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Chinese Airborne Wind Turbines, Extended Blade Lifetimes

The crew discusses the Chinese S1500 airborne wind turbine, how NLMK DanSteel manufactures steel for offshore wind, and results from ORE Catapult showing extended blade lifetimes.

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You are listening to the Uptime Wind Energy Podcast brought to you by build turbines.com. Learn, train, and be a part of the Clean Energy Revolution. Visit build turbines.com today. Now here’s your hosts, Allen Hall, Joel Saxum, Phil Totaro, and Rosemary Barnes.

Allen Hall: Welcome to the Uptime Wind Energy Podcast. I’m your host, Allen Hall in the Queen City, Charlotte, North Carolina.

I’m here with Rosemary Barnes and. Australia Phil Totaro’s in California and Joel Saxum’s back home in Texas. We’ve all decided that we’re not gonna talk about anything negative this week. That’s good. Phil did have his pre-recorded rant. That’s always good. So there, there is some dirt going on out there in wind, but I don’t think we’re gonna talk about it this week ’cause we just need a little bit of a break.

The top of the order is, uh, this Chinese flying wind turbine that looks like a Zeppelin, and [00:01:00] they have supposedly tested over in China, the world’s largest airborne wind turbine, and it’s called the S 1500. It’s developed by Beijing’s Saws Energy Technology, and it made us made in flight recently in Hames.

The, it looks like a Zeppelin and, and Rosemary, there has been a previous version of this that was around, but I don’t think it went to anywhere, but it looks like it’s what? It’s about 40 meters tall, about 40 meters wide and about 60 meters long. So it’s sort of this long tube. And inside of this tube they have 1200 kilowatt generators.

So they’re creating power up at altitude, and they have a cable that bring down all the power. Down to earth. It’s kind of like a heliostat and some of these, uh, other tethered systems. My question is, why are we trying that now? And especially in China where they have huge, massive wind turbine is [00:02:00]being built.

Why this?

Rosemary Barnes: Yeah. Uh, I don’t know. I often question why China makes certain decisions with investments they make. ’cause they have, um, yeah, invested in a whole bunch of. Out there technologies as well as dominating most of the mainstream ones. And, uh, what I usually come up with is that they’ve gotta try everything.

Strategy, very, very similar concept came out of MITI think that they developed it originally as a power generating thing, you know, basically just based on the idea that, um, wind speeds are way higher the further up you go. So they wanna. Get, get up into those really high, um, wind speeds that, you know, way higher than what a tower can reach for a traditional wind turbine.

And yeah, this, these original concept that I saw out of MIT, that originally they were planning to use it for power generation, then I think that they pivoted to telecommunications. Um, and then I believe that they pivoted to not doing that anymore. Um, so I haven’t looked at it recently. Could, could be that [00:03:00]I’m a little bit outta date on that.

But it is interesting to see a concept picked up that. Like, I don’t think anybody would really say that that was the most promising of all the different kinds of airborne wind. Um, yeah. So it’s interesting to see that that’s the one that’s been picked up. I think it’s got some promise in that it’s, it’s true that the wind resource is much better at, um, at high wind speed, but there are a whole lot of challenges that need to be overcome.

Um, so it’s not yet I would say sure whether this. Is any of these technologies are ever gonna go anywhere? Um, we’re kind of at the point now where some companies are ready to find out, but it’s um, yeah, definitely not taking over the world anytime soon.

Joel Saxum: Yeah. I was gonna say, Rosie, I tend to agree with you.

I, we’ve, there’s the one I’m thinking about, Alan is the, it was containerized and it was like we had a winch. He let led the thing up and went up to higher altitudes. I just. I think there’s too many moving parts to these [00:04:00]solutions to be something that’s gonna be done at scale. I think there’s a great use for them in say, I don’t know, military operations or disaster response, um, those kind of things.

Or very remote areas where you can’t get anything else in, you know, like a Caribbean island or some crazy thing like that. I think there’s, there’s possibility there. However, to do this at scale. I just don’t see it, right? This one’s, this is by far the biggest one. I think I’ve heard of 1.2 megawatts.

That’s a lot of juice, right? That’s creating a lot of energy. So I think that you can see this like, oh, we’re trying to go to scale with this thing, but. What’s the practical use? I think, Phil, you actually said it before off air, like this is a solution looking for a problem almost.

Phil Totaro: Yeah, and it, what’s funny to me about this is there’s, there’s a couple of things here.

One is what you just mentioned, Joel, like the economies of scale on doing this as some kind of displacement to conventional power generation is just completely [00:05:00] impractical because we have so much infrastructure in place that’s not associated with. With Airborne, but we actually looked at, I just wanna say like 12 years ago as a company, we did the math on whether or not this type of technology made sense to use in, you know, like islands or, um, you know, displacement of like diesel generation basically, uh, places like Alaska or the Caribbean, like you said.

Um, so the math came out like if the price of oil is above. Something like 120 bucks a barrel, then a solution like this makes sense. Uh, otherwise you’re probably better off, especially now. ’cause again, when we did this analysis, it was years ago, but batteries are easily more dispatchable now. You know, the technology, this is one of those things like you were saying, like, yeah, the technology works and you can make this like a TL nine, but [00:06:00] for what?

Like, nobody’s gonna pay for this.

Rosemary Barnes: I don’t think that they’re up to TL nine yet. ’cause there’s some like, it, it works. And they’ve done autonomous operation, like in steady state operation. They’ve done some autonomous, um, like launches and. I dunno, what’s the opposite of a launch? Um, pulling, pulling back in.

You can’t just stay up there through any kind of storm, right? So they have to be able to launch and, um, re retract land, um, under deploy. You have to be able to do that autonomously if you are gonna imagine, you know, this having any kind of scale. And I think that, yeah, autonomous launch and, um, landing has been done.

But not in all conditions. At least last time I looked into it deeply, they, that was the last bit that was left. It’s like, yeah, it can, can be done autonomously in good conditions, but not bad ones. Um, yeah, so I think that there’s still some proving out to go and I think that failure raise a really good [00:07:00] point that it becomes like the further that other technologies develop, the less likely it is that airborne wind can catch up.

And also that people like those early. Early markets are going to want it now. Islands obviously solar panels, um, are already deployed on a lot of islands. And then when you do have batteries so cheap that you can start to build up a whole day, a couple of days, you know, a week worth of batteries would probably not be a totally non-comparable cost to the airborne wind.

And also just so much less maintenance required. So much less that can go wrong.

Joel Saxum: You know, there’s one thing I wanted to touch on here that we, we skipped, we kind of, we breezed by it because we do, we talk about these things all the time, but for people that are, aren’t used to r and d or aren’t used to technology development.

T when we mention TRL nine on the show here, uh, Phil mentioned it, Rosemary mentioned it. That is a scale. TRL one through TRL [00:08:00] nine, and it is, it was developed by NASA a long time ago, but basically TRL one means concept and idea all the way through. 2, 3, 4, 5, 6, 7, 8, 9, 9 means commercially ready. We’re ready to roll with this product as a, as a thing.

So when we say a one of those levels, that’s what we’re referring to.

Allen Hall: The United States had something very similar, or it still does, I think along the east coast they put up Aerostats around Washington DC and they had a little radar underneath them so they could look over the horizon. So along the east coast there are these big, massive aerostats, and I don’t know if you recall or not, but several years ago, probably 10 years ago now, they had one of those aerostats break loose in Maryland and that cable.

That holds it to the earth is conductive. So every power line it came across, started creating shorts and blackouts all along this pathway until it finally crashed in Pennsylvania. I think they had an F 16 [00:09:00] chasing it for a little bit, uh, once it broke free. But I remember that happening and thinking, man, that is a really difficult engineering, uh, design to create something as big as a basically a BLI size piece and have a cable and have it hold it.

For eternity.

Rosemary Barnes: That’s one of the biggest challenges. As aside from the autonomous operation, one of the biggest challenges is just the materials, properties of the cable itself. Because Yeah, the, the tether to get, and obviously it has to be conductive because the electricity has to, um, travel through it.

That’s the point. Um, yeah. And then, you know, to reach the really good wind speeds, you have to be very far above the ground. I mean, you would want to go like, what’s a jet stream? Is what, like a kilometer up or, or something. So, you know, that would be ideal. But at least, you know, several hundred meters and just the pure weight of that cable, um, you have to then, you know, like all of the lift that you need to keep in the, in the sky to support that cable is all just coming off, [00:10:00] you know, being subtracted from the, um, lift that is going into generation.

So it’s, yeah, it’s really tricky.

Allen Hall: I did work on one of those designs for a cable years ago. You’d be shocked how small those cables are for as high of altitude. That the balloon would go. So it’s maybe about twice the size of your thumb, at least my thumb, and it’s just full of really strong material plus power in it.

So if anything kinks or goes wrong in the winding process and you damage that cable, it’s a big deal. But if you do create a weak spot in it, your whole design floats away. Chaos reigns.

Phil Totaro: The other thing is that that’s why they wanna try the technology with the shroud design, because that obviously increases the rotor induction and everything like Rosie was talking about before.

The problem though, with it is it’s. Like, so theoretically you could [00:11:00]put it at a lower altitude with, with lower wind shear because you’re getting that acceleration when they’ve done these designs though on shore. Uh, ’cause there have been a number of companies that have tried doing shrouded turbine designs.

It, it. Ends up increasing the fatigue load on the blade route to such a degree that the, the blades end up shearing and you just, you lose all the benefit of the shroud. So

Rosemary Barnes: yeah, with ground, ground based, uh, ducted wind turbines, it’s always, it’s like a, almost like a little cheat because you can get higher, higher efficiency and, you know, beat the bets factor, which is a theoretical limit for how efficient a, a wind turbine can be.

A horizontal axis wind turbine can be, but it’s just, it’s just trickery because the shroud accelerates air from a, a bigger, like it’s capturing a bigger surface area. Um, the energy doesn’t come from nowhere, so it’s. You know, you can get the same effect by just having a bigger rotor, right? [00:12:00] Um, and then instead of a bigger rotor, you’ve used extra material to make the, the duct or the shroud.

And so it’s, you know, if they use the same amount of materials, do you actually improve anything? You can get a better efficiency number, but you’re not gonna get a better cost effectiveness. In any of the, like more advanced ducted designs that I have seen, they always end up using more material in the duct than they do.

They would to make a bigger wind turbine if it’s way up in the sky, like why are you limited on the diameter That it, it can be. So it’s like, yeah, I’m not, I’m not sure. Aside from the fact that they want the buoyancy from the, you know, the, the blimps of it, um. So they might as well make that into a shroud.

I guess If they’re not using any extra material to make the shroud, then sure. But in general, ducted desires like they, they work and depending on your. How you’re calculating efficiency. They can be more efficient, but they’re not more cost effective.

Allen Hall: [00:13:00] As wind energy professionals staying informed is crucial, and let’s face it difficult.

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 wind.com Today in this quarter’s PS Wind Magazine. Lot of good articles need to go. Download it@pswind.com. Uh. I wanna highlight an article I’ve been reading about, ’cause this ties into things that Rosemary has been talking about in regards to steel and steel manufacturing, that it’s very carbon intensive and CO2 intensive, and there’s been a number of efforts to use electric arc furnaces to reduce amount of CO2.

And when you do that. You use recycled material, you throw back into the mix to create the, to bring the carbon into play. [00:14:00] Uh, but NLMK, Dan Steel, which is based in Denmark, uh, makes the heavy plate steel, it’s used in wind turbines, have been doing it for a long, long time. And the article on PES Wind talks about the complexities of doing that today because we’re asking wind turbine.

Towers out in the ocean to do more and more and more. We’re putting more weight on top of them so any sort of grain defect becomes, can become catastrophic over time. So the amount of effort going into the steel plate and the technology that’s going into making that steel is exponentially higher than it was even 10 years ago.

And. Rosemary, I, I know the effort to decarbonize steel has been there for a number of years, but NL MK is already starting that process and I think it’s really interesting to see it and see those pieces of steel that are using less or remitting less CO2 now being put out into service. It [00:15:00] does take a very specific process though, right?

To do that.

Rosemary Barnes: I don’t know if, um, if you saw it, but I actually got to tour an electric arc furnace when I was in Sweden earlier this year. So that was really cool. We didn’t talk a whole lot about what I was there mostly to see. It’s the world’s lowest emissions, um, steel production. So when the electricity price was low, they would make hydrogen and um, then burn.

Burn that. They’d burn it immediately. They don’t store it anywhere. They make it onsite and then. Use it immediately. Um, and then when the electricity price is high, then they’re using propane. So, um, it was kind of like, uh, a more economical way to retrofit, uh, facility to be lower emissions. But it was, it was such a cool thing to experience.

It’s, uh, you know, like a lot of the decarbonization things, uh, you know, like if you’re in your home, it’s like putting solar panels on a roof and a battery, uh, in the backyard and you don’t really like, it doesn’t feel that that. [00:16:00]Challenging. Uh, at least in Australia, it really doesn’t feel challenging. You know, electric car is nice to drive, plug it in at home.

You never have to go to a petrol station. It’s all good, good, good. But then when I was in a steel facility, it’s like, you know, like you’re standing. 20 meters away from this molten steel and, uh, you know, just the, the weight of it. They’re just like throwing around this like red hot steel, throwing it around like it’s, uh, a noodle, um, rolling it and yeah, just, just literally just throwing it around, grabbing it with claws and throwing it over there.

And, um, it’s like you just, the, the weight and the heat, it’s just so obvious how much energy is, is used. But that is an electrified process also. So you know, even then it is still quite similar.

Joel Saxum: Rosie, do you think this is Okay, so I’m just going further down the path of what N-N-L-M-K is doing here in this decarbonization of steel production.

’cause steel, the steel production industry is like, it’s not like cement, where cement is one of the highest energy. Users in the world, uh, but steel [00:17:00]uses a lot and that’s why there’s an effort to do this. Can you see, so in this electric arc furnace process, is there a possibility of these things having say, behind the meter, wind backed up by batteries or behind the meter solar, like, can that produce enough power to run one of these plants or enough constant power?

Because I imagine these things need on-demand power now. Can that happen or do they have to be hooked up to the grid?

Rosemary Barnes: I don’t know about behind the meter because that’s just, you know, like a whole lot of power and any one wind farm or any one set of solar panels is going to be quite variable. Um, so I don’t see that it would make sense really to separate from the grid, which can combine, you know, a lot of different sources and it’s all, you know, it’s whole, um.

Its whole operational existence is geared around being very, very, very reliable. So I’m not sure. I mean, it’s one of those things that I guess, um, as the, um, cost of batteries comes down, down, down, down, down, then you can start seeing people probably inch closer to that themselves. But I can’t really see why you would need to be [00:18:00] off.

Sure there’s lots of steel plants with power purchase agreements out there. Um, you know, with individual wind farms.

Joel Saxum: Yeah. What kind, what kind, what’s the demand? Did they tell you what the demand is? Like, what is, what is peak power usage? What do we use it?

Rosemary Barnes: I didn’t, I didn’t talk about it in in that one, but I mean, electric arc furnace, it’s very, it’s a very normal technology and it’s something that’s been around since way before anybody cared about the emissions.

Um, CO2 emissions of steel because it’s very cost effective to take existing steel and, you know, just makes a, a new kind of steel product out of it compared to taking dirt and trying to turn that into iron and then steel, um, it’s a lot more cost effective. To the extent that we have enough steel scrap that’s, you know, from steel use that’s being retired now.

Um, you would obviously go with that for everything you can, but at the moment we’re still, you know, as a, a planet, we’re still using more and more steel every, every year. So it’s definitely not the full solution, but it’s a part of it. [00:19:00]

Allen Hall: Did they make, make you leave your wallet and watch behind when you went into that arc furnace area?

That’s what happened when I used to work for Alcoa. Years ago because the arc furnace is there.

Rosemary Barnes: The arc furnace wasn’t on. They, they do a weekly, um, cycle, so they shut down every Friday and um, they kind of shut it down in, in order, you know, because the, yeah, so the ARC furnace had had already shut down for the week, but the rolling was still going on.

But it was kind of good ’cause I could get right up to the equipment. You can’t stand very close to it, obviously while it’s

Phil Totaro: operating. So co couple of things. First is the, the companies that have signed PPAs for steel production offtake, they’ve actually said that they’re, they’re not doing a hundred percent of their power demand because they still have to, like, there’s a certain amount of base load power that they need, which they’re actually taking from renewables instead of taking from some other base load power generation.

Um, but they still need to [00:20:00] have like a peaker uh, capability. From the utility company that they’re getting power from. Uh, so, uh, Zenger in Germany signed a PPA, like that. I, there’s another company in Scandinavia somewhere that also did that, um, like late last year, I wanna say, or early this year. Um, so there’s, there’s a couple of companies that are, that are, uh, doing that.

The other aspect of this that I find fascinating is the fact that. When you make a wind turbine tower, it contains what we call a, a specific type of detail category, um, of the steel. So it’s a certain grade and a certain thickness to it. What’s basically going on with the evolution of this kind of technology, and what’s so fascinating about it is that you can now make things cheaper.

Faster and thinner than you ever could before using this type of process. So there’s less carbon, it’s cheaper, it’s faster, it’s better, it’s everything. That’s what’s actually really kind [00:21:00] of cool about this and and really fascinating to me and Joel though, making plate about 10 inches

Allen Hall: thick. That’s amazing.

Joel Saxum: That’s crazy. While we’ve been talking, I’m curious about some numbers here. So I went and kind of just did a little bit of basic math and this stuff is probably gonna ring true to a lot, but. A seven, so a 70. They, they rate these electric arc arc furnaces in tons. So a 70 ton electric arc furnace when producing 500,000 tons of steel per year.

The annual power consumption via 190 million kilowatt hours. Wind farm operating at 40% capacity is a 54 megawatt wind farm dedicated to this one steel factory. So that’s like 36 G one fifteens. Just to power this one steel factory for the year. One furnace. One furnace outputting, right, outputting 500,000 tons, one furnace.

Allen Hall: It’s impressive. And if you want to be even more impressed, you wanna download the latest quarters PS WIN magazine, ps win.com. A lot of great [00:22:00] articles, a lot of people that we know in there this quarter, download it. It’s free. A lot of good stuff in there. Are you worried about unexpected blade root failures and the high cost of repairs?

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Field tested on over 3000 blades. It’s proven reliability at your fingertips. Choose Eco Pitch for peace of mind. Contact Onyx Insight today to schedule your demo of Eco Pitch and experience the future of blade monitoring. Well, what if we told you that winter term blades collapse 50% longer than their intended lifespan?

Rosie would say that’s crazy. Well, Ori Catapult has been working with RWE [00:23:00] on a breakthrough testing program, so what they have done is they’ve. Pulled a 20-year-old blade from one of rws e’s uh, harshest onshore insights and replicated real world conditions, and they did it with 11 I devices, Joel. And they simulated the aging process and they successfully compressed one year of real world impact into about 48 hours.

Doing that allows you to then rapidly test. Blades for lifetime extension. Sally Pakistan, who was a principal validation engineer at, or a catapult called this potentially a breakthrough moment for the wind industry, unquote,

Phil Totaro: and I would agree with her. What’s awesome is that they’re improving the reliability of.

The, the blades. But this is also fascinating for the companies that repair blades. ’cause anytime you make something, you know, cheaper, [00:24:00] better, higher quality, less repair work equals less revenue for them. So they’re not gonna like it that much. I’m gonna throw a red flag on this study.

Joel Saxum: I like, uh, the 11 I technology and I think it’s really good ’cause I’ve seen it work, right?

Um, bill and the team over there do a great job, however. All of the blade conferences, all of the blade knowledge, all of the experts that I’ve talked to over the last five years, everybody basically has the same synopsis of the blade industry. 20-year-old blades. Yes. They were tough. They were designed tough.

They’re gonna last a long time. I don’t care about those that much. I expect those the last 30 years. It’s the new blades that I’m concerned about. Those are the ones that I don’t believe. So if you’re gonna do this test again, I’m throwing the red flag. You’re gonna do this test, do it on a 1-year-old blade, do it on a brand new design we’re installing today, then I bet you it won’t last 30 years.

Allen Hall: Well, that’s the question, right? I think. The, all the E-cig groups and the [00:25:00] dvs and uls have to be wondering like, okay, now what? Because the certification test that Rosemary’s been involved with in terms of blade qualification, is that real? Because that test is supposed to show the blades last 20 years if they do these series of tests, right?

And now our catapult’s coming back and saying, we have a way to really hone in on it. I think lifetime tests could get. Much more advanced, I’d imagine.

Rosemary Barnes: So in the early days of the wind industry, when they started making blades out of composites, they had huge safety factors, or probably safety factor isn’t the right way to think about it.

’cause the safety factor itself has probably not changed or not changed much since those days. But what they used as their material. Properties that, you know, the, um, values that they would put in their design codes, they were incredibly conservative. You know, they didn’t know exactly how strong it was.

They didn’t know exactly what fatigue behavior would be like. Over decades, we’ve adjusted the materials properties, [00:26:00] so now it’s much closer to what it really is. But the problem is that then we’ve got, we’ve rightfully reduced the. Buffer in those kinds of areas, but it used to also kind of compensate for a bunch of other things that we didn’t know that well, like manufacturing defects and, um, yeah, like all, all sorts of funny operating methods or, um, weird things that can happen that was kind of all included in that fudge factor.

And now that we have, um, really, you know, come down, you get to the point where yes, you can pass a, a, a. Certification test, but then when you get it out into the real world, things don’t happen exactly the same way every time. And there’s, you know, like little shocks from the sudden gust of wind or some turbulence that you just behaved in some sort of way that you didn’t expect, or, you know, like breaking loads, all these sorts of things can start to [00:27:00]then cause failures.

Phil Totaro: So let me, let me ask a question on this Is. Is the fact that we started moving away from, you know, kind of traditional, um, composite to start including carbon. You know, ev basically everybody wants a longer blade with less weight. We had to start introducing carbon to be able to make that possible. Is, is it?

The carbon protrusions are, are part of the problem or what’s the, what’s really kind of behind this?

Rosemary Barnes: I mean, carbon protrusions are part of the solution and then part of the problem as well, you know, you solve, they solved some, some things immensely and introduce new, new, um, damage modes, value modes, which.

You would say for any kind of new technology? I don’t think it’s all to do with carwood. I see plenty of, plenty of interesting failures in all glass blades. Um, it’s to do with them being longer. I think definitely like composite [00:28:00]materials actually don’t like to be thick. Um, the thickness of um, just even fiberglass in a wind turbine blade is like really unusual for, you know, I was doing my PhD 10.

13 years ago I started and at that time, like thick, thick composites, that’s an area of research and what counted as thick then is not as thick as what we see in, um, wind turbine blades all the time. And it’s not, these aren’t being made under lab conditions, you know, so there’s just a lot more things that can go wrong and not be discovered in the factory.

You know, when you have a small blade, defects are more visible from the outside and from standard, um, non-destructive testing techniques. Um, so yeah, now they can kind of be, be a lot more hidden and you might not learn until you’ve already got, you know, 5,000 blades out in operation.

Joel Saxum: I know this is a factor of economics, but this is one of the troubles that I have with, with, with standards, certifications, and all these things.

Just what [00:29:00] you said earlier, Rosemary, is the testing, right? So everybody’s seen a test rig. If you’re listening to this podcast, you’ve seen a blade test rig. It sticks the blade out. You’re gonna do some flap wise, you might do some oscillations. You might do some edgewise. Great. However, there is not a test stand in the world that can simulate centrifugal forces, gravity loading, aerodynamic loading, and those are major things with that happen to these wind turbine blades.

All day, every day. So the answer to me is install them, run ’em for a year or two. Figure these things out before you build 5,000 of ’em.

Rosemary Barnes: Yeah, but they do. But the problem is, with any kind of certification, is you’re testing one thing, one example of something that’s gonna be serially produced with all sorts of random distributions.

And in some ways it’s conservative ’cause it’s your first blade and you probably haven’t figured out how to well make ’em that well. But on the other hand, you’ve made it really slow and everyone’s paying a lot of attention. Um, I don’t think necessarily people are making it differently because they know it’s gonna be tested.

I never saw that. But definitely [00:30:00] everybody’s paying attention for the first few blades because it’s not become second nature anymore. You know, you’re still reading the work instructions carefully and engineers are still there supervising everything. You just can’t get the statistical variation in a full population of blades by doing one test.

Allen Hall: Isn’t the 11 I sensors that were used during this process, I assume to show aging if they’re installing 11 I imus Joel, that’s basically what they are is like an IMU

Joel Saxum: multiple ones in each blade.

Allen Hall: You can detect different modes of vibration and how the blade is moving over time. If you can do that at some reasonable scale, seeing it’s even 1% of the blades that are out in service for a particular farm, why wouldn’t you?

Because the lifetime issue is gonna come up at some point you would be able to tell if the blade has changed vibration modes or whatever else these structural engineers are [00:31:00] doing. You would be able to see that over time. And I’m guessing that’s what they’re doing at, or a catapult is looking at structural changes.

That would occur naturally over time in the aging process, and they can accelerate that and that’s how they’re validating it. But the same token, you can use that same technology to look at existing blades to predict what the lifetime of the blade would be.

Joel Saxum: It’s, it’s another thing what the, like Rosemary is saying though, popula, when we’re we’re talking about this, we, we have to introduce the conversation of statistics.

Populations samples. What is pop? What are proper statistics? What do they look like? How do you test for ’em? Because if I’m a, say I’m a big operator and a, or a small operator, I don’t care, or a consortium, this is what it should be. A consortium of operators gets together and says, Hey, we buy a bunch of these type of turbines between the five of us.

Why don’t we force this OEM to put these sensors in here on five of your turbines? Five of mine, five of mine, five of mine. That would be great, and then we would have a picture of what’s going on. However, here’s the practical problem there. If you’re, if you’ve got [00:32:00] 500, we’ll throw this out there. GE two X, we look at a ton of them.

One 20 sevens ge, two x one 20 sevens. If you’ve got 500 of these, the chances are those 500 turbines, 1500 blades came from probably eight different factories from three different manufacturers, or four or five different manufacturer. And they may be any of 10 different versions from a, a one, A two B two, B three, C one, C two, C3, and now we’ve even seen Gen D.

So all of the results you’re gonna have to repeat for every one of those generations of that same blade. Like it’s a, it’s a problem that we have in wind that is a, it’s a very unique, because we’re doing things in serial production like we, like we talk about, but the serial production changes so much and there’s so much variability that to get statistically meaningful.

Data is tough. Yeah. But the cost is relatively

Allen Hall: low.

Rosemary Barnes: The cost that’s, that’s, that’s relevant. It’s not even so much the cost of the sensors, it’s the people to manage the data. That’s, that’s what I found. [00:33:00] Um, yeah. When I was always like, why can’t I just install all of the sensors and, you know, just record all of his information and gimme all of the scatter data?

And they’re just like, no, we can’t, you know, we can’t manage that. And it’s one thing to do it on the prototype, I, I would. Um, you know, I could just install a, a separate system and manage that on my own. But if you want to do it, um, operationally, then um, that’s the, the biggest challenge. I mean, these OEMs are all, you know, they wanna hire the fewest number of engineers possible, right?

Because that’s, uh, they’ve gotta, gotta keep costs down and they just, I don’t think there’s enough human power to be this smart in, you know, across the board. Unfortunately,

Phil Totaro: Joel, this goes back to the issue in the industry that we’ve had absolutely forever, which is the OEMs have some, but not necessarily all of that kind of data because they obviously have an outfitted every single.

Turbine with sensors, but they are the ones that [00:34:00] hold all the keys when it comes to what Blade was manufactured, where, uh, what gearbox was manufactured where. ’cause that’s also a consideration too, just talking about general things. But, so from the standpoint of the owners and operators, they’re maybe not even gonna have visibility to some of that kind of information.

Even if they retrofit a sensor platform onto the turbines that they own, that may give them visibility. You know, Rosie’s point notwithstanding like, you know, doing the, the data analysis and, and all that, and the resources and money that, that’s necessary to commit to that. But there’s a missing piece that the OEMs are just fundamentally unwilling to share.

We’ve been begging them for 20 years to let’s do a project together where you give us some access to that type of information for purposes of benchmarking this, that, and whatever. Like, Hey, you think you’re better than Vestas? Then tell us ge, how you’re better than Vestas. Let us see some of your data.

We don’t need all of it, [00:35:00] but some of your data, they won’t even do it. Not even a little bit. So

Joel Saxum: I mean, what, what it would take in my mind, and this is a macro thing, but what it would take in my mind is. A consortium of people in the industry that are saying, okay, enough, we got our insurance company together.

We got a finance company together. We got a couple of operators together. We’re gonna put together a, well, what would we call A-J-I-P-A joint industry project. Everybody devotes a little bit of resources to it, and we stare at an OEM and say, we’re not buying any more turbines until you give us some of this data or let us instrument these things.

Rosemary Barnes: I reckon that’s the path through. If, um, insurance companies can say, you know, this is costing us too much and start offering a discount to clients that have this kind of monitoring, then I think that that will, you know, create a big enough push pull to get this happening. ’cause you know, maybe. Um, the OEMs can see they can charge more for a product that has this because they just never wanna include sensors [00:36:00] even, you know, just operationally when I want to, you know, get my client who owns a wind farm to, you know, stick a sensor somewhere that’s totally not affecting any structure.

Doesn’t need to get into scatter or power through. Its solar powered and remotely. Um. Uh, monitored. They still often say, no, you can’t do that. And it’s, you know, to a turbine that they, that the my client owns. Um, so they just hate to allow anything at all. It’s so, it’s so irritating and so senseless because it’s actually, uh, preventing the industry from maturing in the way that it would need to, to, you know, be future-proof as a, you know, long-term, major technology.

Phil Totaro: And here’s, here’s what’s interesting is in in industries like automotive, there’s been a mandate in industries like aerospace and aviation, there’s been a mandate for that kind of. Transparency there has not been a mandate. And going back to Rosie, your question, why do the [00:37:00]insurance companies not have the power of mandate through, you know, the insurance?

It’s because they’re not actually backstopping every single thing that goes on out there. The only way we’re gonna get access to the type of data that we want. That we’re all talking about right now that’s gonna solve these problems and help move the industry forward is through some kind of mandate.

Allen Hall: That wraps up another episode of the Uptime Wind Energy Podcast. Thanks for joining us. We appreciate all the feedback and support we receive from the wind industry, and if today’s discussion sparked any questions or ideas, we’d love to hear from you. Just reach out to us on LinkedIn and please don’t forget to subscribe so you never miss an episode.

For Joel Rosemary and Phil, I’m Alan Hall and we’ll catch you here next week on the Uptime Wind Energy [00:38:00] Podcast.

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WindQuest Advisors on Repowering and Rising O&M Costs

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Weather Guard Lightning Tech

WindQuest Advisors on Repowering and Rising O&M Costs

Dan Fesenmeyer, Managing Partner at WindQuest Advisors, joins to discuss the repowering rush and the FAA permitting stall, rising O&M costs on larger turbines, tariff pass-throughs, and AI data center demand.

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 YouTubeLinkedin 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!

Welcome to Uptime Spotlight, shining light on wind energy’s brightest innovators. This is the progress powering tomorrow

Allen Hall: Dan, welcome back to the podcast.

Dan Fesenmeyer: It’s great to be here. Great to see you again.

Allen Hall: There is so much happening in your particular area. Your name pops up quite a bit within Weather Guard because, uh, we’re dealing with a lot of operators and- A number of times we’ll ask them, “Have you read your turbine supply agreement?”

“No.” “Have you read your full service agreement?” “No.” “Well, maybe you should do that.” And then we say, “Have you talked to Dan? You should call Dan, ’cause he can help you understand what you have signed.” Mm-hmm. “Oh, that’s probably a good idea.” So now that you’re here, WindQuest Advisors, of course, obviously is your company.

Mm-hmm. And you’re talking to a number of operators. The, the big hurdle at the minute, the nearest short-term hurdle, is repowering. There’s just a lot of [00:01:00] repowering efforts going on- Mm-hmm … trying to get turbines in, start a project. There’s a July 4th deadline and an end of the year deadline. There’s a couple deadlines after that.

What are you seeing right now from operators i- in terms of repowering? What’s the effort happening?

Dan Fesenmeyer: Well, there was a ton of effort to start physical work. That window’s obviously closing-

Allen Hall: Yes …

Dan Fesenmeyer: very quickly, but it’s still open. Uh, and then once you’re past that window, my understanding is if you get your repower completed by the end of ’27, you didn’t really need to have started physical work.

But I think most folks, start physical work is kind of the insurance piece of it-

Allen Hall: Sure …

Dan Fesenmeyer: if things take longer. Uh, another thing that’s popped up is obviously FAA and other permitting.

Allen Hall: On the permitting side, from the federal’s, uh, standpoint, is that stopped? Or, or are projects able to continue putting turbines in the ground, or what’s the status?

Dan Fesenmeyer: My- From what I’ve seen, I think on the opening session here at [00:02:00] ACP, it was said, they said that there’s, like, 130 projects that are-

Allen Hall: At least …

Dan Fesenmeyer: caught. Yes. And I’m, I’m involved with some of them, and I have a fairly small shop, and there’s just no FAA variances or permits or- They’re not issuing- … mitigation studies.

Everything seems to have stopped.

Allen Hall: So they’re not even reviewing the documentation that’s been submitted by the operators at all?

Dan Fesenmeyer: That’s what it seems, yes. Yeah.

Allen Hall: Is that legal? Uh, uh, usually those federal requirements have a timeline which they’re able to review those permits and get them approved or disapproved them.

You’re s- Right … I think what I’m hearing is, what you’re saying is they’re not even looking at them.

Dan Fesenmeyer: That’s correct. That’s what I’ve heard and seen.

Allen Hall: Okay.

Dan Fesenmeyer: Yeah. Yeah.

Allen Hall: So what is an operator to do then? How does this, how do they meet some of these deadlines if they can’t get the permit?

Dan Fesenmeyer: Well, I mean, it stalled a lot of projects ’cause of the associated risk with it.

Although I’ve seen some, uh, you know, some repower folks think, “Well, you know, I’m just repair- repowering like for like, or I’m not changing much.” [00:03:00] But if your, if your rotor’s changing or pad location’s changing, you need to update those permits.

Allen Hall: So the, the groups and the operators that are repowering the existing turbines are putting basically the same turbine in the same hole.

Dan Fesenmeyer: Well,

Allen Hall: I- Would that be okay?

Dan Fesenmeyer: I would say originally- The initial push on repower was kind of your larger rotors- Sure … new drivetrain, et cetera. Yes. The market seemed to shift more towards, “Hey, let’s do smaller upgrades, component exchanges.”

Allen Hall: Okay.

Dan Fesenmeyer: Getting more towards the minimal investment, so to speak.

Allen Hall: The 80% investment portion.

Dan Fesenmeyer: Yes.

Allen Hall: Right.

Dan Fesenmeyer: Yeah. And less about, you know, a big new machine head, for example.

Allen Hall: Well, if that gets you through and gets you the, the, uh, tax credit started back up again, which is the whole point- Right … there would be a reason to do that.

Dan Fesenmeyer: That’s right.

Allen Hall: Is there a marketplace then for those components if you’re gonna repower a GE 1.5 machine, which there’s a lot of them- Mm-hmm

in the United States? Are you seeing a big emphasis to go get a new gearbox, [00:04:00] to upgrade the blades- Yeah, and, and- … kind of

Dan Fesenmeyer: thing? Or just do maybe a drivetrain and s- Okay … and leave the rotor or, or-

Allen Hall: So do a gearbox and-

Dan Fesenmeyer: Yeah. Gear or just full drivetrain- Or generator … or yeah, s- things like that. And, um- Wow

people are comfortable doing it, and then it’s e- it’s easier, obviously.

Allen Hall: Sure. It’s faster.

Dan Fesenmeyer: And faster, and you don’t necessarily have to touch permits or, yeah.

Allen Hall: And is part of that repowering, I know one of the questions- Mm-hmm … that’s been bandied about quite a bit is, do I have to buy a, a new generator or a new gearbox, or is a refurbished gearbox enough to check the box in terms of upgrading or putting 80% of the value back into the turbine to qualify for those tax credits?

Dan Fesenmeyer: I’m not a tax expert, but I’ve seen people do both.

Allen Hall: Okay. Well, that’ll tell you.

Dan Fesenmeyer: Yeah. Yeah.

Allen Hall: They’ve obviously talked to- Right … tax advisors about that.

Dan Fesenmeyer: It’s, it’s their level of risk and whether they have outside tax money or whether- … they’re kind of balance sheet or taking it themselves. It’s, it’s- Yeah … more of a risk profile that [00:05:00] everybody’s different on.

Allen Hall: Okay. So that has changed the landscape quite a bit. So now it’s, once this window of opportunity passes by, we’re into brave new world. Mm-hmm. And operating turbines now not really 10 years, operating till end of life, which could be 20, 25 years. Have operators started thinking about that and starting to address some of the, the, especially the contracts around that?

Are they starting to rethink contracts? Are they starting to approach full service agreements differently? Is, is the marketplace changing in the US?

Dan Fesenmeyer: Yeah, I think so. I mean, it, it, depending what you have and what you’re doing, whether you have an existing agreement or you need a new one, and whether it’s a renewal or if you’re doing, let’s say, a drivetrain or new machine head, then there’s usually a service contract that’s going to come with it- Sure

’cause it’s essentially a new machine. Largely a new machine. Largely,

Allen Hall: yeah.

Dan Fesenmeyer: But in the case of a gearbox, right, you’re probably out of your longterm O&M agreement anyway, and, uh, whether you’re… And you probably [00:06:00] have, you don’t have the unplanned coverage anymore. Right. So it’s really, you’re on, you’re kind of on your own risk.

Allen Hall: Okay, so that’s the repower scenario. Mm-hmm. What’s happening new turbine-wise? It seems like the, a lot of the operators are choosing six megawatt, seven megawatt, eight megawatt machines tends to be the, the, the band of opportunity for a lot of operators. What are they working on right now in terms of, uh, TSAs, full service agreements?

What are you seeing out on the landscape US-wise?

Dan Fesenmeyer: Well, I think, um, the TSAs haven’t changed much.

Allen Hall: Okay.

Dan Fesenmeyer: But the- The, the scope and the risk has changed a bit, and the, the OEMs are, you know, holding their cards closer, and it’s hard to get to certain terms that– harder than it used to be.

Allen Hall: So let’s, let’s talk about that for a minute because, uh, there’s been some recent reports speaking to the O&M costs for larger machines.

And so the, the goal was if I went from a [00:07:00] two-megawatt machine to a six-megawatt machine, my O&M cost may be 3x because of the size of the turbine, but ideally they drop. That, uh, the same amount of effort into a larger, m- newer machine, uh, so, uh, my spend wouldn’t go up that much. In, in some places on the planet that I’ve seen feedback about that is that the O&M costs are not 3x, they’re 5x.

So the, the cost to operate the turbine, the six and eight megawatt machines, is higher than it would be proportionally to a two-megawatt machine. I think operators are just trying to start to figure that out. Are the OEMs already knowledgeable of that fact and are s- trying- I, in, in- … to phrase the conversation

I

Dan Fesenmeyer: mean, in the pricing that you get from the OEMs for the full scope agreements, that’s largely in there already.

Allen Hall: Yes.

Dan Fesenmeyer: And I always tell people look at it on a dollar per kWh or dollar per megawatt hour- Ah … basis versus a dollar per turbine, and you- Sure … you’ll see a different number.

Allen Hall: Different calculation done.

Dan Fesenmeyer: Right. But [00:08:00] these, these larger machines, they need larger cranes. They need tall– Yeah, they have taller towers, so a different crane setup, and these components become very, very large. So- Everything gets harder … everything gets d- more difficult. In a basic sense, it’s still oil and gearbox and, you know, tho- tho- Right

that kind of basic service. But when you get into major components and more major maintenance items, then it’s bigger, it can be harder.

Allen Hall: So what does a operator think about that now that they have a little bit of experience? Obviously SunZia, which is a huge project, three and a half gigawatts, uh, a l- several hun- like around 900 turbines, all of them bigger turbines.

It’s a r- for, uh, really the first real taste in America of larger turbines. What are the operators thinking about that, and how are they thinking about what sizes to go with in the future? Or, or, or do they not really have a choice? Like, GE offers six, Vestas offers six, Siemens will offer a six or a seven, [00:09:00] so those are your choices.

They’re– You’re not able to get a two megawatt machine anymore.

Dan Fesenmeyer: I mean, I think, uh, it really comes down to your, your site. Okay. And the larger machines are generally better when you have land constraints or, uh, y- your, your wind resource varies very differently. Think of a ridgeline, and you only have a certain number of pads.

But generally, it’s kind of a pad constraint to push you to the larger, and then your smaller, “smaller,” four and four to four and a half- … megawatt machines, those are still kind of the workhorses of, of the US, in my opinion. Their NCS better, they’re e- they’re lower cost, but you need more pads. So it’s always that trade-off of pads versus space, spacing, uh, and in the end, you just want to get the most AEP out of that site.

Allen Hall: In terms of marketplace, are you seeing prices generally rise dollars per megawatt on [00:10:00] new turbines? ‘Cause the, at least the market indication is that, uh, some of the OEMs have- Real strength in the marketplace today. This is an, an OEM-strong market. They can set- Mm-hmm … prices now. There’s fewer players. China has been eliminated from a lot of lo- locales.

Mm. So they don’t have the competition. That allows them to raise prices. Are you starting to see that flow down in some of the contracts, that, hey, the prices are going up? But, but i- inflation has been a big part of that, too. Well,

Dan Fesenmeyer: yeah, yeah. I mean, there’s… And tariffs, right? The, uh, that, that’s the most interesting one right now, and you have to kind of peel apart what’s my pre-tariff price versus my post, and then what’s the exposure if these tariffs change?

And-

Allen Hall: Is that in the contracts now? Are they able to write contracts that tie them to what the tariffs could be, so your final price really depends on what the tariffs are today or tomorrow?

Dan Fesenmeyer: It’s generally… Well, things have changed and, and things are always fluid, but, [00:11:00] but most recently it’s, “Well, here’s what the tariffs are today,” and when we either bring in the component or when the OEM’s actually paying that tariff, it’s kind of a pass-through

Allen Hall: in essence.

So they’re just handing you the, the bill for the tariff- Yeah … in a sense.

Dan Fesenmeyer: I mean, that- that’s it. And then you can maybe negotiate and do some things around that to share risk a little bit. Mm-hmm. But the basic premise is, you know, there’s transparency on here’s the countries and the tariff rates. If these change, that’s on the buyer.

Allen Hall: So the OEMs are trying to address that in, in some form w- by moving production into the United States. Vestas has a large blade facility in Colorado. They’ve been expanding that over the last several months. They’ve been hiring quite a bit. Uh, GE with LM up in North Dakota and TPI, and all the discussions around TPI at the minute is to really bolster their supply chain.

Uh, they’re trying to get away from the tariffs as much as they can. Are, [00:12:00] are you… You think you’re still gonna see more of that where a Siemens, a GE, a Vestas are gonna be investing more in the United States to avoid that tariff, or is it just impossible?

Dan Fesenmeyer: I, I mean, I think you… What they’ve done, I… It seems to me, I’m not obviously an expert on that, but it- they’ve moved things where they can And to capture- Mm

you know, where you already have capacity. But starting, yeah, building a new plant somewhere, I’m not sure how wise that is in the environment that we’re in.

Allen Hall: Yeah, you saw a lot of plants that were proposed two, three years ago that have, were never built. It does seem like existing plants that were on site that were closed got reopened.

Kansas, Iowa- Mm-hmm … some of those plants got- Mm-hmm … started over again, which is easier to do, which makes a lot of sense. So they’re going after the, the easiest things first still. We’re in that phase of we’re not gonna put a lot of money into the United States however. We’re gonna utilize what we have and maybe grow what we have.

Dan Fesenmeyer: Right. Or, or similarly, you can move from, if you have more of a… All these supply [00:13:00] chains are global at this point.

Allen Hall: Sure.

Dan Fesenmeyer: But if you happen to have a factory in a country with a lower tariff and versus one that’s higher, maybe you move that. You’re not bringing it over to the US, but you’re moving from, let’s say, India to the UK.

Allen Hall: Sure. So, so- Okay, so there, there’s a lot of sh- card shuffling going on- Yeah … to avoid tariffs.

Dan Fesenmeyer: Yeah, and unfortunately then the tariffs change and- … perhaps you have to change back. And, and the other one, uh, that’s out there, obviously the Supreme Court had their ruling on tariffs, so folks are waiting for a Section 232, which is

Allen Hall: still- Untouchable, in a sense?

Uh-

Dan Fesenmeyer: Well, it- people are just waiting for what, what will Section 232 be. And it’s been looming for months now.

Allen Hall: Over a year.

Dan Fesenmeyer: Yes. So, and, you know, we’re waiting, I guess.

Allen Hall: Is the feeling about that in the industry, uh… I’ll, well, I’ll use a couple of good examples, I think, which, uh, offshore wind being a real stress point United States, and a lot of [00:14:00] the administration’s work to limit offshore development got stopped in the courts.

So anything that was sort of building turbines, putting, had ships out, putting- Mm … uh, monopiles in, they never got stopped. They were delayed a couple of weeks, but they were never really stopped, and it feels like from the outside looking in, is that the courts are not gonna allow some of these, uh, movements by the administration to take effect.

Is the industry in the United States seeing the tariffs and some of the more extreme things that are happening as temporary or, or are they being a little more cautious, saying, “Yes, offshore wind has won a, a number of lawsuits”? But we may not. And th- with the Department of War and 232 and all those events that are happening, what is the outcome there, and w- how are operators thinking about that?

Dan Fesenmeyer: Well, I think we’re in a, in a market where if you have a project that can get built within this window-

Allen Hall: Yeah …

Dan Fesenmeyer: and [00:15:00] you’ve safe har- Like, those projects- And you’re, you’re just in … are desperately moving forward.

Allen Hall: Okay.

Dan Fesenmeyer: Then- ‘

Allen Hall: Cause the trend has been, if you can get it in the ground, they’re gonna let it be developed.

They haven’t been able- Right … to stop anything halfway through. Well,

Dan Fesenmeyer: other, like, the FA is a good example of it-

Allen Hall: Sure …

Dan Fesenmeyer: being stopped. But- Yeah … if you have a project that’s being built, you’re moving forward, and then projects that are outside the window, it’s more of a greenfield development view of, of life.

And seems like some folks are selling p- assets, some folks are buying- A

Allen Hall: lot of that …

Dan Fesenmeyer: development assets.

Allen Hall: Let’s go down that pathway for a minute because I did think- Yeah … that’s a very interesting piece to what’s happening in the United States at the minute. There’s a lot of transactions, big dollar transactions happening for wind- Mm-hmm

on buying, selling portfolios, not just farms. It used to be farms. Right. We’ll sell a farm. Yeah. It was. We’ll swap farms, that kind of thing. Now it’s like, uh, would you like our whole portfolio, wind, solar, battery?

Dan Fesenmeyer: Mm-hmm.

Allen Hall: Is that playing into a lot of the decisions that are [00:16:00]happening on the ground right now, that a, a developer or an operator that has assets is saying, this is a prime time to sell.

There’s a l- I have my tax credits already locked in. We’re golden here- Mm-hmm … for several years. The value is never gonna get higher. I need to get out. I- is that the marketplace today, is-

Dan Fesenmeyer: I think for some. I mean- Yeah … everybody’s got different, uh, motivations, whether they wanna get into wind, get out of wind, greenfield versus repower.

Uh, it, it’s, it’s really their view of the world and their risk profile moving forward, and whether this is a short-term play, long-term. Do we wanna get out of wind? Some people are essentially doing that. Uh, it’s, it’s across the board.

Allen Hall: How’s AI data centers playing into this? What are you hearing?

Dan Fesenmeyer: Oh, I mean, that’s what everybody talks about, AI and data centers, and the demand for power is there.

And- The [00:17:00] issue that, that a lot of us see is wind and solar and battery can all help with that.

Allen Hall: Sure.

Dan Fesenmeyer: And if you want a gas turbine, that’s great, but my former colleagues at GE are gonna tell you it’s 2030- Yes … or later to get one, so what do you do between now and then? And you’re seeing prices go up, which makes these wind farms look pretty good.

Power profile’s nice. Yes. Uh, but you still have hurdles to get, like the FAA, US Fish and Wildlife, all these other hurdles to, you know, that are slowing down wind and solar for that matter too.

Allen Hall: Solar’s been slowed down for sure.

Dan Fesenmeyer: Yeah. Yeah. Yeah.

Allen Hall: Does that change, though, with the demand for power in AI data centers?

And it does seem to be a priority in the United States to, to win this AI race. Mm-hmm. Does that loosen some of the reins on renewables to let them go, like just look the other way for a while, while they put a new solar field or wind farm in?

Dan Fesenmeyer: It stands to reason that will happen. Haven’t really seen [00:18:00] it, unfortunately.

But I wo- But I think it will, right? I mean, it, it, it, it almost has to at some point.

Allen Hall: There’s a lot of pressure on Washington DC to let data centers start being developed and, and go.

Dan Fesenmeyer: Mm-hmm.

Allen Hall: But a- as you pointed out, gas turbines are hard to get, and they can’t scale up at the rate at which the demand is.

Right. So your alternative is something really simple, quick and efficient, which would be wind and solar and a little bit of battery. Yeah. I- is that change in the thinking of operators and how they’re thinking about their assets, one, and two, what they’re thinking about in the future? Or are they trying to hook up with an- a- I mean-

a Google, a Facebook, a- Yeah, I

Dan Fesenmeyer: mean, the offtake’s- … SpaceX … there, and that’s generally, you know, it used to be utility PPAs. Then it turned- Right. … into hedge things and C&I. Yeah. And now it’s more, you have this, the data center offtake.

Allen Hall: Is the data center offtake, thinking about it from a, a financial standpoint, which they’re probably not being tied to the grid.

At [00:19:00] least a lot of these, or at least the talk is right now, is the not being connected to the grid to be sort of standalone, feeding a data center, and maybe a piece of fiber optic coming out of the data center. But that’s essentially it. Maybe some backup power on the grid just in case things go horribly wrong, but standalone power for data centers does make sense.

It would, it would seem to lessen the requirements on wind and solar in terms of interacting with the federal government or the, the power company in a sense. Does that make wind and solar a little more viable because it’s not connected to the grid?

Dan Fesenmeyer: Well, I mean, it will be connected to the grid because when the wind stops blowing, the utility will usually, you know, or, and the sun stops sh- shining- Sure

uh, the utility will kind of provide that power. That w- Or the gas turbines that they have would- Gas turbine will kick

Allen Hall: in, right.

Dan Fesenmeyer: Yes. Yeah. But, but generally speaking, you’re never truly off the grid, but it does speed things up with interconnection and, and, you know, your T&D [00:20:00] line is much shorter.

Allen Hall: Right.

Dan Fesenmeyer: Or not, you know- Much

much, much shorter. Yeah. Depending where the, the resource is and versus the plant or the, the data center.

Allen Hall: So what are the things that we don’t know in the industry that you’re in touch with that we should know? ‘Cause there, there must be a lot happening behind the scenes that we don’t hear out in public or in the common spaces of some of these conferences that are happening behind the scenes.

What is, what is the status right now? What do you think the status is of wind?

Dan Fesenmeyer: I mean, it’s, I, I, I’m a big sailor, and sometimes the wind’s blowing hard- … you’re going fast, and sometimes you sail into what we call a hole- Yeah … and it’s just dead quiet. We’re not quite there yet, but, um, it, it’s kind of we’re going through a bit of a lull right now.

And I think, I think what people don’t realize is the multiple roadblocks that the industry’s facing. In the past, we’ve had PTCs lapse, and the question is when and if it [00:21:00] will be renewed. Yeah. Now you have other roadblocks, you know, whether it’s, again, FAA, Fish and Wildlife, permitting, different localities.

Some… And this goes back to the data center. A lot of local, you know, communities don’t want a data center.

Allen Hall: Right. There’s a lot of-

Dan Fesenmeyer: Right? And they’re like, “Well, wait a minute. My power prices as a citizen are gonna go up- True … because of it.”

Allen Hall: Yeah, it’s true. We’ve already seen it.

Dan Fesenmeyer: Yeah. Yeah. So, so there’s a lot of just new barriers that have come up.

Allen Hall: Okay. That-

Dan Fesenmeyer: But wind developers are an extremely resilient bunch, and-

Allen Hall: This isn’t the first rodeo-

Dan Fesenmeyer: Right …

Allen Hall: where they’ve had these issues pop up- Yeah … and PTCs stop and other world forces affect the industry. What’s the outlook over the next three to five years, do you think? Different administration in a couple years, maybe different outlook, more demand on…

for power, AI data centers. Is- it just gonna [00:22:00] overwhelm any resistance to wind and solar and battery?

Dan Fesenmeyer: I mean, it, it, that’s kind of a crystal ball, but I think if these data centers start getting built out like people think they will, there’ll be demand for power. And, now we’re talking basic economics, Supply, demand. People need power, then power plants will get built and, whether it’s gas, wind, solar-

Allen Hall: All of the above

Dan Fesenmeyer: All of the above, right? And, and I think it will ultimately follow that. I think the, administration will let you know if there’s not enough power or power gets too expensive, something has to break and fill that gap

Allen Hall: because- So let the economics play out a little bit.

Dan Fesenmeyer: Yeah, right? Yeah. ‘Cause we’re, we’re voters, right? And- Sure … and, um, people vote often with their pocketbooks.

Allen Hall: And wind and solar are cheap sources of energy, and they’re gonna come to the top of the list almost every time.

Dan Fesenmeyer: Yeah.

Allen Hall: Yeah. Yeah. Yeah. I, I agree with you. Uh, it’s good to see you again. We saw you a few months [00:23:00] ago at WOMA in Australia, and that was wonderful.

And I tell a lot of the operators we talk to, “You better be talking to Dan and WindQuest Advisors because you really need to understand what your contracts say and the contract you’re signing, and you need to have a better sense of what’s happening, a little more broader speak in the United States and elsewhere- Mm-hmm

and they should be talking to you.” So how do they call or how do they contact WindQuest Advisors to get started?

Dan Fesenmeyer: Well, www.windquestadvisors.com or reach out to Allen and his team. You’re on LinkedIn. I’m on LinkedIn as well- … both personally and my firm. And, um, ask a friend ’cause I have a, we have- … big networks that everybody…

You know, it’s, it’s a small community here. It

Allen Hall: is.

Dan Fesenmeyer: Right?

Allen Hall: It is.

Dan Fesenmeyer: And, and people bounce around different firms and, but people stay connected, so, um, that’s a great way to find each other as well.

Allen Hall: Yeah. Great to see you, Dan. Likewise. Thank you. Thanks for being on the podcast. And yeah, we’ll hopefully see you in Australia in a couple months.

Dan Fesenmeyer: Looking forward to

[00:24:00] it.

WindQuest Advisors on Repowering and Rising O&M Costs

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America’s Brand: Indifference to Human Pain

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There are essentially two forms of government on this planet: those that care about the wellbeing of their citizens and serve their interests and those that don’t.

Until the late 20th Century, one could have plausibly argued either way re: the United States.  Since about 1980, it’s been clear that we really couldn’t care less about the sufferings of the common American.

It’s really become part of our brand.  Billionaires deserve tax cuts.  The middle class is shrinking, and the poor deserve a kick in the ass for not working harder.

America’s Brand: Indifference to Human Pain

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Renewable Energy

Maine Needn’t Overcomplicate This

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Just nominate some well-educated businessman or city mayor — or maybe just a principled lobster fisherman.

Maine: This shouldn’t be too tough a challenge.

Maine Needn’t Overcomplicate This

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