Wind Energy Basics & Project Cycle

Wind Energy Basics & Project Cycle

Wind Energy Basics & Project Cycle 1.800.580.3765 WWW.TTECI.COM Pramod Jain, Ph.D. Presented to: DFCC Bank and RERED Consortia Members January 26 27, 2011 Colombo, Sri Lanka

Agenda Basics of Wind Energy Energy Blowing in the wind Renewable Advantages Growth What is life cycle of a wind project? Steps Timeframe Cost Funding requirements Wind energy versus other methods of generating electricity 2/4/2011 3

Module Objectives Learning Objectives Understand basics of wind energy. What factors influence amount of energy produced? Understand basics of wind turbine generator (WTG). What are the major components of WTG? What are the new developments? What are the steps in a wind project lifecycle? What are the timelines, activities and deliverables? 2/4/2011 4

Basics of Wind Energy: Energy is blowing in the wind Wind is a form of solar energy Uneven heating of earth Heating of ground versus water 2/4/2011 5 Source: http://www.physicalgeography.net/fundamentals/7o.html

Basics of Wind Energy Power in Watts 7000 6000 5000 4000 3000 2000 1000 Turbine of rotor radius = 1 m Power in wind = ½ A v 3 = ½ r 2 v 3 Units of Power: kilo- Watts, mega-watts, giga- Watts Energy = Power * Time Units of energy: kilo-watt Hours (kwh), MWh, GWh Power in KW 0 0 2 4 6 8 10 12 14 16 450 400 350 300 250 200 150 100 50 Wind Speed, m/s Wind speed = 8 m/s 0 0 5 10 15 20 Radius of a HAWT in meters 2/4/2011 6 Source: P. Jain, Wind Energy Engineering, 2010

Basics of Wind Energy Wind speed vs. elevation above ground level Density vs. height above sea level 2% at 200m 17.8% at 2000m Density as a function of humidity 0.6% at 100% relative humidity Power Production Curve of Turbine The power of the wind is converted according to the power curve (red curve) The Ce curve (green curve) gives the conversion ratio. How much the wind energy is converted to electricity 2/4/2011 7 Source: P. Jain, Wind Energy Engineering, 2010

Basics of Wind Turbines 1. Pitch drives. 2. Rotor that connects blades to main shaft. 3. Main shaft. 4. Main bearing. 5. Gearbox. 6. Yaw drive. 7. Disk brakes. 8. Brake hydraulic system. 9. Generator. 10. Main hydraulic system. 11. Nacelle frame. 12. Yaw brakes. 2/4/2011 8 Source: P. Jain, Wind Energy Engineering, 2010

Basics of Generators and Electrical Grid Three types of generators Double Fed Induction Generator Gearbox to increase speed of generator rotor Generator is smaller in size but high speed Optimal energy capture in a narrow wind speed range Direct Drive Synchronous Generator No gearbox Generator size is large in size, but lower speed Optimal energy capture in a bigger wind speed range Direct Drive Permanent Magnet No gearbox Generator size is large in size but lower speed Optimal energy capture in a bigger wind speed range Full power conversion 2/4/2011 9 Source: P. Jain, Wind Energy Engineering, 2010 & http://greenpoweroregon.com/images/winddiagram_lg.gif

Advantages of Wind Energy No fuel costs No variability in cost of energy production, other than O&M costs Revenue to local land owners with out substantially altering land use Boost to the local economy during construction and through out life of project Boost to infrastructure Zero emissions Zero water use Zero mining of fuels Zero transportation of fuels Clean energy 90 to 95% of land can be used for the original purpose Wind-hydro hybrid can provide a powerful combination for yearround energy production Wind-diesel hybrid can provide reliable power to remote areas 2/4/2011 10

Disadvantages of Wind Power Intermittent energy production: Electricity is produced only when wind is blowing There is still need for traditional power plants (hydro or fossil fuelbased) to provide base-load Wind energy replaces peaking units or spinning reserves High capital investment Incentives are required for investors, but not much different compared to other sources New transmission lines may be needed from remote areas to cities Large foot print of wind farms. In interior areas, 30 to 60 acres per MW In coastal areas with single row of turbines, 2 to 5 acres per MW Note most of land can be used for other purposes Birds/bat fatalities Visual impact Noise, and others High levels of wind energy (>30%) in grid may require variety of upgrades to the entire electricity network 2/4/2011 11

QUESTIONS? Questions? 2/4/2011 12

Wind Power: Incredible Growth 2/4/2011 13

Wind Power: Incredible Growth 2/4/2011 14

Wind Power: By Country 2/4/2011 15

Wind Power Penetration: By Country 2/4/2011 16

Wind Project Life Cycle 3 months to evaluate multiple sites Development: 4 steps. 18 to 36 mos. Cost= $10 to $20 per kw* At least 15 months. 2 to 3 yrs for large wind farms Locale specific: 6 to 12 months Locale specific: 3 mos Prospecting Wind Resource Assessment Siting: Permits, EIA, Interconnection PPA Financing 5 Criteria: Wind, env. grid, cost, rev Operations & Maintenance Construction Installation Commissioning Engineering Procurement Contracting Ongoing $40/KW per year Faster than1 turbine/mo Cost=$300-400/kW, includes BOP Locale specific: 3 to 24 mos Turbine Cost=$1000-1400 /kw *For large projects of size > 20MW. Does not include financing costs (range: $50- $100/kW) 2/4/2011 17 Pramod Jain; Sept. 22, 2010

Prospecting Goal: Identify a handful of areas that have a good wind resource Compute wind speed and wind energy estimates based on publicly available wind data: Airport, NCAR, Weather stations Tools: RetScreen Energy estimate: +/- 50% Other factors in site selection: Grid connection, buyer, construction cost, environmental factors 3 months $5 to 10K After site(s) have been selected, Obtain site control through leases 2/4/2011 18

Wind Resource Assessment Goal: Quantify wind resources Measure wind speed. Compute wind energy estimates based on at least one year of measurement and long-term reference data Tools: WindPRO, Wind Farmer Energy estimate: +/- 15% 15 to 36 months Cost: $10 to 15K per MW 2/4/2011 19

Siting: Permitting, EIA, Interconnection Environmental Impact Assessment Wildlife: Migratory birds & bats, local birds & bats and terrestrial wildlife Water resources and wetlands Neighboring communities: Noise, shadow flicker, viewshed Permits Power producer Construction & Transportation Zoning Environmental Others: Long-range radar interference Telecommunications interference Obstruction to aviation Interconnection Agreement to connect to the grid Agreement on the quality of power 2/4/2011 20

PPA, Financing PPA Agreement with buyer of energy about price of energy and conditions for purchase In most cases, this is a standard Power purchase agreement Preliminary Project Design & Engineering Prepare maps and survey Design layout of turbines, access roads, storage areas, substation, local office and transmission lines. Financing Create a project financing package for presentation to investors Negotiate terms with tax-equity investors, other equity investors and lenders 2/4/2011 21

Engineering, Procurement and Contracting EPC or turnkey contracts are the most common contract; components are: Prespecified delivery timeframe and cost Prespecified level of production and quality Project Engineering Layout, civil engineering of infrastructure Foundation design Electrical design Logistics planning and design Procurement of turbines Wind condition and locale specific 2/4/2011 22

Construction, Installation and Commissioning Transportation May be a significant challenge, depends on location: Bridges, roads, ports, hauling equipment Construction & Installation Infrastructure Site preparation Foundation construction Turbine Erection Collection system and substation construction Commissioning Objective: Ensure wind plant is safe to operate, produces energy in a reliable manner and acceptable quality List of outstanding issues 95% availability during 250 hours of continuous operation End result: Handover of project from contractor to owner 2/4/2011 23

Video of installation of wind turbine http://www.youtube.com/watch?v=odtl3st- _WI&feature=player_embedded#! http://www.youtube.com/watch?v=ij89aw3y86q&feature=related http://www.youtube.com/watch?v=pyehd1j0kuu&feature=related 2/4/2011 24

Operations and Maintenance Maximize energy production Minimize operations and maintenance costs Manage day-to-day tasks Three models: Owner managed O&M Third-party managed O&M Turbine manufacturer managed O&M 2/4/2011 25

QUESTIONS? Questions? 2/4/2011 26

What is different about wind energy? Coal, Nuclear, Gas, Diesel Transport raw material Proximity to load Capacity factor Scale Yes Yes 90+% C/N: Large 500MW+ G/D: Med/Low Variability of resource Significant cost variability Hydro No No Variable Variable Depends on rain Wind No No 30 to 50% Variable High diurnal and seasonal Solar No/Don t have to Yes 15 to 22% Small to medium Medium diurnal and seasonal Geo thermal No No 90+% Large to medium Little 2/4/2011

Energy Generation Cost Comparison, 2008 Source: Wind Power Monthly, January 2009 120 100 80 60 40 20 Lowest price CO2 cost Range Generation cost Euros/MWh 120 100 80 60 40 20 Onshore installed cost 1300 /KW Onshore installed cost 1700 /KW 0 Coal Nuclear Gas 0 6.00 6.25 6.50 6.75 7.00 7.25 7.50 7.75 8.00 8.25 8.50 8.75 9.00 9.25 9.50 9.75 10.00 Wind Speed m/s 2/4/2011 28

Energy Generation Installed Cost, 2008 Source: Wind Power Monthly, January 2009 Technology Installed Cost /kw Fuel Price /MWh O&M Cost /kw Gas fired 635 875 US: 16 19 30 EU: 27 Coal fired 1,300 2,325 US: 12 30 60 EU: 18 Nuclear 1,950 3,400 3.6 5.5 80 96 Onshore wind 1,300 1,500 N/A 33 50 Offshore wind 3,000 N/A 70 Global onshore wind total installed costs: $1,600 to $2,210, based on 3,600MW projects in 2008. Caveat: These prices are for large projects (possibly > 20MW) 2/4/2011 29

Levelized Cost of Energy Excludes cost of transmission and integration. Excludes PTC. USA has 8,000 GW of power at $0.085/KWh or less. Source: NREL 20% Wind by 2030. 2/4/2011 30

Cost of New Generation 2/4/2011 31

Utility Scale versus Small Scale Installed costs: $2/W Taller structures, capture higher wind speed Lesser turbulence In wind farms the scale of energy production justifies dedicated O&M team resulting in higher production Installed costs: $5 to $10 per Watt Shorter structures, wind speed is lower Higher turbulence due to surface roughness No dedicated O&M team, higher chances of long downtime Roof-top and other types of small turbines are usually not financially viable 2/4/2011 32

Conclusions In most countries wind energy is the fastest growing new source of electrical energy Wind projects cost about $1500 to $2000 per kw Timeframe for wind projects is 24 to 36 months Wind project lifecycle has a large number of steps Attention to details and rigorous due diligence during development phase can mitigate risk of delays and cost overruns 2/4/2011 33