Tyler, what does “repowering” mean in the USA exactly? What challenges are associated with repowering, especially compared to new construction?
Great Question, repowering in the USA is much different than other countries due to the available tax credits for wind turbine owners. By something we call 80/20 repower, an owner can qualify their turbines as “new” again by retaining only 20% of a turbine’s value and upgrading the other 80%. This approach modernizes older turbines at a lower cost, extending their life and improving performance.
The primary challenge with repowering projects is that older turbines tend to become less reliable over time. Unlike new turbines, they lack modern features and technology. Repowering projects aim to address these weaknesses by upgrading components to improve reliability, power output, and availability. One challenge in this process is sourcing third-party components to meet specific needs and targets.
What is the potential of the repowering market in the USA, and what additional challenges could arise if old wind farms were dismantled rather than repowered?
The repowering market in the USA is expected to see a significant boom, with an estimated 60 GW of repowering capacity from 2023 to 2032. If older wind farms were not repowered and instead dismantled, it would pose substantial challenges in terms of environmentally responsible disposal and recycling of turbine components. Repowering offers a sustainable alternative, reducing waste and promoting efficiency.
Can you tell us about an ongoing repowering project in the USA?
One of our current repowering projects at DWT is a 50-turbine project involving Mitsubishi 1000a turbines, each with a 1 MW capacity. These turbines are around 20 years old. Critical components, including breakers, hydraulic cylinders, and generator bearings, are nearing their end of life. Our upgrades aim to extend the turbines' operational life by another 10 to 15 years, ensuring continued reliability.
How many teams are working on this project, and what makes it interesting for both our customer and our company?
At the peak of the project, we had four crane crews working on-site, and our team is now focused on completing the remaining turbines. DWT´s expertise is crucial in ensuring the successful handover of the turbines to operations. Our team brings a diverse set of skills and experience that allow us to provide this unique service to our customers. We have skilled technicians who focus on crane work while others focus on the controller software to ensure the turbines run reliably.
The project is particularly significant because, as turbines age, their value diminishes, making them ideal candidates for repowering under the 80/20 rule. The reduced cost of repowering and the associated tax credits create a favorable environment for such projects. Our experience in working with a wide variety of turbine technologies makes this project an excellent example of how our team’s expertise translates into success.
What experience do you bring personally to our field?
While I wouldn’t consider myself a full-fledged expert in repowering just yet. Particularly with the 80/20 method being relatively new (introduced in August 2022), I am deeply passionate about renewable energy and our continued DWT growth, which drives my involvement in this field. I bring a combination of commercial and field experience to the table, having spent six of my 15 years in the wind energy industry working as a technician. This firsthand experience has provided invaluable insights into the needs and challenges faced by both our customers and our DWT technicians.
