Expertise, Innovation and reduction of cost of energy: Vestas experience Nicolas Wolff, VP General Manager Vestas France
Conference on Cost of Wind Energy, Embassy of Germany in Paris
15 November 2012
V126-3.0 MW™ 2
Agenda
1. Introduction to Vestas
2. Cost structure:
- Capex and Vestas
- Opex and Vestas
3. Conclusion
1. Our 3 MW Turbines - Now covering all wind classes
2. The V126-3.0 MW™ - Unlocking the potential on
low wind sites
3. The V126-3.0 MW™ - Based on proven technology
4. Summing Up - The V126-3.0 MW™ in a nutshell
5. Appendix
Introduction to Vestas
Vestas Corporate presentation 4
About Vestas History
1898: Blacksmith H.S.
Hansen arrives in Lem
1945: VEstjysk STaalteknik
A/S becomes VESTAS
1979:
First turbine after
agricultural vehicles, etc.
1987:
Vestas
Wind Systems A/S
1991:
Turbine no. 1,000
2004:
Merger: NEG
Micon & Vestas
2005:
Ditlev Engel, CEO
2010:
Wind. It means
the world to us.
Vestas Corporate presentation 5
About Vestas Vestas at a glance
Today, we have installed over 47,335 turbines in
69 countries around the world
Vestas’ track record >>
Vestas Corporate presentation 6
Vestas produces nacelles, blades and
towers on sites around the world.
About Vestas Vestas at a glance
Vestas Corporate presentation 7
Products and Innovation
Product and Innovation We have the longest track record in the industry
Together with our customers we have reached an installed global capacity of 50GW of wind energy. This is a significant milestone for maturing the wind industry and getting wind on pair
with oil and gas.
• Vestas has installed more than 47,000 turbines
in 69 countries, which generate electricity
equivalent to the consumption of all households
in Spain and Sweden
• These turbines save the world from 55 million
tons of CO2 emissions every year.
9
The longest track record in the industry …a solution for every site condition
6 6.5 7 7.5 8 8.5 9 9.5
Max. average wind speed
according to IEC [m/s]
IEC I IEC II IEC III
V80-2.0 MW® GridStreamer™
V80-2.0 MW®
V90-1.8/2.0 MW®
V90-1.8/2.0 MW® GridStreamer™
V100-1.8/2.0 MW®
V90-3.0 MW®
V100-2.6 MW™
V126-3.0 MW™
V164-7.0 MW™ OFS
10 10.5 11
V112-3.0 MW® OFS
V112-3.0 MW® ONS
V112-3.0 MW Onshore 10
Cost structure: Capex & Vestas
Many factors influencing cost structure:
V112-3.0 MW Onshore 11
Internal
External
Learning curves
Cost of material
Production
methods
Cost of labour
Standardization
Scalability
Innovation
Inflation
Steel prices
Site characteristics
Weather
conditions
Licensing
procedures
Regulations
Some references: Wind Energy cost structure*, EWEA 2009
12
Investment
(Euros
1,000/MW)
Share of Total
Cost%Turbine 928 75,6
Grid Connection 109 8,9
Foundation 80 6,5
Land rent 48 3,9
Electric Installation 18 1,5
Consultancy 15 1,2
Financial Costs 15 1,2
Road Construction 11 0,9
Control Systems 4 0,3
Total 1227 100
Table 0.1.: Cost structure of a typical 2MW wind turbine installed in Europe. Source: The economics of wind energy, EWEA 2009. Development costs are not taken in consideration here.
Several factors to be taken into account
Some references: Bloomberg Wind Turbine Price Index 2012
V112-3.0 MW Onshore 13
More than 20% price drop from 2009
CAPEX and Vestas: Different elements are contributing to the decrease
V112-3.0 MW Onshore 14
- Lean/Six Sigma: processes’ excellence
- Supply chain
- Learning curves: less time for production
- Scale economies & Global Footprint
- Larger rotor sizes
- Aerodynamics
- Turbine Design (eg.: nacelle)
Production & Logistics Innovation
V126-3.0 MW™ 15
Swept area
2600+m2
Innovation: larger rotor sizes enabling higher production In the last 30 years Vestas has:
30 kW 3 000 kW
…Increased rotor diameter 10 folds
…Increased rated power 100 folds
A new family member for low-wind sites (IEC IIIB)
An example: the new born V126-3.0 MW™
V126-3.0 MW™ 16
Swept area
2600+m2
27% larger swept area than
V112-3.0 MW® providing
exceptional high energy capture
in low wind
V80/V82/V90/V112 technology
Experience and Testing
6 November 2012:
first V126-3MW order received in Finland
6 weeks after the its launch
Cost Structure: Opex and Vestas
OPEX and Vestas Factors influencing OPEX decrease
Turbine Trends: average cost/MWh decreases with higher nominal power
18
∆C’
Nominal Power
0
2
4
6
8
10
12
14
850-kW 2MW 3MW
∆ Average Cost to serve (Euros/MWh)*
Average Cost (Euros/MWh)
Source: Vestas internal estimations
1
2
3
Bloomberg O&M Price Index: 38% drop in O&M costs during the last four years
19
« …BNEF’s findings show manufacturers led by as Vestas Wind
Systems A/S are bringing down prices, making the machines
more profitable for power providers to run. »
20
OPEX and Vestas: 1. Predictive Maintenance
Vestas Performance & Diagnostic Centre
By handling real-time data from 20,000
turbines we know more about wind
than anyone else.
Vestas Condition Monitoring System
Assesses the “health” of the turbine by
analysis of measured signals
•Estimation of time of failure provides
optimised planning of maintenance activities
OPEX and Vestas 3.Turbine design: better serviceability
21
Ex.: V112-3MW
- Designed for one year service interval
- Work area in nacelle increased by 60% over previous Vestas turbines
- Easier access to tools, enough space to do service, etc)
To conclude:
To conclude:
23
Wind: a competitive industry
Decreasing curves compared
to other industries
Next challenge: working towards the
Grid Parity
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