In pursuit of profitable wind power
"The [wind energy] industry can no longer afford uneven component quality, long lead times for component replacements, and the high costs attached to catastrophic wind turbine failures” states a recent report by Wind Energy Update, an independent business intelligence company.
Part of the problem rests in the challenge of balancing technological advancement with the pursuit of stable and profitable business.
For wind power to endure and develop into a mainstream power source, production must be scalable and component supply and maintenance guaranteed.
This is proving to be too much to ask for many operators whom are located in remote areas, are no longer covered by manufacturer warrantees, rely on slow-to-respond and high in demand supply and service, and are feeling the pains of systems that have not yet ironed out costly technical kinks.
Apart from frequent hiccups in O&M supply chains, the industry also exhibits signs of creative destruction – where models are quickly become obsolete, overtaken by newer models.
Few investors would opt for second generation turbines with the opportunity to invest in new, more efficient turbines on the market today.
Many turbine manufacturers have responded to sourcing and replacement challenges by grasping a tighter hold on their supply chains. Mergers and acquisitions are not uncommon, as manufacturers seek to vertically integrate production and maintenance.
Nordic Windpower, for example, recognised the need to substantially reduce operations and maintenance (O&M) costs.
The company’s solution? Reduce the weight of key components and achieve overall cost reductions.
Nordic’s new 1 MW N1000 Evolution turbine uses two bladed instead of three bladed rotors, fixed pitch instead of variable pitch electronically controlled blades, constant speed instead of variable speed rotors, and passive teeter, active yaw system instead of rigid [Danish] design topology.
The results? According to Nordic Windpower, they have achieved an extended life of key components; a reduction of up to 25% in upfront costs, and overall savings in the range of 10 to 15%.
With some government financial support, large manufacturers can afford the high initial investment costs, and attain the long-term rewards from wind energy.
Are efficiency and technological advancement compromised when large manufacturers take command over all levels of the industry?
Many relatively young component providers interviewed for the report say ‘yes’. They are critical of what they view as a common resistance to investment in improved or performance-enhancing technologies.
They argue that technologies exist that can significantly boost production and efficiency.
The covert management of most wind turbine production is an obstacle for the fresh hotchpotch of companies eager to integrate their niche technologies/solutions into what’s viewed as an ‘impenetrable’ supply chain.
More information on the true costs, challenges and solutions for wind energy operations and maintenance is available in ‘The Wind Energy Operations & Maintenance Report’ at www.windenergyupdate.com/reports.
Contact:
Pamela Muckosy
Head of Research
Wind Energy Update
+44(0) 207 375 7554