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operations & maintenance
Operations and Maintenance
Once
the project is operational, it must be maintained for its lifespan. A
maintenance contract with the manufacturer or a qualified firm is a
common way to provide maintenance. Operating costs also include
warranties, administrative fees, insurance, property taxes, land-lease
payments and a contingency fund for unforeseen problems. In addition,
some projects will have a period of revegetation and wildlife impacts
monitoring. After the useful lifespan of the equipment, there will be
decommissioning costs associated with the removal of the machines and
restoration of the site.
Scheduled Maintenance and Contracting
Periodic
maintenance begins as soon as the project starts commercial operations.
This maintenance must be performed according to a specific schedule to
meet the requirements of the warranty. Many vendors have options for
maintenance services during the early years, focusing on their warranty
periods. There are also industry firms that specialize in operations
and maintenance (typically for wind projects). These firms may be used
as an alternative to the vendor or after the vendor maintenance period
has expired. It may also be possible to hire a project crew from a
nearby project, especially if that project uses the same type of
technology. At a much larger expense, a dedicated maintenance crew
(never fewer than two people for safety reasons) can service the
project.
Preventative maintenance is particularly important for renewable energy projects because the off-warranty costs of major repairs involving mobilization equipment (e.g. cranes) and other equipment can consume many years of potential profit. Site-specific factors will also have an impact on required maintenance. If the site is dusty or subject to seasonal insect infestations, the major components may need to be washed regularly. These issues should be included in the maintenance contract.
The high-voltage equipment connecting the project to the grid must be maintained. A service contract for this equipment may be created with the utility or a specialty company. This will be outlined in the interconnection agreement.
Site maintenance is also important and may include noxious weed control, gate and cattle guard maintenance, signage installation, and road and erosion control. These tasks can be handled by competent local contractors.
Replacement Parts Availability
While wind turbines and PV panels are typically designed to have an operating life of twenty years, not all of the components are likely to last that long without major rebuilding or replacement. Experience has shown that wind turbine blades, gearboxes, and brakes often require rebuilding or replacement. While preventative maintenance decreases the likelihood of a major expense, the replacement or rebuilding of a major component can be a significant financial commitment.
Replacement
parts are not likely to be needed until after the warranty period is
over. During that time some parts may become unavailable as turbine
manufacturers improve upon their technology. Keeping a spare parts
inventory, a reserve fund, and additional insurance can mitigate the
financial burden of parts replacement.
Decommissioning
Commonly permits require assurance that there will be funds available to pay for decommissioning. This assurance can take the form of a bond, corporate guarantee, letter of credit, or reserve fund. Whatever the required method, the fund guarantee will be monitored to ensure ongoing compliance. If the decommissioning tasks cost more than expected, the project owner will be responsible for the remaining costs.
An alternative to decommissioning at the end of a project’s life is repowering. Repowering involves turbine replacement, removal of old hardware, foundation replacement, possibly a reconfiguration of roads, permit revision, new financing, and negotiation of a new PPA. The site will also need to be restored once repowering is completed.
