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 The Wind Energy Operations & Maintenance Report

Table of Contents
Executive Summary ..................................................................................................................................................4
Section 1. Introduction to Wind Energy O&M Planning, Components and Costs ....................................................7
Section 2. Report Methodology................................................................................................................................10
Section 3. Component Overview & Historical Wind O&M Data Trends ..................................................................11
Wind Turbine Component Overview ..................................................................................................................11
Wind O&M Historical Cost and Reliability Trends..............................................................................................15
Wind Component and Sub-Assembly Failure Overview ....................................................................................20
Wind Turbine O&M Monitoring Systems ............................................................................................................22
Section 4. Wind Energy Update Research Findings and Analysis ..........................................................................25
Wind Farm Capacity Factor and Availability Results ........................................................................................28
Wind O&M Costs: Survey and Interview Results ..............................................................................................30
Component and Sub-Assembly: Data Results and Analysis ............................................................................34
Component and Sub-Assembly Cost Results ....................................................................................................38
Section 5. Wind O&M Successes and Solutions ......................................................................................................40
General Electric..................................................................................................................................................41
Suzlon Wind Energy Corp...................................................................................................................................42
NextEra Energy Resources, LLC ........................................................................................................................43
Clipper Windpower ............................................................................................................................................45
Enercon ..............................................................................................................................................................47
Nordic Windpower ..............................................................................................................................................48
Section 6. Wind O&M Future Outlook ......................................................................................................................50
Barriers to Entry for Component Suppliers ......................................................................................................50
Proactive Versus Reactive O&M Costs and Strategies ......................................................................................52
Wind O&M Future Trends ..................................................................................................................................54
Conclusion ................................................................................................................................................................57
Appendix A: Component Markets and Costs ..........................................................................................................59
Towers ................................................................................................................................................................61
Blades ................................................................................................................................................................61
Generators..........................................................................................................................................................61
Gearboxes ..........................................................................................................................................................61
Bearings ............................................................................................................................................................62
NREL O&M Modeled Cost Data..........................................................................................................................62
Report References ..................................................................................................................................................65

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 The Wind Energy Operations & Maintenance Report

List of Figures
Figure 1. Wind turbine component costs as a proportion of total cost for a 5 MW machine..........................................12
Figure 2. Summary of wind turbine component/sub-system costs ............................................................................13
Figure 3. O&M costs for German turbines (1991-2001) ................................................................................................14
Figure 4. Historical US wind data consisting of average annual wind turbine operations
and maintenance costs....................................................................................................................................16
Figure 5. Estimated wind turbine O&M data per unit of energy production for five machines over time ..................17
Figure 6. European O&M costs for selected turbine sizes and types ..........................................................................18
Figure 7. Machine component failure rate versus time in the idealized “Bathtub Curve”..........................................20
Figure 8. ISET data for wind turbine component annual fail rate and downtime for sub-assemblies
and components ..............................................................................................................................................21
Figure 9. WEU survey results for capacity factor vs. wind plant terrain type ..............................................................28
Figure 10. Estimated O&M costs for offshore wind systems (EWEA data) ....................................................................29
Figure 11. Graph of wind farm availability and number of wind projects versus year of operation..............................30
Figure 12. WEU survey results for wind farm O&M costs, using $0.005 data bins........................................................31
Figure 13. WEU survey results for wind farm O&M costs, using €0.005 data bins ......................................................31
Figure 14. Wind turbine O&M costs per unit energy of production data comparison
(using wind energy update survey and LBNL data)........................................................................................32
Figure 15. Component and sub-assembly annual failure frequency..............................................................................34
Figure 16. Annual component failure frequency data ....................................................................................................35
Figure 17. Sandia Reliability Workshop data on lost energy production
due to component failures ..............................................................................................................................37
Figure 18. Wind turbine manufacturer market share in U.S. ........................................................................................41
Figure 19. NextEra Energy presentation at 2009 Sandia Lab Workshop showing the cost
breakdown of replacement of large wind components ................................................................................44
Figure 20. Life cycle cost: pro-active versus reactive maintenance ..............................................................................52
Figure 21. Wind O&M cost data and forecasted data per unit of energy produced........................................................55
Figure 22. Average five-year O&M cost per turbine ........................................................................................................59
Figure 23. Estimated 20-year parts costs for a 60 MW project ......................................................................................60
Figure 24. Turbine O&M cost itemization for various sizes of machines, over a 20-year project ....................................60
Figure 25. Per-turbine annual consumable cost estimates, $ ......................................................................................62
Figure 26. Estimates of failure rate mean life..................................................................................................................63
Figure 27. Assumed repair time (man-hours) ................................................................................................................64

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 The Wind Energy Operations & Maintenance Report

About the Report

This report provides real data, current statistics and 100% independent analysis on large wind turbine
costs, component failures and operational planning.
Use this real data and analysis to boost your wind power production, reduce costs and minimize
turbine downtime.
REPORT BENEFITS:
■ Receive independent, peer reviewed analysis of leading data and brand new O&M data
■ Understand how effective operators and investors plan and budget
■ Predict, plan and prevent common turbine failures, causes, and repair options
■ Find out about real life creative solutions to industry-wide challenges
■ Learn how to increase efficiency and introduce cost savings

This timely report contains must-have data and insight for those involved in planning decisions for large
turbine farms.
Hear from over 40 large wind turbine operators and component providers, including General Electric, Suzlon,
NextEra, Enercon and Nordic Windpower.

THE REPORT PROVIDES YOU WITH REAL DATA & DETAILED ANALYSIS ON:
■ The true costs of wind turbine components
■ Failure rates and actual depreciation of wind turbine components
■ Real case studies on effective solutions to O&M challenges
■ Best practices in O&M costing and planning
■ ...and more – read about the report at www.windenergyupdate.com/reports
O&M budgets and planning have a real impact on your wind farm efficiency. In the words of one large wind farm
operator “Efficiency is the most critical item in our business case. [We need] tangible strategies for controlling costs.”

IN THE WORDS OF INDUSTRY EXPERTS, WIND ENERGY UPDATE OFFERS…

❜❜
“An exciting exchange platform for high level professionals from across the wind
energy supply chain”
– Manfred Hader, Roland Berger, Strategy Consultants

A focus “on finding solutions in a business and professional way in the complete
supply chain in order to keep wind energy business as a winning energy.”
– Dr. Jan Declercq, Hansen Transmissions International

ORDER NOW! Discounts are available for 2010 Wind Energy Update O&M conference delegates and for
❜❜
those who purchase early. Find out more at www.windenergyupdate.com/reports.
For further information, contact Pamela, Head of Research, at pam@windenergyupdate.com.

Call to order on +44 (0) 207 375 7159 or toll free (USA & Canada) 1-800-814-3459
 The Wind Energy Operations & Maintenance Report

A Few of the Report’s Key Findings

This brand new report was prepared by independent experts, Peter Asmus and Matthew Seitzler, and incorporates
strategies and data from over 100 operators and component providers.
In this report data from sources around the world has been compiled to show trends of wind turbine component and
sub-assembly failure rates and their subsequent downtimes to assist in the development of wind turbine O&M strategies.

Here are a few of the primary data findings published in this report…
■ 79% of wind turbines are still under warranty. This is about to change.
■ O&M costs for wind power are double or triple the figures originally projected, they are particularly high in the U.S. –
which is now the world's largest wind power market.
■ Europe has a 2% to 5% advantage over the U.S. if resource factors are accounted for.
■ There’s a -21% change in wind farm return on investment. This underperformance of wind assets is most likely
attributable to both differences in power production and O&M costs over original estimates.
■ $0.027/kWh or €0.019/kWh is the average values of O&M costs obtained from report surveys. This compares to
early estimates by one of the world’s dominant turbine suppliers of $0.005/kWh.
■ A significant amount of R&D is currently going into gearbox reliability. Many gearboxes, designed for a 20-year life,
are failing after 6 to 8 years of operation.
■ Data suggests that O&M challenges for wind turbines peaked in 2007/2008.
■ At 2 cents/kWh, O&M costs are roughly equal to the federal production tax credit offered in the U.S. as a subsidy to
make wind energy competitive.
Leading operators suggest that now is the time to plan for ways to boost ROIs by planning ahead and more accurately
forecasting O&M costs. Greater investment in O&M can have positive returns. Read the report to find out how.

WEU Survey Results:

O&M Costs Euro/kWhr
Frequency of Survey Responses

9
8
7
6
5
4
3
2
1
0
0.01

0.015

0.02

0.025

0.03

0.035

0.04

0.045

0.05

0.055

Euro/kWhr

REAL CASE STUDIES OF SUCCESSFUL

METHODS FOR OVERCOMING COMMON WIND
ENERGY O&M CHALLENGES:
Hear from: General Electric, Suzlon Wind Energy Corp, Enercon, NextEra Energy Resources, LLC & Nordic Windpower,
PLUS: more than 40 wind energy operators and component providers shared their insight and O&M strategies through
in-depth interviews. Learn from real life examples and best practices.

The report indicates that there is a clear contrast between operators and investors who understand the value of preventative
maintenance over unscheduled maintenance. "Just a 1% improvement in O&M makes a huge difference on the
bottom line," says one 30-year veteran of the wind industry.
Boost productivity and increase efficiency. Find out how leading operators are addressing O&M challenges,
and why data will become easier to access in a few years time.

Order at www.windenergyupdate.com/reports
 About Wind Energy Update
Wind Energy Update is an independent business intelligence company. We provide independent
analysis in our reports, news, events and updates for the wind energy industry at
www.windenergyupdate.com.

Wind Energy Update’s research aims to act as an independent voice, provide industry data, and
carry critical analysis of current best practices.

Our practical reports provide critical independent analysis, purvey necessary industry data,
and carry out in-depth, real life case studies – all in an easy-to-read format. Sign-up online to
receive more information, electronic updates, discounts and exclusive findings at:
www.windenergyupdate.com/reports.

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