The article here is the Executive summary of a 21 page Service Market Survey for 2016. It is authored by Make Consulting.
Annual global growth in O&M market value is expected to far exceed the growth of new wind power installations. MAKE’s forecast of 9% y-o-y growth is supported by the Survey.
- ISPs are rated most likely to gain market share for scheduled as well as for unplanned and corrective O&M in Europe to 2020. MAKE forecast ISPs to gain 10%-point market share to 2024
- Wind turbine OEMs are, however, expected to maintain competitive advantage in the lower frequency but higher value capital repairs and replacement segment
- A majority of respondents expect average O&M spend per MW/year to reduce in the next two years consistently with the 2015 Survey. Close to 50% expect a drop between 0 to 10%
- O&M revenue as a proportion of total revenue is expected to continue to increase from 15% in 2014 for European turbine OEMs, however, this year’s Survey results show lowered expectations for growth.
- Service contract length for new turbines in Europe has been increasing as clearly indicated by more than 60% seeing 5+years average length compared to 20% in last years survey
- Track record, cost and availability & performance guarantees take pole position as the key O&M service partner selection criteria by far in this year’s Survey, as they did last year
- Turbine upgrades are seen as the premier choice for Europe’s ageing turbine fleet followed by life extension programs. Repowering remain a possibility on best sites or when subsidized
- Survey results point to gearboxes and electronics as greatest causes of turbine downtime. Bearings this year replace blades on 3rd place.
- Improved practices along the value chain, technical innovation as well as consolidation are seen as the main levers for wind power LCOE reduction closely followed by Big Data.
Condition monitoring, application of Big Data and advanced diagnostics are seen as the key enabler for reducing unplanned maintenance in favour of moving to lower cost preventive/predictive maintenance to reduce OPEX - Survey results point to sharing of maintenance strategies, best practices as well as operational data as key knowledge sharing areas with potential to enhance fleet wide asset performance
- On the back of acquisitions, such as Gamesa-B9 and Vestas-Availon, respondents expect the European O&M space to continue consolidation, mainly driven by wind turbine OEMs.
Access the survey here: http://www.consultmake.com/client-login#client-login
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