23 March 2017 VALVE MANUFACTURERS ASSOCIATION OF AMERICA OUR WORLD OF POWER IS CHANGING LYLE WHITE VICE PRESIDENT
LW15 29 June 2015 THERE ARE TRENDS CHANGING OUR WORLD OF ENERGY AND THE WAY WE USE TO DO BUSINESS United States The World Regulatory trends Consolidation and decentralization Development of distributed small power generation The growing Renewable Energy Sector Climate Change Electrification What do these trends mean to us today? 2
AGENDA My Company: Black & Veatch New Trends in Power Regulations & Market Drivers Where is the Opportunity 3
COMPANY OVERVIEW 4
Black & Veatch November 2016 BLACK & VEATCH TODAY offices 2015 revenue Founded projects on continents AND professionals Recordable Incident Rate Lost Time Incident Rate active projects WORLDWIDE 5
LW15 29 June 2015 OUR GLOBAL PRESENCE ALLOWS US TO APPLY GLOBAL EXPERTISE LOCALLY Afghanistan Armenia Australia Azerbaijan Bahrain Canada Chile China Czech Republic Georgia Hong Kong India Indonesia Kuwait Kazakhstan Malaysia Mexico Myanmar Netherlands Oman Palestine Philippines Russia Saudi Arabia Singapore South Africa Taiwan Thailand Turkey Ukraine United Arab Emirates (UAE) United Kingdom United States Vietnam 6
IT S COMING A DIFFERENT ENERGY WORLD 7
LW15 29 June 2015 NEW AND ADVANCING TRENDS Different traditional utility model Decentralized delivery of electricity Climate change effects Less of the EPA Power generators in new era of change A different supply and demand model Intermittent renewable energy is being given priority, leading to a switch in the role for fossil fuel: from supply base to back-up and peaking power. Renewable energy sources and demand for climate change are increasing wind and solar energy build-out. 8
Black & Veatch 24 July 2015 WORLD S LAST LARGEST TRADITIONAL POWER PLANT
DISRUPTIVE CHANGE 10
LW15 29 June 2015 EV / ELECTRIC VEHICLES 1.8 to 3.8 million plug-in electric vehicles on U.S. roads by 2020 Vibrant market for building and installing EV charging stations Black & Veatch is building the charging stations for Tesla Motors across the United States Electric vehicles are advancing at a pace that is driving advancements in energy storage 11
LW15 29 June 2015 WHAT IS DISTRIBUTED GENERATION Small scale power technologies producing electricity close to the end users of power (like industrial parks) Leading Distributed Energy Resources Renewables technologies Energy storage Smart Energy Grid 12
PIECES OF THE NEW POWER DELIVERY PARADIGM MICRO Grid Localized electricity operating autonomously, but connected to the grid- typically using micro turbine technology at the site Back Up Generation Utility based and local based Renewables Solar, Wind, Biomass Energy Storage Batteries Combined Heat & Power Electricity and thermal energy in a single and integrated system 13
NEW ENERGY TREND LW15 29 June 2015 SMART ENERGY GRID Resilient Reliable Sustainable Efficient Intelligent Secure Cost Effective Energy Water Telecommunications Special Projects Management Consulting Renewables Plug-In Electric Vehicles Energy Storage Energy Management Microgrid Backup Generation Microturbine Recips Combined Heat & Power Smart Building Smart Campus Smart City Smart Industry Smart Utility Utility Grid 14
THE TRANSITION DECENTRALIZED ENERGY 15
LW15 29 June 2015 THE EFFECTS OF DECENTRALIZED DELIVERY OF ELECTRIC POWER Market Drivers in the Power Industry The EPA s Clean Power Plan & Trump Future role of the traditional utility Balancing power production with the new kind of demand The place for manufacturers and suppliers 16
LW15 29 June 2015 TECHNOLOGY High Efficiency Low Emissions State-ofthe-art Controls Smaller Asset Footprint 17
CLIMATE CHANGE GLOBAL REALITY EFFECT ON THE U.S.A 18
LW15 29 June 2015 A VIEW OF GLOBAL WARNING: THE U.S. AND THE REST OF THE WORLD Climate Change policy was U.S driven hard in the Obama administration Unrealistic with global players China India U.S. down the road and away from coal Market driven realities Policy realities / Genie is out of the bottle Politics and energy reliability Climate Change Positioning is Inevitable 19
LW15 29 June 2015 REALITIES OF FEDERAL REGULATION ON THE ENERGY INDUSTRY TECHNOLOGICAL POLITICAL Policy and changing behavior GEOGRAPHICAL More development outside the U.S. Electrification and Global Economic Growth 20
INDUSTRY TREND The Big Fork in the Road 21
LW15 29 June 2015 NEW ENERGY REALITIES Smaller is better More Innovation is coming Technology is gearing up for advanced regulations Control technology is key to advanced programs Performance of power asset will be monitored regularly and remotely If we don t get proactive about how we do our business with energy, we will be at the back of the pack 22
29 June 2015 NEW ENERGY QUESTIONS FOR SUPPLIERS IN THE POWER INDUSTRY Where can I sell my equipment? LW15 How will the changing power landscape affect my business in the future? Who will be buying my equipment? What should I do and when? 23
LW15 29 June 2015 A NEW VIEW FOR POWER INDUSTRY MANUFACTURERS AND SUPPLIERS Less opportunity new-build Still opportunity in existing power asset enhancement Equipment and systems will have more demand on performance Change-out opportunity based on fleet and asset performance Go to school and new market drivers 24
LW15 29 June 2015 NEW INDUSTRY DRIVERS FOR VALVE MANUFACTURES Performance and automation are key drivers in the new combine cycle market Valves, like turbines and boilers must be properly applied & operated in tune with new performance and automation drivers Coal assets that are being upgraded will also drive business 25
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