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 Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter July 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Technology

Insights: Kunkel Weighs in on Propulsion Technology

LNG? Methanol as fuel? Hybrid systems? Tier 4? Reducing noise? Cutting emissions without crushing fuel economy? Marine News readers have questions and Bob Kunkel has answers.

A Sea Change in Waterjet Technology

Longtime waterjet propulsion equipment provider NAMJet introduces key advancements for the workboat sector. Back in 2011, when boat builder Birdon went looking

ATB Design Comes of Age

The emerging trend of marrying the design of an articulated tug and barge (ATB) to a particular propulsion system to maximize efficiencies of that system has, of late,

Finance

Concordia Maritime Posts Q2 Profit

Facing a “gradually deteriorating market,” Sweden based tanker shipping company Concordia Maritime said it was able to post a profit in Q2 2016 based on high vessel

Asia Dry Bulk-Capesize Steady as Owners Spurn Low Rates

Owners anchoring ships rather than fix at low rates. W. Australia-China capesize rates hit over two-month low. Freight rates for large capesize dry cargo ships

Scorpio Bulkers books Net Loss

USA-Monaco based bulk carrier Scorpio Bulkers has reported a loss of $24.7 million in its second quarter of 2016, pushing the carrier's deficit up to $ 83 million.

 
 
Maritime Careers / Shipboard Positions Navigation Offshore Oil Pipelines Pod Propulsion Salvage Ship Repair Shipbuilding / Vessel Construction Sonar Winch
rss | archive | history | articles | privacy | 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: 0.0768 sec (13 req/sec)