Introduction Sustainable Transportation in Jakarta
Jakarta, the bustling capital of Indonesia, faces a myriad of challenges when it comes to transportation.
As one of the most populous and traffic-congested cities in the world, Jakarta has long been grappling with pollution, traffic jams, and inefficiencies in its transportation systems.
However, the city is actively working to transition towards sustainable transportation solutions, aiming to reduce its carbon footprint and improve the quality of life for its residents.
In this article, we will explore the various initiatives and efforts aimed at achieving sustainable transportation in Jakarta.
What is Sustainable Transportation
Sustainable transportation, often referred to as “green transportation” or “eco-friendly transportation,” encompasses various modes of travel and systems that are designed to have minimal environmental impacts while meeting the mobility needs of individuals and communities.
It aims to reduce the negative effects of transportation on the environment, promote energy efficiency, and create more liveable and healthy communities.
Here are some key components and principles of sustainable transportation:
1. Public Transportation: Efficient and well-maintained public transportation systems, such as buses, trams, subways, and commuter trains, play a vital role in sustainable transportation. They reduce the number of private vehicles on the road, leading to lower emissions and less traffic congestion.
2. Cycling and Walking: Promoting cycling and walking as viable modes of transportation can reduce the dependence on motorized vehicles. This involves creating safe and convenient infrastructure like bike lanes, pedestrian-friendly streets, and sidewalks.
3. Electric and Hybrid Vehicles: Transitioning from conventional gasoline and diesel vehicles to electric and hybrid vehicles can significantly reduce emissions and dependence on fossil fuels. Electric cars, buses, and bikes are gaining popularity as cleaner alternatives.
4. Carpooling and Ridesharing: Encouraging carpooling and ridesharing reduces the number of vehicles on the road, saving energy and reducing emissions. Ride-hailing services with shared options also contribute to this concept.
5. Sustainable Urban Planning: Designing cities and communities with a focus on mixed land use, compact development, and transit-oriented development can reduce the need for long commutes and car travel. This approach promotes the use of public transportation, cycling, and walking.
6. Energy Efficiency: Sustainable transportation initiatives prioritize energy-efficient vehicles and infrastructure. This includes fuel-efficient engines, renewable energy sources for public transit, and smart traffic management systems to reduce congestion and fuel consumption.
7. Reduced Emissions: Implementing emission standards and encouraging the use of low-emission and zero-emission vehicles are essential for reducing air pollution and greenhouse gas emissions associated with transportation.
8. Incentives and Policies: Government incentives, subsidies, and policies can play a crucial role in promoting sustainable transportation. Examples include tax incentives for electric vehicle purchases, congestion pricing to reduce traffic, and fuel efficiency standards for automobiles.
9. Accessibility and Inclusivity: Sustainable transportation should be accessible to all members of society, regardless of age, income, or physical abilities. Ensuring inclusivity in public transportation and infrastructure is a key principle.
10. Behavioral Change: Educating and encouraging people to adopt sustainable transportation options is vital. Awareness campaigns, incentives, and programs that promote sustainable travel choices can lead to a shift in behavior.
Sustainable transportation is a critical component of addressing climate change, improving air quality, and creating more livable, healthy communities. It requires a multifaceted approach involving government policies, urban planning, technology, and individual choices to reduce the environmental and social impacts of transportation while meeting the mobility needs of society.
Challenges in Jakarta’s Transportation
1. Traffic Congestion: Jakarta’s infamous traffic jams are a major issue, resulting in lost productivity, air pollution, and stress for its residents.
2. Air Pollution: The high number of motorized vehicles on the road contributes to poor air quality, which has adverse health effects.
3. Lack of Public Transport: Despite improvements in public transportation, Jakarta still faces challenges in providing efficient and widespread options for its residents.
Sustainable Transportation Initiatives in Jakarta
1. Mass Rapid Transit (MRT): The Jakarta MRT has been a game-changer in reducing traffic congestion and air pollution. Since its inception, it has significantly increased the use of public transportation in the city.
2. Bus Rapid Transit (BRT): The TransJakarta BRT system is one of the largest in the world. It offers a cost-effective and efficient means of transport, helping to reduce the reliance on private vehicles.
3. Cycling Infrastructure: Jakarta has been working on developing dedicated cycling lanes and bike-sharing programs to encourage cycling as a sustainable mode of transportation.
4. Electric Vehicles (EVs): The adoption of electric vehicles in Jakarta is gaining traction, with incentives for EV users and the establishment of charging stations throughout the city.
5. Pedestrian-Friendly Streets: Efforts have been made to create pedestrian-friendly streets, encouraging walking and reducing the need for short car trips.
Sustainabile Transportation in Jakarta: Private Sector Contributions
The quest for sustainable transportation in Jakarta is not solely a government-led effort. The private sector has emerged as a key player in driving change towards a greener, more efficient transportation system in the Indonesian capital.
1. Ride-Hailing Services: Companies like Gojek and Grab have introduced ride-hailing services that offer carpooling and motorbike services. These platforms not only provide convenient transportation options but also encourage shared rides, reducing the number of single-occupancy vehicles on the road.
2. Electric Scooters: Electric scooter-sharing services, such as Lime and Bird, have made their presence felt in Jakarta. These companies offer eco-friendly last-mile transportation solutions, reducing the reliance on short car trips and mitigating traffic congestion.
3. Electric Vehicle (EV) Infrastructure: Private companies have been investing in EV charging infrastructure throughout Jakarta. They are making it more convenient for residents to adopt electric vehicles by expanding the charging network.
4. Sustainable Logistics: Delivery companies operating in Jakarta, like GoSend and J&T Express, have been integrating electric bikes and electric vehicles into their fleets. This not only reduces emissions but also improves delivery efficiency in traffic-prone areas.
5. Bike-Sharing Services: Private firms have introduced bike-sharing programs, providing residents with easy access to bicycles for short trips. These programs promote cycling as a sustainable mode of transportation.
6. Emissions Reduction Technologies: Private vehicle manufacturers and technology companies are working on emissions reduction technologies and innovative solutions, like retrofitting older vehicles with cleaner engines and promoting fuel-efficient driving practices.
7. Sustainable Development: Real estate developers are incorporating sustainable transportation elements into urban development projects. This includes creating pedestrian-friendly areas, bike storage facilities, and integrating public transportation hubs into new communities.
Challenges and Collaborations
While the private sector’s contributions to sustainable transportation in Jakarta are commendable, challenges remain. These include infrastructure limitations, regulatory hurdles, and the need for standardization in services and technologies. Collaboration between the public and private sectors is vital to overcoming these challenges.
The Jakarta city government, in partnership with private enterprises, has initiated several public-private collaborations to address transportation issues. These collaborations involve the development of integrated transportation solutions, the promotion of electric vehicle adoption, and the establishment of smart transportation systems.
The private sector’s contributions to sustainable transportation in Jakarta have been instrumental in shaping a more eco-friendly and efficient mobility landscape. Ride-hailing services, electric scooters, bike-sharing programs, and investments in EV infrastructure are all steps in the right direction.
However, continued collaboration between public and private entities, along with supportive government policies, will be essential to drive further progress and create a truly sustainable and accessible transportation system for Jakarta’s residents. With these efforts, Jakarta is on a path towards a cleaner, more sustainable future for urban transportation.
Sustainable Transportation in Jakarta: The Jakarta MRT (Mass Rapid Transit)
The Jakarta MRT (Mass Rapid Transit) is a crucial component of the city’s efforts to improve its transportation infrastructure and move towards more sustainable urban mobility solutions.
Here’s an overview of the Jakarta MRT:
1. Inauguration: The Jakarta MRT officially opened its doors to the public in March 2019. It marked a significant milestone in addressing Jakarta’s notorious traffic congestion and providing a more efficient and eco-friendly mode of transportation.
2. Line and Expansion: The initial line, known as the North-South Line (Lebak Bulus to Bundaran HI), spans approximately 15.7 kilometers with 13 stations. An expansion to the line is planned to further extend its reach and accommodate more commuters.
3. Public Transportation Integration: The Jakarta MRT integrates seamlessly with other public transportation systems, including TransJakarta (the city’s BRT system) and commuter trains, making it easier for commuters to switch between modes of transport.
4. Reducing Congestion: One of the primary objectives of the Jakarta MRT is to alleviate the city’s notorious traffic jams. By offering a faster and more efficient alternative to private vehicles, it helps to reduce congestion and improve overall traffic flow.
5. Environmentally Friendly: The Jakarta MRT uses electric-powered trains, reducing greenhouse gas emissions and air pollution compared to traditional gasoline or diesel-powered vehicles. This contributes to improved air quality in the city.
6. Accessibility: The Jakarta MRT is designed to be accessible to all, with features like elevators, ramps, and designated spaces for passengers with disabilities. This promotes inclusivity in public transportation.
7. Safety and Security: The MRT places a strong emphasis on passenger safety and security. Surveillance cameras, dedicated staff, and emergency response systems are in place to ensure a safe commuting experience.
8. Ridership and Impact: Since its inception, the Jakarta MRT has seen a significant increase in ridership, with millions of commuters benefiting from its services. It has had a positive impact on reducing travel times and increasing convenience for residents.
9. Future Expansion: The Jakarta government has plans to expand the MRT system, with additional lines and extensions to serve more areas of the city. This expansion aims to further reduce reliance on private cars and enhance the overall public transportation network.
10. Economic Growth: The Jakarta MRT also contributes to economic growth by connecting various areas of the city and facilitating access to business districts, commercial centers, and cultural hubs.
In summary, the Jakarta MRT is a transformative transportation system that has not only improved the daily commute for residents but also made significant strides in reducing traffic congestion and promoting sustainable transportation. As Jakarta continues to grow and develop, the MRT is expected to play a vital role in shaping the city’s mobility and environmental future.
Sustainable Transportation in Jakarta: The Jakarta LRT (Light Rail Transit)
The Jakarta LRT (Light Rail Transit) is another important component of the city’s efforts to enhance its public transportation system and address traffic congestion.
Here is an overview of the Jakarta LRT:
1. Introduction: The Jakarta LRT is a modern urban rail transit system designed to provide efficient, environmentally friendly, and convenient transportation options to residents and visitors.
2. Two Lines: The Jakarta LRT consists of two lines – the Kelapa Gading Line and the Cibubur Line. These lines connect different areas of the city, improving access to various neighborhoods and business districts.
3. Integration with Other Modes: The LRT is designed to be integrated with other modes of public transportation, such as buses, commuter trains, and the Jakarta MRT. This integration offers passengers seamless connectivity for their entire journey.
4. Light Rail Technology: Unlike the heavy rail used in the Jakarta MRT, the LRT employs light rail technology. Light rail vehicles are smaller and designed for shorter distances within the city, making them suitable for serving various neighborhoods and reducing road traffic.
5. Environmental Benefits: The Jakarta LRT, like the MRT, contributes to environmental sustainability. It uses electric-powered trains, which are more energy-efficient and produce fewer emissions compared to traditional gasoline or diesel vehicles.
6. Congestion Relief: The LRT aims to reduce traffic congestion by offering a faster and more reliable alternative to private vehicles. This not only benefits commuters but also eases the overall traffic situation in the city.
7. Stations and Accessibility: Jakarta LRT stations are equipped with facilities to ensure accessibility for all passengers, including those with disabilities. Elevators, ramps, and other amenities make it a more inclusive mode of transportation.
8. Safety Measures: Safety is a priority, and the Jakarta LRT has safety measures in place, including surveillance systems, station personnel, and emergency response protocols.
9. Economic Impact: The LRT contributes to economic growth by improving access to various commercial, business, and residential areas. It can stimulate development in neighborhoods along its routes.
10. Ridership: Since its introduction, the Jakarta LRT has seen growing ridership as more people recognize the benefits of using this public transportation system. It offers a convenient way to navigate the city.
In summary, the Jakarta LRT plays a pivotal role in improving public transportation in the city. Its two lines connect different parts of Jakarta, making it easier for residents and visitors to get around while reducing traffic congestion and environmental impact. The LRT complements the existing transportation infrastructure, such as the Jakarta MRT and TransJakarta BRT, in creating a more integrated and sustainable public transportation network for the city.
Sustainable Transportation in Jakarta: The Busway
The Busway, officially known as “TransJakarta,” is Jakarta’s Bus Rapid Transit (BRT) system. It is a prominent and crucial component of the city’s public transportation network.
Here’s an overview of the Busway:
1. Inception: TransJakarta, commonly referred to as the Busway, was introduced in 2004 as a solution to Jakarta’s persistent traffic congestion and lack of efficient public transportation. It is one of the earliest BRT systems in Southeast Asia.
2. Dedicated Bus Lane: The Busway features dedicated bus lanes on major thoroughfares throughout Jakarta. These lanes are physically separated from regular traffic, allowing buses to move more swiftly and efficiently.
3. Stations and Corridors: The BRT system comprises multiple corridors with various routes that connect different parts of Jakarta. Each corridor has well-planned stations that offer convenient boarding and alighting points for passengers.
4. High-Capacity Buses: TransJakarta employs high-capacity articulated buses to accommodate a large number of passengers. These buses are air-conditioned and equipped with facilities for people with disabilities.
5. Frequent Service: Buses in the TransJakarta system operate at high frequencies during peak hours and are known for their punctuality. This frequent service is aimed at reducing waiting times for passengers.
6. Ticketing System: The BRT system utilizes a unified ticketing system that allows passengers to use a single card or ticket for multiple modes of public transportation, including buses and the Jakarta MRT.
7. Efficiency and Reliability: TransJakarta is designed to provide a more efficient and reliable means of transportation, thereby reducing the reliance on private vehicles and addressing traffic congestion.
8. Environmental Benefits: By reducing the number of individual cars on the road, the BRT system contributes to environmental sustainability by lowering emissions and improving air quality in the city.
9. Accessibility: TransJakarta stations are designed to be accessible to people with disabilities and those with reduced mobility, with features like ramps, elevators, and designated seating.
10. Integration with Other Modes: The Busway is integrated with other public transportation systems, such as the Jakarta MRT and the soon-to-be-expanded Jakarta LRT, offering passengers a seamless experience when transferring between modes.
In summary, the TransJakarta Busway is a significant part of Jakarta’s public transportation system. It provides a reliable, efficient, and eco-friendly means of commuting for millions of residents and visitors in the city. The BRT system has played a crucial role in addressing traffic congestion and promoting sustainable transportation solutions, aligning with Jakarta’s efforts to become a more liveable and accessible city.
Sustainable Transportation in Jakarta: Commuter Rail
Commuter rail, often referred to as suburban or metropolitan rail, is a type of passenger train service designed to transport people between residential areas and urban centers or business districts. These commuter rail systems are common in many major cities worldwide and play a crucial role in providing efficient transportation for daily commuters.
Here are some key features and characteristics of commuter rail:
1. Urban-Suburban Connectivity: Commuter rail systems are primarily designed to connect urban centers with surrounding suburbs and outlying residential areas. They serve as a vital link for commuters who live farther from the city but work or study there.
2. Frequent Service: Commuter trains typically run on a regular schedule with frequent departures during peak commuting hours. This ensures that commuters have reliable and convenient transportation options.
3. Stations: Commuter rail lines have stations strategically located in both urban and suburban areas. These stations serve as boarding and alighting points for passengers and often provide parking facilities for those who drive to the station.
4. Dedicated Tracks: Commuter trains often operate on dedicated tracks or rights-of-way separate from freight and long-distance passenger trains. This separation ensures that commuter trains can maintain their schedules and avoid delays.
5. Economical: Commuter rail is often more economical than driving or taking a taxi to work daily. It can save commuters money on fuel, parking, and vehicle maintenance while also reducing the environmental impact.
6. Environmentally Friendly: Commuter rail systems generally use electric or diesel-electric locomotives, which are more energy-efficient and produce fewer emissions compared to individual automobiles.
7. Accessibility: Most commuter rail systems are designed to be accessible to passengers with disabilities, with features like ramps, elevators, and level boarding platforms.
8. Integration with Other Modes: Commuter rail often integrates with other public transportation systems, such as buses and subways, to provide passengers with a seamless and connected transit experience.
9. Ridership and Impact: Commuter rail services carry millions of passengers daily, helping to reduce traffic congestion and air pollution in major cities. They also contribute to urban development and revitalization of suburban areas.
10. Economic and Social Benefits: Commuter rail systems stimulate economic growth by facilitating access to job opportunities, education, and cultural activities in urban centers. They enhance the quality of life for residents in suburbs by reducing commute times and providing more leisure time.
In summary, commuter rail is a vital component of urban transportation systems, providing a reliable and sustainable means of commuting for individuals living in suburban areas. These systems offer a host of economic, environmental, and social benefits, making them an integral part of the daily lives of many city residents.
Sustainable Transportation in Jakarta: Grab and Gojek
Grab and Gojek are two of the most prominent ride-hailing and technology companies in Southeast Asia, both based in Indonesia. They offer a range of services that extend beyond ride-sharing.
Here’s an overview:
Gojek
1. Origin: Gojek was founded in 2010 in Jakarta, Indonesia. It initially started as a ride-hailing service but has since evolved into a Super App, offering a wide range of services.
2. Services: Gojek’s Super App includes ride-hailing, food delivery, grocery delivery, courier services, and digital payment services. It has a diverse ecosystem, including GoRide (ride-hailing), GoFood (food delivery), GoPay (digital wallet), and many other services.
3. Regional Expansion: While Gojek originated in Indonesia, it expanded to several other Southeast Asian countries, including Singapore, Thailand, Vietnam, and the Philippines, offering various services tailored to local markets.
4. Economic and Social Impact: Gojek has made a significant impact on employment, enabling many people to become part-time or full-time drivers and delivery partners. It has also played a role in improving urban mobility and accessibility in the cities it serves.
Grab
1. Origin: Grab, originally known as MyTeksi, was founded in 2012 in Malaysia. It has since transformed into a Southeast Asian Super App.
2. Services: Grab offers services similar to Gojek, including ride-hailing, food delivery, grocery delivery, digital payments (GrabPay), and financial service.
3. Regional Expansion: Grab has expanded its operations across Southeast Asia, becoming one of the dominant ride-hailing and technology companies in the region.
4. Diverse Offerings: Grab provides a wide range of services tailored to the needs of each market it operates in, such as GrabCar (ride-hailing), GrabFood (food delivery), GrabExpress (courier services), and GrabMart (grocery delivery).
Key Similarities:
1. Both Gojek and Grab offer Super Apps with multiple services, creating a one-stop platform for users to access various on-demand services.
2. They have a significant presence in the ride-hailing and food delivery sectors in their respective markets.
3. Both companies have expanded beyond their home countries to become regional players, offering their services in multiple Southeast Asian nations.
4. Gojek and Grab have made substantial contributions to the gig economy by providing income opportunities for drivers and delivery partners.
5. They both have digital payment services integrated into their platforms, allowing users to make cashless transactions.
6. These companies have been involved in mergers and partnerships, such as the merger between Grab and Uber’s Southeast Asian operations and discussions of potential collaboration between Gojek and Grab.
In summary, Gojek and Grab are influential technology companies that have not only transformed the way people move and order food but have also become integral parts of the digital economy in Southeast Asia, offering an array of services that cater to the diverse needs of consumers in the region.
Sustainable Transportation in Jakarta: Electric vehicles (EVs)
Electric vehicles (EVs) are gaining popularity in Jakarta as the city works toward more sustainable transportation options.
Here’s an overview of the electric vehicle landscape in Jakarta:
1. Government Initiatives: The Jakarta city government has been supportive of EV adoption and has introduced incentives and policies to encourage the use of electric vehicles. This includes tax breaks and reduced registration fees for EV owners.
2. Charging Infrastructure: The development of charging infrastructure is crucial for the growth of EVs in Jakarta. Charging stations are being installed at various locations throughout the city, making it more convenient for EV owners to charge their vehicles.
3. Electric Scooters: Electric scooters have become a common sight in Jakarta. Various companies offer electric scooter-sharing services, providing a convenient and eco-friendly last-mile transportation solution.
4. Electric Buses: Jakarta has introduced electric buses into its public transportation fleet. These electric buses contribute to reducing air pollution and greenhouse gas emissions.
5. Ride-Hailing Electric Vehicles: Companies like Gojek and Grab have started incorporating electric cars into their ride-hailing fleets. This encourages more people to experience electric mobility.
6. Private EV Ownersy: Jakarta is seeing a gradual increase in private EV ownership. Electric cars, such as Tesla and locally manufactured EVs, are becoming more accessible to consumers.
7. Environmental Benefits: Electric vehicles contribute to improved air quality and reduced noise pollution. This is particularly important in a densely populated city like Jakarta, which faces air quality challenges.
8. Long-Term Sustainability: EVs align with Jakarta’s efforts to reduce its carbon footprint and combat climate change. As the city continues to grow, sustainable transportation options are a priority.
In summary, electric vehicles are gradually becoming a more visible and viable mode of transportation in Jakarta. The government’s support, the presence of electric scooters, buses, and the inclusion of EVs in ride-hailing services are all contributing to the growth of electric mobility in the city. As the charging infrastructure continues to expand and technology advances, it is likely that electric vehicles will play an increasingly significant role in Jakarta’s transportation ecosystem.
Sustainable Transportation in Jakarta: Challenges Ahead
1. Infrastructure Development: Expanding public transportation and cycling infrastructure will require significant investment and ongoing development.
2. Behavior Change: Encouraging residents to shift from private cars to public transportation, cycling, or walking is a significant challenge that requires education and incentives.
3. Air Quality: Addressing air pollution remains a top priority, and it requires the enforcement of stricter emission standards and better urban planning.
Conclusion for Sustainable Transportation in Jakarta
Jakarta’s journey toward sustainable transportation is an ongoing process, marked by notable progress and ambitious goals.
While challenges persist, the city is committed to improving the quality of life for its residents and reducing its environmental footprint. Through the implementation of initiatives such as the MRT, BRT, cycling infrastructure, and electric vehicles, Jakarta is taking important steps towards a greener, more sustainable transportation future.
With continued investment and community involvement, the city is well on its way to achieving these goals and setting an example for other megacities facing similar challenges.
https://www.exaputra.com/2023/11/sustainable-transportation-in-jakarta.html
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 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!
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.
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.
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.
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