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
