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construction firms or OEMs24―may then contract out most of the work while retaining overall responsibility, with the level of services subcontracted or provided by the contractor varying from project to project.25 Projects typically employ local construction firms for basic construction and wind experts for specialized tasks, such as electrical infrastructure.26 O&M Services Generally speaking, maintaining a wind farm includes an annual inspection of the entire wind system, as well as any maintenance required for planned or unplanned stoppages.27 The cost of a turbine typically includes a warranty covering some or all of the turbine components for an average two to five years, which may be supplemented and continued by a service contract from either the OEM28 or an ISP.29 Increasingly important is the electronic monitoring of wind turbine performance,30 which includes the use of sensors installed on location at the wind farm to gather data. The data are transmitted to a central monitoring site and analyzed by specialists to forecast when maintenance is needed based on usage, as well as to predict potential problems or breakages.31 U.S. Market for Wind Energy Services Market Size The U.S. wind energy market experienced rapid, albeit fluctuating, growth between 2007 and 2012. Wind energy capacity increased at an average annual rate of nearly 30 percent from 2007 through 2012, with cumulative installations growing from 16,700 megawatts 24 The selection of the turbine manufacturer for a wind project can influence the choice of a construction firm, as companies must be certified (requiring education and training) in the turbine equipment they are installing. In fact, OEM participation in the installation process can vary from sending an individual representative to oversee the turbine installation to overseeing and executing the entire construction and installation process itself. Industry representative, interview by USITC staff, Washington, DC, January 25, 2013. 25 Industry representative, interview by USITC staff, January 18, 2013; industry representative, interview by USITC staff, February 8, 2013; Vestas website, http://www.vestas.com/en/wind-power- plants/construction.aspx#/vestas-univers (accessed March 20, 2013). 26 Industry representative, interview by USITC staff, Washington, DC, January 25, 2013; industry representative, telephone interview by USITC staff, January 28, 2013. 27 The components and services covered by warranties vary widely depending on the needs of the customer and services offered by the OEM. Ireland, “Wind Service,” November 2011, 23–24; Canada Wind Energy Association, “The Many Steps to Planning and Building a Wind Farm,” n.d. (accessed January 16, 2013). 28 OEMs have increased their presence in the O&M sector, attracted by larger profit margins, particularly as margins on equipment have fallen. OEMs have the resources, such as engineering expertise, modeling capabilities, and ability to foresee potential problems, to allow them to offer profitable services contracts; in turn, they are able to continually upgrade and improve their machines. However, they face competition, both from in-house O&M departments and from ISPs. Industry representative, telephone interview by USITC staff, December 12, 2012; industry representative, telephone interview by USITC staff, January 22, 2013. 29 Industry representative, telephone interview by USITC staff, January 22, 2013. 30 Industry representatives, interview by USITC staff, Santiago, Chile, May 14, 2013. 31 Wind Power Monthly, “GE and Remote Turbine Monitoring,” March 10, 2010; industry representative, interview by USITC staff, Washington, DC, January 23, 2013. 4-7PDF Image | Renewable Energy and Related Services: Recent Developments
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