ONYX Insight

RUSH TO INVEST IN BUOYANT SPANISH WIND MARKET LEAVES OPERATORS AT RISK OF DIFFICULT DECADE – ONYX INSIGHT

A new approach to digital tools and outsourced expertise can alleviate growing pains and help rapidly expanding businesses manage complex portfolios efficiently

Fast-growing Spanish wind businesses must take proactive steps to manage their expanding and mixed portfolios smartly. Otherwise the sector faces a difficult decade of growing pains, as inefficiencies impact investor returns and slow the rate of potential growth. This is according to ONYX Insight, a leading provider of predictive data analytics and engineering expertise to the global wind industry, from their Iberia and Latin America division headquartered in Madrid. The Spanish government is raising the level of ambition for wind, pushing for 22GW of new installed capacity by 2030 as part of its National Energy & Climate Plan. Medium-sized companies, including private equity / pension funds, and insurers, are rapidly building out their renewable energy holdings through energetic M&A activity to rebalance their portfolios. Spanish onshore wind acquisitions were the highest in Europe in 2020, with over 2.4GW changing hands. The success of these projects depends in large part on how successfully these businesses adjust to managing expanding levels of assets – and larger amounts of data. ONYX Insight says that the transition to operating a large, mixed fleet with legacy assets poses a potential stumbling block. Emerging businesses, challenger brands and new market entrants may lack the experience and skillsets of more established players and could face diseconomies of scale unless they deploy specialist digital tools to unlock a new, smarter approach to operations and maintenance (O&M), saving up to 30% from their O&M budgets. ONYX Insight has pointed out that repowering and life extension for existing assets will play a leading role in increasing the contribution of wind generation to the Spanish energy mix, as Spain’s existing fleet ages. The business’ experience in other key markets globally, such as the US and UK, has led it to warn that Spanish operators will need to start thinking about data-driven life extension strategies now to realise optimal returns in the future. Bruce Hall, CEO, ONYX Insight, commented: “The rush to invest in a buoyant market risks leaving new owners and operators exposed to greater risk. Drawing on the expertise of independent service providers with a global footprint will ensure that Spanish wind operators can identify and mitigate growing pains by building insights from AI-enabled data analysis backed with engineering consultancy into their short- and long-term planning.” Jose Morais, Regional Manager, Mediterranean and Latin America, ONYX Insight, said: “Spain’s wind sector is among the most established globally. But it is still growing rapidly, building on its robust local supply chain and skills. As the market continues to change and a new wave of medium sized entities start to mature, taking advantage of third-party expertise to enable efficient asset management will lessen growing pains and ensure that assets continue to deliver substantial returns. RM

BLAMING LOW WIND RESOURCE FOR TURBINE UNDERPERFORMANCE LIKELY MASKING WIDER ISSUES - CLIR

Clir Renewables highlights issue of operators blaming poor wind farm performance solely on low wind resource, which may hold back higher renewables production and devalue portfolios

While 2021 saw some of the lowest wind energy production figures in recent times, wind energy operators may be incorrectly attributing reduced power generation solely to low wind speeds, rather than leveraging technology to investigate alternative reasons for wider underperformance. If not addressed, a trend for over-attributing low production solely to wind resource could be damaging to clean electricity output across European wind farms. That at least, is according to Clir, the leading provider of digital asset performance technology for the wind industry. As European wind asset owners have endured a summer of low wind, peak hour power prices have risen to their second highest level since 2018. Energy companies including SSE in the UK, and Orsted in Denmark have reported their lowest wind speeds for two decades, while the pressure to deliver on production targets is at an all-time high. But, while asset owners continue to attribute low power generation solely to wind resource, there could be a significant impact on wind portfolio valuations and investor returns, and reduced supplies of clean power to the grid. Comparably, a focus on turbine ‘availability’ – over maximised performance – may be preventing asset owners investigating lower power outputs with more rigour. “In the instance of lower power generation, it’s easy to apportion sole blame to wind resource,” said Andrew Brunskill, Director of Data Science, Clir. “But there could be a myriad of other factors affecting project underperformance – ranging from incorrect yaw or pitch settings, or unanticipated environmental factors. “Whilst our software can identify low wind periods, as we have seen across Europe in 2021, its true value is its ability to delve into the root causes behind wind farm underperformance irrespective of wind levels. We are working with site operators to identify and resolve issues which, in many cases, are attributed to ‘low wind’ rather than wider inefficiencies. “At Clir, we know that significant marginal gains can be made by immediate reporting and acting on equipment issues, to optimise wind assets. But if we continue to place blame for lower performance solely on wind resource, we’re collectively missing a huge opportunity to increase wind energy contributions to the European power mix, and the underlying value of projects and portfolios. RM