E.ON Wind Turbine Technology and Operations Factbook

Transcription

1 Global Unit Renewables E.ON Wind Turbine Technology and Operations Factbook September 203

2 Global Unit Renewables E.ON is one of the world s largest investor-owned power and gas companies, with annual sales of 32 billion and more than 72,000 employees. E.ON Climate & Renewables (EC&R), headquartered in Essen, Germany, is responsible for E.ON s industrialscale renewable energy activities. EC&R develops, builds and operates large renewable energy assets, primarily in Europe and North America. Its technology portfolio covers onshore and offshore wind, concentrating solar power (CSP), photovoltaic and biomass. E.ON currently operates over 9 GW of renewable capacity including large hydro. This includes the world s second-largest onshore wind park in Roscoe, Texas (782 MW). With partners DONG Energy and Masdar, EC&R operates London Array off the coast of Kent, the world s largest offshore wind park. Since its formation in 2007, EC&R has already invested more than 9 billion. While continuously expanding its portfolio, it is EC&R s ambition to further industrialize the sector and professionalize its operations, in order to reduce the cost of renewable generation and make it ever more competitive. To this end, EC&R works with a wide range of partners and is always open to discuss potential co-operation with committed technical experts and financial investors alike. 2

3 Introduction 2 Wind energy basics 3 Wind turbine technology description and economics 9 EC&R s operations and maintenance strategy 25 Future of wind energy technology 38 Key facts on EC&R Wind 44 Picture taken at E.ON Offshore Project - Robin Rigg (United Kingdom, 2009) 3 4

4 Dear reader, As the renewable energy source with the biggest growth and share in the energy mix, wind energy is a key pillar of a cleaner energy future. Since the creation of E.ON Climate & Renewables in 2007, E.ON s wind portfolio has grown from 400 MW to more than 4.6 GW in 203. With this factbook, we aim to provide you with some insight into the science of wind turbine generation and technology, together with our operations and maintenance strategy at E.ON. Wind energy basics Interesting facts about wind Rules of thumb First, we address the basics of wind energy: Where does the wind come from? What makes a good site for a wind farm? Then we give an overview of wind turbine technology: How does a wind turbine work? What are the main components of a wind farm? Finally, we introduce our operations and maintenance strategy, and the main activities of E.ON Climate & Renewables. Wind turbine technology is still in its infancy, and research and development is steadily undertaken to make wind energy more competitive by reducing capital expenditure, and operations and maintenance costs. We conclude with a selection of key facts about E.ON Climate & Renewables Wind: for example, did you know when the first E.ON wind turbine was built? We have made every effort to create an interesting factbook. We hope that you will enjoy it, and that it will further stimulate your interest, and inspire you to learn more about wind energy. We welcome your comments and feedback. Kind regards, Michael Lewis COO Wind Power Wind speed 0% increase in wind speed leads to about 33% more generation Doubling of wind speed allows eight times higher power production Blade length 20% increase in length leads to a power increase of 44% Temperature Wind turbines produce % more power at -0 C than at 20 C Hub height Average wind speed at 00 m can be up to 50% higher than that at a height of 5 m Wind energy Energy of air through a 80 m diameter rotor at 2 km/h equals the energy of a small car driving at 60 km/h 2 3

5 Wind formation is a complex global system Coriolis effect, local effects and topography How is wind converted into electricity? Physical principles The earth s rotation is one of the main factors that influences wind direction Wind is influenced by the time of day and the temperature of sea and land Good to know Wind is the movement of air, relative to the earth s surface Wind is the result of an air pressure difference between two points, and the pressure difference is caused by differences in temperature The sun, by heating the earth s surface, is the main contributor to the temperature difference and hence wind formation Wind direction is mainly driven by three phenomena: Coriolis effect deflects the wind to the right in the Northern hemisphere and to the left in the Southern hemisphere. The earth s rotation means that wind direction is not straight from the equator (hot air) to the poles (cold air) 2 Local effects are influenced largely by the time of day. During daylight hours, land increases in temperature faster than water so air rises onshore and cooler air replaces it causing wind from water to land. The opposite occurs at night, when the land temperature falls quicker than that of the water 3 Topography (land shape and features) influences the wind significantly. Obstacles such as trees and hills create turbulence, changing the wind speed and direction Wind turbines converting energy in the wind to electricity ρ = density of the air r = radius of the rotor v = air speed c p = Power Coefficient Good to know Principle Wind turbines extract kinetic energy from the air Conversion to rotational movement using blades Conversion to electrical energy with generator Wind energy Wind energy (E) of streaming air can be calculated as: E = ½ m v² where m = mass of the air and v = air speed Power Power extracted by the turbine can be calculated as: P turbine = ½ ρ π r² v³ c p The Power Coefficient (c p) is the efficiency or the proportion of kinetic energy extracted by the turbine. This is limited to a maximum of 0.59 as described by Betz law 4 Source: Anders Persson, Jesús Gómez Fernández 5

6 Maximum turbine efficiency is 59.3% Betz law Knowing site conditions is key to the selection of the right turbine technology and for determining actual availability Summarised derivation of Betz law in four steps 2 Using basic equations and physical relationships, power extracted (p) can be related to power in wind entering turbine (p0). 3 Did you know? In 99, the physicist Betz proposed a theoretical maximum to the amount of energy that can be extracted from the wind. This maximum is 59.3% If 00% of the wind energy was extracted, then the air at the back of the turbine would be stationary. This would prevent further flow and hence no electrical energy could be generated Similarly, if the air leaving the trailing edge of the turbine remained at the same velocity as the air entering the turbine then no energy would have been extracted either The optimum situation is therefore that some, but not all, of the energy in the wind is extracted Current, conventional wind turbine designs are between 30 and 40% efficient so are not close to disproving Betz law Specific site condition are determined by four factors Good sites Obstacles Good to know Site conditions influence the wind turbine model selection and the wind farm design The best conditions for wind power are when the wind blows steadily without any turbulence During the development phase of a project, wind characteristics are measured on site by a met mast Wind turbines are categorised into six IEC classes ranging from I, II and III (wind speed), and A, B and C (turbulence) Turbine classes are determined by average wind speed, extreme 50-year gust, and turbulence Load factors, defined as the total electrical energy produced in reality compared with the maximum theoretical production, vary between 20% and 50% for wind farms 4 The speed of the wind is not the only criteria for identifying a good site 6 IEC is the International Electrotechnical Commission, an organisation which creates international standards on a variety of technical topics 7

7 Power curves and Weibull distributions are essential for forecasting energy yield Wind analysis The Weibull distribution shows the probability of each wind speed 2 The power curve shows the electricity generated at varying wind speeds Good to know The Weibull distribution is a site specific, continuous wind speed distribution 2 The power curve shows the electricity production across the entire wind speed range. It is specific for each wind turbine generator The Weibull curve and the power curve are combined to determine the power density at site hence the average load factor and the annual energy yield Energy yield is a measure of the amount of energy converted into electricity by a wind turbine/farm Wind turbines typically operate when the wind blows between 3 m/s (cut-in limit) and 25 m/s (cut-out limit) Anemometers and ultrasonic wind sensors, placed on top of the turbines measure, monitor and record the wind speed. This data is primarily used for the control and operation of the turbines Wind turbine technology description and economics Wind turbine technology developed significantly in size and height from 200 to 203 Project Pico Gallo, Spain Bowbeat, UK Sand Bluff, USA London Array, UK Technology Onshore Onshore Onshore Offshore Year of st generation Turbine type Made AE-46 Nordex N60 Gamesa G87 Siemens 3.6 Installed capacity 24.4 MW 3.2 MW 90 MW 630 MW Turbine power 0.66 MW.3 MW 2.0 MW 3.6 MW Rotor diameter 46 m 60 m 87 m 20 m Hub height 45 m 50 m 78 m 87 m 8 Source: EC&R Wind farms 9

8 Onshore wind farms and capital expenditure break-down From wind turbine generator to the grid Offshore wind farms and capital expenditure break-down How does an offshore wind farm work? Wind farm part Capital expenses Wind turbines 70% Inter-array cables 7% Substations 4% Export lines 2% Site access 7% Construction work 0% and foundation Total capital expenses for the construction of an onshore wind farm Illustrative Wind turbine generators Wind turbines transform wind energy into electricity. Turbines are usually clustered into rows in order to provide the optimum balance between availability and value for money 2 Inter-array cables Transport the electricity generated by the wind turbine to the substation or the grid (in absence of substation) 3 Substations Use transformers to increase the voltage to reduce transmission losses 4 Export lines Transport the electricity from the wind farm to the grid 5 Site access New roads and road reinforcements Offshore wind turbines benefit from a stronger and steadier wind compared with onshore wind farms. They can operate at full power up to 45% of the time. 7 Onshore substation grid connection point Optional HVDC offshore substation 3 HV export cable 5 Offshore substation 4 3 Array cabling Wind turbine (50-55% of total capital expenditure) Power of modern offshore wind turbines varies between 2 to 6 MW. EC&R is currently an owner of the biggest offshore wind farm in the world, London Array with a total installed capacity of 000 MW Foundations (0-5% of total capital expenditure) There are four main foundation concepts for offshore wind turbines; their selection depends on seabed conditions, water depth and turbine size Array cables (5% of total capital expenditure) Wind turbines are connected to the offshore substation via array cables. Cables are usually buried between m and 3 m below the seabed Electrical offshore substation (5% of total capital expenditure) The export voltage is increased by the substation which reduces the current and hence reduces losses High voltage export cables (5% of total capital expenditure) Offshore substations are usually connected to shore with two export cables. This allows a large amount of electricity to be exported whilst also providing redundancy in case of one cable failing Installation and logistics (2-7% of total capital expenditure) During construction, specialized vessels are required eg heavy lift and cable laying vessels Onshore substation (3% of total capital expenditure) The voltage is increased for a second time to between 30 and 400 kv before the connection to the electricity grid 0 Figures based on an exemplary EC&R wind farm Source: EC&R wind farms

9 Six main components contribute ~80% to turbine cost Wind turbine generator cost breakdown Extracting energy from the wind Rotor and blades 23% Blades 2 3% Gearbox 3 3% Generator 4 5% Converter 5 4% Transformer 6 25% Tower Good to know... In the most common wind turbine design, there are three blades. This design is called three-bladed horizontal axis wind turbine: More blades improve efficiency only marginally Fewer blades increase rotation speed (noise) and material stress Gearbox and transmission size acceptable Rotor diameter varies normally between m And also... Foundations add significant cost, particularly offshore (jacket foundations at Alpha Ventus ~850 t of steel each) Logistics and assembly a major cost component offshore (~5-20%) Nowadays rotor blades dimension can be as big as football fields Commonly blades are made of fiber glass and carbon fiber and weight up to 3 t Those materials have good fatigue characteristics and the advantage of being lightweight, strong and inexpensive With a 64 m rotor (eg turbine model V MW), a turbine produces three times more energy than with a 90 m rotor (eg turbine model V MW) Open air blades storage 2 Source: Vestas Source: EC&R 3

10 Ensuring that most of the wind energy is captured Pitch and yaw system Translating the power from rotor to generator Drive train Schematic representation of pitch and yaw systems Pitch system The pitch orients the rotor blades in order to capture the maximum wind energy and protect the turbine against high speed wind The pitch system is also the main brake for the wind turbine ÆÆPitch offset s effect on wind turbine generation a offset can decrease energy yield by % Yaw system The yaw orients the rotor to face into the wind The wind direction is continually monitored by sensors at hub height ÆÆYaw offset s effect on wind turbine generation 2 : 0 offset leads to 6% decrease in power 20 offset leads to 7% decrease in power Good to know... There are two main types of drive trains: Drive train with gearbox 2 Drive train without gearbox (also direct drive) In most wind turbines the drive train is made of the mainshaft and the gearbox The mainshaft connects the blades and the gearbox/ generator. It rotates at the same speed as the rotor The gearbox increases the rotation speed of the rotor according to generator requirements Drive train with gearbox Advantages Less expensive generator Generators able to operate at 500 rpm (more common) Considerations Failure of gearbox possible with high cost impact ÆÆThis is the most common design 2 Drive train without gearbox Advantages No gearbox (5% of turbine costs) Increased reliability due to reduced moving parts Considerations Full converter and sophisticated control needed to compensate low generator speed Complete rotor removal in case of component failure in highly integrated system 3D bottom view of a yaw system 3 Wind turbine in a workshop being inspected 4 Based on calculation at one offshore EC&R site, 2 Based on theoretical formula, 3 Creative Commons Attribution-ShareAlike 3.0 Source: EC&R wind turbine, gearbox workshop 5

11 Converting the energy in the turbine rotation to electrical energy Generator Providing sophisticated control for the modern turbines Converter Good to know... Electricity is produced when a magnetic field rotates within the stator (the static part of the generator) The different generator concepts produce this magnetic field in different ways but ultimately produce electricity using the same principles Doubly fed induction generator Advantages Cheaper than permanent magnet designs Doubly fed induction generators are a common and well proven technology Considerations Gears are usually required, leading to potential failure and maintenance costs ÆÆThis is the most common design Good to know... Converters are power electronic devices that are used to control the output power of a wind turbine generator Converter technology is evolving all the time but they remain a complicated and expensive component Partially rated converter Advantages Allows compliance with most network codes Cheaper than a full converter for same turbine output Considerations Double fed Injection generators can not always comply with all grid codes ÆÆThis is the most common design 2 Full converter with permanent magnet Advantages No excitation losses 2 Full converters Advantages Protect the turbine from mechanical shocks caused by electrical faults on the grid A generator works in the same way as a wire moving in a magnetic field The generator is a single point of failure and makes up 0% of the turbine cost for a conventional drive train Used with full converter for greatest grid support capabilities Considerations Rare earth materials needed for the magnets are not abundant and their cost is volatile Enable turbines to provide better support for the grid than the other concepts Considerations Are expensive and complicated, especially for higher powers ÆÆThis is becoming increasingly popular Power converter for wind turbine application 6 Source: EC&R Spain 7

12 Standing tall in the harshest conditions Tower No single foundation type is suitable for all site conditions Onshore foundations Section of concrete wind turbine tower being lifted into place Good to know... Steel towers have been the preferred option for wind turbines so far However, towers close to and exceeding 00 m tall can suffer from a resonant frequency problem, which usually is mitigated via the controller Designing out this problem is causing huge increases in tower costs for larger turbines, since the diameter can t exceed 4.5 m (approx) due to transportation restrictions Hybrid solutions (concrete and steel) do not suffer from the same resonance problem, and are therefore a possible solution for taller turbine design Novel solutions are in development, eg steel towers with shell segments, which enables transportation even when more than 6.5 m in diameter, since the circumference is made by multiple shell segments Spread foundation Skabersjö site in Sweden Foundation during construction Good to know... The foundation has the role of counter balancing the bending moment produced by the wind It is the link between the tower and the ground Steel wind turbine tower Spread foundation 2 Piled foundation consists of a big plate to spread the loads to the ground weights up to 000 t and is up to 5 m deep made exclusively of reinforced concrete must withstand tension and shear stress ÆÆAdapted for strong and stiff soils ie soil with low elasticity is similar to the spread foundation with additional piles into the ground can reach up to 40 m in depth ensures a good connection between the foundation plate and the piles for the distributing the loads ÆÆAdapted for soft soils ie soil with high elasticity 8 Source: EC&R Sweden Source: EC&R Sweden 9

13 Offshore foundations create more challenges than onshore foundations leading to more complex technical solutions Increasing the voltage to reduce losses Onshore transformers Steel structure Max. water depth = 25 m Limited to 3.6 MW turbines Most used foundation Re-enforced concrete Max. water depth = 30 m Suitable for 5 MW turbines Good experience Heavy steel structure Max. water depth = 35 m Suitable for 5 MW turbines Little experience Laterace steel structure Max. water depth = 45 m Suitable for 5 MW turbines Little experience Good to know... Water depth and consistency of the seabed determine the choice of foundation. So far, there is no universal foundation type suitable for all kinds of seabed conditions With a share of 75% in 20, monopile foundations were the most commonly used foundation type, followed by gravity foundations with a share of 2% Significant research and development are still necessary to develop a more cost-efficient concept for production at industrial scale (See section Future of wind energy technology ) Substation transformer 30/32 kv at Sierra de Tineo (Onshore wind farm Spain) Circuit breaker at Roscoe s substation transformer Good to know... Transformers are found in the wind turbines themselves and in substations They are used to increase the voltage of the exported electricity which reduces losses and increases overall energy efficiency Usually, each turbine has its own small transformer and these are then connected to a central substation The substation increases the voltage for a second time using another larger transformer, which transforms the electricity from multiple turbines to the transmission voltage The harsh conditions that wind turbines often operate in are undesirable for dry-type transformers, the type found within turbines. This presents unique challenges In the future, transformers may not be needed for each and every turbine if the voltage at which the electricity is generated is increased. This could reduce capital expenditure for a wind farm 20 Source: EC&R UK Source: EC&R Spain, Roscoe wind farm 2

14 Increasing the voltage to reduce losses Offshore substation transformers Transporting electricity is much more complicated than you may have thought Offshore cables Offshore substation at Robin Rigg Offshore substation at London Array Good to know... A substation increases the WTG array voltage (ca. 33 kv) to transmission voltage (>32 kv) in order to lower losses It is located offshore because the losses and cost of cables from the WTG to an onshore substation would be prohibitive or simply physically not possible E.ON has unmanned substations so living accommodation is not required for personnel on the platform Depending on the seabed conditions and depth a monopile, jacket, tripod or gravity foundation would be used Generally, due to the size of offshore wind farms, two transformers are installed and some redundancy or increased reliability is provided Copper or aluminium conductors with longitudinal water barrier Function: Carry current Inner-and outer semiconductor layers Function: Spread electrical stress evenly Fibre optic cables Function: Provide communication between wind turbines/substation(s) and the onshore control room Aluminium foil Function: Radial water barrier Outer high-density polyethylene sheath Function: Mechanical protection of the single cable cores Outer yarn covering Function: Maintain the corrosion protection of the steel armouring during installation Diameter: 23 mm Cross linked polyethylene (XLPE) insulation Function: Electrical separation between conductors and ground Copper wire screen Function: Carry short-circuit current/ equalizing electrical stress/gathers leakage and capacitive current Water swelling tape Function: Longitudinal water barrier Cable filler elements Function: Maintains the stability of the cable geometry Bedding layers/galvanized steel wires filled with bitumen compound Function: Protect cable from mechanical damage during installation and operation Good to know... Submarine power cables transport the wind farm energy production to the shore The diagram above describes a typical submarine power cable and the functions of the cable elements Source: EC&R UK Source: Prysmian (tech.spec. Kårehamn submarine cable) 23

15 Feeding in the electricity into the grid Connection to the grid Nacelle Wind currents Electricity Power substation Transformer National grid power lines Simplified view of the connection from the turbine to the grid Wind turbines in the energy landscape Good to know... Electrical energy is transmitted from the wind farm to consumer via an electrical network or grid The substation is the connection point of the wind farm to the grid During the development of a wind farm, the developer will obtain a grid connection agreement from the network operator Wind turbines are becoming increasingly capable of supporting the grid, reducing the need for additional reactive compensation which is expensive Due to increasing wind capacity and intermittency of production, grid congestion becomes more frequent causing curtailment of wind farms Improving the integration of wind power is a key element for making energy of the future cleaner and better EC&R s operations and maintenance strategy EC&R currently owns a portfolio of more than 4.8 GW renewables capacity across Europe and North America Key facts Assets with 4,83 MW total capacity 2.3 TWh electricity produced in 202, equivalent to demand of 3m homes Global #8 in onshore wind Global #3 in offshore wind Active in countries 862 employees, 3 nationalities Headquarter Office location Capacity (MW) Onshore wind Offshore wind Other 24 Source: E.ON Technology & Innovation Production equivalent based on average annual consumption of 4,000 kwh per home. Figures as of 30 June 203 unless stated otherwise; rounded. Includes 68 MW PV capacity in operation in France, Italy and the US. 25 Includes 50 MW CSP capacity in operation in Spain

16 Our wind portfolio: A diversified young fleet and with industrial size Besides CAPEX reduction, lower OPEX and increase energy yield also contribute to make wind power more competitive Fleet age 6-0 years -25 years 0-2 years 3-5 years 72% ÆÆMore than 2/3 of our wind capacity has been commissioned in the last 5 years Turbine manufacturer Manufacturer E 9% Manufacturer D Strategy We focus on developing, building and operating industrial-scale projects in the US and in Northern Europe We aim to accelerate our capital rotation through portfolio measures and partnership models Onshore US: We aim to develop 400 MW new capacity per year on average, of which we build 200 MW ourselves Onshore Europe: We aim to develop 240 MW new capacity per year on average, of which we build 50 MW ourselves Offshore: We aim to develop and build 50 MW offshore wind capacity per year on average Others Manufacturer A Manufacturer B Manufacturer C ÆÆMore than 90% of our wind capacity consists of 5 wind turbine manufacturers Fleet size 56% Above 00 MW Below 0 MW Between 0-25 MW Between MW Between MW ÆÆMore than 50% of our wind capacity consists of wind farms with an installed capacity above 00 MW LCOE structure: Example onshore wind LCOE ( /MWh) CAPEX 70% OPEX 30% We aim to reduce onshore wind LCOE by 25% and offshore wind by 40% by 205 O&M strategy outlook in following pages ÆÆWe pursue ambitious targets to reduce the wind power generation costs LCOE reduction measures CAPEX: Alternative suppliers, eg from Asia Fit-for-purpose design, new tower materials Major potential in hardware costs Standardized, integrated design approach OPEX: O&M contract modules and 3rd party providers Predictive and smart maintenance Hands-on O&M service concepts SCADA Smart EC&R/EC&R Control Rooms Global spares framework/global warehousing Best practice sharing across whole fleet Global benchmarking and global steering of fleet Energy yield: Best location for turbine (micro-siting) Higher availability Improved average performance 26 Note: Attributable figures for Q

17 O&M costs account for ~ 60% of total OPEX This is what we can influence through our O&M strategy O&M strategy: Our key beliefs and rationale for future active management of our assets Onshore Annual Operational Expenditure (OPEX) split Onshore Annual Operations & Maintenance (O&M) cost split Illustrative Key beliefs We believe in the capabilities of our own in-house expertise and technicians Our own O&M capability is already high and we are aiming to gain even more knowledge We will take on more responsibility as an active asset manager With our operational experience, we will provide support and input for project development, construction and procurement within EC&R Good to know... The term Operational Expenditure (OPEX) covers all activities during the operational life of a wind farm WTG service contracts, maintenance and inspection represent the main O&M costs EC&R aims to break these costs up into different contractual modules Unscheduled maintenance eg repair of major components that fail unexpectedly has a significant impact on O&M costs Rationale We will build up in-house expertise throughout mixed/hybrid teams Our gained knowledge will allow us to choose self-performed O&M We can leverage our global fleet size and scale to share knowledge and capture greater benefits We will be more OEM independent Higher level of control over our own assets will allow us to increase our assets availabilities and drive down O&M costs in the long-run OPerational EXpenditure annual figures (203 projection) from representative EC&R Wind Onshore sites with different age, location and wind turbine technology 2 Other Opex (non-o&m) controllable eg land lease, royalty payments, Community, Marketing & PR and miscellaneous 3 Other Opex (non-o&m) non-controllable eg business rates, property taxes, electrical export and transmission fees, decommissioning provisions 4 Others covers WTG repairs and improvements, parts, consumables & tools, infrastructure and miscellaneous 28 29

18 By applying active asset management, O&M cost can be significantly reduced O&M strategic activities: Active asset management is applied throughout various initiatives within EC&R COD Years 2-5 Years 3-6 Year 25 Warranty period Post warranty Initially more expensive due to additional internal O&M activities, staff training cost Transition O&M contract modules/ framework agreements and 3rd party providers Hands-on O&M service concepts (incl. mixed teams, self-performance) Predictive maintenance/cms Smart maintenance Cost EC&R active O&M approach Hands-off approach (OEM dependent) Only slight year-on-year increase for post-warranty life (20 years). Increased cost control through: O&M Initiative: Modular O&M contracts Smart maintenance Competitive market penetration Active O&M approach: Mixed teams Competitive market penetration EC&R fleet engineers/best practice sharing Fleet analysis and fleet performance Unscheduled maintenance model Spares strategy/global spares framework Warehousing concept Energy Yield SCADA Smart EC&R EC&R Control Room Main cost driver: Failure rate/spare replacement Under warranty: no or only minor repair costs attributable to operator Yr. 3 to 6: first major components failures with cost attributable to the operator, mainly smaller components Yr. 4 to 7 until 25: more components fail including main components (gearbox, generator, blades, frequency converters) ÆÆWe will gain higher level of control to increase availabilities and drive down O&M costs significantly 30 3

19 O&M contract modules/3rd party O&M service providers and hands-on O&M service concepts Active asset management Condition based maintenance: Predictive maintenance and smart maintenance Active asset management Concept Rationale and benefit Concept Rationale and benefit O&M contract modules/3rd party providers: Efficiency and transparency increase with standard modular contract Customizing service modules to EC&R s demand by being able to contract only required modules Supporting market penetration by contracting different modules to different suppliers including 3rd party providers Oil analysis Condition monitoring Predictive maintenance: 4-steps-approach for meeting EC&R s global predictive maintenance strategy ensuring lowest cost operations Example % of Sites* 0 25 Risk based monitoring Advanced CM Full service contract (As-Is) Modular contract (Target) Hands-on O&M service concepts: Build-up internal O&M know-how via mixed teams In-source O&M activities for suitable sites Condition monitoring Oil analysis Joint scheduled maintenance with OEM s and EC&R s technicians Advanced and risk based monitoring Smart maintenance: Challenging and optimizing maintenance manuals and processes based on plant condition not time Using alternative tools and techniques (eg main shaft clamp, etc.) ÆÆWe are significantly increasing transparency in O&M contracts and service ÆÆWe drive for condition based instead of time based maintenance Source: Drawings on Condition Monitoring from Bachmann Monitoring GmbH Advanced Condition Monitoring

20 EC&R fleet engineers/best practice sharing and unscheduled maintenance model Active asset management Spares strategy/global spares framework and warehousing concept Active asset management Concept Rationale and benefit Concept Rationale and benefit EC&R internal global structure of fleet engineers Best practice sharing: EC&R internal global engineers pool structured along OEM technology (ie Technical Fleet Managers for Vestas, GE, Siemens etc.) Global Operators Forums on bi-monthly basis to exchange knowledge/experiences and to decide on operational issues Unscheduled maintenance model: Establishing a global unscheduled maintenance model to apply common forecast approach across the fleet Derivation of risk assessment, cost comparisons, spare parts supply needs, etc. Hubs at stock Small warehouse at Northern European Onshore site Spares strategy/global spares framework: Frameworks with 3rd party suppliers and parts-oems Implementation of global framework agreements for strategic spare parts (eg gearboxes, etc.) Warehousing concept: Elaboration on where central warehouses are needed and where not (esp. offshore and in onshore US sites) Assessment on the safety stock level of spares and cluster between strategic components, general spares and consumables Central warehouse concept for big components in Southern Europe Examples of EC&R s unscheduled maintenance tools ÆÆWe globally steer our fleet by turbine technologies and harvest our knowledge ÆÆWe leverage our global fleet size and scale to share knowledge and capture greater benefits 34 35

21 Fleet analysis: Fleet performance and energy yield Active asset management SCADA Smart EC&R and EC&R Control Room Active asset management Concept Rationale and benefit Concept Rationale and benefit Fleet analysis and fleet performance: Analysis of our assets on a fleet-wide basis to continuously identify low performing turbines SCADA Smart EC&R: Global OEM-independent SCADA system to ensure efficient operation and control of the entire fleet Delivery of fleet-wide common reporting, analysis expertise and services Centralized SCADA system Integration of all SCADA data onto one single Business Process Database Energy yield: Increase availability and efficiency improvements by modifications and upgrades Part of regular inspections to ensure that fleet operations is continuously improving Automated fleet-wide operational reports on yearly/ quarterly/monthly/weekly basis EC&R Control Room: 2 EC&R owned and operated control rooms- Coventry for Europe and Austin for US sites- monitoring all EC&R operated sites Global real-time monitoring and control to realize full benefits of large-scale deployment EC&R North American Control Room in Austin ÆÆWe analyze, benchmark and challenge the whole fleet to continuously improve our performance ÆÆWe make use of and aim to gain even more knowledge about our O&M capabilities 36 37

22 Future of wind energy technology EC&R contributes to improve wind energy technology in its area of expertise Optimize & drive down O&M cost T&I project examples Evolution of wind energy installed capacity in the world Evolution of wind turbine size Variety of wind technologies from onshore to airborne wind turbines Offshore structure and foundation affected by scour Advanced Condition Monitoring pre-commercial trial Motivation EC&R is working with Technology & Innovation (T&I) to make wind energy more competitive. Reducing cost is vital and both improving performance of existing assets as well as new types of assets, updates of existing wind turbine technologies or completely new wind energy concepts, can contribute significantly. Focus EC&R and Technology & Innovation have a broad value and business oriented program with the main focus on where EC&R can bring its own expertise, for example: Optimize & drive down O&M cost 2 Reduce CAPEX eg novel offshore foundations Scour Prevention System Situation Many offshore turbines are exposed to scour which causes structure instability Existing solution is rock dumping around the fundament but that is expensive and it needs to be done every 3-6 years Complication The existing solution, rock dumping, is costly, can cause wear on cables and scour tends to occur around the dumped area Resolution Car tires connected like a mat around the monopile can reduce the cost compared to the current solution Potential Scour Prevention System has the potential to reduce lifetime cost significantly and lower carbon footprint in comparison with existing methods Advanced Condition Monitoring (ACM) Situation ACM has been developed and proven very beneficial for our CCGT fleet: this project is to test its applicability to wind turbines Complication Benefits case needs to be proven under real operating conditions Resolution Provide a rationale for whether ACM should be applied generally across the fleet; and if so how Potential ACM can help reducing unplanned unavailability 38 Source: Technology & Innovation 39

23 Optimize & drive down O&M cost T&I project examples Optimize & drive down O&M cost T&I project examples Pitch Optimization Air Density Schematic view of the LiDAR Pitch optimization Yaw optimization Predictive gearbox model (EOH ) Situation Optimum energy yield of a turbine depends on a number of factors, a key one being correct blade pitch angle at a given air density, which varies seasonally Complication Optimum yield conditions are only achieved at a few operational points during the year. For some turbines the pitch angle is referenced from a look-up table based on static air density calibrated at commissioning Resolution The objective of the project is to increase the power output of the wind turbines by calculating new pitch tables specifically optimized for the site climatic conditions and recalibrating the turbines accordingly Potential Optimized pitch tables will increase energy yield as the turbine adapts its pitch strategy to the prevailing air density Situation Currently we rely on OEM anemometry to detect wind direction and misaligned yaw from inaccurate wind direction readings reduces turbine production Complication This project is to evaluate solutions to improve wind direction alignment using retro-fitted modifications eg LIDAR solutions Resolution Increase energy yield of existing EC&R turbines by optimizing yaw using eg retro-fitted LIDAR solutions Potential Improving yaw alignment will increase the power output of existing turbines and reduce loads induced by turbulence Situation The cost of wind turbine gearbox replacement, particularly off-shore is significant Complication Our currently installed Conditioning Monitoring Systems (CMS) cannot forecast far in advance the likely failures in sufficient time to schedule replacement Resolution Create a predictive failure models for wind turbine gearboxes based on Equivalent Operating Hours Potential If we can predict gearbox wear/damage and replace prior to Class III and IV failure, E.ON can better schedule replacement campaigns 40 4 Source: Technology & Innovation Equivalent Operating Hours Source: Technology & Innovation Projects in early stage

24 2 Reduce CAPEX How big can a wind turbine become? Novel offshore foundations Keystone twisted Jacket Suction bucket Floating concepts New offshore foundations Situation Offshore wind CAPEX needs to come down and foundations and their installation represent a significant share With sites further from shore and deeper water the standard options - gravity and monopile - might not always be the optimal solutions Complication Many novel ideas and concepts exist, but many are at early stages and some potentially lead to cost increases Resolution Build confidence in and accelerate the development of the most promising options by conducting met mast scale demonstrations and, if successful, full scale demonstration Potential The ambition is to be able to install wind farms further offshore to harness higher wind speeds and produce more electricity to a lower cost The big question is: What will be the limit to wind turbine size increase? Since the wind industry started to take off, there has been a race to increase turbine size and power. With hub heights now well over 00 metres, this trend is still continuing Various companies have turbine designs of up to 0 MW but few turbines with capacity above 6 MW have been constructed up to 202 Larger turbines mean you do not need as many turbines for the same energy output allowing for cost reduction There will be a limit beyond which the costs and technical limits associated with building larger and larger turbines become prohibitive Vestas V MW model with a 64 m rotor diameter 42 Source: Technology & Innovation Center 43

25 Key facts on EC&R wind Interesting facts about our wind business The future of EC&R wind business Our wind plans for the future Make further multi-billion euro investments to grow our operating capacity to more than 8 GW by 2020 Drive industrialization, cost reduction and higher output to make renewables more competitive, eg wind: Onshore wind: Develop 640 MW and build 350 MW p.a. on average, reduce costs by 25% by 205 Offshore wind: Develop and build 50 MW p.a. on average, reduce costs by 40% by 205 Add value with develop & sell and build, sell & operate approaches London Array, UK Roscoe, USA Scroby Sands, UK Our ambition: To make clean energy better Did you know? EC&R has a presence in 0 countries EC&R operates almost 3,000 wind turbines Approximately 0,000 blades are regularly inspected The highest wind turbines of the EC&R fleet is 69 m high (blade included) The oldest EC&R wind farm was built in 992 EC&R owns and operates the world s 2nd largest onshore cluster Roscoe, Inadale, Champion and Pyron (782 MW) Jointly with partners DONG and Masdar, EC&R operates the world s largest offshore wind farm London Array (630 MW) 44 45

26 Global Unit Renewables This document may contain forward-looking statements based on current assumptions and forecasts made by E.ON management and other information currently available to E.ON. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company and the estimates given here. E.ON does not intend, and does not assume any liability whatsoever, to update these forward-looking statements or to conform them to future events or developments. E.ON Climate & Renewables GmbH Brüsseler Platz 453 Essen Germany

27 E.ON Climate & Renewables GmbH Brüsseler Platz 453 Essen ECR 09/203