Terry Schoenborn has certainly noticed this renewed interest, which he attributes to projected rising electricity demand from data centers and manufacturing.

“In the last 10 years, there hasn’t been as many new greenfield sites going in, but we’re starting to see some of that activity pick up,” said Schoenborn, who is Senior Vice President of Operations and Maintenance (O&M) at EthosEnergy.

This was just one trend discussed in a recent interview with Schoenborn, who highlighted the evolving market dynamics that are shaping plant O&M.

Plants are changing hands

Schoenborn told us there is a lot of Merger & Acquisition (M&A) activity right now in the power generation market, driven by factors like the Inflation Reduction Act and a renewed interest in reliable gas capacity.

“I just think it’s a dynamic market right now,” he said, “and there are opportunities for investors to take advantage.”

As assets flip, adaptation is important for EthosEnergy, which has operated more than 100 generation facilities (mostly gas) dating back to its inception in 2014.

For example, the company was recently awarded O&M contracts for six natural gas combined-cycle (NGCC) plants in Mexico. This was shortly after the Iberdrola-owned facilities were sold to private equity firm Mexico Infrastructure Partners (MIP).

When EthosEnergy takes over O&M for multiple, let alone six plants at once, the process of scaling up manpower and training can be challenging. The work starts with assessing the condition and staffing levels of those facilities.

Schoenborn said some plants EthosEnergy takes on are in good condition and others require more care and effort.

“We may have to have more resources, spend time at that plant to get it up to speed or the level that our customers expect,” said Schoenborn.

A plant’s condition often depends on where it is in its lifecycle and how much a customer thinks it can extract out of it, he said.

“It could be just as simple as, if the customer knew they were selling the asset, they are probably not going to invest as much into it,” he said. “So it just gets into disrepair.”

While EthosEnergy has close to 800 employees in its O&M division, the company has brought in approximately 100-150 just in the last two years as it has taken on new contracts.

The importance of peaking power

Gas turbines are taking an increasingly important role as peaking power sources, since they can be ramped up and down quickly to meet demand spikes, filling in gaps when renewable resources are not generating electricity.

For that reason EthosEnergy earlier this year launched its Houston-based Performance Center, where the company monitors generators in 20 different countries.

The center combines 24/7 remote start-stop capabilities with monitoring and diagnostics. EthosEnergy operators control start-stop operations through encrypted cyber-secure VPN technology. They can use video surveillance to monitor a customer’s assets using real-time thermal imaging.

Schoenborn noted a lot of peaking plants with low capacity factors are fully-staffed and operate almost on-call. He said using the performance center is a good solution to optimize the reliability of these assets that sit idle most of the time, and from a cost perspective.

“We felt like it was a something we needed to have to play in this market,” Schoenborn told us.

Schoenborn said the capabilities of the performance center have opened up new discussions with customers, particularly as the energy transition may run slower than anticipated.

As customers target aggressive net-zero goals, EthosEnergy works with them to develop realistic maintenance strategies. Schoenborn emphasized the importance of maintaining reliability without overinvesting in assets that could be repurposed or shut down in the near-future.

“How we’re working with them is saying, ‘Let’s really sit down and talk about what maintenance you need to have to make sure you maintain the same level of reliability,’” he said.

Watch the full interview with Terry Schoenborn above.

EthosEnergy said its center combines 24/7 remote start-stop capabilities with asset monitoring, diagnostics and access the company’s global network of engineers.

Plant owners would appoint EthosEnergy to fully manage operational control of their power generation assets from the Houston-based performance center.

EthosEnergy operators control start-stop operations through encrypted cyber-secure VPN technology compliant and designed to NERC CIP Medium protocols. The company said its AI and machine learning-integrated technology platform can help detect early warnings of reliability and performance issues.

From the performance center, operators can remotely monitor, operate and manage multiple plants. They can use remote video surveillance to continuously monitor a customer’s assets using real-time thermal imaging.

There has been a growing trend among power generation companies to outsource their operations and maintenance (O&M) and technical expertise to third parties like EthosEnergy. This can help keep costs down, provide access to expertise and improve operational efficiency.

This alert serves as a reminder of the critical importance of preparedness and proactive action for power
plant operators to ensure reliable electricity supply during extreme weather events. Below, Kevin Salsbury, NERC Compliance Director for EthosEnergy, helps highlight the reasons behind the alert and discuss key actions required by plant operators to navigate the cold weather successfully.

Q. This is the first time NERC has issued a Level 3 Cold Weather Alert. What is it and why is it so important?

A. After the wake of the 2021 FERC/NERC Joint Inquiry Report, extreme weather events occurred again – winter storms Elliott (2022) and Uri (2021) – that showed the progression of cold weather prevention efforts were still lacking and data on current implementation efforts (i.e., EOP-012), not available. The NERC Level 3 Cold Weather Alert was issued in response to these issues and forecasted future weather conditions that may adversely impact power system reliability.

For example, cold weather can introduce unique challenges beyond just freezing conditions. Limited or reduced transportation, safety concerns from ice or snow, and increased energy demand for heating purposes can strain power generation infrastructure, leading to potential disruptions and service outages. Level 3 cites these concerns must be acknowledged and essential actions taken to ensure a secure and reliable power supply.

Q. None of the requirements of the NERC Alert will be enforceable until October 2024. Why is EthosEnergy advising operators to achieve completion of the actions by October 2023? 

A. While none of the requirements will be enforceable until October 2024, EthosEnergy is strongly advising operators to achieve completion of the six essential actions by October 6, 2023 to support the purpose of the alert and strive for early implementation to stay ahead of the various effective dates of the requirements.

Also, the responses to NERC Alerts are tracked and recorded. They act as an additional tool for regional organizations such as the Texas Reliability Entity and the Western Electricity Coordinating Council to use to further understand and plan for risks to the bulk power system (BPS) that could impact the footprint they operate within. We believe all in the industry should be trying to best support one another.

Q. Can you tell us some ways operators can start to more quickly comply with the NERC Alert?

A. First, get knowledgeable on current NERC tools for extreme cold weather temperature calculation. That is key. Operators should review their current freeze protection measure maintenance program activities and the equipment with which these activities are being completed to prevent cold weather impacts.

Also, understand how local plant personnel are evaluating operations through root cause analysis (RCA) and tracking remediation and mitigation activities at their facility, specifically during the Winter months (December – February). Finally, evaluate your current communication “profile” with your reliability coordinator, balancing authority, and/or transmission operator to determine how much or how little you talk with these entities during winter months or emergency events and adjust your communication strategy as needed.

Q. What are the risks to operators if they do not take heed of NERC’s cold weather warning?

A. As previously mentioned, the responses to this alert will be recorded and used by NERC and other regional power entities to better understand and proactively respond to potential risks facing the BPS. Not addressing the essential actions may also lead to increased scrutiny on a facility by regulators. 

Additionally, not being fully aware of your facility’s critical equipment capabilities for cold weather operations could result in: shortened lifespan of equipment due to lack of preventative maintenance, decreased scope awareness of equipment failure, and long outage and recovery times during Winter months.

Q. How is EthosEnergy helping operators prepare and respond to the alert?

A. There are three ways we are helping or counseling our customers to prepare and respond. One, we recommend that all owner/operators review the essential actions in detail and calculate their Extreme Cold Weather Temperature (ECWT). If a plant needs help with that, EthosEnergy can support them. Two, inventory all of your plant’s critical components. We have developed an audit method to assist. It cannot be said enough that it is vital to know how extreme cold weather can impact your facility as a whole including operations, equipment, instrumentation, communications, and safety. The audit results allow plants to take immediate action and comply where needed. Three, evaluate and learn from what happened during a previous weather event.

Establishing a process/mechanism for identifying, evaluating, and tracking cold weather reliability events, including extent of condition reviews of impacted critical components and knowing how you handled it in the past, can lead to potential improvements in your RCA process to generate adequate corrective action plan evidence.

Q. Anything else operators should consider when evaluating winterization solutions?

A. When evaluating winterization solutions, especially through the new EOP-012 standard and definitions, generator operators need to be more diligent in their evaluations of equipment and systems, and other areas of plant vulnerabilities that may experience freezing problems or other operational issues to determine applicability. This includes ensuring adequate justification for inclusion and/or exclusion of equipment from scope. Leverage existing NERC and regional entity guideline documentation (i.e., NERC Reliability Guideline – Generating Unit Weather Readiness) to further educate staff and leadership on what industry expects from generation plants. These documents provide lists of equipment types for consideration and evaluation steps. In the end, this is a critical defense strategy for your inventory of cold weather critical components and mapping of freeze protection measure maintenance activities.