

e B


Low Voltage

High Power

High Voltage

Testing Facilities

48


Success Factors

1. Participation of Strategic Shareholders

2. Partnership with an International Lab

3. Independence

4. International Standards/Recognition

5. Mandating Testing by GSO & SASO

6. Strategic Location


1. Company Established

2. 10 Companies Shareholders

3. Board is Formed

4. Land is reserved by Modon

5. Three International Partners

6. SASO & ECRA Support

49

Progress Update

Feasibility & Future Perspective - SQC · Saudi Aramco: Public Saudi Aramco: Public Saudi Quality...

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