Enguri Hydro Power Plant Issues and Priorities for Energy Security and Reliability
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ENGURI HYDRO POWER PLANT ISSUES AND PRIORITIES FOR ENERGY SECURITY AND RELIABILITY USAID ENERGY PROGRAM 18 March 2019 This publication was produced for review by the United States Agency for International Development. It was prepared by Deloitte Consulting LLP. The author’s views expressed in this publication do not necessarily reflect the views of the United States Agency for International Development or the United States Government. ENGURI HYDRO POWER PLANT ISSUES AND PRIORITIES FOR ENERGY SECURITY AND RELIABILITY USAID ENERGY PROGRAM CONTRACT NUMBER: AID-OAA-I-13-00018 DELOITTE CONSULTING LLP USAID | GEORGIA USAID CONTRACTING OFFICER’S REPRESENTATIVE: NICHOLAS OKRESHIDZE AUTHOR(S): PHIL HOOVER, VALERIY VLATCHKOV, DAVIT MUJIRISHVILI LANGUAGE: ENGLISH 18 MARCH 2019 DISCLAIMER: This publication was produced for review by the United States Agency for International Development. It was prepared by Deloitte Consulting LLP. The author’s views expressed in this publication do not necessarily reflect the views of the United States Agency for International Development or the United States Government. USAID ENERGY PROGRAM ENGURI HYDRO POWER PLANT i DATA Reviewed by: Daniel Potash, Ivane Pirveli, Valeriy Vlatchkov, Davit Mujirishvili, Eka Nadareishvili Practice Area: Strategic Advisory Assistance to the Government of Georgia to Increase Energy Security Key Words: Energy Security, Enguri Hydro Power Plant USAID ENERGY PROGRAM ENGURI HYDRO POWER PLANT ii ACRONYMS € Euro CAPEX Capital Expenditure EBRD European Bank for Reconstruction and Development EU European Union GEL Georgian Lari GNERC Georgian National Energy and Water Supply Regulatory Commission GoG Government of Georgia GSE Georgian State Electrosystem GWh Gigawatt Hour HPP Hydro Power Plant HV High Voltage IRENA International Renewable Energy Agency KfW German Government-Owned Development Bank (Kreditanstalt für Wiederaufbau) km Kilometer kV Kilovolt kWh Kilowatt Hour Ltd Limited Liability Company M2 Square Metre M³ Cubic Metre Mm Millimetre MW Megawatt MWh Megawatt Hour NIF Neighborhood Investment Facility O&M Operations and Maintenance OHL Overhead Lines PIU Project Implementation Unit TYNDP Ten-Year Network Development Plan USAID United States Agency for International Development USAID ENERGY PROGRAM ENGURI HYDRO POWER PLANT iii CONTENTS EXECUTIVE SUMMARY ........................................................................................................................ 6 BACKGROUND ...................................................................................................................................... 9 METHODOLOGY .................................................................................................................................. 11 ENGURI OPERATING ENVIRONMENT .............................................................................................. 12 Enguri HPP Status ...................................................................................................................... 12 Large Hydro Power Plants and Rehabilitation ............................................................................ 13 Enguri Financial Environment ..................................................................................................... 13 Long Term Implications ............................................................................................................... 14 Summary ..................................................................................................................................... 15 PRIORITIES FOR FURTHER ENGURI HPP SECURITY AND RELIABILITY .................................... 16 Priority 1 – Meeting Dam Safety Criteria ..................................................................................... 17 Priority 1 – Flood Analysis and Planning ..................................................................................... 18 Priority 2 – Penstock Valve Replacement ................................................................................... 18 Priority 2 – Replacement of Generator Breakers ........................................................................ 19 Priority 2 – Replacement of 500 kV Switchyard Circuit Breakers ............................................... 20 Priority 2 – Replacement of 500 kV current Transformers at the Switch Yard ........................... 21 Priority 2 – Replacement of Relays Protection and Emergency Automation System ................. 21 Priority 2 – Replacement of the Synchronization System ........................................................... 22 Priority 3 – Interior Powerhouse Leakage ................................................................................... 23 Priority 3 – Turbine Gate Operation Servomotors ....................................................................... 24 Priority 3 – Replacement of the Circuit Breakers at 220 kV and 110 kV in the Switchyard ........ 25 Priority 3 – Replacement of Current Transformers at 220 kV and 110 kV .................................. 25 Priority 3 – Replacement of Disconnecting Switches at 500 kV, 220 kV and 110 kV ................. 26 Priority 3 – Replacement of one set 500 kV Surge Arresters ..................................................... 26 Priority 4 – Ongoing Sediment Removal ..................................................................................... 26 Priority 5 – Reservoir Debris Removal ........................................................................................ 27 Priority 5 – Unit Flow Measurement ............................................................................................ 27 Priority 5 – Spillway Gate Upgrade ............................................................................................. 28 Priority 5 – Rebuild Vardnili 2, 3, 4 .............................................................................................. 29 Priority 5 – Vardnili 1, Upgrade 2 Units ....................................................................................... 30 Priority Future – Transformer Replacement ................................................................................ 31 Priority Future – Tunnel Repairs ................................................................................................. 31 Priority Future – Rehabilitation of Access to the Arch Dam Facilities Road ............................... 32 USAID ENERGY PROGRAM ENGURI HYDRO POWER PLANT iv APPENDIX A: LIST OF REFERENCES .............................................................................................. 35 USAID ENERGY PROGRAM ENGURI HYDRO POWER PLANT v EXECUTIVE SUMMARY The Enguri Dam and Hydro Power Plant (HPP) sit at the top of the Enguri and Vardnili Cascade. The project includes one of the highest arch dams in the world, along with underground structures and substantial electro-mechanical works that provide 1,300 MW of power and an annual average of 4,000,000 MWh of energy for Georgia. The plant is a critical resource for the Georgian Power Grid. The project is owned and managed by LTD “Engurhesi”, a state-owned company. The company also operates the downstream facilities at Vardnili 1, Vardnili 2, 3 and 4 are inoperative. The project operation and maintenance are complicated by the geo-political situation of the Enguri and Vardnili HPP cascade. The Enguri powerhouse and the downstream facilities are in the Abkhazia Region, which remains to be an occupied area and hence is the subject of an administrative border. This complicated situation hinders the effective functioning of the dam as well as major maintenance, repairs and upgrades. Enguri HPP has suffered from the construction and equipment issues from the very onset and has seen minor repairs and maintenance in late 1980s and 1990s. Substantial rehabilitation has been financed by European Bank for Reconstruction and Development (EBRD) and partner donors as well as the Government of Georgia (GoG). These efforts began in 1997 when the respective studies revealed the need for the most critical works. Currently there is a “Phase IV” program which is considered to be the final effort of the outside financial support by the EBRD. The Phase IV program is underway and will be completed in 2020-2021 timeframe, depending on the contractors’ schedules, remaining subject of a bid. The stakeholders are aware that major works cannot be completed within the Phase IV. The main objective of this evaluation and report is to identify and prioritize the remaining and anticipated works for the Enguri HPP, following the completion of the Phase IV. The evaluation included a site visit, review of relevant materials, interviews and discussions with Enguri HPP management. The site visit was not intended to be a detailed engineering inspection nor duplicative of efforts by Enguri HPP engineers or the Engineering team for Phase IV and other works. No dewatering or disassembly was done in preparation for the visit. Hence, works were inspected in their normal state of operations for the time and conditions. Full access to all works for safe inspection was allowed. The team had site visits of dam, powerhouse and switchyard and held meetings with Enguri HPP management and Enguri Project Implementation Unit (PIU). During this process, the team assembled a list of issues to be addressed post-Phase IV. These topics incorporated vital tasks identified both by the Program and by Enguri HPP management. While the list cannot include all potential repairs needed in the future of a very complex project,