Manufacturing Bigger isn’t always better
Contractual costing issues aside, an obvious solution would be to build bigger turbines. Yet, with that comes new issues. Just ask Siemens Gamesa, which recently confirmed mounting problems with malfunctioning turbines coupled with unprofitable contracts that have led to the company expecting an overall €4.5bn net loss this year. This includes a €2.2bn charge related to its wind division, over specific issues including wrinkles in rotor blades and the presence of unspecified particles in the bearings sections. Despite these problems, the CEO of the group’s wind division, Jochen Eickholt, has been quick to note that the group had made progress with its turnaround. Of the €2.2bn charge, €1.6bn is being earmarked for quality issues around rotor blades and gears for its latest onshore turbine models, the 4.X and 5.X, of which roughly 2,900 are in the field. Turbines currently being sold to customers have already been modified to address these issues.
In the meantime, energy analysts at Wood Mackenzie have called for a temporary cap of up to ten years on the size of wind turbines, arguing it would provide greater clarity for developers regarding their projects. The past few years have seen ever-larger turbines increasingly placing unnecessary pressure on supply chains, with both installation vessels and factories unable to keep up with existing projects. On the other hand, Guy Willems, strategic communications adviser at trade body WindEurope, is quick to argue that turbine sizes aren’t the sole bottleneck for European offshore turbine manufacturers – at least when it comes to supply chains.
“Other factors could have a bigger impact on sustaining the health of the European supply chain,” he says. “First of all, permitting needs to be improved for offshore projects. It takes far too long for projects to go through the full bureaucratic procedure.” Willems notes that governments across Europe are yet to digitalise this process, with many still requiring the full permitting application to be printed – which can cost thousands of euros, further complicating matters. However, the revised Renewable Energy directive, adopted on 9 October, finally takes steps to address this shortcoming, he adds. Governments also need to provide clear pipelines for projects that the industry can adapt to, which should come together with an increase in market volumes.
Buying time Yet, while larger turbines offer significant benefits, reducing space use and increasing electricity output – making them essential to Europe as it attempts to reach its energy and climate targets – that’s not to say they don’t pose additional problems for the industry.
World Wind Technology /
www.worldwind-technology.com
“The turbines that are being installed right now are significantly bigger than the ones installed only a couple of years ago. We have to ensure that innovation in turbine technology comes at a healthy pace for the wider supply chain – the increasing speed of new turbine sizes has been too fast in recent years,” Willems concedes. “It needs to slow down to allow for supply chain investments – [including] vessels, logistics, ports [and so on].”
Above: Siemens Gamesa is expecting an overall €4.5bn net loss this year due in part to mounting problems with malfunctioning turbines and unprofitable contracts.
“Turbine sizes have grown gradually in the offshore space, compared to onshore, where it was frenetic.”
Shashi Barla
Shashi Barla, director and head of research for renewable energy at research consultancy Brinckmann, echoes many of Willems’ arguments. However, he finds it important to highlight the fact that offshore wind capital expenditure (capex) costs declined by more than 50% from 2015 through 2022, and attributes much of this success to increases in the size of wind turbines. “Turbine sizes have grown gradually in the offshore space, compared to onshore, where it was frenetic,” Barla notes. “So, developers are often choosing larger rated turbines for their projects to save on the project capex. However, the increase in turbine sizes exerts pressure on the supply chain, both turbine and the balance of the plant (BoP).”
Increasing supply chain capacity with regard to wind turbines is one challenge, which the industry could potentially manage – the greater obstacle, however, are the various supporting components and auxiliary systems that make up the BoP, which consists of everything a power plant requires to deliver energy, beyond the generating unit itself. Among these, the lack of existing installation vessels provides a notable cause of concern for Barla,
32.4%
The percentage of the UK’s electricity generation made up by wind power in the first quarter of 2023. Imperial College London
35
Karolis Kavolelis/
Shutterstock.com
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