As we reported earlier, it was great to see the announcement from Drax that wind energy generation reached record levels in the UK on January 17th. This comes on the back of a record year for wind energy in 2017 and it highlights just how important wind energy now is to the UK. Our renewables asset management team are making sure these assets continue to perform.
Here at Locogen our renewables asset management team also managed to return some impressive figures
We are proud to play a part in the continuing success of renewable energy in the UK and projects owned or managed by Locogen generated 94.5 GWh in 2017. To put this figure into some context, it’s enough to satisfy the electricity demand for more than 30,000 homes – as defined by Ofgem here.
Our portfolio plays its part in tackling climate change, too, offsetting more than 33,000 tonnes of CO2 as calculated by the UK government.
Clearly these projects represent substantial assets for our clients and it’s vital that they operate to maximum efficiency. We’re therefore very pleased indeed to announce that Locogen’s asset management team achieved an overall project technical availability of more than 99% across our portfolio for 2017. This is a fantastic result, especially when you consider the various storms the UK experienced through 2017 and the remote location of many of our projects.
Locogen’s Approach to Asset Management for Renewable Energy
We like to think that this impressive result is also testimony to the approach taken by our asset management team. This is based upon excellent communication, forward planning and a thorough understanding of the specific circumstances at each of our client sites. We also tailor our asset management services to suit the particular needs of each client, creating a bespoke package reflecting those requirements.
This approach has been honed by nine years’ experience in asset management for renewables and is informed by our own activities in the sector. As a developer, owner and operator of our own renewable assets, we have first-hand experience of the issues our clients face. This insight has helped us to shape our services to deliver the best possible results. We provide asset management services across a wide spectrum of renewable energy technologies, including hydro, wind, solar, biomass and anaerobic digestion.
A Comprehensive Suite of Services to manage Your Renewable Energy Assets
While we know that most renewables asset management clients will require a bespoke solution, many benefit from some or all these Locogen services:
- Performance analysis
- Maintenance coordination
- Operational administration
- Regulatory compliance
- Financial services
You can find out more about our asset management services here or download our brochure here. Locogen clients derive a number of benefits from these services, including optimised performance, better financial returns and reduced downtime. We also drive down operational costs while ensuring adherence to health & safety requirements and environmental compliance. Our comprehensive approach removes administrative burdens from operators and owners, while minimising risk and meeting lenders’ requirements.
Asset Management for Renewables – the Financial Case
Proper management of renewable energy assets is vital to maximising revenues. Even a single day of unnecessary lost operation on a single turbine can be costly.
Whilst many O&M providers do provide warranties with guarantees of availability, compensatory payments are only applied if technology faults cause annual availability to fall below a certain threshold.
For example, a guaranteed technical availability of 95% equates to 18 days of lost operation annually before any compensation payments are made. In the case of a single 500kW turbine, this could equate to as much as £50,000 per annum in lost income if the downtimes correlated to high wind periods. Locogen has helped ensure an average technical availability above 99% for our clients, equating to the equivalent of just 4 lost days in generation per year. For the example above, this would mean an annual revenue loss of up to £11,000 – generating as much as £39,000 in increased revenue from that single turbine.
It should be remembered, too, that manufacturers’ warranties only cover turbine faults. Project owners and operators will be well aware that much downtime is due to other factors, such as communication outages and grid issues. In these cases, communication issues between multiple parties such as the asset owner, DNO, manufacturer and third party electrical contractors can be complex and lead to unnecessary delays and additional, avoidable, downtime.
When faults arise Locogen maintains excellent communication channels with all parties, taking control of the situation and working hard to return the asset to full operation in the shortest possible time.
A Bright Future for Renewables Asset Management?
The average wind speed in 2017 was 2-3% above the historical wind speed values with the second part of the year being constantly on or above the average. After a generally poor start to the year our hydro schemes also performed well for the remainder of 2017. We hope this trend continues in 2018!
Locogen’s Senior Asset Manager, Bojan Jevtic, says: “More and more clients recognise the importance of asset management for wind and other renewables. We see a number of opportunities coming up in 2018 and we will be growing the team to prepare for this. We will be rolling out an exciting new offering to our asset management clients to ensure best possible service and the most economical solution. We are also further extending our portfolio and offered services to ensure an increased share in biomass, hydro and anaerobic digestion technologies.
These efforts are already bearing fruit and on behalf of the team, I would like to wish a very warm welcome to our newest member of Locogen’s asset management portfolio, Ardechive hydro plant.”
Contact us if you would like to learn more about our renewable asset management services.