pwr_october-2024 - 16

O&M
Next-Gen O&M Solutions:
Transforming the Landscape
of Power Plant Productivity
The power generation industry has undergone
a remarkable transformation
over the past several years, with the
shift from regulated monopolies to a
competitive landscape introducing new
complexities
and
expectations,
particularly
in the realm of operations and
maintenance (O&M).
As the industry continues to evolve,
so too must the strategies and solutions
employed to ensure the efficient and reliable
operation of power plants. Here we
explore the evolution of O&M solutions,
examining their historical context, current
challenges, and future directions. By
understanding these dynamics, power
plant owners and operators can better
navigate the intricacies of the modern
energy landscape.
Historical Perspective on O&M
The late 1990s marked a pivotal moment
for electric utilities as the deregulation
of an industry previously
characterized by local and regional monopolies
introduced a wave of change.
This period saw the rise of sophisticated
investors with a higher appetite
for risk and return, and as a result, the
traditional model of utility monopolies
that offered stable and low-risk returns
began to give way to a more complex
and nuanced industry structure.
Initially, third-party O&M services
were relatively rudimentary. The model
involved transitioning plant staff to the
employ of the O&M contractor, providing
a project manager for support, and
reporting to the ownership group. This
basic approach sufficed when the industry
was still grappling with deregulation
and the California energy crisis. These
early services focused on compliance,
maintenance activities, and basic operational
reporting-laying the groundwork
for more sophisticated O&M solutions to
enter the market.
A rising need for more advanced and
specialized O&M solutions became apparent
as the industry matured. The
increasing involvement of financial entities
such as private equity in power
plant ownership, coupled with the complexity
of modern energy systems, necessitated
a higher level of expertise
16
and innovation in plant operations. This
significant shift catalyzed the development
of comprehensive O&M strategies
designed to maximize efficiency,
reliability, and profitability in an everchanging
energy landscape.
Complexity of Modern O&M
Fast forward to today, and the O&M
landscape is vastly more intricate. Modern
O&M solutions must navigate stringent
laws and regulations governing
worker health and safety, environmental
compliance, and North American
Electric Reliability Corp. standards. The
decline of long-term power purchase
agreements (PPAs) in favor of more variable
market constructs further complicates
the scenario.
Modern power generation methods
have also grown in diversity, encompassing
fossil fuels, wind, solar, biomass, and
energy storage technologies that each
bring unique requirements for staffing,
maintenance, and reporting. Plant owners
now expect O&M providers (Figure
1) to not only manage these complexities
but also to add value beyond traditional
service offerings.
Providers are also tasked with developing
plant cultures that are highly
trained and adaptive to different market
constructs, whether they involve longterm
PPAs, capacity markets, or energyonly
markets. The presence of renewable
energy has significantly impacted supply
and long-term pricing, requiring operators
to be more flexible and innovative in
their approaches.
Each technology within the modern
power generation mix necessitates
dramatic differences in plant staffing;
routine, preventative, and corrective
services; management; and reporting
interfaces. Moreover, the expectations
from owners have increased, demanding
O&M providers to go above and
beyond in delivering value and ensuring
the optimal performance of power
generation assets in an increasingly
complex environment.
Enhanced O&M Expectations
Today's O&M providers are adapting to
heightened expectations through several
key strategies to underscore the
significant value of third-party O&M,
especially in contexts where owners
lack robust operating experience and
resources or are venturing into new
geographies. O&M companies are now
providing:
■ Project Management. Effective project
management ensures that all aspects
of plant operations are streamlined
and optimized-while engaging closely
with plant managers to eliminate
performance obstacles-leading to
higher levels of performance and efficiency.
■
Programs and Procedures. Developing
consistent standards, and ensuring
staff training and qualification by
creating comprehensive training programs
that ensure all personnel are
well-versed in the latest operational
procedures and safety protocols.
■ Plant Assessments. Conducting regular
assessments and ongoing performance
evaluations against key standards such
as safety, environmental compliance,
and operations helps to identify areas
for improvement to maintain peak operational
efficiency.
■ Best Practices. Implementing and
communicating best practices across
all plants to foster continuous improvement.
This includes sharing lessons
learned from failures and successes
to create a culture of knowledge and
improvement.
1. Outsourcing of operations and maintenance
(O&M) services, such as those provided
by IPSC, is today a common practice at
power generation and other energy facilities.
Courtesy: IHI Power Solutions Corp. (IPSC)
www.powermag.com
■ Economies of Scale. Leveraging workforce
and supplier relationships to
reduce costs and enhance service.
By pooling resources, O&M providers
can achieve cost savings in areas
such as spare parts, insurance, and response
times.
■ Remote Operations. Enhancing operator
performance through remote
management (Figure 2), particularly
POWER | October 2024
http://www.powermag.com
pwr_october-2024

Table of Contents for the Digital Edition of pwr_october-2024
