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Megawatt Class Turbines for Community Wind

As both Qualifying Facility (QF) and Net Metering limits are increased by state utility commissions, there are growing opportunities for community wind projects owned by schools, cities and counties in the 10MW size range.  As examples, the Montana Public Service Commission is in the process of raising the size limit on QF projects from 3 MW to 10 MW.  Similarly, Texas regulations now allow up to 10 MW for net metering projects. 

Although megawatt class turbines are back ordered world wide, there are opportunities to locate "extra" turbines from large projects and use them to build community sized wind projects.  We at MFE are following the availability of  megawatt class turbines from four different manufacturers.   Two of the companies are new to the United States market, although they are well established in Europe.  They may offer attractive financial incentives to community wind start up projects. 

We are gathering information on their availability, track record in Europe and availability.  I will report more following some upcoming factory inspections.

Community Wind

                                 Community Wind                    

               

                     Learn the basics of community wind, from definitions to its purpose of creating energetically sustainable and self-sufficient communities.            

                                            

Our office divides wind turbines into three size groups: residential (3-20 kW), community (50 – 250 kW) and utility (660 – 2200 kW and up). Here is a brief description of each.

Residential – Turbines in the 3 kW to 20 kW size range are often used in a net metering agreement with the utility. Upper limits on net metering vary by state but generally cover all turbines in this size range. The cost can run up to $10,000/kW installed, so they are rarely justified economically at today’s utility rates, but are rather a statement or a demonstration.

Community – Turbines in the 50 – 250 kW size range have multiple business and governmental applications: pivot sprinkler irrigation, sewage treatment plant aeration, pump stations, county court houses, schools, jails, etc. They are sometimes grouped in fields to provide a combined name plate capacity of 5000 kW or more. In cases where they can be behind the meter or in service to an interruptible supply, they can be very cost effective investments. New turbines in this size range can be $4000/kW installed, but remanufactured turbines from old utility fields may approach new turbine reliability and be installed in the $1200/kW range.

Utility – 660 kW turbines are currently on the low end for utility sized units. 1500 kW units are most common in recently installed fields, but 2200 kW and larger units are coming. Sizes are limited mainly by blade technology. These are placed in fields of up to 1,000,000 kW (1000 MW) name plate capacity. These are currently installed for ~$1800/kW.

We are focused on community sized wind for multiple reasons:

1. Community wind supports the economic vitality of rural communities. Whereas utility fields are often owned and operated by foreign interests, community wind allows the local business and government to benefit directly from their own natural resources. They represent and additional revenue stream to reduce taxes and provide additional services.
2. Remanufactured turbines put up two decades ago by utilities are now being replaced by much larger turbines. By completely rebuilding and returning these units to community service, they are effectively recycled, representing a “double green” move for the environment.
3. Remanufactured turbines approach new turbines in terms of projected life and operation and maintenance, and are much less expensive. As a result they “pencil out” in small rural applications with marginal wind resources and lower offset of utility prices.
4. Community wind is a source of civic pride and a positive demonstration of global awareness.
5. Communities often need only 1 to 2 MW. Mobilization costs for installing a single utility class turbine are prohibitive. Mobilization for installing an equivalent nameplate capacity of smaller turbines is much more cost effective.

The federal government is offering many economic incentives for development of community sized wind projects. A cataloguing of the programs is a worthwhile process for interested developers. We are currently working with ranchers, Cities, Counties, Tribes, School districts, Universities and Utility Districts developing community wind installations.

Remanufactured Turbines

                                 Remanufactured Turbines discussion #1                    

               

                                 The first blog entry on the discussion of our super-green energy project: using refurbished turbines for wind farms.                    

                               

            

The question of remanufactured turbines comes up in most every discussion we have about wind power. In financially marginal applications, where funding, power sales options or wind resource are limited, the use of a remanufactured turbine may be the only way to make a project “pencil out”. But where resources and conditions are adequate to support new turbines, the client must decide between new and remanufactured turbines. Considerations include: 1) Projected Life of Turbine, 2) Efficiency, 3) Operation and Maintenance Costs, and 4) Installed Cost per Kilowatt.

 

Let’s begin with some definitions.

 

A Remanufactured Turbine is a turbine where the five main moving components have been thoroughly re-manufactured to new or better than new standards. These five main components are 1) Hub 2) Gearbox 3) Generator 4) Hydraulic System and 5) Controls. A knowledgeable and experienced consultant is necessary to evaluate the condition of a remanufactured turbine and the turbine should be delivered with a detailed technical description of the remanufacturing processes and the resulting warranty.

 

A Reconditioned Turbine is one where the condition of each of the five moving components have been evaluated and repaired or upgraded as necessary. Many used turbines have been taken down or decommissioned in working condition to make room for larger turbines, freeing up an inventory of “Community Wind” sized turbines. These are sometimes reinstalled with minimal upgrade, depending on their condition and the time of take down. These decommissioned turbines create a pool of functional turbines which can be reinstalled with minimal renovation cost.

 

A Raw turbine is a turbine in “as is” condition. The inventory of raw turbines are to fodder of the remanufacturing business.

 

Next, let’s talk about cost.

 

Below are some rules of thumb for installed cost during 2007. Installed cost includes the turbine, tower, foundation, electrical interface, wiring, engineering, program management and all components necessary to make the turbine a functioning/generating unit.

Remanufactured turbine cost per kW: $1,000. (Size range 50 kW - 660 kW).New turbine cost per kW: $1,800 (Size range 1,500 kW – 2,200 kW)New turbine cost per kW: $4,000 (Size range 50 kW - 660 kW). 

You can see from the above numbers that in the community size turbine range, the cost of the remanufactured turbines is dramatically less than the new turbine. Also, in this range size, the hub heights are similar for both the new and remanufactured units, so efficiencies are similar.

 

About operation and maintenance:

 

Both the new and the remanufactured have state-of-the-art microprocessor controls for the pitch, yaw and electrical interface and readouts. If the warranties are equivalent and the supplier of the remanufactured turbine is reputable, the ongoing operation and maintenance are similar.

 

The market for “raw” turbines is volatile, and it is difficult to predict where the prices will go in the future. Raw turbine cost variations will directly affect the cost of remanufactured turbines. 

 

There is much more to say about remanufactured turbines and we will continue to discuss them in future blogs. In the next blog on this subject we will address availability, down payments to hold, and delivery timelines. Please send comments and questions.