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# Wind Energy Basics &

Project Cycle

## Wind Energy Basics &

Project Cycle

1.800.580.3765 WWW.TTECI.COM

Presented to:

## DFCC Bank and RERED Consortia Members

January 26 27, 2011 | Colombo, Sri Lanka

Agenda
Basics of Wind Energy

Renewable
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

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Source: http://www.physicalgeography.net/fundamentals/7o.html

7000

PowerinWatts

6000
5000
4000
3000

## Turbine of rotor radius = 1 m

2000
1000
0

Power in wind = A v3
= r2 v3
Units of Power: kiloWatts, mega-Watts, gigaWatts
Energy = Power * Time
Units of energy: kilo-Watt
Hours (kWh), MWh, GWh

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12

14

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WindSpeed,m/s
450
400
350

PowerinKW

300
250

200
150
100
50
0
0

10

15

20

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## 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

Thepowerofthewindisconvertedaccording
tothepowercurve(redcurve)
TheCe curve(greencurve)givestheconversion
ratio.Howmuchthewindenergyisconverted
toelectricity
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## Basics of Wind Turbines

Mainbearing.5.Gearbox.6.Yawdrive.7.Diskbrakes.8.Brakehydraulic
system.9.Generator.10.Mainhydraulicsystem.11.Nacelleframe.12.
Yawbrakes.

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## 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 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

## Direct Drive Synchronous

Generator

No gearbox
Generator size is large in size,
but lower speed
Optimal energy capture in a
bigger wind speed range

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## Source: P. Jain, Wind Energy Engineering, 2010 & http://greenpoweroregon.com/Images/WindDiagram_Lg.gif

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

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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

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## 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

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## 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 Project Life Cycle

Development: 4 steps. 18 to 36 mos. Cost= \$10 to \$20 per kW*
3 months to evaluate
multiple sites

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

Prospecting

Locale specific: 6 to
12 months

WindResource
Assessment

Siting:Permits,
EIA,
Interconnection

PPA
Financing

grid, cost, rev

Operations&
Maintenance
Ongoing
\$40/KW per year

Construction
Installation
Commissioning

Engineering
Procurement
Contracting

## Locale specific: 3 to 24 mos

Faster than1 turbine/mo
Cost=\$300-400/kW, includes BOP Turbine Cost=\$1000-1400 /kW

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

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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

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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:
viewshed

Permits

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Power producer
Construction & Transportation
Zoning
Environmental

Others:
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

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## Construction, Installation and Commissioning

Transportation
May be a significant challenge,
depends on location: Bridges,

## Construction & Installation

Infrastructure
Site preparation
Foundation construction
Turbine Erection
Collection system and substation
construction

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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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## Operations and Maintenance

Maximize energy production
Minimize operations and maintenance costs
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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Transport
rawmaterial

Proximity

Capacity
factor

Scale

Variabilityof
resource

Coal,Nuclear,
Gas,Diesel

Yes

Yes

90+%

C/N:Large
500MW+
G/D:Med/Low

Significant
costvariability

Hydro

No

No

Variable

Variable

Dependson
rain

Wind

No

No

30to50%

Variable

Highdiurnal
andseasonal

Solar

No/Dont
haveto

Yes

15 to22%

Smalltomedium

Medium
diurnaland
seasonal

No

No

90+%

Largetomedium

Little

Geothermal

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## Energy Generation Cost Comparison, 2008

Source: Wind Power Monthly, January 2009

Lowestprice

CO2cost

Onshoreinstalledcost1300/KW
Range

Onshoreinstalledcost1700/KW
120

120
GenerationcostEuros/MWh

100
100
80
60
40

80
60
40
20

Coal
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Nuclear

Gas

WindSpeedm/s
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10.00

9.75

9.50

9.25

9.00

8.75

8.50

8.25

8.00

7.75

7.50

7.25

7.00

6.75

6.50

6.25

6.00

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## Energy Generation Installed Cost, 2008

Source: Wind Power Monthly, January 2009

Technology

InstalledCost
/kW

Gasfired

635875

Coalfired

1,3002,325

Nuclear
Onshorewind
Offshorewind

FuelPrice
/MWh

O&MCost
/kW

1,9503,400

US:16
EU:27
US:12
EU:18
3.65.5

1930

8096

1,3001,500
3,000

N/A
N/A

3350
70

3060

## 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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## Excludes cost of transmission and integration. Excludes PTC.

Source: NREL 20% Wind by 2030.
USA has 8,000 GW of power at \$0.085/KWh or less.
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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

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## 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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