Wind Energy Basics & Project Cycle

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Wind Energy Basics & Project Cycle

Pramod Jain, Ph.D.Presented to:

DFCC Bank and RERED Consortia MembersJanuary 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

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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?

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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

Source: http://www.physicalgeography.net/fundamentals/7o.html2/4/2011 5

Basics of Wind Energy

Power in wind = ½ A v3

= ½ r2 v3

Units of Power: kilo-Watts, mega-Watts, giga-Watts

Energy = Power * Time Units of energy: kilo-Watt

Hours (kWh), MWh, GWh

0

1000

2000

3000

4000

5000

6000

7000

0 2 4 6 8 10 12 14 16

Power in

 Watts

Wind Speed, m/s

0

50

100

150

200

250

300

350

400

450

0 5 10 15 20

Power in

 KW

Radius of a HAWT in meters

Turbine of rotor radius = 1 m

Wind speed = 8 m/s

Source: P. Jain, Wind Energy Engineering, 20102/4/2011 6

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

Source: P. Jain, Wind Energy Engineering, 2010

• 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

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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.

Source: P. Jain, Wind Energy Engineering, 20102/4/2011 8

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

Basics of Generators and Electrical Grid

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

Source: P. Jain, Wind Energy Engineering, 2010 & http://greenpoweroregon.com/Images/WindDiagram_Lg.gif2/4/2011 9

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 year-round energy production

Wind-diesel hybrid can provide reliable power to remote areas

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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 fuel-based) 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

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QUESTIONS?Questions?

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Wind Power: Incredible Growth

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Wind Power: Incredible Growth

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Wind Power: By Country

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Wind Power Penetration: By Country

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Wind Project Life Cycle

Prospecting Wind Resource Assessment

Siting: Permits, EIA, 

Interconnection

PPAFinancing

EngineeringProcurementContracting

Construction Installation 

Commissioning

Operations & Maintenance

17 Pramod Jain; Sept. 22, 2010

3 months to evaluate multiple sites

5 Criteria: Wind, env.grid, cost, rev

At least 15 months. 2 to 3 yrs for large wind farms

Locale specific: 6 to 12 months

Locale specific: 3 mos

Locale specific: 3 to 24 mosTurbine Cost=$1000-1400 /kW

Faster than1 turbine/moCost=$300-400/kW, includes BOP

Ongoing$40/KW per year

Development: 4 steps. 18 to 36 mos. Cost= $10 to $20 per kW*

*For large projects of size > 20MW. Does not include financing costs (range: $50- $100/kW)

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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

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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

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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

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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

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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

222/4/2011

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

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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

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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

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QUESTIONS?Questions?

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What is different about wind energy?

Transport raw material

Proximity to load

Capacity factor

Scale Variability of resource

Coal, Nuclear, Gas, Diesel

Yes Yes 90+% C/N: Large500MW+

G/D: Med/Low

Significant cost variability

Hydro No No Variable Variable Depends on rain

Wind No No 30 to 50% Variable High diurnaland 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

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Energy Generation Cost Comparison, 2008

0

20

40

60

80

100

120

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

Gen

eration cost Euros/M

Wh

Wind Speed m/s

Onshore installed cost 1300€/KW

Onshore installed cost 1700€/KW

0

20

40

60

80

100

120

Coal Nuclear Gas

Lowest price CO2 cost RangeSource: Wind Power Monthly, January 2009

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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 19‐30EU: 27

Coal‐fired 1,300‐2,325 US: 12 30‐60EU: 18

Nuclear 1,950‐3,400 3.6‐5.5 80‐96

Onshore wind 1,300‐1,500 N/A 33‐50Offshore 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)

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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.

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Cost of New Generation

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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

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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

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