Wind Energy Offers Breath of Fresh Air in a Stale Economy
By Jenny Bieksha, Bishop & Associates Inc.

The current economic crisis is affecting the wind energy industry, just like any other sector. Despite the economic downturn, the outlook for wind energy appears to be healthy. Globally, governments are turning the current crisis into an opportunity, putting wind power at the center of their economic stimulus and recovery programs. Strong policy support for wind power will continue to drive growth in the main markets: China, Europe, and the U.S. Current projections for 2009 indicate added megawatt (MW) capacity will decline by 24 percent in the U.S. and 19 percent in Europe this year. The next two quarters are unlikely to stem the flow of downbeat news for the wind industry, but its emergence from the current cycle will add strength and maturity to the sector.

Although it will be impacted by the current economic crisis in 2009 and 2010, the future looks bright for the wind power industry. The Global Wind Energy Council (GWEC) predicts that in 2013, global wind generating capacity will stand at 332 gigawatts (GW), up from 120 GW at the end of 2008.

In 2013, 56.3 GW of wind generating capacity will be added, more than double the annual market in 2008. The year-on-year growth rates during this period will average 22 percent, which is modest compared to an average increase of 28 percent over the last 10 years.

All of the basic elements that have made wind power the technology of choice are still in place. Wind power is clean, fast to deploy, creates jobs, uses virtually no water, and is economically competitive.



Market and Supply Chain Activity
During this slowdown, wind turbine manufacturers will give emphasis to improvements in the wind turbine, components, and supporting infrastructure. It is believed that the 5 MW horizontal axis turbines for utility-scale projects will continue to dominate the wind turbine system market, with the introduction of bigger turbines over the next five years. The majority of sales will be for on-shore applications; however, a growing number of turbine systems will be installed for off-shore applications.

Globalization strategies are already being implemented, with new production facilities being placed in growth markets. New capacity is being established in China, India, and South Korea by experienced European manufacturers through local subsidiaries and the regional industrial sector. High local content will be a mandate. Preference will be made for suppliers located near the point of assembly. New long-term framework agreements for key components will be common, including quality guarantees and stiff penalties for contract non-compliance. Agreements will address securing capacity and reducing lead-times. Lighter and stronger materials are being researched and developed. Producing in modular forms, to create a standardized plug-and-play product, will be addressed.

New opportunities in wind energy include “repowering” wind farms and turbines that have been in the field for over 20 years. It involves putting new large turbines in between aging smaller turbines and capturing the upper winds, taking advantage of existing wind farm infrastructure. New “hybrid” energy sites are also being created. For instance, large-scale solar parks are typically located in an open area with access to wind. By incorporating wind turbines in the same location, the infrastructure for the system already exists, less the integration to the grid. Overall project costs can be reduced significantly!

Supply Chain Structure

• Owners: Often utility companies who have financial interest in having wind farms in their energy portfolio through the sale of electricity.

• Operators: Responsible for the day-to-day operations and maintenance of the wind farm.

• Developers: Responsible for the inception of the wind farm through to final completion or to the construction stage.

• Construction and Installation Services: Engineering, procurement, installation, and commissioning (EPIC) for all aspects of a wind farm, construction, operation, and maintenance.

• Turbine Manufacturers: Responsible for the supply of wind turbines. Some manufacturers offer EPIC services, while others just act as suppliers of wind turbine technology to be integrated into a wind farm by others. Vertical integration will include the first tier suppliers.

• First Tier Suppliers: Offer products or services to turbine manufacturers or construction contractors, for example: transformers, generators, gearbox, cabling, etc.

• Second Tier Suppliers: Provide component parts to first tier suppliers, such as electronic and electrical components, machined parts, flanges, fixings, etc.

Wind Turbine Market Leaders
Although the banner year of 2008 helped new competitors such as Sinovel, Dongfang, and Clipper make modest inroads into the leaders' market share, the turbine market remains dominated by Vestas, GE, Gamesa, Enercon, Suzlon, and Siemens, who, as a group, accounted for 70 percent of last year’s installations.

The battle for market share is expected to intensify in 2009 and 2010, as the economic slowdown continues and as local suppliers in the U.S. and China ramp up production. With more than 15 turbine vendors scrambling to take business from the big six, players with diversified order books are best positioned to grow in 2009.

Investments and plant capacity expansion point to a collective optimism on the part of many manufacturers for the long-term market, despite their expectations for modest growth in 2009. Steady performance can be expected from China's growing number of local turbine suppliers, as well as global players with an existing foothold in that market.

Vertical Integration
The wind power supply chain continues to be primarily vertically integrated in 2009. This strategy allows for comprehensive control of the production process of the wind turbines—from their design to the manufacturing of the different major components. It is believed that the turbine manufacturers will continue to acquire suppliers of critical components. The primary focus will be to provide an “end-to-end” solution, from concept to commissioning. Top tier suppliers are producing the gearbox, rotor blades, generator, control systems, towers, castings, and all the value chain components.

Figure 3 provides an example of various global turbine vendors that have implemented vertical integration strategies, with several OEMs bringing major component supply in house. Note that most have some level of vertical integration for critical components.

Connectivity in Wind Energy
There are over 8,000 components in a modern wind turbine, ranging from steel towers and high-tech composites for blades, gearboxes, bearings, electrical wiring, power electronics, and more. Interconnect (cable assemblies and connectors) suppliers typically have a broad product portfolio, with the ability to deliver pre-assembled plug and play solutions, and can fulfill other needs within the overall supply chain. Manufacturers of wind turbines look beyond the acquisition costs of a component. The cost of the connector or a cable solution is generally insignificant in comparison to the cost of having a turbine offline. Design-in opportunities may be found at multiple levels within the supply chain, depending on the product and service solutions being sought.

A modern utility-scale wind turbine is a sophisticated, highly precise machine with extreme requirements for temperature, humidity, weight, mechanical stress, and vibration. Water and corrosion are some of the largest threats to safe and reliable connections in wind-powered operations. Most interconnect product solutions must withstand vibration, shock, salt spray, humidity, dust, sand, EMI/EMC, and temperature extremes. Other product characteristics may include sealing capability up to IP67, keying capability, and modularity to accommodate signal, power, and fiber optics.

The key components that make up a complete wind turbine are described below, including connector content. While most major items are common to all turbines, different manufacturers have different designs of turbine, so some variation in components will occur.

Blades and Rotor Hub: Modern commercial-sized turbines are three-bladed designs. The rotor hub is generally attached to a low-speed shaft, which connects to the turbine’s gearbox. Most modern turbine hubs contain a pitch system to adjust the angle of the blades by rotation of a bearing at the root of each blade, in order to control power and slow the rotor, as required.

Nacelle: The main unit of the turbine, which sits on top of the tower. It houses the main components. The yaw mechanism within the nacelle automatically turns the nacelle so that the rotor of the turbine is facing directly into the wind, allowing maximum power generation.  Major components and connector content in the nacelle include:

• Inverters: High-voltage connectors and cable assemblies, fiber optics, and bus bars

• Yaw and Pitch Control Systems: Control cable assemblies

• Generator and Transmission: Power cable assemblies

• Controller/Control Cabinet: This unit consists of a number of computers which continuously monitor the condition of the wind turbine and collect statistics on its operation. It also controls a large number of switches, hydraulic pumps, valves, and motors within the wind turbine. There is usually a controller both at the bottom of the tower and in the nacelle. New turbine models may include a third controller, which is placed in the hub of the rotor. That unit communicates with the nacelle unit using serial communications through a cable connected with slip rings on the main shaft.
  Connector Content: Heavy-duty connectors, industrial Ethernet (for monitoring and controlling wind power systems), sealed IP-67 industrial Ethernet connectors, fiber optic cables and patch cords, terminal blocks, copper patch panels, power and grounding connectors.

Tower: The majority of commercial wind turbines use tubular steel towers. Ladders and elevators in today’s largest turbines, which are located inside the towers, allow service personnel access the nacelle.
Connector Content: Heavy-duty connectors, power and grounding connectors, power distribution blocks, fiber optic single-mode and multimode patch cords, Ethernet cable assemblies, M12 connectors, rack-mount and wall-mount patch panels

Tower Base and Interconnection
Connector Content: Fiber optic single-mode cable assemblies, patch cords, Cat 5e copper patch cords, industrialized Ethernet devices

Power Substation
Connector Content: Fiber optic single-mode and multimode cables assemblies, Ethernet Cat 5e cable, TS-485 cable, 600 volt shielded control cable

Control Center
Connector Content: Fiber optic and copper patch cords, rack-mounted patch panels, terminal blocks with plug-in connectors for power, signal, and sensor connections. Operating, monitoring, and programming units are usually networked via a RJ-45 interface.

Connectors and Cables in Wind Energy Applications

Weidmüller: The WeiCoS pluggable terminal block is a pretested module that can be easily connected and replaced. The connections are pluggable and implement the WeiCoS terminals; this includes the power, signal, and sensor connections. An externally-tensioned contact, tension clamp connections, and mechanical locking elements all help to guarantee a shock- and vibration-proof attachment of the plug-in connecter on the terminal block.

Tyco Electronics: The HVS™ connector reduces the number of interfaces required by allowing users to configure the exact interface required for an application within one single connector. A single interface replaces multiple ones—up to six single or three double modules can be used in the frame. The system accommodates power, control, and SCADA needs in wind power applications.

Amphenol: The Amphe-Power® GT is a reverse bayonet coupling connector with an audible, tactile, and visual full mating feature. Heavy duty, rugged shells with a wide variety of backshell options. Inserts available in neoprene or Viton. The connector is waterproof and is available with over-molded coupling nuts for added damage protection and increased gripping surface. A variety of plating options are available, including non-cadmium zinc cobalt (black or green) and non-conductive colorized anodic plating.

HARTING: The Han-Modular® series is designed for combining different transmission media and different contact types in a single connector. It permits any combination of power contacts, signal contacts, fiber optic contacts, coax contacts, D-sub contacts, and pneumatic contacts. The individual modules are mounted in Han A® (for one module) or Han® B housings using hinged frames. Depending on module size, up to six modules can be combined in a single hinged frame.

Huber+Suhner: The SMARTLINE cabling system is a pre-terminated fiber optic cabling system without a divider and is assembled with connectors on one or both ends of a breakout or riser cable. SMARTLINE offers high-density point-to-point patching with quick installation. Designed for short distances, SMARTLINE systems are suitable mainly for indoor applications in end-to-end systems, where high packing densities in racks or distribution units are required, as well as for cost-effective and reliable cabling solutions.

 

Jenny Bieksha
Director, Renewable Energy and Test, Measurement, and Instrumentation
Jenny Bieksha joined Bishop & Associates in 2008 as its market segment director for the renewable energy, and the test, measurement, and instrumentation markets. She is currently a management consultant specializing in strategic business planning, with an emphasis on the development of program, market, and product plans. Bieksha has more than 20 years of experience in the electronics industry, with a background in market management, business development, channel sales, product management, and operations for ITT Corporation, Delphi Connection Systems, and Hughes Aircraft Company.

Bieksha has a bachelor of science degree in marketing from the University of Wyoming, and has since received her certificate as a project management professional.