POWER October 2011 - 42

TOP PLANTS
1. Pacific Rim powerhouse. The Masinloc coal-fired power plant is located about 250 kilometers
(approximately 155 miles) northwest of Metro Manila and covers about 137 hectares (approximately
338 acres), including 11 hectares of land reclaimed from the sea. Courtesy: AES Corp.
the necessary tools to drive improvements
and achieve positive results. Today, through
an empowered workforce that strives for efficiency
and reliability, the operations of the
Masinloc plant are achieving world-class
performance levels.
To implement the new policy, team leaders
reinforced a culture of improvement
and continuously reviewed operations and
maintenance performance to confirm the
root cause of every problem in order to enhance
the safety, planning, and execution of
future tasks. Employees were encouraged to
respond positively to the post-execution reviews;
the process is not viewed as criticism
but as a means of learning.
capital; and broaden the ownership base of
power generation, transmission, and distribution.
PSALM was created to carry out the
mandates established by EPIRA.
The Philippines' total annual gross power
production is approximately 60,821 GWh.
Its energy industry's own use of electricity
is approximately 3,935 GWh, including the
consumption of power plants and electricity
used for pumped storage plants. Generation
is fueled by natural gas (32%), coal (25%),
geothermal (17%), hydro (16%), and approximately
10% by oil and renewables (all International
Energy Agency 2008 estimates).
Operations Overhaul
When AES bought the Masinloc Plant,
which consisted of two 300-MW units, from
PSALM, it was 10 years old. The plant's history
of inadequate maintenance and capital
expenditures, which were further compounded
by poor operating practices, had placed the
facility in a poor state of repair, and it faced
significant operational limitations. These issues
resulted in high equivalent forced outage
rates, low equivalent availability factors,
and low net capacity factors.
Prior to the plant's turnover to AES, the
maximum net generation achieved by the
Masinloc Plant was 433 MW on a nameplate
capacity of 600 MW. Given the plant's operational
history, AES saw an opportunity to initiate
a rehabilitation program to transform the
plant and substantially increase its output. The
rehabilitation program had two phases: The
first focused on mechanical and major rotating
equipment, and the second focused on boiler
rehabilitation and environmental controls.
Efficiency and heat rate improvements
were among the most notable achievements.
The plant's overall efficiency increased by
13%, which reduced the amount of fuel oil
used for start-up. And the AES team reduced
the plant's overall heat rate by 1,500 points
from the time AES took over the facility,
42
dramatically increasing its overall efficiency.
Specifically, the turbines' efficiency improvement
cut the plant heat rate by 500 points; the
boiler by 500 points; the condenser system
by 250 points; and the steam and water systems
by 250 points.
These improvements helped to cut the
plant's carbon dioxide (CO2
) emissions by
140,000 tons in 2010. Plant management
also took other steps to reduce the facility's
carbon footprint:
■ Diesel fuel usage for start-ups and daily
operations was cut by 70%.
■ Chemical usage was reduced over 60%.
■ The plant's coal unloading period was cut
from over eight days to an average of 2.8
days, eliminating 2 MWh of in-house load.
The Masinloc management replaced three
existing electrostatic precipitator (ESP)
fields in each boiler and added a fourth ESP
field to each boiler. This change significantly
reduced the dust and particulate emissions
and allowed a greater amount of ash to be
captured, which in turn is sold to generate
revenue.
Rehabilitation of the coal storage dust
control systems greatly reduced coal dust
emissions. This improvement eliminated the
excessive spontaneous combustion of coal
storage piles, as well as the foul fugitive coal
pile combustion emissions and heavy sulfur
emissions. The ash storage areas also were
improved by implementing better storage
techniques.
Promoting a Culture of
Empowerment
To make the rehabilitation of the Masinloc
plant sustainable, the AES management team
improved the technical skills of its workers
while fostering a culture of empowerment.
The company led teams through job scope
and skills analysis and equipped them with
www.powermag.com
Making Safety Paramount
Safety is AES's first value, and Masinloc is
a good example of AES living by that value.
At Masinloc, improving personnel safety
performance has been an integral part of
transforming the plant into a top tier facility.
To successfully drive this change, the
AES management team not only promoted
more thorough technical safety skills among
employees but also encouraged a proactive
safety culture. After providing the technical
safety foundation through training sessions,
pre-job planning, and safety walks, the AES
management team had employees focus on
leading safety indicators so they could stop
problems in their early stages. Although there
is always room to improve safety knowledge
and culture, the AES management team has
worked hard to create a culture in which the
employees recognize their part in being responsible
for each other.
Masinloc's Financial Turnaround
AES's success in rehabilitating the Masinloc
plant's operations has not only made a
positive impact on the local community and
helped the Philippines meet its increasing
demand for energy, but it also had a positive
impact on the company's bottom line.
During AES's 2010 annual earnings conference
call, AES Executive Vice President
and CFO Victoria Harper noted that the
company's " strong operating performance
[in Asia] was largely driven by our 660-MW
plant in the Philippines, Masinloc, which
should begin to meaningfully contribute beyond
its prior operating forecast. "
In 2010, Masinloc's gross margin improved
by approximately $50 million compared to
2009. In 2011, AES was recognized for its
improvement efforts related to the Masinloc
plant by the Edison Electric Institute with its
annual Edison Award, the electric utility industry's
most prestigious honor. ■
-Angela Neville, JD, is POWER's
senior editor.
POWER | October 2011
http://www.powermag.com

POWER October 2011

Table of Contents for the Digital Edition of POWER October 2011

Contents
POWER October 2011 - Cover1
POWER October 2011 - Cover2
POWER October 2011 - Contents
POWER October 2011 - 2
POWER October 2011 - 3
POWER October 2011 - 4
POWER October 2011 - 5
POWER October 2011 - 6
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