Survey Finds Wind Farms Yield Poor Investment

Press Release
Friday, November 16, 2012

On the basis of an exhaustive industry survey, Wind Energy Update finds that wind farm return on investment is around - 21 percent.

According to the survey, this underperformance is attributable to over-estimation of power production and underestimation of O&M costs. When it comes to turning a profit throughout the lifecycle of a wind farm, just a one percent improvement in operations and maintenance can make a huge difference to the bottom line. The challenge, however, is how to achieve that one percent improvement in the face of operations and maintenance (O&M) costs that are double or even triple initial projections.

In the early days, the industry had costed out O&M at roughly 0.5c/kw over a turbine’s 20-year life. But as newer models and their respective components continued to flood the market, this has turned out to be far from the reality. Wind O&M costs can now be expected to increase on average 253 percent over the 20-year life of the various wind machines.

“Given that every wind turbine comprises an average of 8000 components, it is not surprising that higher-than-expected rates of component failure continue to plague the industry,” say Wind Energy Update.

Understanding the root cause

The constantly evolving wind turbine market means that new components must continually be demonstrated, with little assurance of their availability five years down the track in the event of component failure.

Of even greater concern is that, if not properly addressed early on, component failures can persist through new product generations. It is therefore vital, despite pressure from competitors to continuously push the boundaries on nameplate capacities, that both the onshore industries adopt a backwards compatibility approach when evolving each model.

For more information click here:
 

Maritime Reporter March 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Technology

Austal Graduates 48 4-Yr Apprentices

Austal USA combined two classes to graduate a total of 48 members of Austal’s cutting-edge four-year apprenticeship program yesterday at a formal ceremony held at the Arthur R.

SimCity

Building Capacity, as Deadline for Trained Crews Nears   “You see that ship. That’s our ship,” says Karsten Saevik, as he directs our attention to the virtual

Maritime Training Five Years from Now: A Look Ahead

For anyone involved in maritime training, now is an incredibly exciting time full of opportunity. More than ever before, there are new advanced techniques and technologies

Finance

JV Wins $2bln Freeport LNG Contract in US

A joint venture (JV) between CB&I, Chiyoda International and Zachry Industrial has won a contract worth over $2bn from FLNG Liquefaction 3 for a liquefied natural

Puerto Rico Readies for Largest Cruise Ships

Thanks to a pier expansion and enhancement, Puerto Rico will welcome the two largest cruise ships in the world, Royal Caribbean International’s Oasis of the Seas and Allure of the Seas, in 2016.

Carnival Sails to Profit

The world's largest cruise company Miami-based Carnival Corp reported a net profit of $49 million, or 6 cents per share in the first quarter ended Feb. 28.   That

 
 
Maritime Careers / Shipboard Positions Naval Architecture Pipelines Port Authority Salvage Ship Repair Ship Simulators Shipbuilding / Vessel Construction Sonar Winch
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 2.6150 sec (0 req/sec)