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OEM expands services with more production-based O&M

By Steven Bushong | July 25, 2012

Historically, wind operations and maintenance contracts have provided a guarantee measured from time-based availability of wind turbines. Last year, GE moved from time-based availability to a production-based availability guarantee structure with the goal of maximizing production for customers. At Windpower 2012, its contracts evolved further. For instance, the company introduced a new concept in O&M agreements that further aligns the goals of GE and the customer to maximize energy yield from the site.

GE’s production-based agreement incorporates a fixed and variable fee. The variable portion is based directly on wind farm production relative to a megawatt hour target agreed to by GE and the client. The total cost of the O&M agreement, not just the availability bonus, is now based on production.

According to GE, production-based O&M is a variable cost agreement that:

  • Reduces upfront costs to customers while better aligning the goals of GE and customers.
  • Better balances the risk between the owner and the services provider.
  • Promotes a “run it like we own it” approach towards service.
  • Ties into GE’s annual energy production enhancement initiatives.

The company will offer the new O&M agreement for its new and installed GE wind turbines at sites with comprehensive operating and wind resource information.

GE Wind
www.ge-energy.com


Filed Under: O&M

 

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