Efficiency and Reliability of Power Plants
Significance
In response to a transition to clean energy production in the future, BPP has established the Beyond Quality Megawatts strategy, focusing on creating growth in a low-carbon business by using cutting-edge, clean and environmentally friendly technologies. This includes scaling-up electricity generation from renewable energy, energy technology, and smart energy utilization. In parallel, BPP has put great importance to continuously improve its existing power plants to enhance their power generation stability and availability at the highest level, with high availability factor (AF) and low forced outage factor (FOF), inclusive of an ability to generate power at maximum efficiency according to the designed value. In addition, BPP has enhanced its ability to compete in the merchant power market in the future, along with delivering electricity and energy in various forms to support smooth economic and social development during the energy transition period.
2025 Target
- The AF is over 85 – 90%.
- CHP plants > 90%
- Gas-fired power plant > 85%
- The FOF is no more than 2.5 – 5.0%.
- CHP plants < 5%
- Gas-fired power plant < 2.5%
Management Approach
BPP puts great emphasis on creating stability and improving the power plants’ efficiency to continuously deliver energy
to customers, by strictly operating productions according to operating procedures. This includes keeping quality maintenances according to specified standards, and determining criteria for supervision, surveillance, audits, risk assessments, as well as regularly monitoring the power plants’ operating performances. It also focuses on supply chain management so that fuels and raw materials can be supplied to the production line according to the action plan set.
BPP has improved the efficiency of CHP plants by increasing their flexibility to consume a variety of fuels, such as industrial waste, low-calorific coal, and biomass, etc., to help reduce production costs during the high coal prices period and to be able to decrease GHG emissions. As for a gas-fired power plant in the United States of America, flexibility is a must to adjust its generation capacity to meet demand in the volatile merchant power market. Moreover, the availability factor must be maintained to be able to supply electricity according to the contract terms and to hedge against risks on selling electricity in the merchant market. This includes increasing the opportunity to make profits during periods of peak demand for electricity or when other power plants have production shortages.
BPP has employed management standards regarding quality, occupational health, safety, and environment in all its CHP plants in order to operate their productions according to the entire operating processes. It also promotes innovation utilization, especially digital technology to be applied to measure various parameters in real time to use such data to create productions readiness and stability.
BPP communicates its production and machinery maintenance plans with customers, suppliers, and contractors earlier to create effective collaboration. Collaboration is very significant in maintaining the power plants’ reliability and AF. The annual machinery maintenance is, therefore, the main activity making the engine’s conditions efficient with a long-service life. As a result, the machines can be operated continuously according to customers’ needs and the plans set.
Machinery maintenance of thermal power plants is carried out in accordance with the maintenance standards set by each power plant. The process includes selecting skilled maintenance contractors and evaluating their performances for improvement. Each year, the power plants will set a schedule for performing their maintenance during the time when there is less energy demand in the area. The aim is to prepare machinery before entering the peak energy demand period. Moreover, all power plants avoid carrying out maintenance simultaneously across all production units since they still must supply power and steam to customers even during their maintenance periods.
- Scaling-up production capacity and investments
BPP has focused on investing in the power plants equipped with “High Efficiency, Low Emission (HELE)” technology, in alignment with the Beyond Quality Megawatts strategy, especially the gas-fired power plants, the renewable energy power plants, the energy technology, and the smart energy utilization. These investment inputs are in the forms of both business operations with direct management control, and joint-venture companies. Prior to investing, each project must be thoroughly examined regarding both risks and return on investments, including assessing the project’s environment, social, and governance (ESG) factors. Additionally, the variants related to ESG issues, such as carbon prices, greenhouse gas (GHG) emissions intensity, etc. are taken into consideration for each investment to ensure that BPP invest in the business able to grow sustainably. Meanwhile, risks are mitigated to an appetite level. Moreover, BPP is looking for opportunities to expand into the integrated energy provider and the low-carbon energy producer to response to increasing demand in clean energy in the future.
Performance
- The AF is in range of 90.26 – 94.88%.
- CHP plants: 94.88%
- Gas-fired power plant: 90.26%
- The FOF is in range of 0.02-0.06%.
- CHP plants: 0.02%
- Gas-fired power plant: 0.06%
Key Activities and Projects
The coal-fired power generation cost of Luannan Power Plant accounts for approximately 70% of its total production expenses, or about RMB 300 million per year. The traditional coal procurement models, with fixed and unchangeable prices throughout the contract period, however, are highly susceptible to risks associated with market price volatility, inconsistent coal quality, and breach of contract by suppliers. As a result, Luannan Power Plant has improved its operations through three approaches:
- A hybrid procurement management approach is implemented, involving the 50% coal purchase through long-term contracts to guarantee coal supply and reduce price volatility. In parallel, the 50% monthly auctions are carried out to appropriately reflect the market prices. Moreover, the strategy to purchase coal when prices are low is also implemented to use such coal with maximum benefits when the market price is high.
- Improving the bidding selection criteria by adopting a model of total cost per tonne of steam production. This model considers both coal prices and actual usage costs, instead of using only the coal price per tonne. This is to reflect true costs and improve decision-making efficiency.
- Enhancing coal quality inspection by utilizing coal microstructure analysis technology to detect impurities, such as coke powder, which are undetectable by the eyes. Furthermore, the contracts have been improved to include clear penalties to raise quality standards and reduce operational risks.
Objectives
- To reduce coal procurement costs and maximize the worthiness of steam production.
- To create fuel procurement stability and decrease risks related to coal price volatility.
- To control coal quality to meet standards, prevent impurities, and minimize problems possibly affecting machinery operation.
Benefits
- Reducing total costs of approximately RMB 14.80 million per year, broken down as follows:
- Reduced expenses by RMB 9.43 million through purchasing coal during off-peak periods.
- Saved RMB 4.33 million by taking advantage of price differences in long-term contracts.
- Lowered costs by RMB 1.04 million through adopting a cost-per-steam production calculation model.
- Enhancing procurement transparency, with clear and systematic criteria for determining bidding winners.
- Heightening production efficiency, reducing ash buildup in boilers, and making a combustion process more efficient.
- Serving as a model for effective risks and cost management, applicable to BPP’s other power plants.
Temple Power Plant has commenced its commercial operations since 2014. As a result, some of its equipment experiences wear and deterioration over time, such as the high-pressure steam separator, the automatic steam draining system, and various valves. Such deterioration makes the power plant consume more water in its production process, as well as increased need for producing demineralized water. In addition, leaks in the high-pressure steam separator also reduce the power generation efficiency.
To decrease resources loss and improve operational efficiency, Temple Power Plant has undertaken a project to upgrade and repair equipment in the steam system. This begins with inspecting and assessing conditions of deteriorated equipment prior to repairing or replacing it as appropriate. This reduces unnecessary water and steam discharged from the system and improves the efficiency of water and energy management in the power generation process. Besides, after the improvements of water consumption, operating costs, and maintenance, the power plant continuously monitors and evaluates the results.
This project was carried out during the annual shutdown for machinery maintenance between October and November 2025. Moreover, other equipment conditions are continuously monitored to prepare for improvements during the next maintenance downtime.
Objectives
- To improve the power plant’s electricity production efficiency.
- To reduce the water consumption volumes and costs of producing demineralized water.
Benefits
- Reducing water consumption by approximately 7.5 million gallons per year (based on an average operating rate of 95%), representing a cost of approximately US$3,000 per year.
- Decreasing demineralized water production costs by approximately USD13,500 per year.
- Increasing revenue from electricity trading, by improving the power plant’s steam separator efficiency by approximately USD 8,000-10,000 per year.
- Lowering the long-term maintenance costs by approximately USD 35,000 per year.
- Lowering emergency shutdown risks, particularly during high power price periods.
In 2024-2025, Temple Power Plant underwent a shutdown due to a detected leak in the boiler pipes caused by internal corrosion. Repairs were carried out by sealing the leak. Furthermore, additional inspections found another 34 pipes with potential leaks in the future. The power plant proactively sealed these pipes to prevent potential damage and reduce risks associated with future shutdowns.
Following this incident, the power plant recognized the importance of long-term corrosion prevention. Therefore, it initiated a project to control and reduce risks involved with corrosion within pipes. The experiment was conducted by adding ammonia to the boiler to control its pH level and by injecting film foaming amine (FFA) to create a film coating on the pipe surface. This helped reduce direct contact between the fluid and the pipe’s metal surfaces, thereby decreasing corrosion likelihood. Temple Power Plant has been continuously collecting data for analysis and evaluation of its effectiveness.
The project commenced installation and testing the FFA system in Production Unit 2 during its annual maintenance in October and concluded the testing in November 2025. The testing results are currently being analyzed. In addition, Temple Power Plant is planning to install and test the FFA system at its Production Unit 1 during the annual maintenance in March 2026.
Objectives
- To prevent corrosion inside boiler pipes, which could lead to pipe leaks.
- To maintain the power plant operational stability and efficiency.
- To reduce risks involved with revenue loss from maintenance downtime.
Investment At present, the project is undergoing its pilot and evaluation phase, during which no investment costs are incurred.
Benefits
- Minimizing maintenance-related power outages helps avoid lost sales. Each shutdown can cost USD 300,000–500,000 per day and typically lasts 3–5 days.
BLCP Power Plant has developed a platform to assess the lifespan and optimize the operation of its boilers by integrating three main types of data sources: operation data, maintenance data, and synthesized data from physical models.
This system applies AI and Machine Learning in conjunction with engineering simulations, such as Computational Fluid Dynamics (CFD) and Finite Element Analysis (FEA) to predict operating patterns and estimate the remaining service life of boiler tubes. In addition, the system features a dashboard to monitor real-time performance, along with online simulation tools helping operators identify optimal operating conditions efficiently.
Objectives
- Upgrade maintenance from a reactive problem-solving approach to a proactive one.
- Identify the root causes of boiler failures and be able to assess equipment lifespan in advance.
- Reduce unplanned downtime and maintenance cost through a systematic inspection and maintenance plan.
Investment
- Development of platforms on the website system cost THB 2 million.
- Expenses for continuously improving and updating the models to maintain system accuracy and precision annually were THB 2.3 million.
Benefits
- Reducing unplanned shutdowns by 15 times and lowering maintenance costs.
- Decreasing downtime, resulting in increased revenue opportunities for the power plant.
- The platform can be scaled up and applied to other types of equipment, such as heat exchangers and pressure vessels, etc.
Environmental Contributions
- Improving efficiency of asset lifecycle management and enhancing equipment performance.
- Optimizing resource utilization through maximum operating conditions.
Social Contributions
- Supporting energy security and continuous power dispatch through preventing unexpected emergencies or unplanned downtimes.
HPC Power Plant has three units of large boilers, operating under challenging conditions due to a use of lignite coal containing fly ash. This fly ash causes boiler tubes to corrode and thin, particularly around the economizers, potentially leading to leaks. In the past, this problem has resulted in 72 emergency shutdowns and cumulative damage exceeding USD160 million.
Previously, HPC Power Plant used a microphone sensor system to detect steam leaking noises. This system, however, had limitations in accuracy, often detecting abnormalities when the problem had already escalated. Hence, the power plant developed the Advanced Leakage Monitoring and Alerting (ALMA) project, an intelligent data analysis system for detecting boiler tube leaks. This was done by improving sensor placement in key locations and developing data analysis software via using advanced data processing technologies to enhance predictive accuracy (Neural Network), statistical filtering, and Machine Learning for performance improvement.
The ALMA system processes over two years of historical operating data and more than 600 operating variables to help detect abnormalities at an early stage. This enables power plants to plan maintenance in advance, prepare spare parts and personnel efficiently, as well as notify power buyers to prepare backup power sources in a timely manner. It helps in reducing risks associated with emergency downtime and potential penalties.
Objectives
- To improve early detection efficiency of boiler tube leaks.
- To reduce emergency downtime possibly affecting the power system stability.
- To support advanced maintenance planning, spare parts preparation, and resource allocation efficiently.
Investment
- Hardware and software costs USD 372,000.
- Maintenance costs USD 21,000 per year.
- Payback period of three years.
Benefits
- Reducing maintenance downtime, equivalent to approximately USD 1.165 million.
- Decreasing downtime penalties, with the exemption rate increasing from 19% to 48%, worth around USD 528,000.
Social Contributions
- Contributing to improved energy security by mitigating risks associated with unexpected power outages, which may impact the stability of the regional power system.
Due to the Two Rules regulations for power grid connection and operation, promulgated by Shandong Province in September 2023 to enhance the power system’s security and stability, the solar power plant’s operations, namely Jinshan, Huineng, and Hui’en will be directly affected if they fail to comply with these requirements, possibly resulting in higher operating costs.
BPP, therefore, initiated a project to improve its solar power plant’s communication and power prediction systems to enhance the efficiency of power production control in alignment with regulations and to improve the accuracy of electricity production prediction. This was achieved through technical work, such as improving the temperature control system inside data storage cabinets, upgrading the Customer Premises Equipment (CPE) power supply, developing a power prediction system, and enhancing wireless transmission base stations to ensure more stable and accurate data transmission. This project, which commenced in October 2023 and expected to be completed in September 2025, was projected to help reduce the value of Two Rules regulatory penalty on all three solar power plants and serve as a model for application to other solar power plants.
Objectives
- Improving the power generation control system to comply with new regulations and enhancing the stability and reliability of power plant operations.
- Developing a more accurate power generation prediction system to support production planning and accommodate project expansion in the future.
Investment Total investment cost is approximately RMB 167,082.
Benefits
- Reducing penalties for non-compliance with the Two Rules by approximately RMB 451,476.
- Decreasing the long-term financial risks by improving accuracy of energy prediction, upgrading communication and control systems, and enabling rapid adaptation to future regulatory changes.
- The knowledge gained can be applied and scaled up in other power plants.
- Building confidence among stakeholders and enhancing the organization’s competitive advantages in the renewable energy market.
Social Contributions
- Supporting the government sector in improving the power system stability, ensuring that the public has continuous access to reliable and clean energy sources.
