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Wärtsilä Energy Business

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Wärtsilä Energy is leading the transition towards a 100% renewable energy future. As an energy systems integrator, we understand, design, build and serve optimal power systems for future generations. Our offering includes flexible internal combustion engine-based power plants, hybrid solar power plants, energy storage and integration solutions, as well as gas to power systems. We support our customers throughout the lifecycle of their installations with services that enable increased efficiency and guaranteed performance. Wärtsilä’s solutions provide the needed flexibility to integrate renewables and ensure the reliability of power systems.  

We serve three main customer segments

Wärtsilä’s three main customer segments in the energy markets are utilities, independent power producers (IPPs), and industrial customers.

Utilities supply electricity and gas to residential, commercial, and industrial end users. They invest in various types of power generation and storage assets to ensure adequate load coverage, and the right palette of cost-effective and reliable products and services for their customers.

IPP’s are financial investors investing in power generation and storage assets, and who then sell the generated power to utilities, or directly to end customers. Their investments are return driven, and as with utilities, their technical requirements are application driven.

Industrial customers are mainly private companies with energy intensive production operations. By investing in captive power, they are able to achieve lower energy costs and can be prepared for any grid reliability issues, thus ensuring security of supply. Wärtsilä serves the top end of this customer group, i.e. large industries requiring a relatively high electrical load, such as data centres, and cement and mining facilities.

Our offering is based on flexibility and lifecycle support

Wärtsilä’s energy solutions are used for a wide variety of applications. These include baseload generation, capacity for grid stability, peaking and load-following generation, and for the integration of wind and solar power. We provide our customers with a comprehensive understanding of energy systems, including fully integrated assets and advanced software, complete with value adding lifecycle services.

Our engine power plants are tailored according to the specific requirements of the customer, utilising modular products and services. The delivery scope ranges from equipment deliveries to complete engineering, procurement and construction (EPC) projects, supported by superior project management capabilities. Wärtsilä’s solutions provide the best means for supporting power systems by offering the highest degree of flexibility, enabling major savings, and creating an optimised response to rapid changes in intermittent generation. Combined with our offering of energy storage, hybrid solutions, and advanced software for energy management, we enable the transition to a sustainable, reliable, and affordable low carbon power system.

With services ranging from spare parts and basic support to full operations and maintenance services, we maximise the life and increase the availability of power plants, while providing a lifecycle cost guarantee.The performance of our customers’ installations is optimised through upgrades, modernisations, fuel conversions and safety solutions. As business models change, the need for asset management services is increased, which drives opportunities for using real time monitoring and analytics to optimise the business performance of our customers.

Market drivers

In the energy markets, the main drivers for Wärtsilä are:

  • Economic growth, electrification, and improving standards of living
  • Rapidly increasing use of renewables
  • Decentralised energy
  • Increasing role of flexible gas
  • Emerging storage technologies
  • Data and digitalisation

Economic growth, improving standards of living, and consequential electrification are jointly resulting in increased electricity consumption in non-OECD countries. The development of a more sustainable energy infrastructure is being driven by climate policies, energy security, and economics. Tightening emissions legislation is forcing the closure of ageing capacity, with carbon-intensive energy sources being replaced by low carbon fuels, such as natural gas and renewable source solutions. Investments in renewable generation are growing as solar and wind become increasingly cost competitive. This, in turn, is decreasing the running hours of conventional thermal capacity and creating a substantial need to add flexibility into power systems through energy storage and flexible capacity. Gas as a fuel is seen as having a key role in providing flexibility to the system, and in the future gas will be more and more carbon neutral. New data and platform-based business models and solutions enable system level integration and asset base optimisation.

Competitive landscape and market position

Wärtsilä’s main competitors in larger gas-fired projects are gas turbine manufacturers, such as GE, Siemens, and Mitsubishi Hitachi Power Systems. When competing against gas turbines, Wärtsilä’s combination of high efficiency, greater fuel flexibility, and superior operational flexibility enables better value propositions to many customer projects. In smaller gas power plants, and in the liquid fuel power plant market, the competitors are mainly other internal combustion engine suppliers, such as MAN Energy Solutions, Caterpillar (MAK), and Rolls-Royce, as well as high speed engine manufacturers. Wärtsilä’s advanced gas and dual-fuel engine technology, optimised modular power plants, superior project management capabilities, and the global service support provided throughout the lifecycle of installations, have led to Wärtsilä’s market leading position in the gas and liquid fuel combustion engine power plant markets.

When looking at energy system integration, software and battery storage systems, the competition comes from companies such as Fluence, NEC and Tesla, among others. Competition within maintenance activities is fragmented in nature and consists mainly of local players with a limited offering scope. The competition for lifecycle solutions comes from a few regional players capable of offering plant operational services. In asset performance management related services there are both new and more established competitors that provide software and analytics across industries, while some utilities are establishing these skills and knowledge in-house.

Wärtsilä’s strengths:

  • Competitive capital cost and engineering, procurement and construction (EPC) capability
  • Unique operational and fuel flexibility
  • Value adding hybrid solutions for existing and new customers
  • The most proven software platform for integrating renewable energy sources
  • Systems integration offering with lifecycle support
  • Global technical support capabilities and know-how
  • Strong track record in operations & maintenance, optimising operating costs, and increasing plant availability and efficiency

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