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PEAK Wind Insights with Lene Hellstern
Lene Hellstern, director of engineering at PEAK Wind, discusses the critical importance of thorough technical, commercial, and financial due diligence before investing in wind farm projects. She shares insights from her 24 years of experience on how developers can avoid common pitfalls, manage risks, and build better relationships with turbine manufacturers to ensure more accurate power production estimates.
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Sign up now for Uptime Tech News, our weekly email update on all things wind technology. This episode is sponsored by Weather Guard Lightning Tech. Learn more about Weather Guard’s StrikeTape Wind Turbine LPS retrofit. Follow the show on Facebook, YouTube, Twitter, Linkedin and visit Weather Guard on the web. And subscribe to Rosemary Barnes’ YouTube channel here. Have a question we can answer on the show? Email us!
Allen Hall: Wind farm developers often face a challenging reality. Projected power output doesn’t match actual performance. This gap can mean millions in lost revenue and unexpected challenges. This week we speak with Lene Hellstern director of engineering at PEAK Wind. With over 24 years of experience analyzing wind projects worldwide, Lene brings crucial insights about what developers need to know before investing millions in wind farm development.
This is a great interview. Stay tuned.
Welcome to Uptime Spotlight, shining Light on Wind Energy’s brightest innovators. This is the progress Powering tomorrow.
Allen Hall: Lene, welcome to the program.
Lene Hellstern: Good to be here.
Allen Hall: We’ve been wanting to talk to you for a long time. So I’m glad you’re on the podcast because your interaction with developers is remarkable and the process that you go through I think is eye-opening. ’cause I don’t see that process happening at all wind sites and in Europe I think it happens more commonly.
But in the United States not so much. Why or when developers not consulting experts like you before, they spend hundreds of millions of dollars. What is the problem with that?
Lene Hellstern: It actually, it does happen, but yeah, sometimes it don’t. And yeah, I might not be the right one of asking to ask this question.
Maybe you should ask them as well why don’t you do it? But I, so for some it’s it’s budget constraints, right? Because you’re a consultant and then they don’t immediately see, how this money that I’m paying the consultant, how does that convert into a gain? Profit. It could be seen as some loose and money just because they’re asking a lot of questions on technical stuff.
It could also be that they are unaware, many are more into the financial part of it. And they have this perception that it’s not needed, the the technical due diligence or the commercial due diligence as the financial, because it’s like buying a car. It is really not like buying a car.
So maybe that is, that’s the reason. And that they think, the wind always blows, so it’s gotta go the turbine. But that’s just not how this world.
Joel Saxum: Would it be fair to say that some of your customers have felt the pain or they’ve gotten burned and that’s why they’re there?
Lene Hellstern: Yes. Yeah. Yeah. And you also, we can ask a lot of questions in the process before you buy the turbines. And then we can cover a lot of risks and you can mitigate before everything falls apart. Right. And that gives them a really good advantage, right? They can cover their themself and take all kind of scenarios into consideration, right?
And you get a much, if you ask kindly to the OE em, you do get some answers and you get a better collaboration with the OEM. If you conduct these technical due diligence, if you yell and scream at them, it’s not gonna go well. No. Kill with kindness. That’s much better than threats.
And I want this, and demand that and just ask, right?
Allen Hall: So what are they missing? Generally, when you’re starting a due diligence and you’re walking into a new situation, what are the highlights that a general developer just doesn’t really think about that really needs expertise like yours?
Lene Hellstern: Oh, but they don’t know the consequences of the selections they do in this process.
There is a not lot of things, technical topics that you need to make a decision on what kind of leading its protection do you want? Of course the OEM is guiding you you also on, on various technical topic, but you also as an owner, have some requirements you want fulfill and sometimes they don’t, they’re not even aware of what is it that is important to me.
They don’t know, and then they don’t know the technical consequences that they make. How does that end up, if you, let’s say you, you can some people are not aware that turbines come with a design lifetime, but if you’re smart, you can actually run it longer. But if you prepare early.
Then it doesn’t cost so much to run it longer. And if you run the turbines for a longer time, the, your levelized cost of energy goes down. But they don’t know what they need to do technically and what they need to cover. Let’s say, I can give you an example. Without getting too nerdy. Let’s say that you need, you wanna run your wind farm long, but you know that in this area, in order to get that, the authorities are gonna ask for track record.
They’re gonna, they wanna see data throughout the years from your control monitoring system. But and you can provide that. Perhaps depending on if you, in the contract, made sure that you actually have access to the control monitoring system and that you can download the data because if you don’t have that in the contract and have that settled upfront, it’s gonna, either you won’t get it because it’s not your property, you haven’t made sure that you get it, or the OEM is gonna ask you for money.
So if you have that sorted out before then, if the authorities come and say, Hey, I wanna see the track record for your condition monitoring system, you don’t need to start paying for it. And you don’t need to start digging. And so that, that’s just one example that, where we can help them and say what is it you want?
We can also say what things is it you need to take into consideration?
Joel Saxum: Steer
Lene Hellstern: owner.
Joel Saxum: My question originally is, what percentage would you think your due diligence is commercial versus technical? But at the same time, I think that they fit together because the technical side of things will drive the commercial and the contract side of negotiation.
Lene Hellstern: Maybe it’s one third each. Financial, commercial, and technical.
Joel Saxum: That makes sense.
Lene Hellstern: And can you live with on route one? Yeah. But then it’s gonna, you’re gonna be in pain.
Joel Saxum: Yeah. I boil it down to say if I was building a house, and I think I can generally as a, this is my, me as a wind farm developer, I’m building a house and I generally know how to do everything.
However, I may not be an expert on the foundation, but I tried it myself and now 10 years down the line, I’ve got foundation issues. So while I could have done it, I, there was a lot of things I didn’t know specifically. So that’s when I would call someone like the peak team like you have, because you have the relationships with the OEMs, you know how to deal with them, you know the questions to ask.
You’ve been through these processes a ton of times. So you’re that subject matter expert. But can you focus a little bit and tell us how. The difference between having a good relationship with the OE em or a long standing one. ’cause I know when we were talking off air, you were saying, sometimes I walk into me and they go, oh, le, nice to see you.
Lene Hellstern: It’s a small world actually. And I’ve been in this industry for 20. Four years soon. I know I don’t look that old, but I have and people, go around and you don’t know when you’re meeting this person and then they sit on another side of the table, right? So always keep good relations.
Always ask nicely, give them your arguments because if they understand what you are gonna use the information. For then they are, they might be more willing to give it to you. Let’s take a an example. The failure rates, right? That they really don’t wanna give you that unless they understand what it is you they’re gonna use it for.
Or I would use it for and sometimes I tell ’em, okay, can I please have the failure rates for your main components? And they say, go, no. And I go, okay, that’s fine. But the problem here is then I am gonna guess them. And why not get it from you because. Then in my guessing I would, although I am getting pretty good at it, but I would put in, a, a sort of a risk, right?
So it, I’m automatically pumping it a little bit up, right? Because I’m not really sure, so I need to cover myself here. Where if I get it from the OM and they can tell me why did you come to this conclusion? And I can see, I can think, okay, this is, they’ve done a pretty good job.
They used, the background is God knows how many turbines, so this is, they’ve done their homework. I trust this. Then I, we can use it in our calculations. So that’s that’s and then you don’t get that from them if they don’t trust you and you started yelling and screaming at them.
And also, and when we have contract negotiations, you just you tell them, sometimes we don’t reach an agreement, but, all wanna have things signed at the end of the day. And and tell them why is it you are asking these questions instead of just demanding left and right.
Why is it a value to you? And then make them, give them the arguments for internally in their organization to make sure that you can actually have the information you need.
Allen Hall: Yeah. It, it puts PEAK Wind in a unique position here. And I want to dive into this a little bit deeper. So you’re walking into OEM, big powerful, OEM makes thousands of turbines, has a long service history to developer, which may have a long service history with this.
OE em or may not have any history at all with them. They’re, they may be completely new to the industry. That puts you in a really odd position that you have to navigate both of those conditions and try to get to a good conclusion like that. But PEAK Wind is the one to go do this. And because you bring a lot to the table.
And I’m just, I think we ought just step back for a minute and explain all the things you do when you’re in those discussions interacting between the OEM and the developer. What does that look like?
Lene Hellstern: So if we are in a due diligence, right? We have a of course we don’t almost say we don’t kiss until, right?
So there’s a we don’t say, oh yeah, listen, this client, this happened and this client, you don’t do that, right? Then we did. So we don’t do that. But we do know that there, and you can also see that in the press. There are certain platforms that have certain issues, right? And then we go in. And then let’s say that this OEM has had a history of issues with the cooling system.
And so then we ask questions on the cooling system in this technical due diligence, sometimes you’re lucky and you go to the OEM and you sit with them in meetings and say, and if you are back lucky. You always give them a list of what would I like as a consultant to hear about here?
So they have a chance to prepare, right? If you don’t do that, how on earth can they repair? So then you say, we know that for, that your platform has previous history issues here. So what how, what have you done to improve this? And can we be sure that the turbine is their client is buying, it’s actually taken into consideration, or you’re gonna do a retrofit later down the line?
Or because, the OEMs are not stupid, they will try and fix it. They’re good people so they don’t wanna put anything on the market with flaws and errors in it, right? So then they get mad customers. So that’s where we go in and we we try to see how, how big a risk is this now when you buy this platform and sometimes it’s not, and sometimes it is.
And then we need to find out what, so what are you gonna do? What can the client here expect?
Allen Hall: So you’re trying to understand what the risk is in terms of dollars, I assume, and that, or whatever the currency is at the location, trying to put some numbers to it to say this turbine’s gonna produce this amount of revenue, this turbine’s gonna produce that kind of revenue.
Or These are the problems you’re gonna have if it’s lifetime. You need to build that into your models. That has to be a real eye-opener for developers at times. Because I think a lot of times, like you’re saying, like they, they pick a turbine, they get focused on it, and they don’t realize what that means.
And I’m wondering do, does an operator. Developer changed the turbine they were gonna buy because of this interaction? Because you’re giving ’em some advice and saying maybe this may not be the right turbine for that space.
Lene Hellstern: Yeah. Sometimes they actually have to, right?
Because if the site suitability is completely off if it’s overloaded, then either you’re gonna be faced with extreme containment where you’re losing a lot of production and then, the business case just doesn’t hold water. So always have your site suitability. Everybody. I once heard someone say, yeah, there’s no business reason for site suitability.
Wow. That particular company now has a whole team of site suitability experts. But yes they learned one of the people that learned. But so you in your, in that if you have a good team you always have, you have a selection of turbines you find suitable for the site. And you have a layout.
If you’re smart, you have a layout that fits them all because then you don’t need to wiggle them around all the time, which is not fun because depending on what country you are, wherever you are in the world, there are different permitting procedures, right? So I have destroyed, or I have didn’t destroy, but that was working for an OEM.
But I have actually not well, they. They got the wind direction wrong, so they spaced them too tight. Yeah, so I found that there was an offset on the wind direction and I could say. Yeah you gotta do it. I could do a new sign layout out for you. Or you gotta do it yourself because you you spaced the turbines too tight.
Then they would get overloaded and then they came back and said, yeah, we’re scrapping the project because the, it’s gonna take us five to eight years to get a new permit. So you could, I, to some degree killed it, but. It wasn’t my fault, I would say. And so you wanna have your spacing, right? And then you can’t know what turbines you’re gonna be buying, right?
Because when you do the layout, you are five minutes before. But if you are nice to the OEMs, you’ll know. What’s coming up
Allen Hall: when you get into these discussions between the OEM and the developer and the pieces that they’re typically missing are related to operational losses, clearly and loads. Those are two things they haven’t thought about, and they assume that the OEM has ’em all figured out.
How do you step into that discussion and try to navigate that?
Lene Hellstern: But the OEM you need to have your wind resource assessment done a lot earlier. Be way before you contact OEM and you need to do wind, you need to do production estimates on several different kind of turbines to find out which one is best.
You also need to know about site suitability because you, if you are in complex terrain. Like a mountain or you have forestry, then you need to know what does it do to your turbine? How tight can you space it? So you need to have a prop and you always have site limit limitations part. If it’s flat land in Texas, then you have, I.
Huge sites, right? And also if you have neighboring wind farms. So all of these things need to be mapped out and then you need to look at what is the design of the turbines. And you don’t actually start contacting your, the OEM before you could do it if you have good connection, but you can also, have a tinder and but you don’t.
And OEMs. Calculate, and I’m not saying they’re wrong because then some of them are gonna call me. They calculate when resource assessment on one in one way, and then you would want it in another way. And the reason that the OEMs and without, I’m gonna try not put to put too many words in their mouth for them it is okay if the production is overestimated.
Because that for them, that is just, they just put high loads on the turbines and then they are sure that the turbine is sighted for or suitable for site. And also the OEM does not take account all your other losses. They only take the turbine, they. They don’t take grid losses into consideration. They don’t take substation.
All of these, the losses you have, they don’t take that into consideration because they sometimes, they don’t often know what it is, right? What they’re selling you, the turbine, they are not selling you the grid access.
Joel Saxum: Are they doing that because they’re assuming, basically it’s a horse, a piece, like if you put this turbine in or that turbine in, or that turbine in all of the grid losses and things behind the turbine.
Are equal based on what? It doesn’t matter what turbine you install. Is that why they assume that? Or are they just saying this is our technology, so this is the one that we can do?
Lene Hellstern: No, it’s just this. Yeah, they’re just, this is what we sell you. This is what we know about. Then they, if they started calculating on all other things, then they’re giving you a free service.
Right. That someone else in the market is already, I completely understand it. I’m not criticizing it. They sell a turbine. They sell a power curve on the certain condition conditions, but that’s what they sell.
Allen Hall: That’s the number one complaint in the United States though, is that the power that was predicted from the farm.
Is higher than what actually happens by a several percentage points. Sometimes I’ve heard double digits. At times it seems completely unreasonable. You should not have double digit errors in that calculation. But is that just because they haven’t done a system assessment to the level like PEAK Wind would do to.
Put all your losses in there and tell you what you can deliver to the transmission lines.
Lene Hellstern: First of all, nobody is interested in the right numbers because the people that are developing this is only interested in a high number ’cause that is a greater likelihood of success. I used to be very annoyed about this, but after 24 years, I’m like, yeah, so this, they nobody’s interested in the real number, right?
They want a high number so they can make sure that this pro project is gonna happen. So also it also internally within the, when I worked a lot with wind resource assessment, I would always get complaints. It would be you, it should be nine meters per second. No, but it’s not.
We’ve studied it. We analyzed it, we deducted everything. Your average wind speed is 8.5 just per second. Yeah. But it should be nine. No. Or, why are you giving it such a high grid loss? Because the grid’s gonna be congested. We are, look, we are looking at 25 years. It is already starting.
They’re starting to contain, there is no plan of building out the grid anytime soon. It’ll be worse. Your grid containment. So I’m not gonna tell you don’t have anything because you will. Always, I also worked as a developer. You, if you wanna not please anyone, go into wind resource assessment and production estimates, because they’re always gonna be unhappy.
Joel Saxum: Okay. So you’re, you guys operate your course at Danish company, but you’ve done projects all over the world in the states, in Europe, offshore, onshore. Great. So do you see a difference in where the demand is coming from your services? Say. Is it partially coming from the fin financiers of the projects?
The insurers? Or is it purely developers, or is that geographically dependent?
Lene Hellstern: We have a lot of different clients, so we don’t believe in putting all the eggs in one basket, so we have financial institution that are looking to acquire a part of a offshore wind farm somewhere in the world. We have developers.
That they are looking they wanna develop projects or they wanna sell them. We have utilities. It, it’s different, right? It’s also some have the the capacity to do this kind of work. Others have already done it, but they want a third pair of eyes, right? So that’s fair enough.
And then, we try, we, of course, I’m not, I’m gonna get so hammered if I say we don’t try and please anyone. We always try to please our clients, but we also try to be honest and say, this, the production estimates, you have forgotten this, and that. Or you, there, there are some gray areas here that you’ve gotta make a guess.
I, and your guess is a bit too low. If you take these things into consideration so it can be a lot of different clients and that’s the beauty of being a consultant. ’cause I’ve been an OEM, I’ve been a developer, I’ve been working for utility. But as a consultant you, it’s, and then you try and find out what is it they want?
What do they need? Um, and then we try and help them and please them. But we also try to be honest so they understand what is they’re venturing into. Then they can make the right, we dress ’em up so they make the right decisions, right? Make them aware of the risks.
Allen Hall: So that honesty is why you would get a hold of PEAK Wind because you’d rather know now and get an outside independent assessment before you spent the a hundred, 200, 400, $500 million on a project and then learn afterwards that, lene was right. You want to know that upfront because she does know what she’s talking about. She does. However, that history and PEAK Wind is full of people like that, that know wind and know where the problems lie and can give you that information upfront in a project. And that’s why we, that’s why we had Lene on today is because she’s just so full of knowledge and experience and there’s a lot of developers that don’t have that.
And it’s hard to find it lene, how do people get ahold of PEAK Wind and get you on board to help them through this process?
Lene Hellstern: You just call us. We’ll help you but we won’t, we won’t always say what you wanna hear, but we will say what you need to hear. Yeah, it’s so you just contact us.
We, we are on LinkedIn. We have a webpage. Yeah. Just reach out.
Allen Hall: The website is peak-wind.com and PEAK Wind is based in Denmark. Adjust accordingly on your two time zone and the US Exactly.
Lene Hellstern: And Korea, Taiwan, uk I forget someone. Yeah. Yeah. Hamburg, Germany. Two places in Denmark. Yeah. Yes. So we are very much global.
We are like 211 currently. And it’s not just leaning. Who’s doing this work, but they, I have a whole army of good people behind me helping with this. ’cause I am not the specialist on everything. We pull in the specialist on the, on different topics like whether it’s components. And I am not the specialist on commercial or financial.
I’m the director of engineering, so I that’s my area. And then. I pull in my people on the different specialist topics, and we would love to help.
Allen Hall: Having those talented people in one place is what you’re paying for, and that’s why PEAK Wind is so important to the industry. So reach out to PEAK Wind and you can just go to the website, it’s PEAK-Wind.com.
You can find Lene on LinkedIn and contact her and she’ll get you started. But the honesty is. Part of the equation. And Lene, thank you so much for being on the podcast. Great guest. We love to have you back on, so you’re always welcome to come back onto the podcast.
Lene Hellstern: Sure. This was super fun. I just hope somebody got smarter by listening to this.
https://weatherguardwind.com/peak-wind-insights-with-lene-hellstern/
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Vineyard Wind’s $69.50 PPA, Two Offshore Lease Exits
Rosemary reports back on her visit to multiple Chinese renewable energy companies, Vineyard Wind activates a $69.50/MWh PPA with Massachusetts utilities, and Bronze Age jewelry halts a German wind project.
Sign up now for Uptime Tech News, our weekly newsletter on all things wind technology. This episode is sponsored by Weather Guard Lightning Tech. Learn more about Weather Guard’s StrikeTape Wind Turbine LPS retrofit. Follow the show on YouTube, Linkedin and visit Weather Guard on the web. And subscribe to Rosemary’s “Engineering with Rosie” YouTube channel here. Have a question we can answer on the show? Email us!
[00:00:00] The Uptime Wind Energy Podcast brought to you by Strike Tape protecting thousands of wind turbines from lightning damage worldwide. Visit strike tape.com and now your hosts.
Allen Hall 2025: Welcome to the Uptime Wind Energy Podcast. I’m your host, Allen Hall. I’m here with Yolanda Padron in Austin, Texas, who is back from the massive wedding event. Everybody’s super happy about that, and Rosemary Barnes had her own adventures. She just got back from China and Rosemary. You visited a a lot of different places inside of China.
Saw some cool factories. What all happened?
Rosemary Barnes: Yeah, it was really cool. I went over for an influencer event. So if you are maybe, you know, in the middle of your career, not, not particularly attractive or anything you might have thought influencer was ruled out for you as a career. No one, no one needs engineering influencers in their [00:01:00] forties.
It’s incorrect. It turns out that’s, that’s where, that’s where I, I found myself. It was pretty cool. I, I did get the red carpet rolled out for me. Many gifts. I had to buy a second bag to bring home the gifts, and when I say I had to buy a second bag, I had to mention. Oh, I have so many gifts, I’m gonna need another bag.
And then there was a new bag presented to me about half an hour later. But, so yeah, what did I do? I got to, um, as I was over there for a Sun Grow event. Huge, huge event. They, um, it’s for, it’s for their staff a lot, but it’s also, they also bring over partners. They also bring over international experts to talk about topics that are relevant to them.
Yeah. They gave everybody factory tours in, um, yeah, in, in shifts. Um, I got to see a module assembly factory, so where they take cells, which are like, I don’t know, the size of a small cereal box, um, and assemble them into a whole module. Then the warehouse, warehouse was [00:02:00] gigantic. It, um, was, yeah, 1.8 gigawatt hours worth of cells that couldn’t hold in that one building.
They’re totally obsessed with fire safety there in everything related to batterie, like in the design of the product, but also in, in the warehouse. And they do, yeah, fire drills all the, all the time. Some of them quite big and impressive. Um, I saw inverter manufacturing facility that was really cool.
Heaps of robots. Sw incredibly fast. Saw a test facility.
Allen Hall 2025: So was most of the manufacturing, robotics, or humans?
Rosemary Barnes: Yeah. So at the factory it was like anything that needed to be done really fast or with really good quality was done by robots. So they had, um, you know, pick and place machines putting in. Um, you know, components in the circuit board, like just insane, insane rate.
I’m sure it’s quite, quite normal, but, um, just very fast. Everything lined up in a row. Most of their quality control is done by robots. Um, so it does well it’s done by ai, I should say. [00:03:00] Taking photos of, of things and then, um, AI’s interpreting that. Repairs, I think were done by humans. There were humans doing, um, like custom components as well.
Like not every product is exactly the same. So the custom stuff was done by humans.
Allen H: So that’s the Sun Grove facility, right? You, but you went to a couple of different places within China?
Rosemary Barnes: Yeah, I went to another, a factory, a solar panel, a factory, um, from Longie. That was really cool too. I got to see a bit more probably of the, um, interesting, interesting stuff there, like, uh, a bit more.
Um, yeah, I don’t, I dunno, processes that aren’t, aren’t so obvious. Not just assembly, but um, you know, like printing on, um, bus bars and, you know, all of the different connections and yeah, it was a bit, a bit more to it in what I saw. Um, so that was, but it, it’s the same, you know, as humans are only involved when it’s a little bit out of the.
Norm or, um, where they’re doing repairs, actual actually re [00:04:00]repairing. You know, the robots or the AI is identifying which components don’t meet the standard and then they’ll go somewhere where a human will come and, um, fix them.
Allen H: Being the engineer there. Did you notice where the robots are made? Was everything made in China that was inside the factory or were they bringing in outside?
Technology.
Rosemary Barnes: I didn’t think to look for that, but I would assume that it was Chinese made, also
Allen H: all built in country
Rosemary Barnes: 20 years ago that wouldn’t have been the case, but I think that China has had a long, a long time to, to learn that. Again, it’s not like, it’s not, it’s not rocket science. These are, these are pick and place machines, you know, like I remember working on a project very early in my career, so.
Literally 20 years ago, um, I was working with pick and place machines. It’s the same, it’s the same thing. Um, some of them are bigger ’cause they’re, you know, hauling whole, um, battery packs around. It’s just the, um, the way that it’s set up, but then also the scale that they can achieve. You just, you can’t make things that cheap if you don’t have the [00:05:00] scale to utilize everything.
A hundred percent. Like I said, wind turbine towers is a really good example. ’cause anyone, any steel fabricating
Allen H: shop
Rosemary Barnes: could make a wind turbine tower. Right? They, they could, they could do that. You know, the Chinese, um, wind turbine tower factories have the exact right machine. They don’t have a welder that they also use for welding bits of bridges or whatever.
Uh, they have the one that does the exact kind of world that they need, um, for the tower. They, you know, they do that precisely. Robotically, uh, exactly the same. And, you know, a, a tower section comes on, they weld it, it moves off to the next thing, and then a new one comes on. They’re not trying to move things around to then do another weld in the same machine.
You know, like they’re, um, but the exact right. Super expensive machine for the job costs a whole bunch to set up a factory. And then you need to be making multiple towers every single day out of that factory to be able to recoup on your cost. And so that is [00:06:00] the. The, um, bar that is just incredibly hard slash impossible for, um, other countries to clear.
Allen H: Can I ask you about that? Because I was watching a YouTube video about Tesla early on Tesla, where they wanted to bring in a lot of robotics to make vehicles and that they felt like that was the wrong thing to do. In fact, they, they, they kinda locked robots in and realized that this is not the right way to do it.
We need to change the whole process. It was a big deal to kind of pull those. Specialized piece of equipment, robots out and to put something else in its place in that they learned, you know, the first time, instead of deciding on a process, putting it in place and then trying to turn it on, see if it works, was to sort of gradually do it.
But don’t bolt anything down. Don’t lock it in place such that it doesn’t feel like it’s permanent. So you engineer can think about removing it if it’s not working. But it sounds like this is sort of the opposite approach of. A highly specialized [00:07:00] machine set in place permanently to produce. Infinite amounts of this particular product, does that then restrict future changes and what they can make or, I, I, how do they see that?
Did, did you talk about that? Because I think that’s one of an interesting approaches.
Rosemary Barnes: I didn’t actually get as much chances I would’ve liked to speak to engineers. Um, I was talking mostly to salespeople and installers. Um, so they know a lot, but I couldn’t, um, like in the factory tours, I was asking questions.
Um. That kind of question and, and they could answer all, all that. Um, but outside of that, and I couldn’t record in the factory obviously. Um, but I did, I did take notes, but what I would say is that they would have a separate facility where they would be working out the details of new products and new manufacturing processes and testing them out thoroughly before they went and, you know, um, installed everything correctly.
But what I do hear is that, you know, especially with solar power. Maybe to [00:08:00] batteries to a lesser extent. You, you know, you like, you have these kind of waves of technology. Um, so you know, like everyone’s making whatever certain type of solar cell and then five years later, um, there’s a new more efficient configuration and everybody’s making that.
And I know that there are a lot of factories that kind of get scrapped. Um, and the way that China’s set up their, like, you know, their economy around all this sort of thing is set up is that it’s not that, like every company doesn’t succeed. Right. They SGO was a big exception because they’ve been going since 1997, I think it was.
It was started by a professor quid his job and hired a room across the, across the road from his old university and, you know, built his first inverter and, um, you know, ’cause he, he could see that. Uh, the grid was gonna have to change to incorporate all of the solar power that was coming, which to be honest, in 1997, that was like pretty, pretty farsighted.
That was not obvious to me when I started working in solar in mid two thousands. And it was not obvious to me that this was a winner.
Allen H: Well, has sun grow evolved then quite a bit? ’cause if you’re [00:09:00] saying that they’ve minimized the cost to produce any of their products by the use of robotics, they have been through an evolutionary process.
You didn’t see any of the previous generations of. Factories. You, you were just seeing the most modern factory that that’s actually producing parts today. So is that a, is that a, is that just a cost mindset that’s going on in China? Like, we’re just gonna produce the lowest cost thing as fast as we can, or is it a market penetration approach?
What are, what were, were the engineers in management saying about that?
Rosemary Barnes: I think there’s a few different aspects to that, like within China. So Sun Grow is the big company with a long track record and they’re not making the cheapest product out of China. So I think that they are still trying to make the cheapest product, but they’re not thinking about it just in the purchase price.
Right. They’re thinking more in terms of the long, long term. You know, they’ve been around for 30 years and probably expect to be around for another 30 years. They don’t wanna be having [00:10:00] recalls of their products and you know, like having to, um. Installers in particular are probably working with them because they know that they won’t have to go back and do rework and the support is good and all that sort of thing.
So they’re spending so much money on testing and you know, just getting everything exactly right. But I don’t think that that’s the only way that China is doing it. There’s, you know, dozens, probably hundreds of companies. Um. Doing similar stuff between Yeah, like solar panels and associated stuff like inverters and, and batteries.
So many companies and all of them won’t succeed. You know, sun Girls Facility in, I was in her and it’s huge, you know, it’s like a, a medium sized country town. Just their, um, their campus there, they’re not, they’re not scrapping that and moving to a new site, you know, they’re gonna be. Rejiggering and I would expect that, you know, like everything’s set up exactly the way it needs to be, but it’s not like gigantic machines.[00:11:00]
It’s not like setting up a wind turbine blade factory where it’s hard if you designed it for 40 meter blades, you can’t suddenly start making 120 meter blades. Like it’s, they will be able to be sliding machines in and out as they need to. Um, so I, I, yeah, I guess that it’s some, some flexibility. But not at the cost of making the product correctly.
Allen H: Did you see wind turbines while you were in China?
Rosemary Barnes: I, the only winter I saw, I actually, I saw, because I caught the train from Shanghai, I actually caught the fast train from Shanghai to, which is about, it depends which one you get between like an hour 40 or three hours if it stops everywhere. Um, and I did see a couple of wind turbines on the way there, out the window, just randomly like a wind turbine in the middle of a, a town.
Um, so that was a bit, a bit interesting. But then in the plane, on the way back, the plane from Shanghai to Hong Kong, I, at the window I saw a cooling tower of some sort. So either like a, yeah, some kind of thermal [00:12:00] power plant. And then. Around all around, well, wind turbines, so onshore wind turbines. So I don’t know.
Um, yeah, I, I don’t know the story behind that, but it’s also not a particularly windy area, right? Like most of the wind in China is, um, to the west where, uh, I wasn’t
Allen H: as wind energy professionals, staying informed is crucial, and let’s face it. That’s why the Uptime podcast recommends PES Wind Magazine. PES Wind offers a diverse range of in-depth articles and expert insights that dive into the most pressing issues facing our energy future.
Whether you’re an industry veteran or new to wind, PES Wind has the high quality content you need. Don’t miss out. Visit PS win.com today. So there are two stories out of the US at the minute that really paint a picture of the industry. It was just being pulled in opposite directions. The Department of Interior announced agreements to terminate two more.
Offshore wind leases, uh, [00:13:00] Bluepoint wind and Golden State wind have agreed to walk away from their projects. Global Infrastructure Partners, which is part of BlackRock, will invest up to $765 million in a liquified natural gas facility instead of developing blue point wind. Ah. And Golden State Wind will recover approximately $120 million in lease fees after redirecting investment to oil and gas projects along the Gulf Coast, and both companies say they will not pursue further offshore wind development in the United States.
Well, we’ll see how that plays out. Right? Meanwhile. In Massachusetts Vineyard Wind, which has been fighting with GE Renova recently has activated its long awaited power purchase agreement with three utilities. The contract set a fixed electricity price of drum roll please. [00:14:00] $69 and 50 cents per megawatt hour for the first year and a two and a half percent annual increase.
Uh, state officials say the agreements will save rate payers $1.4 billion over 20 years. So $69 and 50 cents per megawatt hour is a really low PPA price for offshore wind. A lot of the New York projects that. Renegotiated we’re somewhere in the realm of 120 to $130 a megawatt hour, and there’s been a lot of discussion in Congress about the, the usefulness of offshore wind.
It’s intermittent blahdi, blahdi, blah. Uh, but the, the big driver is what costs too much. In fact, it doesn’t cost too much. And because it’s consistent, particularly in the wintertime, uh, electricity prices in Massachusetts in the surrounding area are really high. ’cause of the demand and ’cause how cold it is that this offshore wind project, vineyard wind would be a huge rate saving.
And [00:15:00] actually the math works out the math. Math everybody. Do you think this is, when we go back five years from now, look back at this. This vineyard wind project really makes sense for Massachusetts.
Yolanda Padron: I think it really makes sense for Massachusetts. I’m really interested to know what the asset managers are thinking on the vineyard wind side, um, and if they’re scared at all to take this on.
I mean, it’s great and I’m sure they can absolutely deliver. Like generation I don’t think should be an issue. Um. I just don’t know. It’s, it sounds like they’re leaving a lot of money on the table.
Allen H: I would say so, yeah. But remember, the vineyard win was one of the early, uh, agreements made when things were, this is pre Ukraine war, pre Iran conflict on a lot of other, a lot of other things.
It was pre, so I remember at the time when this was going on that. P. PA prices were higher than obviously a lot of other [00:16:00] things. Onshore solar, onshore wind, it would, offshore is always more expensive, but I don’t remember $69 popping up anywhere in any filing that I remember seeing. So even if they had said $69 five years ago, I think that would’ve still been like, wow, that’s pretty good for an offshore wind project.
And now it looks fantastic for the state of Massachusetts
Yolanda Padron: because I know that there’s sometimes, and we’ve talked about this in the past, right? There are sometimes projects where, you know, you think you, you’ve got a really good price and you’re really excited about it, and then it goes into operation and then like a couple years down the road, prices increase quite a bit and it’s not the worst thing in the world.
But you do just kind of think a little bit like, I wish I could. Renegotiate this or you know, just to get, to get our team a bit of a better deal or to get a bit more money in operations and everything.
Allen H: Does this play into Vineyard wind claiming $850 [00:17:00] million in dispute with GE Renova that at $69 PPA, there’s not a lot of profit at the end of this and need to get the money out of GE Renova right now, and maybe why GE Renova wants to get out of this because they realize.
The conflict that is coming that they need to separate the, the themselves from this project. It’s, it’s very, as an asset manager, Yoland, as you have done this in the past, would you be concerned about the viability of the project going forward, or is all the upfront costs. Pretty much done in that operationally year to year.
It’s, it’s not that big of a deal.
Yolanda Padron: As an asset manager taking this on, I’d probably have started preparation on this project a lot earlier than other of my projects like I do. I know that usually there’s, you know, we’ve talked about the different teams, right, throughout the stages of the project until it goes into operations, [00:18:00] but.
And usually you don’t have a lot of time to prepare to, to make sure all of your i’s are dotted and t’s are crossed, um, by the time you take the project and operations from a commercial standpoint. But this project, I think would absolutely, like you, you would need to make sure that a lot of the, of the things that you’re, that might be issues for some of your projects like aren’t issues for this project.
Just to make sure at least the first few years you can. You can avoid a lot of, a lot of turmoil that the pricing and the disputes and the technical issues are gonna cause you, because I feel like it’s just, there’s, there’s just so many things that just keep this side, just keeps on getting hit, you know?
Allen H: Well, I, I guess the question is from my side, Yolanda, is obviously inflation, when this project started was pretty consistent, like one point half, 2%. It was very flat for a long time. And interest rates, if you remember when this project started, were very, very low. Almost [00:19:00] nonexistent, some interest rates.
Now that’s hugely different. How does a contract get set up where a vineyard can’t raise prices? It would just seem to me like you would have to tie some of the price increase to whatever the inflation rate is for the country, maybe even locally, so that if there were a, a war in Ukraine or some conflict in the Middle East.
That you, you would at least be able to, to generate some revenue out of this project because at some point it becomes untenable, right? You just can’t afford to operate it anymore. And,
Yolanda Padron: and I think, um, I, I haven’t, I obviously haven’t read the, the contracts themselves, but I know that there’s sometimes there, it’s pretty common for a PPA to have some sort of step up year by year.
And it’s usually, it can be tied to, um, the CPI for. Like the, the change in CPI for the year to year. So you’re [00:20:00] absolutely like, right, like maybe, I mean, hopefully they’re, they’re not just tied to the fixed 69 bucks per megawatt hour. Um, but, but yeah, to, to your point like that, that price increase could, could really save them.
Now that we’re, we’re talking the, the increase in, in inflation right now and foreseeable future,
Allen H: if you think about what electricity rates are up in the northeast. I think I was paying 30 cents a kilowatt hour, which is 300. Does that sound right? $300 a megawatt hour. Delivered at the house, something like that.
Right? So
Yolanda Padron: prices in the northeast are crazy to me,
Allen H: right? They’re like double what they are in North Carolina. Yeah.
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Yolanda Padron: you millions.
Allen H: Well, sometimes building a wind farm turns out more than expected construction workers at a 19 turbine wind project in lower Saxony Germany under Earth. What experts call the largest Bronze age Amber Horde ever found? The region, the very first scoop of an excavator brought up bronze and amber artifacts that stopped construction and brought archeologists back to the site.
Uh, the hoard has been dated between [00:22:00] 1500 and 1300 DCE and is believed to have belonged to at least three. Status women possibly buried as a religious offering. Now as we push further and further across Germany with wind turbines and solar panels for, for that matter, uh, we’re coming across older sites, uh, older pieces of ground that haven’t been touched in a long time and we’re, we’re gonna find more and more, uh, historically significant things buried in the soil.
What is the obligation? Of the constructor of this project and maybe across Europe. I, I would assume in the United States too, if we came across something that old and America’s just not that old to, to have anything of, of that kind of, um, maybe value or historically significant. What is the process here?
Rosemary Barnes: I assume that they’ve gotta stop, stop work. Um, yeah, that’s my, my understanding and I don’t think, do you have [00:23:00] grand designs in America?
Allen H: I don’t know what that is. Yes.
Rosemary Barnes: So missing out by not having that chat. It’s a TV show about people who are building houses or doing, um, ambitious renovations, and it just, it follows, it follows them.
You can learn a lot about project management or. The consequences if you decide that you don’t need to, project management isn’t a thing that you need to do. Um, anyway. I’m sure that in some of those ones I’ve seen they have had work stop because in their excavation they found a, um, yeah, some, some kind of relic, um, from the, from the past.
So based on that very well-credentialed experience that I have, I can confidently say that they would be stopping stopping work on that site. I mean, it’s so bad, bad for the developer, I guess, but it’s cool, right? That they’re, you know, uncovering, uh, new archeology and we can learn more about, you know, people that lived thousands of years ago.
Allen H: It, it does seem [00:24:00] like, obviously. Do push into places where humans have lived for thousands of years. We’re going to stumble across these things. Does that mean from a project standpoint, there’s, there’s some sort of financial consequence, like does the lower Saxony government contribute to the wind turbine fund to to pay the workers for a while?
’cause it seems like if they’re gonna do an archeological dig. That that’s gonna take months at a minimum, may, maybe not, but it usually, having watched these things go on it, it’s. It’s long.
Rosemary Barnes: But wouldn’t that be something that you’d have insurance for?
Allen H: Oh, maybe that’s it.
Rosemary Barnes: You know, it seems to me like an insurable, an insurable thing, like not so hard to, it would’ve affected plenty of other, like any project that involves excavation in Europe would come with a risk of, um, finding Yeah.
An archeological find. And having work stopped, I would assume.
Allen H: Yolanda, how does that work in the United States do, is there some insurance policy towards finding [00:25:00] a. Ancient burial ground and what happens to your project?
Yolanda Padron: I don’t know. I, um, the most I’ve heard has been, it’s just talking to like the government and like the local government and making sure that you have all your permits in place and making sure, you know, you might need to, to have certain studies so you know, you might not have to get rid of the whole wind farm or remove the hole wind farm, but at least a section.
Of it has to be displaced from what you originally had thought. I don’t know. I know it happens a lot in Mexico where you get a lot of changes to construction plans because you find historical artifacts or obviously not everybody does this, but like. Tales of construction workers who will like, find, they’re so jaded from finding historical artifacts that they just kind of like take and then dump them to the next plot over to not deal with it right now.
Not that it’s anything ethical, uh, or done by everybody, [00:26:00] uh, but it’s, but, but it’s a common occurrence, a relatively common occurrence.
Allen H: You would think it where a lot of wind turbines are in the United States, which is mostly Texas and kind of that. Midwest, uh, wind corridor that they would’ve stumbled across something somewhere.
But I did just a quick search. I really hadn’t found anything that there wasn’t like a Native American burial ground or something of that sort, which they previously knew. For the most part. It’s, so, it’s rare that, that you find something significant besides, well, maybe used some woolly mammoths tusks or something of that sort.
Uh, in the Midwest, it’s, it’s, so, it’s an odd thing, but is there a. A finder’s fee? Like do does the wind company get to take some of the proceeds of, of this? Trove of jewelry.
Rosemary Barnes: I, I would be highly surprised.
Allen H: Well, how does that work then? Rosemary?
Rosemary Barnes: I’d be highly surprised if that’s the case in Europe. I bet it would happen like that in America.
Allen H: Sounds like pirate bounty in a sense.
Rosemary Barnes: In, in Australia it wouldn’t be like that because [00:27:00]you, when you own land, you don’t actually. You, you own the right to do things from surface level and above, basically. I don’t know how excavation works. So you don’t generally have a a right to anything you find like that?
I mean, you shouldn’t either. It’s not, it’s not yours. It’s a, it belongs to the, I don’t know, the people that, that were buried. When you then to the, the land, like, I guess. The government in some way. I mean, in Australia it’s, um, like we don’t have so many archeological fines that you would find from digging.
I mean, it’s not that there’s none, but there’s not so many like that. But it is pretty common that, you know, there are special trees, um, you know, some old trees that predate, uh, white people arriving in Australia. And, um, you know, that have been used for, you know, like it might have a, a shield that’s been, um.
Carved out of it. Or, uh, hunting. Hunting things, ceremonial things, baskets, canoes, canoe like things, stuff like that. They call ’em a scar [00:28:00] tree ’cause they would cut it out of a living, living tree. And you know, so when you see a tree with those scars and that’s got, um, cultural significance. There’s also, you know, just trees that were, um.
That that was significant for cultural reasons and so you wouldn’t be able to cut down those trees if you were building any, doing any kind of development in Australia and a wind farm would be no different. I know that they are, there are guidelines for, if you do come across any kind of thing like that or you find any anything of cultural significance, then you have to report it and hopefully you don’t just move it onto the neighboring property.
Allen H: I know one of the things about watching, um. Some crazy Canadian shows is that. Uh, you have to have a Treasure Hunter’s license in Canada. So if you’re involved in that process, like you can’t dig, you can’t shovel things, only certain people can shovel. ’cause if they were to find something of value, you.
You’ll get taxed on it. So there’s just a lot of rules [00:29:00] about it. Even in Canada,
Rosemary Barnes: if I was an indigenous Australian and you know, some Europe person of European descent came and found some artifacts, uh, aboriginal. Artifacts. I would be pissed if they just took it and sold it. Like that’s just clearly inappropriate right.
To, to do that. So you, I don’t think it should be a free for all. If you find artifacts of cultural significance and you just, it’s, you find its keepers that, that doesn’t sound right to me at all.
Allen H: Can we talk about King Charles II’s visit to the United States for a brief moment?
Uh, he is a really good ambassador, just like, uh, the queen was forever. He’s, he does take it very seriously and the way that he interacted with the US delegation was remarkable at times in, in terms of knowing how to deal with somebody that there’s a war going on right now. So there’s a lot [00:30:00] happening in the United States that, uh, not only could it be.
Uh, respecting both sides of the UK and the United States’ position in a, in a number of different areas, but at the same time being humorous, trying to build bridges. Uh, king Charles, uh, had the scotch whiskey tariffs removed just by negotiating with President Trump, and sometimes that’s what it takes.
It’s a little bit of, uh. Being a good ambassador.
Allen H: Yeah. The very polished you would expect that. Right? But this is the first visit of. The king to the United States, I believe. ’cause he, he’s been obviously as a prince many, many, many times to the United States. [00:31:00]But this time as, as a, the representative of the country, the former representative or head of the country, which was unique.
I think he did a really good job. And I wish he, they would’ve talked about offshore wind. Maybe he could’ve calmed down the administration on offshore wind.
Rosemary Barnes: I bet that’s one of the, the goals. I mean, that’s an industry that’s important to. So
Allen H: I wonder if that happened actually. ’cause that’s not gonna be reported in, in the news, but how the UK is going on its own way in terms of electrification and I guarantee offshore wind had to come up it.
Although I have been not seen any article about it, I, I find it hard to believe that King Charles being the environmentalist that he is, and a proponent of offshore wind for a long time. Didn’t bring it up and try to mend some fences.
Rosemary Barnes: Maybe he’s playing the long game though. I mean, Trump is pretty, he’s transactional, but he also, you know, he has people that he really likes and you know, will act in their interests.
So maybe it’s enough to just be [00:32:00] really liked by Trump, and then that’s the smartest way you can go about it.
Allen H: Did you see the gift that King Charles presented to, uh, the US this past week?
It was a be from, uh, world War II submarine, which was the British, I dunno what the British called their submarines, but it was, the name of it was Trump. So they had the bell from. The submarine when it had been commissioned and they, they gave that to the United States, or give to the president. It goes to the United States.
The president doesn’t get to keep those things, but it was such a smart, it’s a great president. It’s such a smart gift, and somebody had to think about it and the king had to deliver it in a way that got rid of all the noise between the United States and the uk. Brought it back to, Hey, we have a lot in common [00:33:00] here.
We shouldn’t be bickering as much as we are. And I thought that was a really smart, tactful, sensible way to try to men some fences. That was really good. That wraps up another episode of the Uptime Wind Energy Podcast. If today’s discussion sparked any questions or ideas, we’d love to hear from you. Reach out to us on LinkedIn.
Don’t forget to subscribe, so you never miss this episode. And if you found value in today’s conversation, please leave us a review. It really helps other wind energy professionals discover the show. For Rosie and Yolanda, I’m Allen Hall and we with. See you’re here next week on the Uptime Wind Energy Podcast.
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