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Fibersail’s Fiber Optics Prevent Costly Repairs

Carlos Oliveira, CEO of Fibersail, discusses their advanced fiber optic technology for early detection of wind turbine blade damage, reducing downtime and optimizing maintenance for wind farm operators.

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 FacebookYouTubeTwitterLinkedin 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 turbine blade failures cost the industry billions annually. Today we’re talking with Fibersail, CEO, Carlos Oliveira About their innovative fiber optic technology that detects early blade damage before catastrophic failures occur. Learn how their shape sensing system is helping wind farm operators reduce downtime and optimize maintenance.

Welcome to Uptime Spotlight, shining Light on Wind. Energy’s brightest innovators. This is the progress powering tomorrow.

Carlos, welcome to the program.

Thank you for having me here.

Allen Hall: This is gonna be a fascinating discussion. when I was over at Wind Europe, the activity around your booth was really good. a lot of interested people wanting to learn more about the technology and how to protect their blades and be able to determine early if they have blade problems.

And I think everybody on the [00:01:00] podcast knows that blades are a huge issue financially. And we just don’t have enough information about how they are moving structurally or what kind of structural issues they’re having. How big do you think this problem is, Carlos?

Speaker 3: I agree with you. So we have quite a busy Wind Europe event.

we were really full all the, time. and I think that, the problem is really, getting out, right? It’s every year, more than. Five, $6 billion are being spent in non-planned repairs activities. and this is impacting a lot to the bottom line of the industry. what we knew at fiber cell 3, 4, 5 years ago, that the problem was really big Honda blades.

Now it’s mainstream knowledge. big companies are putting billions of euros, in, recognizing losses because of this issue. And more and more customers are coming to us. it’s [00:02:00] really a big issue and we believe that, it can really put in danger the wind industry as a whole.

Allen Hall: Yeah. And even if you buy a new turbine today, there is very little information that comes from the blades themselves.

A lot of it is coming from the SCADA system, and that’s, those SCADA systems are not designed to detect this sort of. Issues that Fibersail can detect. Correct?

Speaker 3: Yeah. And I think it’s we are building bigger and bigger blades, using old technology, right? It does not work. you have a mixture for a big explosion happening, and that’s exactly what we are seeing.

If in the past, the turbines, they were showing problems after 5, 6, 7, 8 years of operation. Today we have customers that come to us. with big problems in blades after one, two years of operation, some of them still during the warranty period. So it’s really becoming a big issue and that’s where our shape sensing technology kicks in because we have advanced sensing technology.

For the most [00:03:00] advanced, turbines out there and the new ones, it’s really good interior, but the reality is a different story.

Allen Hall: how soon should you install a system onto a blade, particularly a new blade? Should it go in at the factory or, immediately after in the warranty period, or a lot of operators that we have seen, like to install them at year five or six of operation, which seems.

Late to us.

Speaker 3: I tend to agree, we would prefer to have it installed, at the manufacturing. we know it’s not, straightforward. and what we’re doing, and this is let’s say our go-to market strategy, we are working with end customers, the owner operators of the turbines. the ones that have the hurdle, they have the problem to solve.

And we are working with, many of them. We are deploying, we are doing a retrofit installation. And that data then can be used to convince CEMS to integrate this technology. Of course, that’s our end goal. we understand it’ll take, a bit of time, [00:04:00] transparency, the level of transparency we bring with our, chef sensing technology.

sometimes, people try to avoid it, at the beginning, but we want really to use the data from the field and the value that we deliver to our customers. To push this into the product. So hopefully the next place that, the customers are buying from the OEMs will have, fiber cell technology, inside it.

Joel Saxum: Let me ask you a little bit of a question about that, how it fits into the marketplace. ’cause we’re gonna get into the amazing technology that you guys have. But I just wanna understand, because when we talk to operators a lot of times we’re like, Hey, I’d love to implement this solution, but hey, I can’t do this until end of warranty.

Or it’s, I’m under full service agreement for the next five or 10 years, or whatever that may be. And the OE EMM doesn’t wanna allow me to put this CMS on or this aftermarket product or these things. and contractually those things can be, those contracts can be pretty tight where you can’t even put stuff on that’s even air gapped.

How have you [00:05:00] guys dealt with, that, or have you ran into those, hurdles yet?

Speaker 3: Yeah, definitely. We, have, so we, there are different kinds of customers. Of course. If there is no contract, trying to block anything like this, we can, we have an easy entry. And we have some customers like that. others, they really fall into what you said, some of them even during the warranty, period.

we, at Five Cell, we are our position here, we are a solutions provider and we position ourselves as a solutions provider for the industry, not necessarily for one or the other side of the industry. So we don’t want to be used. As a source of information for one side of the industry to try to attack the other side.

We really see that the industry has an issue and, we want to provide transparency to avoid costs and to make wind, competitive, source of energy. and so in those, [00:06:00] situations, usually we try to do a cooperation with three parties. So fiber cell gen customer, and the OEM, if possible. So we always try to invite them.

To the table if possible. because, we, have cases where actually, the contract is blocking the entry of, sensing technology like ours, but the customer is losing above the cap of compensation from the O end. So they are losing lost production. So the problem is really big. So there needs to be a, found a solution.

At the same time, the OEM is losing money because they are paying the compensation okay, till the cap. But they are paying a lot of money and they’ll need to pay this for 20 plus years. So we position ourselves as a solution provider on both hands. Of course, it’s not easy, but as I usually said here with the team, if it was easy, it was already done.

So we are in the. let’s

Allen Hall: talk about the technology just for a [00:07:00] moment. It’s obviously Fibersail. The technology is in the name, it’s fiber, but I, wanna understand a little bit about how are you using the fiber, how it’s installed, where does it go? What is the, electronics or the electrical boxes that are connected to it?

What does the system look like?

Speaker 3: as I said, fiber, it’s easy. The sail part I can do here a connection, right? Fi fiber cells started measuring the shape of the sail of the sailboat. and now what we’re doing is applying the technology to a different cell, right? A blade is a rooted cell and what we are doing is really to get the added level of information of how that sale is behaving, in real time.

And so what, we build actually is our shean technology. That’s the unique approach. We built a fiber optics beam that we glue inside the plate. We go from the root till where we can install in the retrofit. Of course, when we do the integration in the product, in the end, we can go all the way to the [00:08:00]tip.

But that’s a possibility for a later stage. and basically we encapsulate all the fiber optics, all the. technology that does require, more, detailed level of expertise from the people in the field. We encapsulate everything into a system and then we hand over the system, to a normal field technician that can simply glue our sensor to the blade, plug the power, and then we are on,

Allen Hall: we are working.

Wow. Okay. And how many pieces of fiber would typically go in a blade? Is it a, bundle of fibers in one specific area, or is it. Spread out across the blade structure.

Speaker 3: We have, two products today. We are working onto the next two. they are still, not at commercial level, but basically we have, our shade sensor.

That’s our, core technology. But we also have, for example, in our product line, the standard load sensors. It’ll be incredible to know that more and more customers also need this kind of data. [00:09:00] even basic load sensing data is not available for the end customer and we can provide it. and so the setup really depends on what the customer wants.

So if the customer just wants, very limited information, for example, we can provide a system with the load sensors in it. If the customer wants, for example, early damage detection, we put our shape sensor in it and we actually had on top. Hotspot sensor to do really the early damage detection. So it really depends on what the customer needs, what we do, we call it internally, tailored made, but at scale it’s that we adjust and we make a system using all the resources we have in our product line, to offer the customer solution that works and then it works for that turbine type for that customer.

to, give you an example, we are working in a package that will be really working on early damage detection for a [00:10:00] specific turbine type in the field that has huge damage is huge. And then we have a system that works for the entire fleet of that, turbine five.

Joel Saxum: So I, one of the things I want to just, just touch on there and you, briefly mentioned it in its implementation, right?

we wanna, I’ll raise a hand. I’ll put my operator hat on. I wanna retrofit the system in the field. Okay. Because that’s gonna be a lot of what it is. It’s gonna be less right now, of course, factory installs and more after the fact. So if they’re gonna put it in, you guys have packaged this thing so it’s easy for technicians to install.

So you said like basically it comes in, they’ll be in different, like a beam of sorts, and then it’s clean and go inside the blade, clean, epoxy, stick it down and plug it in. More or less it’s,

Speaker 3: not as easy what we did. And we can do the, installation ourselves. And usually we are doing the installation of ourselves for, the initial qualification projects we do with customers.[00:11:00]

let’s say you want to test our technology. Let’s install in five or 10 turbines. We can do it ourselves. And then we go to the hundreds after mine that you have with that model. And then we usually go to a, a service company, actually the ones that do the, service of those turbines in the field.

And for that, we do, a training session. And so we train those teams to do these election for us. but we can do this because we put all the complexity farts on our side. All the fiber optics connected far with our side. And then it’s a robust system. It’s out there. You can put your feet on top of it, you can try to destroy it, it’ll not get destroyed so easily.

and then you send it to blade, blade technicians and they can do the installation themselves, following, of course, our protocol. And we do the quality assurance on our science.

Allen Hall: Carlos, once the system is installed, what are we looking at as a data stream? Is there a data stream that goes to the cloud?

Does Fibersail [00:12:00] analyze that data or is it data that the operator can analyze? What does that interface look like?

Speaker 3: We have all the, data flow prepared from the sensor itself, sending the data through 4G, 5G, starlink, you name it to the cloud. And then we have even a, dashboard solution for the customer.

Anywhere in this process, we can say that we don’t go all the way. For example, we have customers that they don’t want our dashboards because they do have dashboards. And actually what they want is that we feed our results into their dashboard so we can adjust those parts to what are the needs of the customer.

but we can do the full sweep in terms of the, data flow.

Joel Saxum: Okay? So this is an important thing too, ’cause we’re talking about implementation here. we’ve heard this from many operators. We hear from other CMS companies. cybersecurity’s a big issue, right? Because people wanna make sure that. no nefarious activity could happen within the wind turbine or anything like that.

So how are you guys handling cybersecurity? Yeah,

Speaker 3: we take it very [00:13:00] seriously. Of course, all these communication protocols, they are to the highest standards using the industry, so we take them very seriously. And, in some cases, also mostly with the manufacturers, we actually do a edge solution, meaning we collect everything on the turbine and we don’t use any cloud access any.

Any connection outside of it. So we use it, we store it there, and then we communicate directly even to, the data, the data lakes. Of the customer if need be. So we have this, these two levels of, of, options, let’s say

Allen Hall: o Okay, that makes a lot of sense. And then the interface is working with a large operator.

Obviously they have their own dashboard set up and they’re watching the turbines in the structure. So there’s an API then that takes your data and pumps it into there. Specific system? Is that how that works?

Speaker 3: I’m not, the technology officer here, but, [00:14:00] to, give you an overview of that, it’s like we don’t offer the cu the customers, the raw data from our sensors.

We offer them already the outputs, the value, and then we can, stream them to their own dashboard for, we have customers that, for example, they tell us I don’t have time to go through a dashboard and look into beautiful graphs and data. What I want is to receive an email. If you spot a problem or a potential damage, that’s propagating.

I want to receive an email to go and look into that. And then our dashboard is actually an email or two emails that it receives when our system detect something is off.

Joel Saxum: I think that, to be honest with you, that’s more and more of the direction that the industry is going and it’s driven by the feedback from the market.

So, kudos to that. Doing your, primary market research there, because these, engineers and site supervisors and asset managers, they have so much going on that at the end of the day, they just basically wanna be told what to do. They don’t wanna analyze the data, they just wanna see that [00:15:00] you’ve installed the solution.

It’s doing, its smarts. You guys are analyzing the data yourselves and or, admit, of course, probably using some algorithms and whatnot. and they just get that email. They just get that notification, go look at this turbine, or Hey, you’ve got this propagating, check this out. That’s the way things need to be done.

E Exactly. And, if

Speaker 3: you think about what we see is that you, have a handful of people taking care of, gigawatts of turbines out there. Then all of them have issues, but some of them, they need to be referred this week. Some of them they can wait a couple of months to do it. Today, you don’t know how to do it.

So what you do, you send teams all the way every month to check every single turbine. And what you believe at cyber sale is that to start, you don’t have the manpower to do it. And then it’s not smart to do it like that. So the more complex turbines, they will get a warning from fiber cell, and that’s the ones you need to pay attention to.

Because the other ones, they do have problems, but it’s not a damage that [00:16:00] will, hit you. next week. It’ll continue to propagate and you can optimize the way you manage your fleet.

Allen Hall: that’s a real interesting point. So Fibersail data stream, which is really accurate, can then predict the damage curve in a sense or how damage will progress based upon your intimate knowledge of that structure and when it is actually happening.

That’s really valuable.

Speaker 3: Yeah. And, do we do it in a, different way from the industry? if you have other technologies like, vibration, sensors, meters and other stuff, what do we have that’s unique? Is that we, get the shape of the blade in real time. and so we look into the variations of the chain, but also we look into the model analysis of that structure, The frequency of that structure. And so we do a kind of a double validation. If the cha the shape changes and the frequency also changes. We have two variables to check that the problem is [00:17:00] really there. and I don’t see any other technology out there doing this type of validation to avoid false positives.

So it’s, like we have much more confidence in the result head to our providing to the customer.

Allen Hall: So the different vibration modes that’ll happen on a blade, they do slightly alter over time as the blades age. Is there a significant variation there, even between blade to blade, meaning the same factory?

Are you seeing variations in the sort of the overall performance, the way that the blade operates or, moves, based upon just the variations in manufacturing?

Speaker 3: definitely, yes. let’s say the blades are all the same when they leave the factory. That’s only theory. That’s why you only have a numerical bottle to try and simulate that.

The reality is that they are all different from the factory, from the manufacturing tolerances. And then just think about one, two, or three years of operation, a repair, a new patch of fiber, and then you have a Frankenstein [00:18:00] turbine in your hands that you don’t know what’s doing. And, that’s the reality we have today.

So all the numerical models, everything you have, they are really far off to give you the, precise, knowledge about that.

Joel Saxum: I think the industry would really love to see a white paper or report of some sort of, here’s what Fibersail was able to sensate basically a virgin blade and then this is what it looks like after this repair and that repair.

’cause like scarf, big scarf repairs, they’re designed to not create structural load hotspots. But I, mean there’s no way to get that perfect. So I would love to see, because I know there’s been a couple of DTU masters projects about this, but it’s all been. FEA stuff. It’s all modeled.

It’s not actually sensed, and it would be really interesting to see if you guys could do that.

Speaker 3: what, I can tell you is that we have, a bunch of, projects out there. We are collecting data as we speak. some of them, I’ll say actually a very promising one, in the next couple of weeks, really targeting, damage [00:19:00]detection, early damage detection, and damage propagation.

but, it’s, I said nothing, is valued as the data from the field. we are collecting the data. We are working on that. Actually, we did some publications that we wrote. So what I can tell is that stay tuned because we’ll be launching some called stuff in the next month.

Allen Hall: So where’s the EIS at the moment?

Is it onshore wind? Is it offshore wind? I could see the value on offshore wind in particular because the, loss of. Like a 15 megawatt turbine is a, big driver. It’s a huge money issue. Where are you seeing the most activity for your

Speaker 3: systems? we are starting onshore. It’s always an easy, an easier entry, let’s say.

And also the volume. The volume is there. much higher volume and a lot of problems. we are doing this, this summer, the first offshore installation in the Netherlands. and all the indications we have is that we have no issue going [00:20:00] offshore. it’s just a matter of planning the installation, doing that, and then the return on investment will be even greater.

But again, we are working to have that, business case proven with real data, in the next couple of months. let’s see if you can, get it right to put the data. On the table. So what is the feedback from your customers today? What are they saying? we have different kinds of customers that said, some customers just want basic data.

Others, they want really the eye end system that you can offer also. So we serve all of them, because our, systems are building a modular approach, so you can add layers of complexity as you need, basically. but I think the most interesting feedback we got, Because he’s using everything we have in our port product line is that he tried every other technology in the fields and none of them can help them.[00:21:00]

And then he said, but what you have is something different. I really want to see if you can help me because I, don’t dunno what to do. And that’s, a great feedback for us. I said we like the, tough stuff. Easy stuff. Everyone can do it. we are focusing on the really hard stuff because.

After we, we solve the hard stuff, we can also do the easy stuff. it’s like after we detect the damage, we can do a increase, we can do whatever you want. It’s not, it’s a no brainer for us after we can, do the early damage detection.

Allen Hall: So the system is, sounds fascinating and I do think there’s a place for this today, and we don’t know much about these larger blades and we’re trying to learn as quickly as we can, but.

One of the things that Joel and I talk about all the time is just a lack of data. If you don’t have any data, you, it’s hard to do ENG engineering and it makes it hard for the next generation to blaze to be better. So Fibersail is gonna change that [00:22:00] dynamic quite a bit. I. And if you want to talk to Fibersail or reach out to Fibersail, Carlos, how do they get ahold of you?

Where do they go?

Speaker 3: we are quite active in the industry, events. that’s, a good start. But, our webpage is always there with, you can contact us directly, and we’ll follow up on that via shared, or follow us on LinkedIn. We are also sharing there some insights of what we do. come and talk with us.

We will love to, to try and, help you on that.

Allen Hall: And the website is Fibersail.com, F-I-B-E-R-S-A-I l.com. Great information on the website, Carlos. it’s, full of good information. So if you’re trying to quickly learn what Fibersail does, just check out the website and yes, the LinkedIn page that you have is really good also.

So a ton of information for everybody to go check out and learn from. Carlos, thank you so much for being on the program. Really enjoyed the discussion. Thank [00:23:00] you for having me.

https://weatherguardwind.com/fibersail-fiber-optics/

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Vineyard Wind’s $69.50 PPA, Two Offshore Lease Exits

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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.

Vineyard Wind’s $69.50 PPA, Two Offshore Lease Exits

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