Service and Reliability
Montreal, 08.02.2011
Laurent Nahmias-Leonard
ENERCON Canada Inc.
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ENERCON - Overview
Portugal (Vianado Castelo)
Sweden (Malmö)
Germany (Aurich / Magdeburg)
Brazil (Sao Paulo/Fortaleza)
Turkey (Istanbul)
Canada (Quebec) (2010)
Head Office: Aurich, Germany
Over 17,400 WECs (~22 GW) installed
27 Manufacturing facilities worldwide
More than 190 service stations
A Company with Global Presence
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ENERCON Service Concept
• Service is as important to ENERCON as producing and selling wind turbines.
• High performance, reliable turbine operation is the cornerstone of ENERCON’s culture.
• Responsibility for long term operation = vested interest in quality
• Affects all aspects of the company
• Quality engineering
• Control over manufacturing
• Careful client and site selection
• Secure replacement parts supply
• Service � Parts Refurbishment � Manufacturing � Engineering feedback loop
• No “sell-and-run“ attitude! We look for an excellent 20-year relationship with the customers and their
turbines.
190 service centers
worldwide
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ENERCON Partner Konzept “EPK”
Guaranteed technical availability97% per annum
Reimbursement for yield losses if availability not achieved
Steady yields provide planning and financing security
Worldwide service networkPrompt response thanks to decentralized service network
Uninterrupted remote monitoring via SCADA
Quick and efficient repairs by ENERCON Service Team
Above-average contract periodsContract periods ranging from 12-15 years
EPK follow-up package available for years 15 - 20
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ENERCON Partner Konzept “EPK”
EPK coverageAll maintenance service and repair costs
Labor and travel costs for service team
Cost of main components
Cost of transportation of components
Yield based calculation of feesEasy-to-calculate operating costs based on energy yield
Regular maintenance
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ENERCON – Direct Drive
Direct Drive Advantages
Fewer rotating components
Reduced mechanical stress & abrasion
Increased service life
Variable speed for maximum efficiency
Lower maintenance costs
Lower noise level
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ENERCON Reliability
Average worldwide technical fleet availability was over 98.5% during the last five years
Failures not applicable for ENERCON Turbines
Hours of stoppage due to failures during the third quarter of 2008(Statistical basis: 4,737 WECs in Germany with 16,988 accumulated hours)
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OEMs and ISPs
Original Equipment Manufacturer (OEM)
Independent Service Providers (ISP)
vs
- The Issue
- Spare Parts
- Experience
- Integration
- Availability
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The Issue
• After planning, finance and building – the work is not over
– Upkeep of wind turbines is a crucial issue
• Choice between OEMs and ISP after the initial warranty period
– ISPs sometime require a certain volume of work to ensure ready availability and
comparable service levels
– OEMs seem reluctant to share information
• Projects have not properly factored in the ongoing O&M costs to keep a plant running efficiently
– Low plant availability accounts for half of an approximate 10% gap between pre-
construction estimates of power production and actual production
• The Goal: cost competitive Availability (and happy customers, too!)
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Spare Parts
• Many plant owners are struggling with underperforming wind projects and higher service costs due to poor spare part availability
• OEMs:
– Have better access to spare parts because of their volume and standing
agreements
– Enercon is vertically integrated (manufactures up to 85% of it’s own components)
� Not subject to third party supplier’s part availability
– Need to keep an inventory (for ISPs, inventory can represent money lying
around)
• ISPs:
– Disappearance of some companies whose machines continue to turn over the
years
• Owners need to implement a spare part strategy early on (e.g. allocate money for delivery of some spares
– Useful hedge against a gearbox failure and potential downtime (6 months)
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Experience
• “The wind industry’s rapid growth appears to have outpaced it’s ability to recruit and
train staff” – WindPower Monthly Magazine, January 2011
• The growing range of machines is causing problems
• “Cost-effective maintenance is having an experienced staff who know all the
particulars of specific turbine models and are able to turn a mass of data into usable
and actionable information. Raw data is useless unless it is understood and applied”
• OEMs have access to all the information they need to properly service and adapt if
required
– Many opportunities for improvements and retrofits
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Integration
• Vertical integration leads to alignment of incentives
• The basics:
– Build it properly and you’ll save costs on O&M
– Operate and Maintain your turbines properly and you’ll sell more turbines
• Being involved in various stages of the process leads to
– More comprehensive warranties
� Lower insurance premiums, easier access to project funding, reduced long
term investment-risk profile
– Closed-loop feedback with other departments (e.g. R&D, Construction)
• Better maintenance can be a net serving rather than a net cost
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Estimated Turbine Availability
Third party estimates:
Taking into consideration routine maintenance, fault downtime, minor component failures and
major component failures
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Availability
• The best measure of profitability is the availability factor
– i.e wind turbine is fully online and able to capture available winds
Arguments are nice, but numbers are better:
CS-66: 99.02% over last 5 years 30,438,639 hours
CS-70: 99.41% over last 5 years 126,637 000 hours
CS-82: 98.62% over last 3 years 52,850,000 hours
As of 10/01/2010
Year of introduction:
E-66: 1995
E-70: 2003
E-82: 2005
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Thank you for your attention.
The ENERCON Canada [email protected]
1-514-363-7266
ENERCON Canada Inc.
1000 de la Gauchetière W,Montreal, QC, H3B 4W5
Canadawww.enercon.de