Our electric system is evolving at an unprecedented rate and scale. Placing tremendous pressure on traditionally stable processes are the acceleration of renewables penetration, onshoring of manufacturing and development of data centers feeding off AI's growth. While the demand for reliable and efficient power generation is booming, the supply side for new capacity continues to face an exceptional mix of challenges. Supply-chain constraints affecting the procurement of gas turbines, large transformers and high-voltage breakers, as well as the congested interconnection queues themselves, have expanded the timeline to bring new dispatchable generation online to new record lengths.
The market has responded to this increased challenge of obtaining new generation capacity to meet demand by shifting the focus toward optimization of existing facilities. Power producers nationwide have aggressively invested in plant improvement projects to increase the reliability of their existing assets, multiply efficiencies and reiterate commitments to safety.
Efficiency Upgrades to Maximize Output
Upgrades driven by the desire for increased efficiency are being implemented at a large scale across traditional generation facilities powered by coal, gas and nuclear. Many operators have been reviewing key plant infrastructure to identify bottlenecks where investments could improve the efficiency of the generating units. As an example, the implementation of inlet air fogging in simple-cycle plants has generated an output increase of 8% in certain markets.
The nuclear sector welcomed the demand for efficiency and performance upgrades by making large capital investments targeting significant plant uprates for aging facilities. In support of this increased output, owners have been assessing cooling towers, condensers and other plant systems to see that the facility can handle large increases in capacity. Upgrades like these not only extend the useful operating lives of the plants but also provide timely solutions to the power market challenges at hand.
Reliability Enhancements to Prepare for the Unexpected
In the wake of severe weather conditions in recent years, the importance of maintaining reliability and keeping the lights on has never been more important. Winter Storm Uri, for example, caused devastating effects on the power grid in Texas and the lower Midwest, and many plants were unable to come online due to the lack of available natural gas. As a result, an increased number of power producers have been evaluating options to retrofit their facilities with backup fuel options or black start capabilities to continue supporting communities through emergency situations. Black start units have gained traction in the Northeast, particularly, and have the power to bring a plant online without a grid connection. Retrofits that include backup fuels like diesel or liquefied natural gas also have the power to keep plants running during severe weather events when pipeline gas is not available; such projects gained traction mostly in the Midwest.
Safety Improvements to Protect Workers and Facilities
As part of these new investments into existing assets, many power generators have used the opportunity to reiterate a commitment to safety for their plant personnel. In older facilities, common projects include adding railings and access platforming to improve maneuverability for employees. Additionally, refreshed arc-flash studies, control upgrades and even switchgear replacements are being performed to strengthen electrical safety.
Maintaining the resilience and capability of the power grid is more critical and challenging today than ever before. Plant service and improvement projects have been a key solution for generators nationwide as they grapple with extended project timelines, increased service area demand and regulatory uncertainty.
Plant services will continue to be a key strategy as more aggressive rules are being implemented to address interconnection queue delays.
