November-December 2009

Beating the Averages

Turbine repairs and maintenance: the good, the bad, and the ugly

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Photo: Rolls Royce
A Trent 60 WLE engine on test at the Rolls-Royce facility in Montreal. The engine has recently gone into service in the US at power stations located at Braintree and Lowell, both in Massachusetts.

By David Engle

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If you’ve never experienced paying for a multi-million-dollar, power-generating turbine before, then there’s always a sticker shock—especially when you include the amount required for parts over a normal maintenance cycle. The frequency with which those parts must be replaced can also be unexpected for the uninitiated; to some it can seem as if the cycle of parts planning and acquisition is never-ending.

Dale Grace, senior project manager for combustion turbines at the Electric Power Research Institute (EPRI), uses “incendiary” words to describe the dynamics: “Turbines essentially burn up their parts,” which necessitates constantly buying new or refurbished ones or repairing them.

Maintenance intervals come relatively quickly with these plants, whether the engines are turning on and off constantly in stressfully cyclic mode, spinning in continuous operation, or driving a combined heat and power application—although smaller turbines, Grace notes, “are probably not as sensitive to cycling-wear as larger frame ones.”

EPRI provides clients with a turbine analytical service, which his office packaged in 2006, to provide a roadmap for decision-making about maintenance, economic analysis, reliability, and durability issues. One key research insight: The cost of maintenance over a 25- to 30-year life comes to about triple the cost of the initial turbine investment, assuming near-continuous operation and nominal inflation.  

“For aero-derivatives, [it’s] probably even more intense, because capital cost per kilowatt is less,” he adds.

A few rare analyses show it comes out as high as five times. All of which has spurred the development of a niche for value-added, upgraded, durable, higher-performing parts, coatings, and monitoring and maintenance services; and many of which are sold at a better price-point than the original equipment manufacturer (OEM) price. All of this makes for an interesting competitive shopping experience. When you think about it, the task of corralling and containing three- to five-fold maintenance costs is the management challenge which, dollar-wise, makes or breaks project success.

It’s also a vendor sweet spot and a lucrative niche; someone has coined the acronym “OOEM,” or “other OEM,” for them, to connote the higher status they enjoy above simply “replacement parts makers.”

How to Best Handle Parts and Maintenance
Grace outlines three basic strategies for proceeding them. Owners usually opt for when maintenance is required:

  • “Self directed with third-party parts,” meaning doing it in-house and canvassing the OOEM and aftermarket to acquire discounted parts and major overhauls
  • Buying an OEM service agreement
  • Doing maintenance in-house and buying parts at OEM list

In deciding upon the path that fits best, he says, the organization will usually consider: the model of engine they have; the length of commitment to the project; available labor, skills background, and experience; and “their comfort level” about the thought of managing the work.

Opting for either a long-term OEM contract or one signed with a third-party vendor, he notes, “shifts a fair amount of the responsibility for engine maintenance over to that provider over a longer period of time—say, six to 10 years,” and basically lets that OEM or vendor have all the maintenance headaches. For doing so, the turbine owner pays a substantial premium.  

Alternatively, if saving money is the priority, “often times they’ll hire a contract labor to perform the hot gas path or major interval, and they’ll procure parts and procure services on a bid basis,” says Grace.

As for parts acquisition itself: Depending on the type of turbine, greater or lesser competitive dynamics may or may not be available from sources. “As an engine model has been out and serviced,” he explains, “then you get more expertise in that area and that model, and you get more independent people branching out and offering services as well”—all to the buyer’s benefit. Conversely, “If it’s a more advanced technology, then only the OEM is a provider of those parts.” You are more likely to get jacked up, a bit, in the billings.

Repair services likewise may be available from multiple qualified providers, who can be managed advantageously; or, again, repair/refurbishing may be quite specialized, and shopping options are limited.

Next, assuming multiple after-market parts and repair services are out there, “Going to the next level—and actually qualifying people—that is where some further technical expertise is required,” says Grace. This piece can prove “fairly difficult;” EPRI provides guidelines to assist in procurement and repair, either from OEMs or third parties.

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Condition- Versus Interval-Based Maintenance
Buying a replacement part at the “optimal” moment, from the standpoint of squeezing the greatest value from it, often comes down to choosing the right point in that equipment’s life to take it out, inspect it, and refurbish it.

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