Repowering and Used Wind Turbined

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Repowering & used turbines W. Hulshorst Oct. 2008 Business Connecting and Development

Transcript of Repowering and Used Wind Turbined

Page 1: Repowering and Used Wind Turbined

Repowering & used turbines

W. HulshorstOct. 2008

Business Connecting and Development

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Agenda

• Global Wind market by the end of 2007

• Repowering (examples)

• Used Turbines

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Installed capacity

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Per region or country

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Total installed capacity (MW)

Germany. 22247

US. 16818

Spain. 15145India. 8000

China. 6050

Denmark. 3125

Italy. 2726

France. 2454

UK. 2389

Portugal. 2150

RoW. 13008

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Development of wind turbines

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History wind electricity

US Denmark

Germany

Experience from Germany and Danmark is interesting

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Danmark

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• Recognized that smaller, aging turbines were an obstacle to new project development

• Wind installation began in 1980s, so relatively large number of <75 kW turbines

• Removing and repowering those turbines would require an overt and explicit incentive

• Result: Denmark’s repowering program led to the repowering of ~2/3rd of the oldest turbines

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Danmarks repowering programm

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• First Program: 2001 – 2003– For turbines <100 kW, “repowering certificates” allowed owners to install

three times the capacity removed

– For 100-150 kW turbines twice the capacity removed

– 1.480 turbines totaling 122 MW were replaced with 272 new turbines totaling 332 MW

• Second Program: started 2004– Intends to repower another 175 MW of aging wind turbines

– For turbines <450 kW, “repowering certificates“ allow owners to decommission projects from 2004 –2009 and install factory new turbines from 2005 –2009

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Germany

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• Germany’s wind additions came later, but repowering expected to accelerate as available new wind sites diminish

• To encourage repowering...– Before 2004, feed-in tariff provided some encouragement by offering

new projects a higher payment than existing projects

– After 2004, feed-in tariff has offered a longer/higher payment to turbines that replace/modernize existing projects built before December 1995 and are at least three times the capacity

• Given siting and permitting barriers, the wind industry argues that the present incentive is insufficient

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Why repowering?

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• fewer wind turbines

• more wind power from the same area of land

• higher efficiency, lower costs

• better appearance

• better power grid integration

• wind speed and direction are known.

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Why encourage repowering?

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For government and local authorities, the results of repowering can be positive:

• additional wind energy power will create a larger basis for wind energy

• although the wind turbines are higher after repowering, the quality of the landscape is often perceived as being improved, since the number of wind turbines is reduced

• replacement can be used to achieve targets for renewable energy or for CO2 reduction.

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Example repowering?

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20 turbines

4 MW

10 million kWh

6 million Euro

7 turbines

14 MW

40 Million kWh

16 MW

Reduction 70%

3,5 fold increase

4 fold increase

3 fold

increase

No of turbines

Installed capacity

Yield

Investment

20 turbines

4 MW

10 million kWh

6 million Euro

7 turbines

14 MW

40 Million kWh

16 MW

Reduction 70%

3,5 fold increase

4 fold increase

3 fold

increase

20 turbines

4 MW

10 million kWh

6 million Euro

7 turbines

14 MW

40 Million kWh

16 MW

Reduction 70%

3,5 fold increase

4 fold increase

3 fold

increase

No of turbines

Installed capacity

Yield

Investment

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Impression repowering

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BeforeWindfarm BassensLower Saxony

After

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Effects of repowering?

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Effects of repoweringDecrease Increase4 43 Factor 2 Factor 2 3

ExampleSchleswig Holstein

ExampleNiedersachsen

ExampleMecklenburg-Vorpommern

Energy

Height

PowerNumber of turbines

Energy

Height

Power

Number of turbines

Energy

Height

Power

Number of turbines

Effects of repoweringDecrease Increase4 43 Factor 2 Factor 2 3

ExampleSchleswig Holstein

ExampleNiedersachsen

ExampleMecklenburg-Vorpommern

Energy

Height

PowerNumber of turbines

Energy

Height

Power

Number of turbines

Energy

Height

Power

Number of turbines

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Expectations Germany

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0

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1990

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Inst

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onshore onshore repowering offshore offshore repowering

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What to do with the older turbines?

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Transport to…?

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Storage for spare parts?

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Or find new markets?

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Or find new markets?

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Or find new markets?

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The used turbine market!

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Used Wind turbines

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• Many wind turbines are designed to achieve a service of 20 years or longer.

• Politicians in many countries have focused their attention on up-scaling wind turbines at existing locations.

• As a result of repowering, interest in used wind turbines with a remaining service life of several years is growing across the world.

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Why Used turbines?

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• lower investment capital• shorter project duration • Many manufacturers are no longer

fabricating turbines of small sizes.• maintenance work is easier

• Overhaul during replacement• Contribute to sustainable development• Entering new power markets

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Disadvantage used turbines

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• more efforts will be required to select suitable turbines for specific projects

• the life expectancy of overhauled used wind turbines cannot be satisfactorily predicted.

• the procurement of spare parts may also become an obstacle, as most manufacturers’ technical support expires after 20 years.

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Price of used WT

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0%

10%

20%

30%

40%

50%

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70%

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

Age [years]

Pri

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en n

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Example of used WT

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€ 0

€ 500.000

€ 1.000.000

€ 1.500.000

€ 2.000.000

€ 2.500.000

Startingcapital

annualcosts

Startingcapital

annualcosts

3 new turbines 4 used turbines

other annual costs

Annual maintenance

Reserves

Mains Connection

Foundation

Transport

Overhaul

Converter

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No problems?

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• Successful utilisation of wind turbines is always dependent on sufficient wind energy potential

• Electrical stability in weak grids with stochastic feeders, limits the permissible load of wind turbines. That is why only small generators in the 150 to 600 kW class are suitable for simple grid connections.

• Turbines of this size are no longer being manufactured and are only available on the second-hand market.

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Thanks for your attention

Walter HulshorstEcon International B.V. Florijnweg 14 a6883 JP VelpThe Netherlands

T: + 31 (0)61 047 45 77F: + 31 (0)26 381 64 82E: [email protected]: www.econ-international.nl

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