The European team

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The European team
energy
generation
GE ENERGY
EMPLOYEE MAGAZINE
EUROPE
N°7 - MARCH 2009
The European team
in motion
POLICY
The art
of lobbying
in Brussels
MARKET
A long-term
opportunity
INITIATIVES
A job
well done
Editorial
90 days
2009 will be a year of many
challenges and despite the crisis, GE
remains the good place to be. However the
increasing economic instability affects our
business and we have to focus on fundamentals:
being a reliable, predictable and competitive
partner for customers. We have an important
role to play in fulfilling the energy demand.
The new organization, which brings together
all those involved in the energy industry under
the same roof, is helping to consolidate our
status as a world leader. In Europe, the CEC
brings together the directors of each business,
and enables us to undertake our initiatives
with a single voice and establish GE Energy as
a truly European enterprise. This edition of your
magazine sets out the new challenges for 2009
and explains the strategy we have developed
to address these challenges successfully
by focusing even more closely on customer
satisfaction. It also highlights the successes
of 2008, which were enhanced by the programs
introduced to recognize and promote the most
talented people in the business. This
issue also fulfils the magazine’s
educational role by highlighting
renewable energy, the technologies
of tomorrow...
Enjoy!
Frank Farnel,
Communication and Public
Affairs Director Europe &
Global EPC Communication
Contents
» 2-3. 90 days
» 4-5. Strategy • New organization for
better efficiency
» 6-7. Vision • Establishing GE as a truly
European enterprise
» 8-11. CEC • A winning team
» 12-13. Partners • Unity is strength
» 14-16. Our costumers • Coal gasification:
a technology of the future • Iberdrola Did you know that…?
» 17. Policy • The art of lobbying in Brussels
»
18-19. Environment • An important energy source
»
20-21. Market • A long-term opportunity
» 22. Products and services • A committed
for the future
APPOINTMENTS >>
Two new managers have
headed up PPS since June 2008
John Lavelle,
Vice President
and GE Officer,
was officially
appointed as CEO
of Power Plant
Systems in June last year and has
moved to Schenectady (New York
State). Having joined GE in 1983 as a
sales engineer, John has occupied
many senior positions within the
group. As CEO, he has applied his
in-depth understanding of the
industrial and commercial aspects
of the business to introduce
a fundamental restructuring
of Gasification (IGCC).
Brahim Richani,
who joined GE
Power Systems
in 2000, has
also joined
the PPS
management team to head up
Global Power Plant Engineering.
Formerly the head of the Project
Management Center of Excellence,
he has demonstrated his ability
to unite diverse teams around
shared projects.
CHINA >>
Jenbacher
Packaging Operation
Opens in China
GE Energy’s Jenbacher gas engine
business has opened a new
regional engine packaging
operation at GE’s manufacturing
center in Hangzhou, the capital city
of Zhejiang Province in southeast
China. The new packaging
operation will help support
customers in China and Asia and
is responsible for final assembly
of the Jenbacher enginegenerator sets and CHP units
including the steel substructure,
assembly of filters, ductwork
and cabling. The site also features
a paint shop and a modern test
facility, and a team dedicated
to customized engineering
design solutions based on
regional needs.
The facility, which currently
employs around 50 people,
packaged 30 engines in 2008
and plans to complete another
100 units in 2009. The operation
is initially packaging GE’s 1 MW,
“Type 3” Jenbacher engines but
in early 2009 will expand its scope
to also service the larger “Type 6”
Jenbacher engines. The core
engines will continue to be
produced by GE’s main gas
engine manufacturing center
in Jenbach, Austria.
partnership
» 23. Perspectives • A healthy coexistence
»
»
24-26.
» 27.
» 28.
29-30.
Initiatives • A job well done
Your tools • A learning resource for everyone
Team spirit • Cultivating teamwork
Citizenship • Healthy in body and mind
• Pride and confidence
2 < energy generation < March 2009
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UK >>
Motors & Controls
joins Energy Services
BELFORT >>
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solving methodology and biofuels. The resulting discussions proved
extremely useful, as it became clear that some topics, like magnetic
bearings and acoustic absorption, are of direct interest to GE Energy.
“The main aim of this event was to introduce alternative visions of
innovation,”Tg_[PX]b4iX^?T]P“viewpoints that could help us develop
our own vision at the same time as networking with other companies.
Looking beyond the risk that inevitably accompanies innovation,
the ability to be innovative seems to be a powerful factor for growth.”
Changing our approach to move further ahead: that’s the new
challenge for GE Energy.
* Innovation month was organized by Lucie Renier and Ezio Pena,
with support from the Communication Department.
SRI LANKA >>
PPS Europe delivers an 8% increase
The city of Kerawalapitiya, north of
Colombo, is the site of a combined
cycle plant containing two 9E gas
turbine units. Both began running
on light distillate oil and were
synchronized with the Sri Lankan
electricity grid during the summer
of 2007. Now burning heavy
distillate, they have been delivering
a combined 200 MW of electricity
since September of last year.
The next stage in this project is
to install waste heat boilers and
the steam-powered turbo alternator
unit, which will increase output to
300 MW in August this year. The
challenge is to increase Sri Lankan
national power generation by eight
percent to address an increasing
shortfall in supply. The contract for
this project is between GE Energy
and Lakhdanavi Ltd, the company
responsible for selling the
electricity generated to the Ceylon
Electricity Board. The 9E gas
turbine supplied for this project is
one of the very few models capable
of running on heavy fuel oil.
GE Consumer & Industrial’s Motors & Controls
business has become part of the Energy
Services team. The move supports GE’s recent
announcement to realign its businesses
into an organizational structure that simplifies
the company and aligns businesses for
growth and competitiveness.
“The integration of Motors & Controls with
Energy’s Industrial Services unit will increase
the collaboration between the product
and services sides of the business and allow
for more comprehensive solutions for our
customers,” said John-Paul Corry, Industrial
Services P&L leader for Europe, Africa, India
and the Middle East.
The Motors & Controls P&L will be integrated
with Energy’s Industrial Services business,
with the combined business led by General
Manager Jim Rogers. Functions including
Supply Chain, Engineering, Finance, IT and
Human Resources will be aligned under the
appropriate GE Energy functional leader.
CAREER >>
GE Energy Wind makes
friends and influences
people at Windcareer
The Windcareer jobs forum was held on
September 13 last year at HUSUM WindEnergy
2008, the world’s largest wind energy trade
fair – an ideal event at which to make contact
with qualified specialists in the field. Wind’s
HRM Carsten Schott represented GE at the fair
and focused on the career and personal
development prospects the company offers its
employees. Hardly surprising then that the GE
stand was almost taken by storm! “This career
forum has been a total success and completely
exceeded our expectations!” said a delighted
Carsten Schott at the end the event. In fact, the
first interviews with applicants were held just
two weeks after the trade fair closed. This
achievement is all the more encouraging, since
the industry suffers from an acute shortage of
specialists. Carsten Schott sums it up perfectly
when he says that: “Word-of-mouth really works,
and people now know that GE is an attractive
employer in the renewable energy technologies!”
energy generation > March 2009 > 3
Strategy
ENHANCING PERFORMANCE >>
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for better efficiency
GE has simplified its organizational structure and regrouped its six businesses into four major
segments with the aim of promoting growth and improving overall efficiency. One of these
segments is GE Energy Infrastructure.
ENERGY SERVICES, OIL & GAS,
AND POWER & WATER
COME UNDER ONE ROOF
The restructuring was designed to
create an organization better aligned
to execute GE’s strategy to be a global
leader in its four key businesses –
Energy Infrastructure, Technology
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the new alignment brings three GE units
integral to the energy sector – Energy
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– under one roof. “This streamlines our
global decision-making and creates more
critical mass closer to our customers. It
allows us to put even more focus on the
energy sector, which offers some of
the best growth opportunities for our
4 < energy generation < March 2009
company worldwide,” explains John
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hydrocarbons continues to grow, and
water remains a valuable and scarce
resource in many parts of the world. GE
Energy Infrastructure has the technology
that plays a key role in developed and
emerging markets alike.
POWER & WATER –
AN INSEPARABLE PAIR
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emphasizes the inextricable links
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thereby reinforcing the decision to bring
these units together under the same
organization. “In many of today’s technologies, it takes water to make power,
and power to make water. And both
resources are in rising demand, given
that they are the backbone of economic
growth and improved living standards
everywhere. The restructuring we put in
place further increases the synergies
between the Power Generation and
Water businesses for large-scale projects
around the world.”
A BALANCED ENERGY PORTFOLIO
TO MEET FUTURE DEMANDS
Looking to the future, with the world’s
growing demands for cleaner, more effi
cient power generation, it is critical that
GE Energy maintain a balanced portfolio
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sources such as gas, coal and nuclear
power will continue to meet much of the
world’s energy demand through 2030.
However, renewable energy sources,
such as wind, solar power and biomass,
will play an increasingly significant
role in the global energy mix. GE is the
largest supplier of wind turbines in the
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ogy. “In addition,” Mr. Krenicki continues,
“we manufacture high technology, gas
reciprocating engines that can burn
methane gas from landfills, coal mines
and agricultural waste to reduce the
venting or flaring of greenhouse gases
into the atmosphere.”
GE Energy also offers technology
that enables the production, transpor
tation and storage of oil and gas. In
addition, to address the need for water
for industry and consumption, the com
pany offers membrane and filtration
technologies, diagnostic tools and spe
cialty chemicals.
ADDRESSING TODAY’S ISSUES
While GE Energy Infrastructure per
formed well overall in 2008 and has a
strong backlog, the business is operating
in volatile economic times, perhaps the
most challenging that many have ever
seen. The requirement now is to focus on
the fundamentals: being a reliable and
predictable partner for customers, with
a quality reputation to be proud of; being
the most competitive player in the indus
try; and preparing for the difficult sce
narios that will play out over the next few
months. “We have navigated many tough
cycles throughout our 130-year history,
and in doing so, made adjustments and
evolved. We are doing so again today,”
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Senior Management hass taken the
actions required to keep the
he company
strong and safe and maintain
ain a healthy
balance sheet. These include
ude reducing
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management program, the diversified
business model, the drive to keep
Infrastructure as a top priority for devel
oping countries and providing services
to our customers, particularly in chal
lenging times, are all part of the program
to remain strong and solvent.
ENERGY INFRASTRUCTURE –
THE PEOPLE MAKE THE BUSINESS
Mr. Krenicki concludes: “While the times
ahead will challenge us, we go into it with
a stronger, more efficient business organization, a diverse portfolio, customers
wanting our advanced technology, and
most importantly, incredibly passionate
and talented leaders and teams who are
focused on delivering results for our customers. My job is to make sure those
leaders and teams have the space,
resources and capabilities
to continue the terrific
work they are doing.”
John Krenicki,
Vice-Chairman of GE,
President and CEO
of GE Energy Infrastructure
GE ENERGY INFRASTRUCTURE >>
Overall Performance
Overall 2008 performance of GE Energy
Infrastructure is excellent:
Orders
+ 17%
(equipment +13%, services +17%)
Revenue
+ 26%
+ 26%
Operating profit
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energy generation > March 2009 > 5
Vision
Establishing GE
as a truly European
Ricardo Cordoba >>
Biography
Ricardo Cordoba is 50 years old and joined GE Energy
in 1999 when the company acquired ALSTOM
Gas Turbine (AGT), where he had been Deputy Sales
Director. On joining GE Energy, he was appointed as
Head of Sales for Europe and Central Asia. In July 2003,
he was promoted to his current post as Head of Sales
for GE Energy and Regional President for Western
Europe and North Africa.
enterprise
Ricardo Cordoba holds an engineering degree from
the Institut National Polytechnique de Grenoble and
a degree in electrochemistry from the University
of Grenoble. Ricardo Cordoba took on his new
responsibilities as a Corporate Officer in October 2007.
GE currently has 203 Corporate Officers worldwide.
GE Corporate Officers lead key parts of the business
and fulfill strategic functional roles that support
the growth of the group.
GE Energy President for Western Europe and North Africa,
Ricardo Cordoba joined the exclusive ranks of GE’s
203 Corporate Officers worldwide in October 2007.
In this issue, he gives us his strategic vision for the next
three years.
What does it mean
to you to be appointed
as a Corporate Officer?
commitment to being perceived as a truly
European player.
Ricardo Cordoba: I’m very proud to have
been recognized in this way, but it is
primarily a recognition of all the work
done by everyone in the European team.
Europe is an important region for GE
Energy, because with 10,000 employees,
it accounts for around one third of the
total GE Energy workforce worldwide. We
also attracted orders of six billion in 2008.
My appointment is part of a wider GE
You recently met the members
of the Western Europe and
North Africa CEC. What does
this organization actually
consist of?
6 < energy generation < March 2009
R.C.: Our organization is business-based,
with Thermal, Services, Nuclear, Wind and
Jenbacher. My role as Corporate Officer is
to bring together all the European teams
to ensure that we speak with a single voice
at local level and exploit synergies that
help us respond even better to the needs
of our customers.
What are the strengths
of GE Energy in Europe?
R.C.: Our strengths lie in our skills centers:
Jenbacher in Austria is the global center
for gas engines, and Salzbergen in Germany
is the center of excellence for the 2.5xl turbine. Belfort in France is the center of
excellence for high-power gas turbines.
The gas and steam turbine engineering
technology center will be officially opened
this year. In order to maximize our efficiency, we are now working to put in place
a series of comprehensively defined processes that will be shared by everyone
and tailored exclusively to the specific features of the region, reflecting the stan-
“We will continue to put our faith
in the skills of our people.”
dards applicable in each country and
addressing today’s market trends. For
example, Europe leads the way in wind
power development, so it seems only natural to develop our Salzbergen center of
excellence. The action we are taking is a
very accurate interpretation of the “think
global, act local” principle.
Given the current economic
situation, how do you see
the outlook for the future?
R.C.: 2008 was a remarkable year for
GE Energy in all its product areas. We were
able to report excellent results in both gas
turbines and wind power. When it comes to
the future, I am, by nature, both optimistic
and vigilant. Demand for energy remains
very high, and further demand is being created by the need to replace existing infrastructures with new generation solutions
based on technologies that are more efficient and more environmentally friendly.
We now have a very diverse portfolio of
products and services, and lead the way in
the technologies we offer. We have a significant presence in renewable energy sources,
like wind and solar power, whilst our combined cycle products are environmentally
friendly and can be fitted with turbines
capable of running on coal gas produced
in a process that uses carbon capture.
We will continue to invest in technology and
to put our faith in the skills of our people.
We have demonstrated our ability to adapt
in the past, and we will continue to do so.
Finally, can I ask you which
aspect of your character
comes out most strongly
in the work you do?
R.C.: It would have to be passion. I love
what I do and the people I work with. I like
to win and I am committed to winning, not
for myself, but for the company and everyone who works in it. I see it in the same
way as a sporting challenge: you’re in it to
win, and every success is always the result
of teamwork and never the effort of just
one person.
energy generation > March 2009 > 7
A winning
team
In Europe, the CEC (Corporate Executive Committee)
brings together the directors of each business
and helps GE to take concerted action as a unified
entity. This ability to speak with a single voice helps
position GE Energy as a truly European enterprise
and confirms its status as an essential player
in this market.
Turn the page to meet the committee members…
Cliff Harris
Power Services General Manager,
Europe
GOALS: to supply qualified and competitive personnel where and when they are
needed; to understand the needs of
customers so that we can supply them
with the right products and services
strengths: sense of humor and
enthusiastic team player
LOCATION: Bracknell, UK
20
Alyson Clark
Legal Counsel Sales & Marketing
GOALS: to support the sales team
by providing the tools, resources and
expertise they need, and to ensure
the integrity of everything we do
strengths: effective communication
skills
LOCATION: Bracknell, UK
13
Magued El Daief
Key Account and Partner Manager &
Country Executive UK
GOALS: to build a special relationship
with all points of contact, global key
accounts and new EPC partners
as the basis for future projects
strengths: experience in Asia,
the Middle East and Europe,
complemented by excellent language
skills that facilitate communication
LOCATION: Bracknell, UK
Tassos Vlassopoulos
22
Marketing Manager, Europe
GOALS: to manage the delivery and
coordination of the GPB (Growth Play
Book) and priority regional projects
on behalf of the regional directors
strengths: open-mindedness, expertise,
a passion for work and a well developed
commitment to teamwork
LOCATION: Bracknell, UK
11
Moira Robertson
CFO Energy Services Europe
GOALS: to support growth and manage
financial risk
strengths: creativity and realism.
LOCATION: Bracknell, UK
15
Martin Ansell
Product General Manager T&D Smallworld
GOALS: to offer IT solutions that enable
the company to plan, manage and
maintain customer installations.
strengths: clear thinking
LOCATION: Stafford, UK
16
Richard Reno
Product Line Manager 2.5 MW Wind
Turbine
GOALS: to develop the 2.5 MW wind
turbine for the European market,
establish GE as a major player in
the wind energy market and improve
profitability by meeting cost reduction
targets
strengths: the ability to simplify things
LOCATION: Schenectady, NY
Mike T. Adams
Product General Manager GTIS
Environmental Services
GOALS: to create a Best in Class Gas
Turbine Inlet Systems business from
its Global HQ in the UK.
strengths: committed, open, direct
and conscientious; strong sense
of self-reliance and team loyalty
LOCATION: Alton, UK
19
Markus Becker
Regional Policy Leader, Europe
GOALS: to help the division gain a better
understanding of the environment
created by the government policies
that regulate what we do and to identify
the resulting threats and opportunities;
to advise on the most effective ways
of engaging with decision-makers
in order to define priorities and create
opportunities for growth
strengths: enthusiasm for managing
complex situations and establishing
constructive dialog as the basis for
finding the right solution
LOCATION: Brussels, Belgium
Monika Frohmuller Tabacchi
Organization Staffing and Learning Leader,
Europe
GOALS: to focus on management
development in Europe
strengths: an ability to bring
people together, open-mindedness
and creativity
LOCATION: Brussels, Belgium
Prady Iyyanki
CEO Jenbacher Gas Engines
GOALS: to offer innovative products,
like the new J624 4 MW gas engine,
designed to meet customer expectations
in terms of reliability and efficiency
strengths: extensive multicultural
experience
LOCATION: Jenbach, Austria
18
Fergus Munro
Business Development Leader, Europe
GOALS: to acquire technology companies
with high growth potential in order to
consolidate the GE business portfolio
strengths: the glass is always half full
LOCATION: London, UK
2
1
6
4
3
7
13
22
15
17
12
Fintan Tuffy
Contractual Services General Manager,
Europe
GOALS: to deliver customer satisfaction
and ensure the profitability and
fulfillment of CS contracts in Europe
strengths: 20 years’ energy industry
experience in six countries
LOCATION: Milan, Italy
18
5
16
14
11
8
2
Diarmaid Mulholland
Region General Manager, Energy Services,
Western Europe & NW Africa
GOALS: to identify the synergies that
will ensure growth and the development
of new opportunities; to adapt our
business portfolio to our customer needs
strengths: open-mindedness and
a passion for learning from others
LOCATION: Milan, Italy
21
19
12
10
1
Yves Menat
President and General Managing
Director for GE Energy France
GOALS: to anticipate fluctuations in the
market for gas turbines so that we are ready
and able to respond effectively to demand
strengths: learning many lessons from
history that are useful in our everyday
working lives
LOCATION: Belfort, France
14
Ricardo cordoba
GE Officer and GE Energy President
for Western Europe and North Africa
GOALS: To bring together all the European
teams to ensure that we speak with a
single voice at local level and exploit
synergies that help us respond even
better to the needs of our customers
LOCATION: Belfort, France
METE MALTEPE
5
Wind Turbine Sales Europe Leader and
Country Executive Turkey
GOALS: to make the 2.5xl wind turbine
a success by securing orders for 2010
strengths: optimism
LOCATION: Istanbul, Turkey
9
17
Frank Farnel
Communication and Public Affairs Director
Europe & Global EPC Communication
GOALS: to position GE Energy as a major
European player throughout Western
Europe, North Africa and Turkey
strengths: creativity, an ability to bring
people together and multiculturalism,
backed up by a strong commitment
to teamwork
LOCATION: Belfort, France
20
21
François Cavan
Thermal Manufacturing General Manager
France
GOALS: to adapt gas turbine production
to meet the needs of the market; to focus
on meeting our financial commitments
and delivery times, improving productivity
to remain competitive, contract fulfillment
and team development
strengths: dedicated to production,
while remaining focused on personnel,
technical challenges and financial issues
LOCATION: Belfort, France
8
Roque Carmona
Thermal Europe / Global MSD BOP
Sourcing Leader
GOALS: to reduce component costs
to meet market needs, ensure product
quality and guarantee delivery dates
strengths: adaptability
LOCATION: Belfort, France
6
Vincent Manley
Commercial & Operations Excellence
Leader.
GOALS: to support the commercial &
global sales organizations, initiatives and
– ultimately - customers. To contribute to
the regional action plan by coordinating
development thro’ the CLP program and
managing regional strategy with
cross-functional implementation.
strengths: straight-talker
LOCATION: Belfort, France
9
Emmanuel Kerrand
Thermal Engineering General Manager,
Europe
GOALS: to act at local level to implement
and manage the technical resources,
skills and expertise required for
Gas Turbine and Steam Turbine product
design, and their adaptation to meet
the needs of customers and the market;
to support the division in resolving
technical issues and developing new
technologies
strengths: “I am motivated by passion
and conviction to help the entire team
to progress”
LOCATION: Belfort, France
ervin lebon
Senior Human Resources Manager, Infra
Energy Europe.
GOALS: to attract, develop, motivate
and retain the best possible workforce
for our businesses in Europe and provide
HR leadership for the region in support
of our long term business
strengths: High personal energy,
energizing and accountable
LOCATION: Breda, The Netherlands
10
Vincent Riss
Human Resources Director,
Thermal/Wind Europe
GOALS: to attract, develop, motivate and
retain the talented people.
strengths: committed and involved
in his work
LOCATION: Belfort, France
Christian Bleicher
General Manager Manufacturing Europe
GOALS: to increase equipment
productivity and efficiency, and improve
the quality and punctuality of deliveries
by implementing pull flow projects;
to contribute to the Global Star
certification project
strengths: a true black belt
LOCATION: Belfort, France
Frédéric Greiner
3
Commercial Operations Manager Europe, Africa Middle-East & India
GOALS: to identify, pursue and win
commercial opportunities for Power &
Water, to position GE as the customer’s
partner of choice for all power generation
plant projects
strengths: tenacity and
persuasiveness
LOCATION: Belfort, France
Claude Gazonnet
7
GPO Thermal General Manager, Europe
GOALS: to implement all heavy-duty gas
turbine plant projects in the Europe,
Middle East and Africa region. To provide
support for Wind, Aero and Jenbacher
projects on request. To deliver total
customer satisfaction.
strengths: tenacity
LOCATION: Belfort, France
4
Dominique Namy
Region Sales Manager, Western Europe
and North Africa
GOALS: to ensure sustained business
levels for the division and anticipate
the future impact of the financial crisis
in Western Europe and North Africa,
a key region for GE
strengths: “no stress”
LOCATION: Belfort, France
Partners
EPC >>
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strength
Bringing together Power & Water, Energy Services
and Oil & Gas, the new GE Energy Infrastructure group
is now well placed to deliver the most innovative
and advanced global solutions to new generation
energy projects.
A
s part of achieving its ambitions
and rising successfully to increasingly demanding challenges,
GE Energy Infrastructure is building
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tors. Water, oil, gas and energy are all
vital to the functioning of the modern
world, and despite the current restric
tive financial environment, energy
suppliers are coming under increas
ing pressure to boost production and
respond to a global demand for elec
tricity that is forecast to double within
the next 20 years.
EPCS… THE PERFECT PARTNERS
Its worldwide presence gives GE Energy
Infrastructure the expertise and global
influence required to help energy gener
ators resolve difficult issues. In fact, the
group has a huge portfolio of products
12 < energy generation < March 2009
and services capable of responding to
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success of GE Energy Infrastructure also
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ners. These are all well known compa
nies, specializing in areas as varied as
power plant ancillary mechanical and
electrical equipment, civil engineering,
installation, engineering and site man
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tion is built on synergy and the sharing
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environment, health and safety (EHS)
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knowledge of the countries in which
our equipment is installed makes their
expertise absolutely vital.
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every area of the industry is one of the
great strengths of GE Energy Infrastruc
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customers and partners alike.
STRUCTURING PARTNERSHIPS
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anteed local presence that can deliver
support and resources directly to cus
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want to be certain that the contacts they
are dealing with are reliable and respon
sible. For GE, it’s all about gaining a com
prehensive knowledge of the markets
offering the greatest opportunities and
identifying the right players within each
\PaZTc0aTVX^]P[\P]PVTaXbaTb_^]bX
ble for identifying the best potential part
ners on the basis of a set of criteria that
includes financial stability, integrity and
the ability to provide a commitment to
work alongside GE in delivering success
Ud[cda]ZTh_a^YTRcb?Pac]TabWX_PVaTT
\T]cbPaT]TV^cXPcTS^]PRPbTQhRPbT
basis; nevertheless, GE Energy Infra
structure is currently developing a strat
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INITIATIVE >>
Communication as the route to success
GE Energy Infrastructure brought together
its 240 EPC partners from Western Europe,
Central Europe, the Middle East and Africa
for the first time at the Istanbul summit held
on November 17 and 18 last year. Initiated
share experience. The summit also provided
the opportunity for GE Energy Infrastructure
to announce the launch of a multimedia
campaign designed to improve the flow of
communication between GE and the EPCs.
The aim of CONNEXION magazine and its
online version is to increase global and local
awareness of GE Energy Infrastructure activities around the world. This new publication
is a powerful way of building bridges with
new partners.
by Magued El Daief, Key Account and
Partner Manager and Country Executive
for GE Energy UK, the aim of this event was
to strengthen and extend GE’s existing relationships and create new mutually beneficial
networks. Some 60 GE managers attended
the summit, alongside John Krenicki, the
Vice-Chairman of GE and President and CEO
of GE Energy Infrastructure, to present delegates with the latest technological innovations, highlight GE’s market leadership and
focus on the opportunities already in place to
SPOTLIGHT ON A SUCCESS STORY >>
Montoir de Bretagne: a first for France
The first GE Energy Infrastructure
(51cdaQX]Tc^QTST[XeTaTSX]5aP]RT
Xb]^fQTX]VX]bcP[[TSQhcWT??B
Thermal Europe teams in partnership
with the Spanish company Tecnicas
ATd]XSPbPccWT<^]c^XaST1aTcPV]T
site on the Loire estuary.
CWXb (51R^\QX]TSRhR[T
generating plant is being built for
GDF Suez close to the Montoir de
1aTcPV]T\TcWP]TcTa\X]P[cWPc
handles 20 percent of all liquefied
gas consumed in France. Work on
site began at the start of 2008,
P]ScWT]Tf<^]c^XaST1aTcPV]T
combined cycle generating plant
will be operational in 2010. With
a generating capacity of 430 MW,
it will supply electricity to southern
1aXccP]h5dT[TSQh]PcdaP[VPb
it will also contribute to improving
the reliability of the local power
distribution network in an
environmentally friendly way.
The turbine arrived on site last
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bTeTaP[fTTZbUa^\1T[U^aceXP
BcaPbQ^daVP]S0]cfTa_
The majority of equipment is now
ready to be installed on its pads.
FXcW?a^YTRc<P]PVT\T]cP]S
?a^YTRc4]VX]TTaX]V_a^eXSTSUa^\
1T[U^acP]S\P]PVTSQh9TP]
Sebastien Erb, the Montoir de
1aTcPV]T_a^YTRcST\^]bcaPcTb
how effective the synergy between
GE Energy Infrastructure and its
4?2_Pac]TabRP]QT
energy generation > March 2009 > 13
Our customers
IGCC >>
Coal gasification:
a technology of the future
Already well established in the USA, IGCC technology is now beginning to break through into the
European market in a continent firmly committed to effectively reducing greenhouse gas emissions.
he business of generating electric
ity from coal has changed consid
TaPQ[h X] aTRT]c hTPab 0[cW^dVW
cWT
abcVT]TaPcX^]^Ub^RP[[TS|R^]eT]
tional” generating plants achieves low effi
ciency, at the same time as releasing high
levels of emissions, the latest technologi
cal innovations are considerably improv
ing plant environmental performance and
efficiency.
In a conventional plant, pulverized (or fine
powdered) coal is injected into a combus
tion chamber, where it is burned at high
temperature. The heat energy released
then turns water to steam in a boiler. The
steam released then drives a steam tur
bine connected to the alternator that gen
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T
cWTf^a[S{bR^P[QPbTS_^fTaVT]TaPcX]V
capacity uses this principle.
Electricity generated from coal currently
accounts for nearly 40 percent of total
power generation, and that percentage will
inevitably increase, since coal represents the
most plentiful source of fossil fuel energy.
Despite the current initiatives introduced
to promote renewable energy sources, it
is likely that fossil fuels will provide nearly
half of the world’s energy between now and
!$0VPX]bccWXbQPRZVa^d]S8]cTVaPcTS
Gasification Combined Cycle (IGCC) technol
ogy has an important role to play.
GOOD PERFORMANCE IN TERMS
OF ENVIRONMENTAL IMPACT
In an IGCC plant, the coal is not burned
directly, but is allowed to react with oxy
gen and water vapor to form a “syngas”
whose main constituents are hydrogen
and carbon monoxide. This syngas is then
processed and burned in a gas turbine
to generate electricity, as well as steam,
which is then used to drive a steam turbine.
This combined cycle delivers a significant
increase in the amount of energy extracted
from the coal.
DbTSin conjunction with Carbon Capture
and Storage (CCS) technology, IGCC is
an effective weapon in the war against
climate change. Carbon capture uses
a process in which fuels are partially oxi
dized to produce hydrogen or ammonia
containing practically no carbon dioxide.
1TccTa bcX[[ VPbX
RPcX^] ^UUTab cWT PSSX
MARKET OUTLOOK BY DEREK ADCOCK >>
Major commissioning projects from 2016 onwards
IGCC technology holds out exciting prospects
for growth, especially in Europe, where many
countries – including Germany, England,
Poland, Romania, Serbia and Montenegro
– have significant reserves of coal. There are
more than 15 IGCC power generating plants
already in service around the world. The most
recent projects to get under way are in the USA.
In Europe, things have got off to a slower start,
but a number of major
j contracts are now at the
negotiation stage
s
and should be
completed in the period 2011 to 2014.
These inclu
include a 900 MW plant for
Yorkshire in the UK. Two or three other
English sites are also under
consideration.
consid
IGCC is a powerful technology
that is fast to implement: a
th
combined cycle plant can
14 < energy generation < March 2009
be installed in less than three years, compared
with 10 to 20 years for a nuclear plant. However,
the capital investment required is currently a real
drawback, because at $2,500 per kilowatt,
generating costs are around 20 percent higher
than those of traditional coal-fired plant.
Nevertheless, I remain convinced that this
technology will be widely introduced, because it
delivers an effective response to increasingly
stringent environmental constraints, particularly
those focused on reducing CO 2 emissions. There
are already some factors in its favor, and IGCC
technology will become a profitable solution at
the point where the price per metric ton of CO 2
rises above €30 and that of oil above €60. The
prospect that the new US administration could
ratify the Kyoto protocol is also very positive for
IGCC technology. For all these reasons, I believe
that IGCC could really take off from 2016 onwards.
Every stage in the IGCC
system can now be
supplied in complete
form by GE Energy,
but for capture and
storage. GE Energy’s
offer for European
projects is currently
limited to supplying
combined cycle
technology that
operates with fuels with
a hydrogen content
higher than 95 percent.
GOOD TO KNOW >>
Solutions for improving
carbon capture
The synthesis gases produced by the coal gasification
process pass through a series of processing phases to strip
out sulfur compounds, dust and other pollutants, such as
mercury and heavy metals. The initial capture of CO 2 can
reduce emissions by between 17 percent and 20 percent,
depending on the composition of the fuel. CO 2 conversion
reactors significantly increase carbon capture rates by
improving the efficiency with which CO 2 and hydrogen are
separated, with the result that CO 2 emissions can be reduced
by between 40 percent and 90 percent, depending on the
number of conversion reactors added to the process.
cX^]P[ PSeP]cPVT ^U caP]bU^a\X]V [^f
`dP[XchUdT[X]c^WXVW`dP[XchWhSa^RPaQ^]b
from which the undesirable pollutants
TbbT]cXP[[h 2> 2, particulates, mercury
and sulfur compounds) are stripped out
of the gases for separate treatment and
bc^aPVT>]cWTQPbXb^URdaaT]cTbcX\PcTb
the combination of IGCC and CCS is com
parable in environmental terms with
aT]TfPQ[Tb^daRTbbX]RTXcb2>2 emission
levels are so low. IGCC plants also use less
fPcTacWP]R^]eT]cX^]P[R^P[
aTSVT]Ta
ating plants.
CARBON CAPTURE IS MORE
EFFECTIVE PRE-COMBUSTION
THAN POST-COMBUSTION
In an IGCC plant, the combustible syngas
obtained from the coal is compressed
at high pressure, and can be processed
efficiently before being burned to fuel
the gas turbine. Capturing pollutants in
cWT_aTR^\QdbcX^]_WPbTXb\^aTTR^
nomical than attempting to capture the
bP\T_^[[dcP]cbX]cWT_^bcR^\QdbcX^]
_WPbT0RR^aSX]Vc^RdaaT]cTbcX\PcTbXc
would take many years of development to
STeT[^__^bcR^\QdbcX^]R[TP]d_cTRW
nologies capable of retrofitting to conven
cX^]P[R^P[
aTSVT]TaPcX]V_[P]cb
The first IGCC plants were commissioned
at the end of the 1970s, and more recent
installations have achieved production
levels comparable with those delivered
by other energy generation technologies.
IGCC technology can use many different
types of fuel, including coal, biomass and
refinery waste containing high concentra
tions of hydrogen.
energy generation > March 2009 > 15
Our customers
644]TaVhP]S8QTaSa^[P
Did you know that…?
a.
b.
c.
bought 600 MW of GE SLE wind turbine generators
in February.
signed a €2 million contract with GE.
bought 200 GE 1.5 MW wind generators last May.
2. IBERDROLA RENOVABLES HAS COMMISSIONED THE
ELM CREEK WIND PARK IN MINNESOTA, USA. AT THE
END OF 2007, THE COMPANY HAD 2,100 MW OF
INSTALLED CAPACITY IN THE USA. HOW MUCH USED
GE TECHNOLOGY?:
a.
b.
c.
more than 1,400 MW.
between 850 and 1,400 MW.
less than 850 MW.
3. THE ARCOS III COMBINED CYCLE POWER PLANT
IS OWNED BY IBERDROLA AND USES GE GAS
TURBINES. IN JANUARY 2008, THIS PLANT…
a.
b.
c.
was awarded 910 MW certification for the Spanish
power distribution network.
set a benchmark for the industry by exceeding
8,000 operating hours.
fPbaTUTaaTSc^QhcWT=TfH^aZCX\TbPbcWTf^a[S{b
best power generating plant.
4. IN 2007, IBERDROLA HAD AN INSTALLED COMBINED
CYCLE CAPACITY OF 13,082 MW. WHAT PERCENTAGE OF
THAT CAPACITY USES GE TECHNOLOGY?
a.
b.
c.
more than 85%.
between 50% and 85%.
less than 50%.
16 < energy generation < March 2009
a.
b.
c.
involves the acquisition of Iberdrola modules for power
_[P]cb^_TaPcTSQhRdbc^\TabX]cWTDB0
paves the way for the installation of modules with power
ratings from 3 W to 1,000 W.
marks a new stage in the relationship: inclusion of GE
solar technology in the range of services Iberdrola offers
its customers.
6. HOW MANY MEGAWATTS OF GE NUCLEAR POWER
TECHNOLOGY DOES IBERDROLA POSSESS?
a.
b.
c.
less than 1,500 MW.
between 1,500 and 5,000 MW.
more than 5,000 MW.
7. IN 2008, THE ENERGY GENERATION SEGMENT
OF THE DOW JONES SUSTAINABILITY INDEX (DJSI)
RANKED IBERDROLA AS:
a.
b.
c.
the best energy producer.
one of the top 5.
10th.
8. WHICH OF THESE STATEMENTS IS CORRECT?
a.
b.
c.
64XbcWTbTR^]S[PaVTbcbd__[XTa^UfX]SVT]TaPc^abc^
Iberdrola and supplies the majority of the company’s
hydroelectric plants.
?Pac^U8QTaSa^[P{b]dR[TPa_^fTaVT]TaPcX]VRP_PRXch
uses GE technology.
>]T_Pac^UcWT8QTaSa^[PVa^d_WPbQTVd]c^Qdh64
photovoltaic technology for its customers.
How did you do?
>= 8 correct answers:
Well done!
<8 >= 5 correct answers:
Try again
< 5:
Don’t lose heart!
1: c / 2: a / 3: b / 4: a / 5: c / 6: a / 7: a / 8: a, b and c.
1. IBERDROLA HAS INSTALLED MORE THAN 1,700 MW
OF WIND POWER GENERATING CAPACITY USING GE
TECHNOLOGY (OUT OF A TOTAL OF 8,146 MW). TO
INCREASE ITS PORTFOLIO IN THE USA, THE COMPANY…
5. THE CONTRACT SIGNED IN JANUARY BY GE
AND IBERDROLA FOR THE SUPPLY OF GEPVP-200
PHOTOVOLTAIC MODULES WITH A CAPACITY
OF 11.6 MW...
ANSWERS:>>
Did you know that GE and Iberdrola first
met over a century ago? It’s true! The two
companies have enjoyed a mutually
beneficial relationship for more than 100
years. Today, they both continue to build
on that relationship, but how much do
you really know about them? Perhaps it’s
time to put your knowledge to the test…
Policy
INSTITUTIONS >>
CWTPac^U[^QQhX]VX]1adbbT[b
Government policy drives everything when it comes to the European energy industry. It drives
the way our customers look at a market, and it drives the products that we are trying to develop
and deploy into the marketplace. Politics sets an environment that may either generate growth
or be to the expense of our expansion.
T
oday all aspects of GE Energy’s business are affected by public policy.
Renewables and nuclear energy,
but also combined heat and power,
Jenbacher units and gas turbines are
subject to government incentive pro
VaP\b?^[XRhbTcbcWTQdbX]TbbT]eXa^]
ment that enables GE Energy to grow.
Lobbying is essential because it helps
nurture this growth.
“Lobbying in Brussels enables a seeingaround-the-corner approach to legislation,” bPhb <PaZdb 1TRZTa 64 4]TaVh{b
4da^_TP] 4]TaVh ?^[XRh 4gTRdcXeT “It
allows mitigating risks and seizing opportunities as early as possible.”
1adbbT[bis the seat of three key institu
cX^]bcWT4da^_TP]?Pa[XP\T]c2^d]RX[
P]S 2^\\XbbX^] =TPa[h &$ _TaRT]c ^U
existing European laws can be traced
back to initiatives passed within these
institutions. It goes without saying that
maintaining a close, continuous pres
T]RTX]1adbbT[bXbTbbT]cXP[XU64{be^XRT
is to be heard.
Consider cWT 4D T]TaVh P]S R[X\PcT
debates, putting a cap on carbon emis
sions or securing the oil and gas supply,
all of which are initiatives in the hands of
4D_^[XRh\PZTab0SSc^cWTbTcWTR^\
plexity of different countries’ economic
bcadRcdaTb0bcWT4DSTeT[^_TSX]c^P]
active political player, it also became a
more importa
important lobbying tar
get. “We m
must try to have
an impa
impact on the politics
that create the environment in which we
ronm
do ou
our business,” says
<a 1TRZTa
1
“We are
here b
because we need
to tell GE’s
G story, but it is
critical that
th we work as a
team and speak with one
voice across the various businesses.”
iou
The lobbying process
begins by identifying
issues and determining
what impact policies
will have on the busi
]Tbb >QYTRcXeTb P]S
expectations are set,
as is an understand
ing of the time line for
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bcPcTb0[[cWXbQTR^\Tb
part of an action plan,
which defines the lobbying strategy.
Lobbying, however, is sometimes more
of an art than a science. It relies on cul
cXePcX]V[^]VcTa\RP]SXSaT[PcX^]bfXcW
_^[XcXRXP]bP]S^U
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the capitals of individual member states.
CWTPaaXeP[^UP]Tf4da^_TP]?Pa[XP\T]c
and a new Commission in 2009 means
that new relations need to be built. This
requires a keen sense of timing that
aligns with individual political agendas
and enables getting in front of the game
as early as possible. It is also important
to speak a clear language that legislators
understand and to always maintain fair
and rigorous working etiquette.
“There is a famous saying that all politics
is local. And it’s really true. Localization is
frequently what gives one a voice in any
political community. So when GE actually
has operations in a city or in a country,
we have a special voice, we are creating
employment, we’re bringing technology,
we’re bringing business opportunities to
that region. And politicians and policymakers care about that a lot,” <a1TRZTa
concludes.
BREAKING NEWS >>
First regional GE Energy Policy
Engagement Forum in Brussels
On October 8, GE Energy held its first European Policy
Engagement Forum in Brussels to encourage a proactive,
collective understanding of policy issues. Twenty-eight
leadership team members and country executives
participated. EU policy-makers, customers and trade
associations spoke on a variety of topics, which allowed
participants to benchmark their advocacy approach and learn
how to be more effective in government affairs. Feedback has
been positive. Participants now have a better understanding
of the government-shaped environment in which they
operate. They also valued discussing business opportunities
and risks from government actions, and how to move forward.
energy generation > March 2009 > 17
Environment
SOLAR POWER >>
0]X\_^acP]c
energy source
for the future
As the European solar power market forges ahead,
GE is consolidating its position and continues to invest
in research and development to secure its status as
a major player for the future.
SOLAR POWER TECHNOLOGIES
Many different solar technologies now
bWPaT cWT \PaZTc 0\^]V cWTbT PaT
photovoltaic cells, which use a semicon
ducting material to absorb light energy
and convert it directly into an electrical
RdaaT]cP]S2^]RT]caPcTSB^[Pa?^fTa
2B? fWXRW dbTb _PaPQ^[XR \Xaa^ab c^
concentrate solar energy in order to
heat a fluid that drives a steam turbine
via an exchanger.
CLOSE-UP ON THE CURRENT
SITUATION
GE is currently active in the following
markets:
~_W^c^e^[cPXR)b^[Pa_P]T[bR^]bcadRcTS
from monocrystalline or polycrystalline
silicon cells;
~cWX]
[\cTRW]^[^Vh)P]Tf_W^c^e^[
cPXR cTRW]^[^Vh dbX]V ]^]bX[XR^]
semiconductors;
~2B?cWa^dVWcWTbd__[h^UbcTP\cda
QX]Tb\P]dUPRcdaTSQh64>X[6Pb
?W^c^e^[cPXR _P]T[b WPeT \^]^_^[XiTS
the solar energy market for a long time
now. That market is concentrated essen
cXP[[h X] cWT DB0 P]S FTbcTa] 4da^_T
and GE supplies it with panels manufac
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18 < energy generation < March 2009
KEY FIGURES >>
Solar power
in Europe
Solar power generation
n in Europe is expected
ver 35 GW by 2020.
to grow rapidly to deliver
Here is an overview off current national
generation levels:
Germany: 5,300 MW
W
Spain: 3,000 MW
Italy: 250 MW
France: 175 MW
Europe: 8,800 MW
0[cW^dVWbX[XR^]^UUTabcWTWXVWTbc_W^
W^
tovoltaic efficiency, its production cost iis
_a^WXQXcXeTU^a[PaVTbRP[TP__[XRPcX^]b
which is why GE is developing its exper
tise in thin film technology.
>]TfPh^UaTSdRX]VcWT\P]dUPRcdaX]V
cost of photovoltaic cells is to achieve a
considerable reduction in the quantity of
semiconducting material used to make
TPRWRT[[>cWTach_Tb^UbT\XR^]SdRc^a
TPRWRT[[>cWTach_Tb^UbT\XR^]SdRc^a
may b
be used
d iin very thin
hi films
fil
off lless
than one micron thick deposited on
materials such as glass, steel and plas
tic. This thin film technology is less effi
cient, but it does offer the benefit of
considerably lower manufacturing costs,
which in turn enables the launch of mass
production and speeds up the pace of
THIN FILM >>
The technology of today
Already in use in many countries, thin film technology
is looking like the right solar power solution.
Easy to install, it costs three times less than solar panels.
Its current low level of efficiency (eight percent compared
with 13 percent for solar panels) should quickly be
remedied by research already underway.
Contrary to popular belief, the growth of solar power generation depends not only on
the intensity of the sun, but also on the electricity prices set by national markets.
growth in solar power proliferation. “The
real benefit of this product is its very competitive price, being three times cheaper
than a silicon photovoltaic panel,
although at around eight percent it is less
al
efficient,” explains GE Energy Europe
ef
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BT
To help drive its growth in this market,
GE recently took a major equity stake in
cWT DB bcPacd_ R^\_P]h ?aX\T BcPa
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formed in 2006 to develop thin film tech
fo
nology to the mass production stage.
no
EXCELLENT PROSPECTS
EX
64
644]TaVhWPbbTcXcbT[UcWT!hTPacPaVTc
of becoming a major player in the solar
power market. Development work is based
po
in the company’s research centers, with
the focus on the Munich center, which is
th
already working on the technologies of
al
the
h future, including the nanotechnologies
that are expected to deliver high output at
low production cost.
pared with wind and hydroelectric power,
our sun remains the largest source of
PePX[PQ[T_^fTa1h!!b^[Pa_^fTaXb
likely to account for 20 percent of all
renewable energy, which means 35 GW
of generating capacity in Europe – equiv
alent to 15 nuclear power stations!
Europe is now the largest market for this
type of energy and accounts for 80 per
cent of GE Energy generation sales. “Let’s
not forget that if only one part of the
Sahara were to be turned into a solar
power farm, it would generate enough
power to supply European demand.
During the hours of darkness, it would be
possible to use a combination of CSP and
combined cycle technologies. Such a system would allow power generation to
respond optimally to network demand,”
R^]R[dSTb3^\X]X`dT=P\h
“I’d put my money
on the sun and
solar energy.
What a source
of power!
I hope we don’t
have to wait
until oil and coal
run out before
we tackle that.”
THOMAS EDISON
A PROMISING MARKET
0[cW^dVW b^[Pa _^fTa VT]TaPcX^] Rda
rently occupies only a minority share of
the renewable energy segment com
energy generation > March 2009 > 19
Market
UK >>
0[^]VcTa\^__^acd]Xch
With a historic presence in the UK, GE Energy is focusing on the UK market as a major
location for future growth.
T
he energy market in the UK is a
mixed landscape of coal (37 per
cent), gas (36 percent), nuclear
(18 percent), renewables (five percent)
and other sources (four percent). Many
utilities participate in the market, with
six large utilities dominating. Commonly
aTUTaaTSc^PbcWT1XVBXgcWThX]R[dST)
24=CA820BB44354>==?^fTaP]S
BR^ccXbW ?^fTa 1TX]V P] ^_T] \Pa
ZTcP[[^UcWT[TPSX]VVPbcdaQX]T>4<b
have installations or service centres in
cWTD:P]ScWXbT]bdaTbPR^\_TcXcXeT
environment for all new projects.
A FAST-CHANGING MARKET
Current market dynamics are being
shaped by primary energy costs, envi
ron mental concerns and security of
supply issues. Environmental legisla
tion for reduced sulfur and nitrous oxide
emissions will result in the shutdown of
around 8 GW of coal plant capacity by
2015. It is expected that several plants
will actually close before this date as
they will have used their generation
allocation, which applies to those plants
cWPcRW^bTcWT^_c^dc^_cX^]8]PSSX
tion, another 6 GW of old technology
<PV]^g06A]dR[TPaRP_PRXchfX[[QT
phased out. In the short term, replace
ment capacity will be generated from
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aTS R^\QX]TS RhR[T _[P]cb
plus the ever increasing base of wind
power both onshore and increasingly
offshore. In the medium term, subject to
technical and legislative developments,
coal plants equipped with carbon cap
ture technologies could play a large
role, together with a newly emerging
nuclear program, which should result
in significant base load capacity addi
tions in the 2020’s.
EXCELLENT OPPORTUNITIES
FOR GE ENERGY
4aXR0a\bca^]V0RR^d]c3XaTRc^a4]TaVh
BTaeXRTb D: bPhb) “These dynamics
represent many short- and long-term
opportunities for GE Energy, particularly
Power Generation with Combined Cycle
Gas Turbines, Energy Services with service contracts, Optimization & Control
and Transmission & Distribution services.” However, the company faces sev
eral challenges in addition to a strong
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new plant builds depend on.
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“We’re here
to invest and
to grow for
the long term”
trends, GE Energy is well positioned in
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demands. With over 1,500 employees,
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GE technology supports more than
VT]TaPcX]Vd]XcbX]cWTD:fWXRW
have a production capacity of 15 GW of
electricity, representing approximately
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Environmental, Contractual Services,
Repair Services and spare parts.
<a0a\bca^]VR^]cX]dTb)“Our primary
strength is that we have expertise and
capabilities in the Wind, CCGT, CHP and
gas reciprocating engine sectors. And
along with this, our T&D business is a
major success – approximately 80 percent of all control systems in the UK utilities use GE supplied systems.”
With GE Energy’s installed base in
cWTD:Xcb\d[cX_[T[^]VcTa\bTaeXRT
agreements, its foreseen increase in
tendering activities in 2009 for CCGT,
and the expected rise in new genera
tion demand over the next decade, the
company considers this market as a
key area for its sustainable growth in
Western Europe.
“We have established sales and support
infrastructures, major repair capabilities
and a strong level of customer satisfaction. We invest heavily in our centers of
excellence, facilities and people. We’re
here to invest and to grow for the long
term,” <a0a\bca^]VR^]R[dSTb
Teeside
Jenbacher
SEMBCORP
Energy
Services
CSA
Liverpool
Dublin
Irish Sea
IRELAND
Thermal
Preston
LIVERPOOL
UNIVERSITY
Type of
contract
ROYAL
PRESTON
HOSPITAL
Outage works
Brigg
CENTRICA
Connah’s Quay
Client site
EON
Shotton
MMP
ARKLOW
WIND PARK
GDF
CLIENT
Nottingham
RECKITT BENCKISER
DERBY
MMP
Sutton Bridge
North
Sea
EDF UK
West Burton
EDF UK
2.5xl
3 steam turbines
3 9FB gaz turbines CSA
Peterborough
O&M
CENTRICA
Celtic Sea
GREAT
BRITAIN
140 km
London
Bracknell
GE Energy Services
BELGIUM
FRANCE
This chart illustrates key markets for 2008 only.
The key markets of 2008
Thermal Pgen: 2008 saw the signing of contracts for
the supply of three 9FB gas turbines and three steam
turbines to EDF (UK) (West Burton).
Energy Services: Several significant Contractual
Service Agreements (CSAs) and Multiyear
Maintenance Program (MMP) agreements were
signed. EON’s (UK) Connah’s Quay plant converted
their CSA to a new MMP agreement for a further
six years. EDF (UK) signed a new CSA agreement
for West Burton and renewed their long-term O&M
contract at Sutton Bridge. RWE Power signed a new
MMP agreement for their CHP fleet of GE gas turbines.
Sembcorp signed a new CSA agreement for their
6B GT at Teeside. GDF signed a new MMP agreement
for their Shotton plant. Energy Services carried out
all outage works for Centrica at their Peterborough
and Brigg stations.
Jenbacher gas engines: GE Energy’s Jenbacher gas
engines for power generation run on either natural
gas or a variety of other gases – biogas, landfill gas,
coal mine gas or combustible industrial waste gases.
Currently more than 700 Jenbacher engines with a
total electrical output of about 650 MW have been
delivered to the UK. Since 2008 Liverpool University,
the Royal Preston Hospital and Reckitt Benckiser
Derby operate Jenbacher gas engines to power their
buildings more efficiently. Rising energy costs and
demands and growing environmental concerns will
continue to promote the future growth of CHP
systems.
GE Wind Turbines: GE recently sold its 10,000 th
1.5 MW wind turbine and currently has more than
8,000 units installed globally. Building on the success
of this technology platform, GE Energy has recently
launched serial production of the 2.5xl wind turbine in
Europe. This wind turbine has been designed for high
reliability and is ideally suited to either class IIb or IIIa
wind sites, providing clients with high efficiency at
low wind speeds. Currently GE Energy has over
120 MW of wind plants connected to the UK grid
system, with Northern Ireland proving to be a
particularly successful market with our suite of
sophisticated and grid friendly options.
Wind energy is forecast to grow substantially
in the UK and the 2.5xl will be suited to many
new future development sites across Britain and
Northern Ireland.
energy generation > March 2009 > 21
Products and services
CONTRACTUAL SERVICE AGREEMENTS >>
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partnership
ted
GE Energy Infrastructure is commit
ers’ equipment
to the long-term success of custom
ensure ongoing
installations. And the best way to
ha
maintenance and support is throug
ring
offe
ent
Contractual Services Agreem
rantee.
risk sharing and performance gua
gy
20 years. Globally, over 1,300 Ener
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22
2
2 < energy generation
tii < M
March
h 2009
Perspectives
WIND >>
0WTP[cWh
coexistence
In the last 12 years, GE Wind achieved two major success: the 1.5 MW, the wind energy
unit most installed around the world, and the 2.5xl, a unit specially designed for the
European market. We draw a comparison here.
W
ith more than 10,000 units
installed around the world,
GE’s 1.5 MW device is the most
common wind energy unit. The proto
type was built in Salzbergen in 1996.
Five years later, production began in
=^Q[TYPbB_PX]P]SX]CTWPRWP_XDB0
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the 1.5 MW unit has also been produced
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Chief Executive of the GE Wind Division
in Germany, is proud of what the employ
ees in Salzbergen have achieved. “I compare the 1.5 MW class with the VW Golf
that has been with us for generations,”
states Rainer.
A SPECIAL PATH FOR EUROPE
In heavily populated Europe, sites for wind
energy are limited. Therefore the market
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GE Energy had to go back to the drawing
board and eventually produced the 2.5xl, a
a^RZb^[XSWXVW[haT[XPQ[TP]SR^bcTUUTRcXeT
d]Xc=^f^]STacWT]cWPccWT64!$g[WPb
been a success on the market. Today, the
2.5xl has covered 90 percent of European
sites and is sold out until end of 2009!
Seventy million Euros have been invested
in this unit’s design. This includes extend
ing production surfaces and making
changes in the logistics as well as in the
caPX]X]VRT]cTa_a^RTbb0b_TRXP[_Pach
PccT]STSQhEXR0QPcT64EXRT?aTbXST]c
for Renewable Energy, was held in
Salzbergen to celebrate the start of series
production.
C^SPhcWT $<Fd]XcXb_a^SdRTSX]0bXP
P]ScWTDB0fWX[TcWT!$g[XbQTX]VQdX[c
exclusively in Europe. With both these
units, GE is fortunate to be able to meet
customer needs for now and for the
future.
QUESTION FOR >>
Mr. Broering, do you think
that the 2.5xl will eventually
replace the 1.5 MW device?
The 1.5 MW unit.
The 2.5xl
unit.
I am certain that the arrival of the 2.5xl will be staggered
in markets such as Asia and the USA; the Northeast of the USA
is, for instance, quite heavily populated. However, in the long
run, the two units will continue their healthy coexistence.
For logistical reasons, the 1.5 MW class will not be written off
for a long time. It is lighter than the 2.5xl, and so transporting
it is easier.
The 2.5xl in production at the
Salzbergen plant.
energy generation > March 2009 > 23
Initiatives
RECOGNITION >>
0Y^QfT[[S^]T
At GE, our employees strive to deliver their best performance, and rewarding top achievers is
a company tradition that is crucial to our ongoing success. Here’s an overview of the Reward
& Recognition programs across GE Energy.
who have produced extraordinary
results by applying Lean Six Sigma to
complex business issues.
“We want our employees to know that
R^\_P]hfXST d]XUXTS ATfPaS GE’s real value is in our people, not just
Recognition program, each business our processes and technologies,” said
group and division is still free to oper HeTb <T]Pc 6T]TaP[ <P]PVTa ^U 64
ate its own customized programs to Energy France. “Without our employees,
recognize and reward people making we would be nothing – so it’s important
the biggest contributions to business to recognize their contributions on a regusuccess. Some initiatives are local, like a lar basis.”
recent event where employees from GE 0c644]TaVh{b1T[U^acVPbcdaQX]T\P]d
Energy’s Salzbergen wind turbine man facturing facility, different divisions offer
ufacturing plant were invited to have several reward and recognition pro
[d]RWfXcWEXR0QPcT64{bEXRT?aTbXST]c VaP\b >]T Xb RP[[TS |3^ Xc >dabT[eTb}
^UAT]TfPQ[T4]TaVh>cWTaaTfPaSP]S in which employees are encouraged to
recognition programs span regions or propose practical solutions to improve
businesses, such as the quality award working conditions or production pro
program, open to all GE businesses cesses. The employees with the best
worldwide, that rewards employees suggestions receive a gift certificate for
G
E has a long tradition of rewarding its top-performing employees, managers and leaders for
a job well done . While GE has one
a meal for two at a local restaurant or a
cash bonus.
“While employees love to receive gift certificates, bonuses, a nice meal or a day
out in recognition of their contribution,
they also appreciate a firm handshake and
a simple ‘Thank You’,” continues Mr. Menat.
“It may seem trite, but we often simply forget to thank people.”
He adds: “What’s more, recognizing a
person’s unique expertise is one of the
best rewards.”
For example, in Europe, GE Energy
recently reorganized some divisions to
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technical experts, such as senior prod
dRc T]VX]TTab 1h _[PRX]V cWT \^bc
senior engineers on the same level as
managers, they not only received a sal
ary increase, but also the recognition
WORLD >>
A global R&R tool
GE uses a global, multilingual Reward
& Recognition tool designed to recognize
employees and managers at all levels of the
company – awarding them gift certificates in
amounts commensurate with their contributions.
The Global Reward and Recognition (R&R) program,
an online tool, enables any employee, to nominate
a colleague for a reward for outstanding service
via a secure website (www.globalgerewards.com).
The nominee chooses an award (either vouchers
or cash) that fits the level of contribution of
the nominated employee. The request is then
approved by the appropriate managers.
Employees receive an email in their own language
telling them they’ve received an award and inviting
them to visit the secure website to choose gift
certificates from dozens of different retailers,
hotel and vacation providers, health and fitness
24 < energy generation < March 2009
companies, and many other stores located in their
local markets. They can also choose to donate their
reward to a charity.
The program is an effective, easy-to-use tool that
lets colleagues recognize the great work of
individuals or teams who go the extra mile to make
GE Energy successful.
that their contribution to GE is crucial
and strategic, says Mr. Menat.
Whatever type of recognition programs
a division uses, it’s important to reward
employees and teams in ways that truly
feel like a reward, continues Mr. Menat.
“Some people want to meet an executive or speak in front of their colleagues,
while others are happy with a nice meal
or a cash bonus,” he says. “The important
thing is make people feel appreciated.”
“Without them,
we would be nothing
– so it’s important
to recognize their
contributions.”
Yves Menat
General Manager of GE Energy France
POWER & WATER >>
Growth award
Steve Bolze, President and CEO of GE Energy Infrastructure
Power & Water, launched the Power & Water Growth Idea
Tool as a way to recognize the contributions of his truly
global team. Power & Water employees at every level are
invited to use an online form to submit innovative ideas
that could be used to drive growth, reduce costs – or
anything else that could be important for business success.
All ideas are reviewed by Power & Water senior leaders,
with the “idea of the month” receiving a $250 reward.
If an idea is put into practice in the Power & Water division,
the person who came up with it receives $500, while those
whose major ideas end up becoming company policy
receive $1,000.
“We know our employees are the best source for ideas,
ranging from a new product to the innovative use or
modification of our existing product lines,” says Mr. Bolze.
“I invited everyone to use the Growth Idea Tool as a way for
them to communicate their ideas to the Power Generation
team – and I made it clear that no idea was too big or small.”
The awards ceremony with
Steve Bolze and the
winning teams.
energy generation > March 2009 > 25
Initiatives
ENERGY SERVICES >>
Everyday excellence
At Energy Services, all employees are eligible
to take part in the Everyday Excellence Awards
Program. Taking place quarterly, the program
is designed to recognize the contributions of
employees who positively impact the growth
of Energy Services worldwide. “The Energy
Services Everyday Excellence Awards recognize
employees who consistently deliver beyond
normal expectations and strive to take our
business to the next level,” said Sharon Findlay,
Senior Human Resources Manager of Energy
Services (ES) Europe. A colleague or manager
can nominate employees, with winners receiving
an award of up to $1,000 (in local currency).
To promote the winners, their name and title,
as well as an excerpt of their nomination, are
announced on the ES global broadcast, published
on the ES intranet, and in Pole Position – the
ES Europe employee newsletter. Each quarter,
ES recognizes one team and three individual
winners in each of six categories. Nominations
can be made online at:
http://supportcentral.ge.com/survey/sup_surveycenter_
user_default.asp?prod_id=17778&doc_id=1662658
Clear thinker
Cost containment
Customer service
Excellence
Expertise
External focus
Growth
Imagination
Inclusiveness
Initiative Innovation
Leadership
>dcbcP]SX]VcTP\f^aZ
?PcT]cPfPaS
?a^YTRcbd__^ac
Quality
Safety
Simplification
Successful launch
Volunteering
NOBLEJAS >>
An appreciation program
GE Energy’s Noblejas wind turbine
manufacturing plant has a very successful
reward and recognition program that’s popular
with employees. More than 100 employees
in the service and supply chain divisions have
received awards so far.
“Our programs seek to recognize employees
who stand out from the crowd for their
contribution, and though employees often
request cash, we find that our online gift
certificate system works great, because we have
found that cash is not always the currency of
recognition,” said Javier Villa Lopez, HR manager
at Noblejas.
26 < energy generation < March 2009
Your tools
MYLEARNING >>
0[TPa]X]VaTb^daRT
for everyone
As part of supporting the training initiative in which it invests a total of $1 billion every year,
GE provides all its employees with a free-to-use learning resource. This user-friendly system
allows everyone to build and personalize their own development program. Here’s how it works.
ylearning offers 97 courses struc
M
tured into a series of categories:
|CWTQPbXRb^UbcaPcTVh}|?Tab^]P[
development,” “Innovation,” “The basics of
sales and marketing,” “Communication”
and “Team management.” The majority of
cWTWXVW`dP[XchR^dabTR^]cT]cWPbQTT]
developed by Harvard Manager Mentor
and Skillsoft, two organizations of interna
tional status, and is updated on a contin
ual basis. Those courses offered in the “The
basics of…” category are common to all
branches of GE, focus on specific skill areas
and provide preparation for the training
R^dabTbD]STabcP]SX]VW^fc^P__[hcWT
lessons learned in the “Management” and
“The basics of…” modules enables every
employee to maximize their own personal
development and potential.
1
Log onto
Wcc_b)\h[TPa]X]VVT_[PcTPdR^\
Enter your username and password in the first window.
Click on Enter myLearning to access the homepage.
2
3
This amazingly flexible system gives
you complete freedom to manage your
own career development through
training courses and extend your
knowledge and skills in many different
technical and management areas.
2
Make a selection
from the
homepage menu
The Personal link takes you to modules that will
help you manage your profile, check the status of
your settings and use the personal career planner.
The Learning link takes you to the most frequently
used resources. Career lets you view the record of
your past appraisals and the skills accredited to you.
Catalog contains details of all the courses available
to you. Reports contains nine standard reports.
3
Enroll
for a course
Learning plan shows those modules
allocated to you or for which you have
already enrolled. Learning history lists all
cWTR^dabTbh^dWPeTR^\_[TcTSDbX]V
the advanced search function of the
catalog shows you the name of each
course, who it is aimed at, the course
dates, the venue and cost. Click on the
title to select a session.
4
DbT
the training
reports
These ready-to-use reports
can be used for each training
initiative undertaken by you
or your teams.
Finally, don’t forget to visit Passport to Learning, an interactive web tool that allows you to travel to the world of GE learning.
http://energy.home.ge.com/portal/site/insidege/fullstory?content_id=2823294&root_portlet_id=20524
energy generation > March 2009 > 27
Team spirit
MANAGER ASSIMILATION PROGRAM >>
Cultivating
teamwork
GE Energy Infrastructure welcomes several new senior managers and executive leaders
every year – and helping them hit the ground running is a key priority.
T
he GE New Manager Assimilation
program is an HR initiative that
brings new management and
leadership hires together with their core
teams for a day of convivial discussion,
X]U^a\P[ cTP\QdX[SX]V TgTaRXbTb P]S
P] P]^]h\^db @0 bTbbX^] <PacX]
Fiedler, Global Supply Chain Leader for
Jenbacher Gas Engines, participated in
P =Tf ;TPSTa 0bbX\X[PcX^] R^dabT P]
offshoot of the program especially for
]TfWXVW[TeT[[TPSTabX]0_aX[!'P]S
P =Tf <P]PVTa 0bbX\X[PcX^] X] 9d[h
2008. He shares his personal
experiences.
STRATEGIC VIEWPOINT >>
“When I joined GE, I was stepping into a
leadership role where I would oversee a
team of 850 employees and more than
100 contractors, so it was important for
my core team to get a real sense of my
goals, management style and vision for
the Jenbacher Gas Engines division. The
New Leader Assimilation day led by
Maryse Lucat, HR Manager, was a great
way to get to know everyone.
For the New Manager Assimilation, ten of
my direct reports met with me. I gave a
brief introduction, then each person had
the opportunity to ask questions that
were presented to me by the HR person,
so anonymity was preserved. Some of
the questions were quite personal –
whether I planned to buy a house in the
region, to know if I was going to be one
of those executives who just flies in and
flies out, or one who stays put. (I did buy
a house near Jenbacher headquarters.)
Many people wanted to know how my
appointment would affect our division –
whether it meant a reorganization, job
losses, new bosses, etc.
It was challenging, but I really appreciated the chance to speak in my own
voice and address people’s concerns
directly. The GE assimilation program is
unique in the industry – and it helped me
get off to a great start with my new
team. I became not just ‘a new boss from
outside the company,’ but someone they
got to know personally.”
Fostering
productive
work settings
“As an executive team member,
the New Manager Assimilation
program is a crucial tool for
developing a productive, open
working environment between
leaders and employees across
GE Energy Infrastructure. Team
members can ask a new
manager questions that really
matter to them – Does our
plant risk consolidation or
closure? How does your
management style differ from
rom
your predecessor’s? etc. – they
feel reassured that a change
ge
in leadership does not mean
an
a change in their job.”
— Christian Bleicher,
Senior Executive,
GM Manufacturing Europe
28 < energy generation < March 2009
9
Martin Fiedler,
Global Supply Chain
Leader for Jenbacher
Gas Engines,
Austria.
HR VIEWPOINT >>
Getting off on the right foot
“The New Manager Assimilation program, a corporate-led
HR initiative spanning GE operations worldwide, helps
managers and leaders get off on the right foot with their
new teams. New executives meet with core team members
in a convivial setting,
setting where team members can ask their
or even funny personal ones,
new boss tough questions,
q
anonymously.” —Maryse Lucat
totally anonym
Chris
Christian
Bleicher,
Martina Kohlberger,
Mart
Maryse Lucat.
Mary
Citizenship
SPORTS >>
Healthy in body
and mind
GE Energy sponsors European employees involved in sport, with the emphasis firmly
on team sports. This encouragement has a great deal in common with the basic principles
of the 0 5 10 25 initiatives.
SPAIN >>
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forward
ITALY >>
Football
Last June a GE
F^\T]{b=Tcf^aZ
event took place aimed
at raising funds for
children with serious
health issues (www.
FRANCE >>
superfrancesco.it):
a male and a female
Soccer Tournament
was organized
This race for runners and skaters covers the
21 kilometers from Belfort to Montbéliard. Usually held involving all GE
businesses present
on the last weekend of September, the Le Lion half
in the Milan area.
marathon attracts around 50 of the company’s
employees from every part of the business, all of whom GE Energy had
train throughout the summer to be in peak condition on sufficient volunteers
the day. GE Energy pays competitors’ entrance fees and to make up a male
provides running tops in company colors. The personal team while the female
team was composed
commitment of employees competing in this race is
characteristic of their application and will to push back of Energy and GE
Capital employees.
the boundaries of what is possible.
At GE Energy Spain, a group calling
itself “The GE Runners” enters and
competes in every charity race in the
country, the most recent of which was
devoted to raising funds for breast
cancer research. GE Energy has also
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village where is located the wind plant.
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The Lion’s half marathon
from the Madrid office competed in
teams of two in a huge event similar
to a squash tournament and called
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are central issues at GE Energy Spain,
where a team has just been formed
with a mission to develop all kinds of
local health initiatives.
UK >>
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a team in the touch rugby leagues
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Last year they were able to broaden
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talent pool. In the Spring league, the
new players were still getting up to
speed and so they missed out on
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leagues, where on both occasions
they reached the finals but
unfortunately narrowly lost. This did
result in some additional silverware
for the trophy cabinet and ended
with everyone looking forward to
the next season in 2009.
energy generation > March 2009 > 29
Citizenship
CHALLENGE >>
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A strenuous physical and psychological challenge reinforces
one CEC member’s sense of personal accomplishment
and the value of teamwork.
Alyson Clark, GE Energy Senior Counsel
for Sales and Marketing and an active
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tee of the Women’s Leadership Group of
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sibility for themselves – helping them
build the life they choose rather than the
one they’ve ended up with. The Women’s
Leadership Group focuses on raising
money for women who need it most.
“Being part of the Women’s Leadership
Group brings together the work of the
Women’s Network, the GE Foundation
and the pro bono activities that GE Legal
encourages us to do,” says Clark.
Historically, CWT?aX]RT{bCadbcWPbWT[SP
range of Challenges to increase people’s
awareness of social issues and to raise
money to support them. In September
2008 it organized a Women’s Leadership
Group event that took participants to
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women aged 30 to 55 from a variety of
professional backgrounds accepted this
extremely strenuous but ultimately grati
fying Challenge. “As a WLG Committee
member, I thought it was very appropriate to participate,” Clark explains. “Not
only would we be raising money for a
brilliant cause, but there was a personal
challenge too. I have never done charityrelated fund-raising before, and certainly
never walked across a desert, camped or
even slept in a sleeping bag!”
The experience, frightening at first, ulti
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reinforced her pride in teamwork and
quite simply changed her life. She was
particularly moved by people’s extraordi
nary generosity (raising more than £7,500
in sponsorship) and by the support of the
women on the Challenge so that no one
gave up and all crossed the finish line
together. Says Clark: “When you’re in the
middle of the desert and everything else is
stripped away, you have nothing left but
your own strength and personality, and
the strengths and personalities of those
around you. You really learn what you are
capable of doing. And you learn that each
individual has something unique to offer.”
When asked if anything will change in
the way she now carries out her daily
job, Clark’s response is immediate: “I will
focus on what is really important and no
longer worry about the things that aren’t.
This experience has made me stronger,
more confident and capable of seeing my
team in a new light. We each can accomplish whatever we want if we just put our
minds to it.”
Edited by GE Energy EMEA Communication !PeT]dTSd<PaÐRWP[9dX]1?"&((&1T[U^ac2434G~Publishing Director: 5aP]Z5Pa]T[~Editors-in-Chief: =PcWP[XT
7dV^]]Tc0\Ð[XT6XaPaS^c~Editorial Committee: 6PQh1aPd]1T[T]2PeP]X[[Pb2Pa\T]<TRZ[T]QdaV3^]]P<XbRWTUbZXD[aXZTCTXbbXTa~Design and production:
www.entrecom.com – Coordination: ;XbT?TbRWTc~Photo credits:646Tcch9d_XcTaX\PVTBc^RZ4gRWP]VT~Illustrations: Idé.