The global renewable energy industry has seen unprecedented growth over the last several years. According to the Global Wind Energy Council (GWEC), the cumulative installed capacity of wind power projects has increased from 24 GW in 2001 to 432 GW in 2015 and is expected to grow to 703 GW by 2020 (Global Data). Much of this growth has resulted from great state and national level policies, tax incentives and high electricity prices. However, many of these incentives have since been reduced and now wind power companies face pressure to improve profitability, while scaling operational excellence. Mechanical engineering and physics based improvements have long been used to increase plant operations. However, these improvements plateau after a period of time thus providing diminishing returns. In the increasingly connected world of today, sensors are being used to achieve operation excellence based on real time, plant specific data. Companies now are realizing the value of using data to maximize returns as compared to making any physic improvements to the components. In this day and age of the Internet of Things (IoT), sensors are being used to record data from every device, and the renewable energy industry is not one to be left behind.
Governments around the world are slowly scaling down renewable energy incentives such as tax benefits and generation based incentives while renewable energy electricity prices are falling. Companies are thus focusing on minimizing operations and maintenance (O&M) costs and maximizing power production. Data analytics enables O&M teams to achieve both goals by taking a closer look at the data from every plant device. According to a recent report by McKinsey, depending upon the plant’s existing level of performance, better O&M could account for as much as a 20% increase in IRR. The type of data analytics for better wind farm O&M falls into three categories: a) forecasting, b) alarms based on threshold values, and c) condition monitoring. Continue reading