Conference programme

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Friday, 20 November 2015
12:00 - 13:30 The O&M impact on LCOE – How to get costs down?
O&M & logistics  
Onshore      Offshore    


Room: Montparnasse

This session shall focus on the challenge of reducing the Cost of Energy from wind parks through intelligent O&M.
What can be done from a Life Cycle perspective to ensure the O&M costs are minimised in respect to the highest possible RoI for investors?

The session will be devided in two parts: the first part will feature five presentations about opportunities and practical solutions for O&M cost reductions; in the second part four leading wind turbine manufacturers will share their experiences and outline their strategy to achieve cost reductions in O&M .

Please note that the session will be extended by 15 minutes and will therefore finish at 13:45 instead of 13:30.

Learning objectives

  • Be able to identify the Total Cost of Ownership for a Windfarm
  • Enable the attendees to suggest cost improvements at different project stages
  • Enable Attendees to verify and measure the impact of suggested improvements
  • Create understanding of a common industry reporting tool for failure rates
  • Learn about O&M challenges from leading wind turbine manufacturers
Lead Session Chair:
Wei He, Statoil, Norway
Simon Watson, Loughborough University, United Kingdom
Melf Lorenzen Deutsche Windtechnik Service GmbH & Co KG, Germany
Co-authors:
Groth Thorben (1) F
(1) Deutsche Windtechnik Service GmbH & Co KG, Bremen, Germany

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Presenter's biography

Biographies are supplied directly by presenters at EWEA 2015 and are published here unedited

Melf Lorenzen, is the Country Manager Spain at Deutsche Windtechnik AG. He holds a Bachelor of Science in Industrial Engineering and Business Management. Prior to joining Deutsche Windtechnik, he worked at Vestas Central Europe with several posts in Sales, Marketing, Technical Support and Service and at Shell Deutschland Oil as an Engineer of Process Control Systems.

Abstract

The European Service Business. A brief introduction to contracts and markets

Introduction

The European wind power market is diverse and characterised by a wide variety of remuneration, ownership and service structures. The expectations and approaches with regard to quality onshore wind services vary appreciably from country to country. Deutsche Windtechnik AG now looks after over 2,200 wind turbines in 4 countries and is preparing for further growth. As a result it is imperative to have detailed knowledge of each market targeted. The presentation is intended to give an overview of service approaches specific to each country, and reveals the basic differences between the various markets as well as what they have in common.

Approach

As already described in the introduction, the presentation will portray the main differences with regard to onshore services in Europe. The markets differ not only in their remuneration structures and political circumstances but also, above all, in the structure of the operators, service players and customers' requirements. Why do certain approaches work in Germany and Poland but not in Spain or Great Britain? What wishes are expressed by the market participants in the various countries and who are the decisive players in the business? What are the different types of contracts and which markets use and require them? These are all questions to be answered for the main European markets by way of examples in the course of the presentation.

Main body of abstract

Full maintenance is an unbroken trend in Germany. Depending on the operator's wishes, with or without major components, including or excluding the rotor blades - the contract can be flexibly designed. Usually institutional investors or smaller operators are the ones who prefer all-round service. In Spain this type of contract tends to be the exception. There, for example, there are many more major projects which positively force the operators to concern themselves with the prevailing technology to a greater degree and who as a result demand more responsibility and expertise for themselves. In many other markets in Europe, e.g. in Germany, the operators, above all the major energy suppliers, are expressing similar ambitions as they are currently reinventing their business models. However, the reality in many cases turns out differently to the original plan, and companies fall back on traditional full maintenance contracts.
The demands made of service providers, whether OEMs or ISPs, and the range of services offered has grown enormously accordingly. The result is that there are only a few providers among European competitors who are able to respond sufficiently to the flexible needs of their customers.
We have a certain structure for contracts and operators in every market. This can relate both to the technical side and the financial side of the business.


Conclusion

There is no one-size-fits-all approach for the European market. The circumstances are very different. Service providers must adapt to the different scenarios around the world and offer flexible solutions. Classic full maintenance contracts that cover all risks and also offer a guarantee of availability, tend to be the exception among energy suppliers. They prefer to eye risk-sharing models in which the supply chain is integrated into their own processes or where only elements such as manpower or components are requested from service-providers.


Learning objectives
Short overview of customer requirements in 4 different European markets: Spain, Germany, UK and Poland. What is required in which market.
In keeping with the choice of location for EWEA 2015, a short analysis of the French market and the market requirements of the various operators. How has the French market grown and what are the trends among the benchmarks required?
Analysis of customers' contractual requirements in view of the changed, more flexible scope of services. What are customers focussing on?
Price, scope of services, risk, availability, IPR, information, learning/instruction.