in News Departments > New & Noteworthy
print the content item



The operations and maintenance (O&M) of wind plants is a dynamic industry sector - driven by asset owners' decisions on the best way to care for wind power-generating assets.

MAKE Consulting's Global Wind Turbine O&M 2014 report analyzes this developing sector and expects 10% growth, on average, per year, over the next six years. While traditional markets in Europe and their large installed bases constitute the lion's share of demand, the rapidly growing installed base in Asia Pacific is expected to provide significant opportunities over the next decade. For the Americas, MAKE values the services market to reach $3.8 billion in 2020.

While the sector's growth is promising, revenues and profit opportunities vary significantly based on a company's ability to differentiate itself in scheduled maintenance, remote monitoring, minor correctives, technical support, spares and distribution, major correctives and component upgrades. Front-end elements, such as scheduled maintenance services, are generally the least profitable, while major correctives and component upgrades have traditionally been the highest-profit opportunities in the market and are expected to offer a revenue potential of $5 billion by 2020.

Planned maintenance practices have evolved and new providers have emerged globally. Many large-asset owners have decided to perform planned maintenance in-house through the cultivation of an internal services division or through acquisition of independent service providers (ISPs). Self-performing asset owners are a growing population and are able to utilize a cost and experience advantage to put significant pressure on full-service ISPs and turbine original equipment manufacturers (OEMs).

Turbine OEMs globally have taken notice of O&M market opportunities and are aggressively pursuing service agreements post-warranty. OEMs are marketing their intrinsic competitive advantages, including advanced knowledge of the turbine, proprietary upgrades and access to spare-part supply, as key selling points to adopt OEM aftermarket service.

ISPs present an attractive alternative to the turbine manufacturer for aftermarket service. ISP business models run a full spectrum, from planned service to project-based maintenance, presenting many opportunities to asset owners seeking flexible, cost-effective and reliable service.

Many niche opportunities exist for O&M market participants, which are currently underserved in key markets. As broader industry consolidation looms, there is potential for a growing fleet of so-called "orphan" turbines - when the OEM is no longer supporting the turbine platform - which represents a niche opportunity for willing ISPs able to specialize in these turbine technologies.

Author’s note: Dan Shreve is partner at Boston-based MAKE Consulting. He can be reached at (978) 448-3186 or ds©consultmake.com.




Trachte Inc._id1770
Latest Top Stories

Wind And Solar Are Catching Up With Nuclear Power, Says Report

A new report from the Worldwatch Institute says nuclear energy's share of global power production is steadily shrinking. Meanwhile, renewables' share keeps growing.


Could New Desert Plan Spell The End Of California Wind Energy Development?

The California Wind Energy Association says it is disappointed with the draft Desert Renewable Energy Conservation Plan, which was recently released by state and federal agencies.


New U.S. House Bill Includes Wind PTC Extension

U.S. representatives have introduced the Bridge to a Clean Energy Future Act of 2014, which would extend the production tax credit (PTC) and other provisions through 2016.


Utility-Scale Wind And Solar Keep Getting Cheaper

A new study measures the levelized cost of energy from various technologies and suggests that the costs of utility-scale wind and solar power are catching up with those of traditional sources, even without subsidies.


The Song Remains The Same: Ontario Seeks More Science Before Lifting Offshore Ban

The Ontario government says the nearly four-year-old offshore wind moratorium will remain in place until the province fully understands the technology’s impact on the environment.

Renewable NRG_id1934
Canwea_id1984
Future Energy_id2008