INNOVATIONS
REDUCING LIFECYCLE COSTS THROUGH INNOVATION
In post government-subsidy world, innovation is key to our industry’s ongoing success. Renewable Parts’ Innovation Programme recognises this by specialising in new repair technology.
OEM Service agreements
As the wind turbine industry transitions to a mature business many new challenges and
opportunities emerge. However, the imminent end to government subsidies presents the most immediate concern.
Turbines in service
Warranty > New
technology
> Higher technical risk
> Full OEM contractual cover
Unquestionably, the rate of onshore growth will be affected by this development – we need only look to Spain for evidence of the impact similar changes in government policy had.
OPTIMISM
But there is cause for optimism. Our industry’s resilience to this change will depend largely on its ability to deliver cost reduction and life extension programmes which lower cost of ownership and prolong turbine lives. Strong parallels can be found in other industries, notably Aerospace, where aggressive cost reduction has been key to extending lifecycle. Arguably it has been the wind industry’s intense focus on growth that has inhibited a stronger effort to reduce through-life cost, essential to sustaining a long term business.
INDUSTRY SPECIALIST
Supply chain specialist Renewable Parts, is a business leading the drive for efficiency through improved inventory and logistics management. However,
This repair activity is primarily directed towards legacy equipment, particularly those turbines that have reached the mature phase of their lifecycle at 10 years and beyond. (see figure)
the launch of its Innovation Programme presents the greatest potential for wind turbine investors and operators. Focused on parts repair engineering, the company’s ability to recycle customers’ unserviceable material has been allowing operators to reduce cost and waste for several years. The expansion of this programme, in partnership with Higher Education, will enable a significant increase in the scope and scale of repair solutions, ranging from mechanical and hydraulic components to circuit boards and more complicated assemblies.
LEGACY EQUIPMENT SCAN/CLICK
The relative inefficiency of older turbines coupled to increased wear of aging components means cost reduction is essential to retain competitiveness. Greater innovation in new repair techniques is unquestionably the single most important area for the wind turbine industry to embrace if it is to sustain health in a world post subsidy.
Renewable Parts OEM and independent O&M / parts agreements Growth
> OEM long-term service agreements
> Products maturing, technical risk reducing
> Asset financing paid down
> Customers evaluate alternative service options
YEARS 5 YEARS 10 Mature
> Market fragments, assets sold on as new turbines emerge
> Customer planning horizons shorten
> Aging components, increased risk of higher operating costs
> Cost reduction programmes launched > Repair technology developed
YEARS 25
Number of turbines in service
MORE INFO
www.windenergynetwork.co.uk
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