www.ecn.nl

Improving ROI by optimizing

design and maintenance of

(offshore) wind farms

Dr. Peter Eecen

Amsterdam

9/1/2013

1.Introduction ECN

2.Challenges offshore wind energy

3.Potential for Lowering cost

of energy of offshore wind

4.ECN’s activities to

lower cost of energy

5.The Dutch offshore industry

1. Introduction ECN

1. Introduction ECN

ECN at a glance

ECN Focus Areas

Solar energy Biomass Policy studies Energy efficiency

Wind energy

Environment & energy engineering

Mission: …To develop knowledge and technologies that enable a transition to more sustainable energy systems…

Brussels

Eindhoven

Amsterdam

Petten Wieringermeer

Beijing

Founded in 1955 5 Commercial licensing deals p/y 600 Employees +/-20 patents a year € 80 M annual turnover

1. Introduction ECN

ECN acts as a bridge between science and corporate innovation

Science Industrial partners

Fundamental Research

Applied Research

Industrial Development

What we do How we can work with you

• Problem Solving • Consultancy & Services

• Technology development

• Contract R&D

• Studies & Policy Support

• Tech development & Transfer

• Joint Industry Projects

1. Introduction ECN

ECN: Developing wind since 1974

6

Petten

Amsterdam (policy studies)

WMC EWTW

Metmast

IJmuiden

EWTG

Eindhoven

2. Challenges offshore wind energy

2. Challenges offshore wind energy

Cost aspects offshore / onshore wind farms

Preventive maintenance

Corrective maintenance

Access

Personnel

Revenue losses

Hoisting & Replacement

Substructures, transformer stations & cables (BoP)

Cost estimation / experience

2. Challenges offshore wind energy

Trends: further offshore, deeper water, larger turbines

EWEA: 2012 European Offshore Statistics

2. Challenges offshore wind energy

Offshore Wind Power Plants; Built, authorized and planned

Key numbers: • 2012: 5 GW installed offshore

=5% of Europe's installed wind power • 2020: 40 GW installed offshore,

= 4% of EU electricity demand • 2030: 150 GW installed offshore,

= 14% of EU electricity demand

Installed capacity onshore / offshore

Installed capacity offshore

5 GW

Installed capacity onshore 106 GW

2. Challenges offshore wind energy

Ambitions in The Netherlands – ‘SER akkoord’

Tender in

Capacity (in MW)

Opera-tional in

2015 450 2019

2016 600 2020

2017 700 2021

2018 800 2022

2019 900 2023

• Ambition: strengthen the top-3-position of Dutch industry in offshore wind by the following goals:

– Reduction of Cost of Energy by 40% in 2020 (from 2010 levels)

– Turnover of € 6 bn. in 2020

– Direct employability of 12,500 FTE

• By innovation, scale-increase, improvement of efficiency and reduction of risks

• Target offshore wind: 2020: 2,700MW 2023: 4,400MW

• Current offshore wind in The Netherlands:

– OWEZ 108MW

– Amalia 120MW

– Luchterduinen 129MW

– Gemini 600MW (planned)

2. Challenges offshore wind energy

COE Offshore Wind vs subsidy

• Required subsidy when consenting 5 GW offshore wind: € 23,9 bn when COE is 15 ct/kWh

• 0,1 ct/kWh reduction of COE reduces 285 M€

23.9

16.8

9.4

0

5

10

15

20

25

30

Present 15ct/kWh Medium reduction12.5ct/kWh

Full reduction10ct/kWh

Expected Spending for 5GW Offshore Wind

Go

vern

men

t sp

end

ing

in b

n e

uro

3. Potential for lowering the cost of energy of offshore wind

3. Potential for lowering the cost of energy of offshore wind

Potential for lowering the cost of energy

40%

Annual costs Depreciation

O&M costs

Financing costs & risks

WACC

Average Investment costs

€ / KWh

Annual production

Losses

Gross output

COSTSS

∆ Costs*: -27% ∆ OUTPUT +21% ∆ Cost of Energy -40%

-25%

-25% -10%

-25%

*Based on typical costs offshore wind farm: 25-35% O&M, 40-50% CAPEX, 20-30% financing costs

-33% (0.9x0.75)

+21%

OUTPUTS

CoES

+S

xS

xS

xS

3. Potential for lowering the cost of energy of offshore wind

Breakdown Cost Reduction Offshore Wind

3. Potential for lowering the cost of energy of offshore wind

The importance of optimizing offshore O&M

Others; 3% OPEX; 24%

WTG & Installation;

31%

Electrical infrastructure;

19%

Foundation; 24%

Cost breakdown off offshore wind

3. Potential for lowering the cost of energy of offshore wind

O&M Costs Breakdown

Assumptions • Typical values for 600MW offshore wind farm of 150 turbines • - 85km from harbour 91% availability & 9% downtime

36%

14% 12%

37%

Breakdown average O&M costs wind farm (unplanned corrective maintenance)

Revenue losses

Spares

Labour

Equipment

95%

5%

Breakdown average O&M costs wind farm

Unplanned correctivemaintenance

Calender basedmaintenance

3. Potential for lowering the cost of energy of offshore wind

Offshore O&M – how is it done?

4. ECN’s activities to lower the cost of energy

4. ECN’s activities to lower the cost of energy

OPEX Cost Modeling and optimisation O&M strategy (Planning phase)

• ECN provides OPEX cost modelling in:

– planning phase (O&M Tool)

– operational phase (OMCE Calculator)

• Quantify OPEX; bankable results

• Reduce investment risk

• Lower OPEX by optimal O&M strategy

• Turbine design on maintainability

• Alternative access systems & vessels

About 50% of Europe’s wind farms have been analysed with the O&M tool

“The industry standard” for 8 years. ECN is able to reduce costs of O&M

O&M offshore wind Is cost intensive

4. Potential for lowering the cost of energy of offshore wind

Analyzing wind farm equipment using O&M Tool and/or OMCE-Calculator

Baseline Harbour based large workboats

I Offshore mother vessel with medium workboats III Offshore mother vessels with compensated access gangway

II Offshore mother vessel with compensated access gangway (technicians and small spares)

IV Harbour based large workboats and helicopter(s)

• In each farm the results vary depending on the type of O&M strategy.

• Shore based O&M (Baseline and IV) is most sensitive to variations in the farm size and location.

• Adding helicopters to a shore based strategy increases availability but also increases costs.

• A farm-based strategy with mother/daughter vessels is only beneficial in the large and far-offshore farms

• A mother vessel with compensated access gangway gives the best results for the considered far-offshore sites, but only if it can also transfer small spare parts!

150 WTs 85 km

80 WTs 85 km

80 WTs 115 km

150 WTs 115 km

80 WTs 35 km

4. Potential for lowering the cost of energy of offshore wind

Lowering O&M costs (Operation phase)

Data analysis

Data standardization & structure

Maintenance optimization

Performance analysis

Data collection

Asset management Optimising operations

u

4. Potential for lowering the cost of energy of offshore wind

Yield Increase Active Wake Control

▲ Software analysis on variety of windfarms

▲ Tests on 2MW Nordex turbines and scaled wind farm at ECN test site

Total farm efficiency production increases from 0.5 to 3% AND local reduction by 3%

Integral approach

to lower the cost of energy

of offshore wind power plants

We provided hands-on technical support in a

20 MW wind power project in Latin America

Project objective and scope

• Micro-siting, grid integration, environmental impact assessment, training and knowledge transfer related to developed 20MW wind farm in Costa Rica

Activities

• Site assessment – estimate effect surroundings

• Technology assessment and modifications

• Grid integration study

• Environmental assessment

• Development of wind farm

• Technology transfer

Results

• Wind farm is developed and integrated in the (weak) electricity grid of Costa Rica

• Technology Transfer

• Excellent operating wind farm – from technical and economical perspective

L-america wind power project (20MW)

4. Potential for lowering the cost of energy of offshore wind

5. The Dutch offshore industry

5. The dutch offshore industry

Dutch Industry in European Offshore Wind Farms

6. Conclusions

• Wind Energy will develop fast in the next decades – onshore and offshore

• Essential for large-scale implementation is the reduction of CoE

• To achieve the ambition in cost reduction, innovations are essential. ECN develops innovations and technologies that both increase yield as well as reduce investment and operational costs. ECN delivers services that reduce risks aiming to enhance bankabilty.

• Industry is interested to implement innovations when the there is sufficient ROI and limited risks. ECN focuses its R&D activities to develop interesting propositions.

• In the end, it is up to all of us to get it done.

Dank voor uw aandacht

Peter Eecen

ECN

Westerduinweg 3 P.O. Box 1

1755 LE Petten 1755 ZG Petten

The Netherlands The Netherlands

T +31 88 515 49 49 info@ecn.nl

F +31 88 515 44 80 www.ecn.nl