Operational

Challenges in an
Evolving Market
Patrick Woodson April 11, 2017
E.ON North America
Evolution of the Value Stream
100 MW Wind Farm,
Start Post year 10 Now
40% NCF

Power Sales Value $40 $40 $20

REC Value $0 $0 $0.34

PTC Value $23 $0 $0

Total Revenue Streams

$63 $40 $20.34
per MWH:

Impact of Availability:

1 % Annual Decrease: $220,752 $140,160 $70,080

5% Annual Decrease: $1.1 M $700,800 $350,400

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Costs and Revenues Are Inverted

By the end of 2017,

20 GW will be beyond
any PTC window.

29.03.2017 3
How do we refocus towards greater profitability ?

1. Getting the metrics right

2. Reducing downtime and callout costs
• There are too many faults that can be reset that recur
over and over. Have to find fixes for chronic faults.

• Several of those faults require a physical reset.

• To avoid callouts, we’re working on an independent

hardware solution to help address the problem.

• Need an operating strategy that reflects the value point of

each individual asset.

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3. Managing the costs of compliance

CIP Requirements
• NERC’s Critical Infrastructure Protection (CIP) version 6 has new requirements going into effect that will
impact operating practices.
• The new NERC mandates have physical security requirements down to the individual turbine level.
• How access and associated costs are managed are area the industry has to follow.