A Win-Win Agreement: GE and GAMA Enerji to Share Benefits from Fuel Savings at Turkish Power Plant
- With Renegotiated Service Agreement for Another 20 Years, GAMA Enerji Will Implement GE’s Digital Solutions to Help Improve Availability, Reliability and Fuel Savings
- Deal Marks First Time GE’s Plant Optimization-Efficiency Has Been Implemented in an Outcome as a Service Model in Turkey, Delivering Shared Benefits for Both Companies
ISTANBUL, TURKEY-December 12, 2017-Adding value to an existing service agreement, GE’s Power Services business (NYSE: GE) announced today that it will help GAMA Enerji A.Ş. (GAMA Enerji) to reduce fuel costs and improve power generation asset reliability and visibility at its İçanadolu Doğal Gaz Elektrik Üretim Ve Ticaret A.Ş. (ICAN) power plant in Turkey using a variety of digital solutions. The benefits realized from the power plant’s improved fuel savings will be shared between the two companies. This marks the first time that GE has implemented its Outcome as a Service (OaaS) model, which is part of a 20-year agreement, in Turkey.
“When generating power, fuel expenses account for over 80 percent of costs,” said Graham Traynor, assistant managing director responsible for execution and operations with GAMA Enerji. “Because power plants rely on an immense, consistent supply of fuel, even the slightest improvement in efficiency and reduction in usage can result in significant cost savings. Given our history of working together with GE, we co-developed a plan to help improve our operations in a way that benefits both companies financially. It is a true win-win scenario for all parties involved.”
The project is the result of GE and GAMA Enerji working together to reconfigure an existing multiyear service agreement to benefit both companies. With the new agreement, GAMA Enerji will install and deploy GE’s Asset Strategy Optimization solution and will also extend the scope of its implementation of GE’s Asset Performance Management (APM) software suite. The project, which includes balance of plant equipment, will provide added reliability and visibility of asset performance, enabling better, clearer and faster predictive maintenance and condition monitoring on the plant’s two GE 9FB gas turbines.
“Power producers around the globe are constantly looking for ways to reduce operating costs, whether it be through reduced fuel consumption, improved efficiency or an array of other methods,” said Michael Rechsteiner, vice president of GE’s Power Services business in Europe. “Our solutions are not only helping GAMA Enerji to achieve lower fuel costs, but we are also guaranteeing improvements in efficiency according to key performance indicators (KPIs) identified by GAMA Enerji through this OaaS model approach.”
In addition, GAMA Enerji will implement GE’s Plant Optimization-Efficiencysolution at its ICAN combined-cycle power plant to drive improvements in fuel savings as part of a risk-shared business model. With this software, there is a continuous orchestration of plant operations across ambient heat conditions and megawatt (MW) targets, which results in lower heat rates that help reduce fuel consumption and lead to fuel savings.
Combined with the APM software solution suite, GE will provide a flexible program of gas turbine parts inspections, flexible maintenance intervals and better availability guarantees. These improvements, which boost the reliability of power generating machines, can reduce unplanned downtime by up to 5 percent, decrease false alerts by up to 75 percent and improve operations and maintenance costs by up to 25 percent.
GAMA Enerji’s ICAN combined-cycle power plant has an installed power capacity of 853 MW and consists of two 286.5-MW GE 9FB.05 gas turbines and one 280-MW GE D11 steam turbine. The facility generates, on average, approximately 6,300 gigawatt-hours of electricity, annually.
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About GE Power
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About GAMA Holding
GAMA, founded in 1959, builds power plants, refineries, cement, petro-chemical and gas plants, factories, high-rise buildings, water treatment plants and transmission lines, bridges, and other infrastructural projects along with funding various energy investments. GAMA is a leading international contractor who have successfully completed 400 projects in 25 countries extending from Ireland in the west to Russia’s Sakhalin Island in the east. Besides serving as an EPC company and contractor, GAMA also invests in energy and health projects. For more information, please visit www.GAMA.com.tr.
About GAMA Enerji
GAMA Enerji A.Ş. develops and invests in power and water infrastructure projects in Turkey and the surrounding region with its 200 employees and 2.3 billion dollars of net investment. GAMA Enerji A.Ş. owns shares in plants which have total electricity capacity of 1101,80 MW (equity capacity of 1063 MW), and water conveyance capacity of 100 million m3/year. For more information, visit www.gama.com.tr/en/energy.
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