Wind
Heather Broman
Energy Storage
Accure Battery Intelligence
Wind
Dr. Sandeep Gupta
US Wind, Inc. (“US Wind”) joined Governor Wes Moore, Speaker of the House, Adrienne A. Jones, Senate President Bill Ferguson, and other key leaders of the Maryland General Assembly for the signing of critical legislation aimed at keeping the state’s offshore wind goals on track.
Maryland House Bill 1296 was sponsored by House Economic Matters Committee Chair CT Wilson and Vice Chair Brian Crosby. A companion bill, Senate Bill 1161, was cross-filed in the Senate, where it was sponsored by Chair of the Senate Education, Energy, and the Environment Committee Brian Feldman, and Senator Katie Hester. The law allows qualified offshore wind developers to apply for outstanding Offshore Renewable Energy Credits (“ORECs”) created as a result of changes in the market and to add additional capacity to existing projects. The new law also amends the POWER Act to add an additional solicitation to the state’s Department of General Services offshore wind procurement schedule and removes the cap on the amount of offshore wind energy the state seeks to procure.
“This legislation is a game-changer for the Maryland offshore wind program,” said Jeffrey Grybowski, US Wind CEO. “We are grateful for the unwavering support and stalwart leadership of Maryland’s leaders on this critical piece of legislation. US Wind is here to stay. I am very confident that we will build Maryland’s first offshore wind farm, first offshore wind manufacturing facility at Sparrows Point, and deliver this clean energy to the people of Delmarva for years to come.”
US Wind controls the rights to an 80,000-acre lease area located off the coast of Maryland, which is able to support close to 1,800 megawatts (“MW”) of offshore wind energy generation. In October 2023, the Bureau of Ocean Energy Management (“BOEM”) issued a draft environmental impact statement on US Wind’s construction and operations plan, putting the company on the path to securing final federal permits by the end of 2024. US Wind is also establishing Maryland’s first permanent offshore wind factory – Sparrows Point Steel – at the site of the former Bethlehem Steel Shipyard in Baltimore County to manufacture parts for the U.S. offshore wind industry.
US Wind | https://uswindinc.com/
Scott Childers, Vice President of the Essential Power division for Stryten Energy, addresses the various battery technologies that will play key roles in building more sustainable supply chains. Domestic energy resilience is an important topic across the U.S. right now. The nation’s grid infrastructure is aging, and power consumption is expected to reach record highs. Utilities have almost doubled their forecast of the additional energy needed to meet the growing demands of manufacturing, data centers and EV charging stations.
Fossil-fuel power plants are facing increasingly strict environmental regulations. More than 200 coal plants have closed in the past decade. Operators plan to retire 15.6 gigawatts (GW) of electric-generating capacity this year, mostly natural gas-fired and coal-fired power plants. At the same time, 19 GW of solar capacity was added in 2023.
As coal and gas plants that provided consistent power are retired, and more renewable energy resources come online, we need proven back-up energy sources to help bridge the gap in supply and demand when electricity can be stored during peak hours of production for use at times with lower energy generation.
Much of the conversation is focused on how to leverage commonly available battery chemistries to create more battery energy storage systems (BESS). Lead has long been a reliable option with a diverse range of BESS use cases already in operation, and lithium, while already in demand for EVs and hybrid vehicles, could also play a role.
However, it’s going to take an even wider range of chemistries, including some nearing commercialization and some still in development, to nearshore our energy supply chain and give the U.S. a sustainable source of energy security.
Three trends in particular give us better insight into what the future of BESS might look like:
Lithium batteries come with plenty of pros. The chemistry is lightweight with high energy density. However, its supply chains are lengthy. While the U.S. is working to establish a domestic lithium battery supply chain, today lithium processing and battery manufacturing are heavily reliant on China. In Q4 2022, more than 85% of U.S. lithium-ion battery imports came from Chinese manufacturers.
Additionally, as manufacturers leverage lithium for long-duration energy storage, they’re finding some of the chemistry’s qualities – relatively short cycle life compared to other emerging chemistries, and restrictions created by power purchasing agreements – mean it isn’t always the right fit for their needs. Lithium is essentially a short-duration solution. To use it for long-duration needs, businesses must purchase and connect multiple lithium battery systems, a less viable commercial option as more EVs are manufactured and competition for the supply of lithium intensifies.
Utilities that enter into a lithium battery power purchasing agreement have also discovered the chemistry’s properties make it difficult to operate within the agreement’s parameters. The battery owner might require that the battery remain at a 50% state of charge, forestalling the lifespan reductions caused by full discharge. However, that approach leaves the business unable to use the battery as often as needed.
There are other, newer solutions that pose less of a roadblock, such as vanadium batteries, one of today’s emerging technologies with near infinite cycle life.
Trend #2: Vanadium fills the energy storage gap
Vanadium, while better suited for long-duration energy storage than lithium, comes with its own set of challenges in establishing a reliable supply chain. Now that manufacturers have proven vanadium’s usefulness as a battery chemistry, efforts will begin to build demand to a point at which mines are willing to carry the financial risk of investing in scaling up vanadium mining.
Currently, vanadium pricing typically rides construction market swings, reinforcing steel is vanadium’s primary use case. Mines want to avoid supplying too much vanadium and driving prices too low. As the chemistry reaches a more consistent demand within the energy storage industry, its pricing will be less prone to fluctuation. Market projections estimate that demand for vanadium to power vanadium redox flow batteries (VRFBs) will grow at a CAGR of approximately 56.7% through the rest of the decade, with even greater growth in the 2030s.
The supply and demand economics are challenged by consolidation and control of the vanadium market by countries of concern. Ensuring vanadium supply is available from friendly countries is a critical factor in establishing a domestic supply chain to meet the growing demand for VRFBs in the U.S.
Ultimately, the long duration and long life of VRFBs makes the work to scale U.S.-based supply chains worth it. Vanadium batteries can function for more than two decades without the electrolyte losing capacity, and the electrolyte is infinitely recyclable, making it a sustainable energy storage technology for generations to come.
Trend #3: A solution for critical needs – but smaller footprints
There are situations where a VRFB’s size makes it incompatible with smaller footprints. At the moment, VRFBs are mostly delivered in containerized solutions – an easily available form factor – but could one day look more like a chemical plant.
A lead BESS is often the right solution for smaller implementations. Lead is the “workhorse” of the energy field, as a safe and reliable battery technology. Lead batteries also have a robust circular economy – nearly 100% of a lead battery can be recovered to make new batteries at end-of-life. Because of the strength of lead batteries as a reliable energy storage solution, they are widely used for backup power in multiple use cases, including telecommunications and utilities, network operations and data centers, microgrids and residential solar.
A brief outage for smaller commercial or industrial operations, such as food manufacturing facilities, can cause tens, or even hundreds, of thousands of dollars in waste. Lead BESS would be the right technology to keep these operations up and running.
These systems are also capable of integrating renewable energy sources into the grid, and helping businesses integrate more sustainable energy generation into their operations. A project in Atlanta is underway to demonstrate how a lead BESS can help keep a community center running during periods of prolonged power outages, up to three days, ensuring critical supplies are kept at the right temperature, and residents have access to clean water and electricity.
Lead BESS technology could also play a key role in stabilizing the EV charging market, helping stations move away from variable electricity costs. By charging batteries in off peak times when costs are low, charging stations have access to a reservoir of energy during peak demand periods such as late afternoon and evening. This creates a more consistent cost structure. Pairing the EV charger with a battery and solar offers even greater savings potential.
Finding the right BESS solution for the right use cases
As the need for more BESS solutions climbs, lead, lithium and vanadium battery chemistries will each play key roles in building more sustainable energy supply chains. Lead’s recyclability means there’s a consistent supply of the material for building BESS. Lithium is a viable option for shorter durations. And vanadium, while not yet widely implemented, promises to offer long-duration energy storage on a large scale.
Each chemistry offers unique benefits that make it fit for different applications. A range of battery chemistries will be needed to meet the evolving energy storage needs of the U.S. to provide energy resilience and security.
Stryten Energy | https://www.stryten.com/
BLUETTI Power Inc., a pioneer in the clean energy storage industry, has signed on to become a Megawatt Sponsor of RE+ Texas, and it’s showroom theater, which takes place on May 14- 15 at the George R. Brown Convention Center in Houston.
Director of Sales, Brian Shircliffe, is scheduled to deliver a keynote presentation titled “The Good, The Battery, and the Ugly,” where he will unveil the future directions of the solar industry, focusing on the critical role of battery integration. Leveraging his extensive experience at BLUETTI—recently acclaimed for having the "Best Overall Solar Battery of 2024" by CNET—Brian will dive into the current challenges in solar technology, the urgent need for innovative solutions, and the comprehensive benefits of integrated home power systems.
Bluetti staff will also be on hand to showcase the EP900/B500 system.
EP900+B500 - Modular Energy Storage System for Whole Home Battery Storage
The EP900 & B500 basic starter kit features a 9kW inverter and expandable capacity that starts at 9kWh with a single B500 LFP battery and ends at 39.6kWh when paired with 8 batteries. The system can be integrated directly into any solar system, allowing for 9kW max solar input. Besides its peak-load shifting mode to reduce electric bills, it also acts as an uninterruptible power supply (UPS) that switches instantly to battery power in 10ms after the grid power fails.
Other Power Generation Products
The AC500+B300S is a modular energy storage system for all occasions. Late last year, it raised $11 million from more than 4,000 backers on Indiegogo, another record in BLUETTI's history.
The 16-outlet solar generator pumps out 5kW pure sine wave power and can be charged via 8kW AC+ Solar dual input. The AC500 can handle anything from home blackouts to outdoor camping when teamed with one to six B300S LFP batteries for a maximum capacity of 18,432Wh.
Bluetti has a lineup of portable generators called the EB series, such as the popular 10-pound EB3A. The AC200MAX, AC200P and EP500, EP500Pro make up the best all-in-one power giant collection. Options for power stations are growing in number as BLUETTI's R&D team continues to roll out products based on customer demand.
BLUETTI | https://www.bluettipower.com/
DTE Energy (NYSE:DTE) announced the company is issuing a Request for Proposal (RFP) for new standalone energy storage projects totaling approximately 120 megawatts. These projects will support DTE Electric’s CleanVision Integrated Resource Plan and Michigan's new standard of 60% renewable energy by 2030, both of which contribute to DTE’s overarching carbon reduction goals.
The RFP requires the standalone energy storage projects to achieve commercial operation by March 31, 2027. Projects must be located in Michigan and interconnected to the Midcontinent Independent System Operator or distribution-level transmission. Interested bidders should register their company information on the PowerAdvocate website and, once registered, can attend a virtual pre-RFP conference on May 23, 2024. Bids are due by August 2, 2024, and DTE expects to execute contracts by Q1 2025.
“Energy storage facilities are imperative to Michigan’s clean energy transformation and a great complement to DTE’s growing renewable energy generation fleet,” said Chuck Conlen, vice president, Clean Energy and Acquisitions, DTE Energy. “DTE is proud to be a leader in the energy storage space as we continue developing a balanced energy fuel mix that delivers cleaner, reliable and affordable energy to our customers.”
DTE currently owns and operates three energy storage facilities in Michigan, including the Ludington Pumped Storage Plant, a hydroelectric plant and long-duration storage facility on the shores of Lake Michigan co-owned with Consumers Energy; and two battery storage facilities located at solar energy sites. Additionally, DTE’s Slocum Battery Energy Storage System, a 14-megawatt lithium-ion battery facility pilot in Trenton, Michigan, is expected to be operational in January 2025. The Michigan Public Service Commission also recently approved DTE’s plans for a 220-megawatt energy storage project at the site of the former Trenton Channel Power Plant.
By 2042, DTE plans to have 2,950 megawatts of energy storage capacity in its portfolio, more than doubling the amount the company has today.
DTE Energy | dtecleanenergy.com
The American Clean Power Association (ACP) released the following statement from ACP Vice President of Markets & Transmission Carrie Zalewski after the Federal Energy Regulatory Commission (FERC) announced its final rule on regional transmission planning and cost allocation, Order No. 1920:
“Today’s announcement is an important step in building out America’s electric grid for a clean, affordable, and reliable energy future. We commend all those at FERC who have helped reach this important milestone in the development of the transmission infrastructure our nation needs—but it cannot be the finish line.
“FERC has acknowledged the multiple benefits that transmission provides and has set out a process to ensure that all beneficiaries help to fund projects that reduce customer rates and keep the lights on. If implemented effectively, this will lead to much-needed expansion in transmission capacity on the U.S. grid. At the same time, there are also areas in the rule to build upon, especially with regard to the integration of new resources and enabling more transmission between regions.
“With demand for electricity growing, extreme weather becoming more common, and America’s power grid getting older and struggling to keep pace with the need for transmission expansion, the time to act is now.”
Piersica Inc., announced that it has received a grant from Shell GameChanger. The grant will help accelerate the development of the company’s innovative solid-state battery technology. Founded and led by a battery industry veteran Dr. Claudiu Bucur, Piersica is at the forefront of developing novel battery technology, utilizing new materials created by the company. Piersica’s technology innovations include:
These innovations aim to deliver a battery with a remarkable energy density of 630 Wh/kg, representing a 2.5x increase over today's lithium-ion batteries and pushing the boundaries toward the upper limit of lithium-based battery technology.
Shell GameChanger supports innovative companies in transforming their early-stage ideas into commercial realities. The partnership will not only provide Piersica with seed funding for a proof of concept, but also with expertise and support for technology development and scale-up. This grant reaffirms Piersica's innovative approach and its potential to contribute to the global shift towards more sustainable energy solutions.
"Piersica is well-positioned to influence the energy landscape with its innovative lithium-ion battery technology," said Claudiu Bucur, CEO of Piersica Inc. "The Shell GameChanger grant accelerates our path to commercialization and validates our vision to use our technology for a more sustainable energy future. We look forward to working together."
“Piersica’s technology differentiates itself with its innovative approach to enhancing battery technology,” commented David Rahmani, commercial partnerships manager at Shell GameChanger. “Their commitment to pushing the boundaries of energy density aligns with our mission to support high-potential companies aiming to transform the energy sector. We are eager to see how this partnership will contribute to the advancement of sustainable energy solutions.”
Piersica | https://piersica.com
Shell GameChanger | www.shell.com
Stryten Energy LLC, a U.S.-based energy storage solutions provider, will highlight the benefits of its lead battery energy storage systems (BESS) at Battcon 2024 in Miami.
Stryten Energy’s Lead BESS technology is designed to safeguard against power outages, ensuring continuous operation of critical infrastructure and applications when traditional power sources fail. It can also act as a critical grid support tool, providing rapid response capabilities to mitigate fluctuations, stabilize voltage and enhance overall grid resilience.
Stryten Energy’s Lead BESS technology can be sized to meet a wide range of applications today – from commercial and industrial to utility scale – and easily support future expansion to meet evolving power and energy storage requirements.
“We often refer to lead batteries as 'silent workhorses' and for good reason – they’re dependable for keeping the lights on, even when other power sources are offline,” said Scott Childers, Vice President, Essential Power at Stryten Energy. “The technology already has an established domestic supply chain and a complete circular economy, providing a sustainable and cost-effective energy storage solution for businesses requiring energy resiliency for their operations.”
Visitors to Booth #133 will see the key product powering Stryten Energy’s Lead BESS systems:
E-Series Absolyte AGP: 2-volt valve-regulated lead-acid (VRLA) battery cells proven for telecommunications, UPS, electric utility, railroad and renewable energy applications. Absolyte AGP cells are designed and optimized for standby float or cycling applications and are available with an ampere-hour capacity of 104-4800Ah. The Absolyte AGP provides superior float life (20 years at 25ºC) and cycling capabilities (1200 cycles to 80% depth of discharge).
To learn more about Stryten Energy’s essential power solutions ahead of Battcon, visit https://www.stryten.com/essential-power/.
Stryten Energy | www.stryten.com
Alternative Energies May 15, 2023
The United States is slow to anger, but relentlessly seeks victory once it enters a struggle, throwing all its resources into the conflict. “When we go to war, we should have a purpose that our people understand and support,” as former Secretary ....
Unleashing trillions of dollars for a resilient energy future is within our grasp — if we can successfully navigate investment risk and project uncertainties.
The money is there — so where are the projects?
A cleaner and more secure energy future will depend on tapping trillions of dollars of capital. The need to mobilize money and markets to enable the energy transition was one of the key findings of one of the largest studies ever conducted among the global energy sector C-suite. This will mean finding ways to reduce the barriers and uncertainties that prevent money from flowing into the projects and technologies that will transform the energy system. It will also mean fostering greater collaboration and alignment among key players in the energy space.
Interestingly, the study found that insufficient access to finance was not considered the primary cause of the current global energy crisis. In fact, capital was seen to be available — but not being unlocked. Why is that? The answer lies in the differing risk profiles of energy transition investments around the world. These risks manifest in multiple ways, including uncertainties relating to project planning, public education, stakeholder engagement, permitting, approvals, policy at national and local levels, funding and incentives, technology availability, and supply chains.
These risks need to be addressed to create more appealing investment opportunities for both public and private sector funders. This will require smart policy and regulatory frameworks that drive returns from long-term investment into energy infrastructure. It will also require investors to recognize that resilient energy infrastructure is more than an ESG play — it is a smart investment in the context of doing business in the 21st century.
Make de-risking investment profiles a number one priority
According to the study, 80 percent of respondents believe the lack of capital being deployed to accelerate the transition is the primary barrier to building the infrastructure required to improve energy security. At the same time, investors are looking for opportunities to invest in infrastructure that meets ESG and sustainability criteria. This suggests an imbalance between the supply and demand of capital for energy transition projects.
How can we close the gap?
One way is to link investors directly to energy companies. Not only would this enable true collaboration and non-traditional partnerships, but it would change the way project financing is conceived and structured — ultimately aiding in potentially satisfying the risk appetite of latent but hugely influential investors, such as pension funds. The current mismatch of investor appetite and investable projects reveals a need for improving risk profiles, as well as a mindset shift towards how we bring investment and developer stakeholders together for mutual benefit. The circular dilemma remains: one sector is looking for capital to undertake projects within their skill to deploy, while another sector wonders where the investable projects are.
This conflict is being played out around the world; promising project announcements are made, only to be followed by slow progress (or no action at all). This inertia results when risks are compounded and poorly understood. To encourage collaboration between project developers and investors with an ESG focus, more attractive investment opportunities can be created by pulling several levers: public and private investment strategies, green bonds and other sustainable finance instruments, and innovative financing models such as impact investing.
Expedite permitting to speed the adoption of new technologies
Another effective strategy to de-risk investment profiles is found in leveraging new technologies and approaches that reduce costs, increase efficiency, and enhance the reliability of energy supply. Research shows that 62 percent of respondents indicated a moderate or significant increase in investment in new and transitional technologies respectively, highlighting the growing interest in innovative solutions to drive the energy transition forward.
Hydrogen, carbon capture and storage, large-scale energy storage, and smart grids are some of the emerging technologies identified by survey respondents as having the greatest potential to transform the energy system and create new investment opportunities. However, these technologies face challenges such as long lag times between conception and implementation.
If the regulatory environment makes sense, then policy uncertainty is reduced, and the all-important permitting pathways are well understood and can be navigated. Currently, the lack of clear, timely, and fit-for-purpose permitting is a major roadblock to the energy transition. To truly unleash the potential of transitional technologies requires the acceleration of regulatory systems that better respond to the nuance and complexity of such technologies (rather than the current one-size-fits all approach). In addition, permitting processes must also be expedited to dramatically decrease the period between innovation, commercialization, and implementation. One of the key elements of faster permitting is effective consultation with stakeholders and engagement with communities where these projects will be housed for decades. This is a highly complex area that requires both technical and communication skills.
The power of collaboration, consistency, and systems thinking
The report also reveals the need for greater collaboration among companies in the energy space to build a more resilient system. The report shows that, in achieving net zero, there is a near-equal split between those increasing investment (47 percent of respondents), and those decreasing investment (39 percent of respondents). This illustrates the complexity and diversity of the system around the world. A more resilient system will require all its components – goals and actions – to be aligned towards a common outcome.
Another way to de-risk the energy transition is to establish consistent, transparent, and supportive policy frameworks that encourage investment and drive technological innovation. The energy transition depends on policy to guide its direction and speed by affecting how investors feel and how the markets behave. However, inconsistent or inadequate policy can also be a source of uncertainty and instability. For example, shifting political priorities, conflicting international standards, and the lack of market-based mechanisms can hinder the deployment of sustainable technologies, resulting in a reluctance to commit resources to long-term projects.
Variations in country-to-country deployment creates disparities in energy transition progress. For instance, the 2022 Inflation Reduction Act in the US has posed challenges for the rest of the world, by potentially channeling energy transition investment away from other markets and into the US. This highlights the need for a globally unified approach to energy policy that balances various national interests while addressing a global problem.
To facilitate the energy transition, it is imperative to establish stable, cohesive, and forward-looking policies that align with global goals and standards. By harmonizing international standards, and providing clear and consistent signals, governments and policymakers can generate investor confidence, helping to foster a robust energy ecosystem that propels the sector forward.
Furthermore, substantive and far-reaching discussions at international events like the United Nations Conference of the Parties (COP), are essential to facilitate this global alignment. These events provide an opportunity to de-risk the energy transition through consistent policy that enables countries to work together, ensuring that the global community can tackle the challenges and opportunities of the energy transition as a united front.
Keeping net-zero ambitions on track
Despite the challenges faced by the energy sector, the latest research reveals a key positive: 91 percent of energy leaders surveyed are working towards achieving net zero. This demonstrates a strong commitment to the transition and clear recognition of its importance. It also emphasizes the need to accelerate our efforts, streamline processes, and reduce barriers to realizing net-zero ambitions — and further underscores the need to de-risk energy transition investment by removing uncertainties.
The solution is collaborating and harmonizing our goals with the main players in the energy sector across the private and public sectors, while establishing consistent, transparent, and supportive policy frameworks that encourage investment and drive technological innovation.
These tasks, while daunting, are achievable. They require vision, leadership, and action from all stakeholders involved. By adopting a new mindset about how we participate in the energy system and what our obligations are, we can stimulate the rapid progress needed on the road to net zero.
Dr. Tej Gidda (Ph.D., M.Sc., BSc Eng) is an educator and engineer with over 20 years of experience in the energy and environmental fields. As GHD Global Leader – Future Energy, Tej is passionate about moving society along the path towards a future of secure, reliable, and affordable low-carbon energy. His focus is on helping public and private sector clients set and deliver on decarbonization goals in order to achieve long-lasting positive change for customers, communities, and the climate. Tej enjoys fostering the next generation of clean energy champions as an Adjunct Professor at the University of Waterloo Department of Civil and Environmental Engineering.
GHD | www.ghd.com
The Kincardine floating wind farm, located off the east coast of Scotland, was a landmark development: the first commercial-scale project of its kind in the UK sector. Therefore, it has been closely watched by the industry throughout its installation. With two of the turbines now having gone through heavy maintenance, it has also provided valuable lessons into the O&M processes of floating wind projects.
In late May, the second floating wind turbine from the five-turbine development arrived in the port of Massvlakte, Rotterdam, for maintenance. An Anchor Handling Tug Supply (AHTS)
vessel was used to deliver the KIN-02 turbine two weeks after a Platform Supply Vessel (PSV) and AHTS had worked to disconnect the turbine from the wind farm site. The towing vessel became the third vessel used in the operation.
This is not the first turbine disconnected from the site and towed for maintenance. In the summer of 2022, KIN-03 became the world’s first-ever floating wind turbine that required heavy maintenance (i.e. being disconnected and towed for repair). It was also towed from Scotland to Massvlakte.
Each of these operations has provided valuable lessons for the ever-watchful industry in how to navigate the complexities of heavy maintenance in floating wind as the market segment grows.
The heavy maintenance process
When one of Kincardine’s five floating 9.5 MW turbines (KIN-03) suffered a technical failure in May 2022, a major technical component needed to be replaced. The heavy maintenance strategy selected by the developer and the offshore contractors consisted in disconnecting and towing the turbine and its floater to Rotterdam for maintenance, followed by a return tow and re-connection. All of the infrastructure, such as crane and tower access, remained at the quay following the construction phase. (Note, the following analysis only covers KIN-03, as details of the second turbine operation are not yet available).
Comparing the net vessel days for both the maintenance and the installation campaigns at this project highlights how using a dedicated marine spread can positively impact operations.
For this first-ever operation, a total of 17.2 net vessel days were required during turbine reconnection—only a slight increase on the 14.6 net vessel days that were required for the first hook-up operation performed during the initial installation in 2021. However, it exceeds the average of eight net vessel days during installation. The marine spread used in the heavy maintenance operation differed from that used during installation. Due to this, it did not benefit from the learning curve and experience gained throughout the initial installation, which ultimately led to the lower average vessel days.
The array cable re-connection operation encountered a similar effect. The process was performed by one AHTS that spent 10 net vessel days on the operation. This compares to the installation campaign, where the array cable second-end pull-in lasted a maximum of 23.7 hours using a cable layer.
Overall, the turbine shutdown duration can be broken up as 14 days at the quay for maintenance, 52 days from turbine disconnection to turbine reconnection, and 94 days from disconnection to the end of post-reconnection activities.
What developers should keep in mind for heavy maintenance operations
This analysis has uncovered two main lessons developers should consider when planning a floating wind project: the need to identify an appropriate O&M port, and to guarantee that a secure fleet is available.
Floating wind O&M operations require a port with both sufficient room and a deep-water quay. The port must also be equipped with a heavy crane with sufficient tip height to accommodate large floaters and reach turbine elevation. Distance to the wind farm should also be taken into account, as shorter distances will reduce towing time and, therefore, minimize transit and non-productive turbine time.
During the heavy maintenance period for KIN-03 and KIN-02, the selected quay (which had also been utilized in the initial installation phase of the wind farm project), was already busy as a marshalling area for other North Sea projects. This complicated the schedule significantly, as the availability of the quay and its facilities had to be navigated alongside these other projects. This highlights the importance of abundant quay availability both for installation (long-term planning) and maintenance that may be needed on short notice.
At the time of the first turbine’s maintenance program (June 2022), the North Sea AHTS market was in an exceptional situation: the largest bollard pull AHTS units contracted at over $200,000 a day, the highest rate in over a decade.
During this time, the spot market was close to selling out due to medium-term commitments, alongside the demand for high bollard pull vessels for the installation phase at a Norwegian floating wind farm project. The Norwegian project required the use of four AHTS above a 200t bollard pull. With spot rates ranging from $63,000 to $210,000 for the vessels contracted for Kincardine’s maintenance, the total cost of the marine spread used in the first repair campaign was more than $4 million.
Developers should therefore consider the need to structure maintenance contracts with AHTS companies, either through frame agreements or long-term charters, to decrease their exposure to spot market day rates as the market tightens in the future.
While these lessons are relevant for floating wind developers now, new players are looking towards alternative heavy O&M maintenance options for the future. Two crane concepts are especially relevant in this instance. The first method is for a crane to be included in the turbine nacelle to be able to directly lift the component which requires repair from the floater, as is currently seen on onshore turbines. This method is already employed in onshore turbines and could be applicable for offshore. The second method is self-elevating cranes with several such solutions already in development.
The heavy maintenance operations conducted on floating turbines at the Kincardine wind farm have provided invaluable insights for industry players, especially developers. The complex process of disconnecting and towing turbines for repairs highlights the need for meticulous planning and exploration of alternative maintenance strategies, some of which are already in the pipeline. As the industry evolves, careful consideration of ports, and securing fleet contracts, will be crucial in driving efficient and cost-effective O&M practices for the floating wind market.
Sarah McLean is Market Research Analyst at Spinergie, a maritime technology company specializing in emission, vessel performance, and operation optimization.
Spinergie | www.spinergie.com
According to the Energy Information Administration (EIA), developers plan to add 54.5 gigawatts (GW) of new utility-scale electric generating capacity to the U.S. power grid in 2023. More than half of this capacity will be solar. Wind power and battery storage are expected to account for roughly 11 percent and 17 percent, respectively.
A large percentage of new installations are being developed in areas that are prone to extreme weather events and natural disasters (e.g., Texas and California), including high wind, tornadoes, hail, flooding, earthquakes, wildfires, etc. With the frequency and severity of many of these events increasing, project developers, asset owners, and tax equity partners are under growing pressure to better understand and mitigate risk.
Figure 1. The history of billion-dollar disasters in the United States each year from 1980 to 2022 (source: NOAA)
In terms of loss prevention, a Catastrophe (CAT) Modeling Study is the first step to understanding the exposure and potential financial loss from natural hazards or extreme weather events. CAT studies form the foundation for wider risk management strategies, and have significant implications for insurance costs and coverage.
Despite their importance, developers often view these studies as little more than a formality required for project financing. As a result, they are often conducted late in the development cycle, typically after a site has been selected. However, a strong case can be made for engaging early with an independent third party to perform a more rigorous site-specific technical assessment. Doing so can provide several advantages over traditional assessments conducted by insurance brokerage affiliates, who may not possess the specialty expertise or technical understanding needed to properly apply models or interpret the results they generate. One notable advantage of early-stage catastrophe studies is to help ensure that the range of insurance costs, which can vary from year to year with market forces, are adequately incorporated into the project financial projections.
The evolving threat of natural disasters
Over the past decade, the financial impact of natural hazard events globally has been almost three trillion dollars. In the U.S. alone, the 10-year average annual cost of natural disaster events exceeding $1 billion increased more than fourfold between the 1980s ($18.4 billion) and the 2010s ($84.5 billion).
Investors, insurers, and financiers of renewable projects have taken notice of this trend, and are subsequently adapting their behavior and standards accordingly. In the solar market, for example, insurance premiums increased roughly four-fold from 2019 to 2021. The impetus for this increase can largely be traced back to a severe storm in Texas in 2019, which resulted in an $80 million loss on 13,000 solar panels that were damaged by hail.
The event awakened the industry to the hazards severe storms present, particularly when it comes to large-scale solar arrays. Since then, the impact of convective weather on existing and planned installations has been more thoroughly evaluated during the underwriting process. However, far less attention has been given to the potential for other natural disasters; events like floods and earthquakes have not yet resulted in large losses and/or claims on renewable projects (including wind farms). The extraordinary and widespread effect of the recent Canadian wildfires may alter this behavior moving forward.
A thorough assessment, starting with a CAT study, is key to quantifying the probability of their occurrence — and estimating potential losses — so that appropriate measures can be taken to mitigate risk.
All models are not created equal
Industrywide, certain misconceptions persist around the use of CAT models to estimate losses from an extreme weather event or natural disaster.
Often, the perception is that risk assessors only need a handful of model inputs to arrive at an accurate figure, with the geographic location being the most important variable. While it’s true that many practitioners running models will pre-specify certain project characteristics regardless of the asset’s design (for example, the use of steel moment frames without trackers for all solar arrays in a given region or state), failure to account for even minor details can lead to loss estimates that are off by multiple orders of magnitude.
The evaluation process has recently become even more complex with the addition of battery energy storage. Relative to standalone solar and wind farms, very little real-world experience and data on the impact of extreme weather events has been accrued on these large-scale storage installations. Such projects require an even greater level of granularity to help ensure that all risks are identified and addressed.
Even when the most advanced modeling software tools are used (which allow for thousands of lines of inputs), there is still a great deal that is subject to interpretation. If the practitioner does not possess the expertise or technical ability needed to understand the model, the margin for error can increase substantially. Ultimately, this can lead to overpaying for insurance. Worse, you may end up with a policy with insufficient coverage. In both cases, the profitability of the asset is impacted.
Supplementing CAT studies
In certain instances, it may be necessary to supplement CAT models with an even more detailed analysis of the individual property, equipment, policies, and procedures. In this way, an unbundled risk assessment can be developed that is tailored to the project. Supplemental information (site-specific wind speed studies and hydrological studies, structural assessment, flood maps, etc.) can be considered to adjust vulnerability models.
This provides an added layer of assurance that goes beyond the pre-defined asset descriptions in the software used by traditional studies or assessments. By leveraging expert elicitations, onsite investigations, and rigorous engineering-based methods, it is possible to discretely evaluate asset-specific components as part of the typical financial loss estimate study: this includes Normal Expected Loss (NEL), also known as Scenario Expected Loss (SEL); Probable Maximum Loss (PML), also known as Scenario Upper Loss (SUL); and Probabilistic Loss (PL).
Understanding the specific vulnerabilities and consequences can afford project stakeholders unique insights into quantifying and prioritizing risks, as well as identifying proper mitigation recommendations.
Every project is unique
The increasing frequency and severity of natural disasters and extreme weather events globally is placing an added burden on the renewable industry, especially when it comes to project risk assessment and mitigation. Insurers have signaled that insurance may no longer be the main basis for transferring risk; traditional risk management, as well as site and technology selection, must be considered by developers, purchasers, and financiers.
As one of the first steps in understanding exposure and the potential capital loss from a given event, CAT studies are becoming an increasingly important piece of the risk management puzzle. Developers should treat them as such by engaging early in the project lifecycle with an independent third-party practitioner with the specialty knowledge, tools, and expertise to properly interpret models and quantify risk.
Hazards and potential losses can vary significantly depending on the project design and the specific location. Every asset should be evaluated rigorously and thoroughly to minimize the margin for error, and maximize profitability over its life.
Chris LeBoeuf is Global Head of the Extreme Loads and Structural Risk division of ABS Group, based in San Antonio, Texas. He leads a team of more than 60 engineers and scientists in the US, UK, and Singapore, specializing in management of risks to structures and equipment related to extreme loading events, including wind, flood, seismic and blast. Chris has more than 20 years of professional experience as an engineering consultant, and is a recognized expert in the study of blast effects and blast analysis, as well as design of buildings. He holds a Bachelor of Science in Civil Engineering from The University of Texas at San Antonio, and is a registered Professional Engineer in 12 states.
ABS Group | www.abs-group.com
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