DEVELOPING DEVELOPERS LIVE WEBINARS - 25 MARCH 2021 - 14:00pm - South African Wind Energy Association

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DEVELOPING DEVELOPERS LIVE WEBINARS - 25 MARCH 2021 - 14:00pm - South African Wind Energy Association
DEVELOPING
    DEVELOPERS
   LIVE WEBINARS

            OPERATING PROJECTS:
ASSET MANAGEMENT, OPERATIONS AND MAINTENANCE        25 MARCH 2021 – 14:00pm

WEBINAR SPONSOR                                SPONSORED BY
DEVELOPING DEVELOPERS LIVE WEBINARS - 25 MARCH 2021 - 14:00pm - South African Wind Energy Association
WELCOME AND INTRODUCTION

                                            WELCOME

                                            Welcome to the “Operating Projects: Asset Management, Operations and
                                            Maintenance” Live Webinar 2021

                                            SOCIAL MEDIA HASHTAGS

                                            #DDwebinars2020
                                            #buildbackbetter with #renewableenergy
                                            #localforglobal
                                            #sapvia
                                            #sawea
                                            #energytransformation
         Niveshen Govender                  #projectdevelopment
         SAPVIA
         Chief Operating Officer

OPERATING PROJECTS: ASSET MANAGEMENT, OPERATIONS AND MAINTENANCE
DEVELOPING DEVELOPERS LIVE WEBINARS - 25 MARCH 2021 - 14:00pm - South African Wind Energy Association
DEVELOPING DEVELOPERS

                                              LOCAL RESOURCES – GLOBAL COMPETENCE

                                              SAPVIA and SAWEA, in partnership with BEPA, IPPO and REEF(SA) present the seventh
                                              webinar as part of the seven-part series of workshops to address key areas that aspiring
                                              developers need to understand.

                                              As the Developing Developers Series draws to a close, our last session will focus on
                                              Operation and Maintenance. In this session we will delve into structuring O&M contracts,
                                              the practicalities of managing operational solar PV and wind assets, looking at the
                                              technical and financial aspects, in order maximize the output and extend the life of
                                              these plants while ensuring profitability. We will also discuss the safety aspects as well as
                                              the environmental considerations in operational assets management.

                                              IN PARTNERSHIP
                                              WITH

                                              WEBIINAR SPONSORED BY

                                              SERIES SPONSORED
                                              BY

OPERATING PROJECTS: ASSET MANAGEMENT, OPERATIONS AND MAINTENANCE
DEVELOPING DEVELOPERS LIVE WEBINARS - 25 MARCH 2021 - 14:00pm - South African Wind Energy Association
AGENDA

                                            SPEAKERS                                           AGENDA: 14h00 – 16h00

                                                                                               o Introduction and Welcome SAPVIA

                                                                                               o Presentation: Fundamentals of managing RE Assets
                                                                                                 HARMATTAN RENEWABLES

                                                                                               o Panel Discussion: Successfully operating and maintaining
                                                                                                 RE assets. Looking at the challenges and opportunities.
                                                                                                 Lessons learnt to optimise RE plant longevity.
       CHANDA NXUMALO               LINDANI BUTHELEZI                     TOM GOSS
      Harmattan Renewables           Dorper Wind Farm             Vestas South Africa          ➢ Facilitated by Ntombifuthi Ntuli, SAWEA (CEO)
             Director                Technical Manager       Team Lead Planning South Africa
                                                                                               ➢ PANEL:
                                                                                                 Lindani Buthelezi, Dorper Wind Farm (Technical
                                                                                                 Manager)
                                                                                                 Tom Goss, Vestas (Team Lead Planning Africa)
                                                                                                 Ramona Mohanlall, RustMo Solar Farm (Head:
                                                                                                 Operations & HR)
                                                                                                 Compton Saunders, Globeleq (Asset Director)

                                                                                               o Q & A SAPVIA

                   RAMONA MOHANLALL                  COMPTON SAUNDERS
                                                           Globeleq
                                                                                               o Closing Remarks SAPVIA
                     RustMo Solar Farm
                    Head: Operations & HR                Asset Director

OPERATING PROJECTS: ASSET MANAGEMENT, OPERATIONS AND MAINTENANCE
DEVELOPING DEVELOPERS LIVE WEBINARS - 25 MARCH 2021 - 14:00pm - South African Wind Energy Association
HARMATTAN RENEWABLES

   Developing
Developers Webinar
       O&M

                       HARMATTAN RENEWABLES | 2021
DEVELOPING DEVELOPERS LIVE WEBINARS - 25 MARCH 2021 - 14:00pm - South African Wind Energy Association
Local Presence. Global Competence

                   WE ARE HARMATTAN RENEWABLES
                   WE ENHANCE PERFORMANCE
                   WE IMPROVE EFFICIENCY
                   WE MINIMISE RISK

                                                 HARMATTAN RENEWABLES|2021
DEVELOPING DEVELOPERS LIVE WEBINARS - 25 MARCH 2021 - 14:00pm - South African Wind Energy Association
Local Presence. Global Competence

         WHO WE ARE                                                       WHAT WE DO
                                                                          We apply our specialist engineering, design, project
         Harmattan Renewables is a leading provider of technical,
                                                                          management, construction and asset management skills to
         commercial and environmental advisory services for projects
                                                                          develop bespoke solutions. We aim to minimise the risk and
         and business in the renewable energy space.
                                                                          maximise the performance of assets, adding value to both
                                                                          new-build and existing projects. From wind to solar, storage,
         A black women owned company, Harmattan Renewables has a
                                                                          small hydro, biomass and beyond, our focus is on:
         proven track record of delivery, all through an experienced
         BBBEE Level 1 company focused on developing local
                                                                          NEW BUILD (or new to you) RENEWABLE ASSETS
         engineers and project managers.
                                                                          De-risking your project through quality control & risk
                                                                          management.
         We continually strive to seek, develop & deploy the latest &
         greatest innovative technology, which ultimately provides real
                                                                          OPERATIONAL RENEWABLE ASSETS
         value to asset owners, managers, EPC's, O&M's and TA's.
                                                                          Decreasing your operational liability by maximising production,
                                                                          availability & longevity.

                                                                          EMERGING RENEWABLES & ENERGY SOLUTIONS
                                                                          Introducing what is next in the world of renewables &
                                                                          sustainable energy solutions?

                                                                                                                                            HARMATTAN RENEWABLES|2021
DEVELOPING DEVELOPERS LIVE WEBINARS - 25 MARCH 2021 - 14:00pm - South African Wind Energy Association
FUNDAMENTALS OF MANAGING RE ASSETS

OPERATING PROJECTS: ASSET MANAGEMENT, OPERATIONS AND MAINTENANCE
DEVELOPING DEVELOPERS LIVE WEBINARS - 25 MARCH 2021 - 14:00pm - South African Wind Energy Association
FUNDAMENTALS OF MANAGING RE ASSETS

    What is normally
    meant by O&M?

OPERATING PROJECTS: ASSET MANAGEMENT, OPERATIONS AND MAINTENANCE
DEVELOPING DEVELOPERS LIVE WEBINARS - 25 MARCH 2021 - 14:00pm - South African Wind Energy Association
FUNDAMENTALS OF MANAGING RE ASSETS

  Why is O&M important?

      • Development phase (typically 1-5 years, significant variations may occur depending on
        market maturity)
      • Construction phase (up to 18 months, depending on the size of a project)
      • Operational phase (typically 20-30 years)

OPERATING PROJECTS: ASSET MANAGEMENT, OPERATIONS AND MAINTENANCE
Operation & Maintenance Agreements

 www.harmattanrenewables.com
FUNDAMENTALS OF MANAGING RE ASSETS

  What does a contract do?

      It sets out each party's obligations in respect of each other
                    - Employer to pay the bills
                    - Contractors to provide the equipment (TSA) and/or services (OM)

      It sets out the risk allocation between the parties
                    - Who pays when events conspire to cost either party more money?

      It sets out the remedies of either party if the other party does not fulfil their obligations

OPERATING PROJECTS: ASSET MANAGEMENT, OPERATIONS AND MAINTENANCE
FUNDAMENTALS OF MANAGING RE ASSETS

 Operations & Maintenance
                                                     Operations

OPERATING PROJECTS: ASSET MANAGEMENT, OPERATIONS AND MAINTENANCE
FUNDAMENTALS OF MANAGING RE ASSETS

  Operations & Maintenance Agreement                                              It is more important than the TSA!!!

   It sets out the duties of either party with regard to the maintenance period
   Ideally:
   •     The contractor fixes anything that breaks immediately!
   •     And if it does not then it pays for all of the lost production

   In reality:
   The contractor is constrained by availability of staff and spare parts

   O&M agreement key points
   •  Start date
   •  Availability guarantee
   •  Transparency of maintenance, clear reporting
   •  Location of service provider to project
   •  Size of servicing team

   All inclusive agreement should include
   •     Scheduled/preventive maintenance
   •     Unscheduled/corrective maintenance
   •     Provision of spares, consumables, labour, transport, cranage
   •     Provision of 24-hour monitoring
   •     Provision of re-setting
   •     Provision of fault finding and technical support
   •     Provision of software upgrades
   •     Certification of Safety systems
   •     Disposal of waste
   The red items are not usually included

OPERATING PROJECTS: ASSET MANAGEMENT, OPERATIONS AND MAINTENANCE
FUNDAMENTALS OF MANAGING RE ASSETS

    Term

      • 5, 10, 12, 15 years...... duration of loan agreements
      • Break clauses & break payments
      • Termination rights important
          • penalties for early termination
      • When is commencement
          • Take over, first generation
          • All turbines or individual turbines
      • Risks with long-term contracts
      • Which aspects have shorter term eg power curve, noise
        warranties?

OPERATING PROJECTS: ASSET MANAGEMENT, OPERATIONS AND MAINTENANCE
FUNDAMENTALS OF MANAGING RE ASSETS

    Warranties

    Wind                                                  Solar

    • Power Curve –                                       • Performance Ratio (PR)

                                                          • Availability
                                                          • Liquidated Damages
                                                          (capped at 100% of O&M annual fee)

    • Availability
    • Noise

OPERATING PROJECTS: ASSET MANAGEMENT, OPERATIONS AND MAINTENANCE
FUNDAMENTALS OF MANAGING RE ASSETS

   Availability
    What is "availability" ?

    Availability is a measurement of the reliability of a wind turbine (or other power plant).
    It refers to the percentage of time that a plant is ready to generate (that is, not out of service for maintenance or repairs) or of the theoretical maximum energy
    output ( cut-in and lower than cut-off wind speed).

    Downtime rate of wind farms results in loss of energy. If availability is low during times with high wind speeds the energy yield is reduced significantly (due to
    power curve characteristics). At high wind speeds repair of components such as blades can be delayed. This can cause long turbine downtime. Wind turbines
    can have an availability of more than 98%.

    Availability is expressed as a percentage:
    Available time of the WTG versus Total production of the WTG
    Total calendar time                       Total possible production

    • Important factors in the calculations:
          • Be aware of the definition
          • Total calendar time minus excluded times? – hours allocated for scheduled maintenance
          • Wind turbine level versus park level?
          • After ramp-up period, payments start. May have incentives for exceeding availability
          • Parts & maintenance
          • What is counted as “available”?

OPERATING PROJECTS: ASSET MANAGEMENT, OPERATIONS AND MAINTENANCE
FUNDAMENTALS OF MANAGING RE ASSETS

     Warranties

  exclusion factors are:
  •Force majeure.
                                                                                                                                                    Energy-based Availability takes into consideration
  •Damage to the PV plant (including the cables up to the feed-in point) by the customer or third parties who are not sub-contractors of O&M
  Contractor, including but not limited to vandalism.                                                                                               that an hour in a period with high irradiance is more
  •Disconnection or reduction of energy generation by the customer or as a result of an order issued to the customer by a court or public           valuable than in a period with low irradiance.
  authority.                                                                                                                                        Therefore, its calculation uses not time but energy
  •Operational disruption by grid disconnections or disruptions in the grid of the grid operator.                                                   (and lost energy) for its basis
  •Disconnections or power regulation by the grid operator or his control devices.
  •Downtimes resulting from failures of the inverter or MV voltage components (for example, transformer, switchgear), if this requires:
           o Technical support of the manufacturer and/or
           o Logistical support (for example supply of spare parts) by the manufacturer;
  •    Outages of the communication system due to an external issue that is beyond the O&M Contractor’s responsibility. Any failure time only
       begins to run when the O&M Contractor receives the error message. If the data connection to the site was not available, failure time shall
       only begin after reestablishment of the link.
  •    Delays of approval by the customer to conduct necessary works;
  •    Downtimes for implementation of measures to improve the PV plant, if this is agreed between the parties;
  •    Downtimes caused by the fact that the customer has commissioned third parties with the implementation of technical work on the PV
       plant;
  •    Downtimes caused by Serial Defects on Plant components.
  • Depending on the O&M contract, time spent waiting for some spare parts to arrive can is sometimes excluded from the calculation of
  Contractual Availability, however this is not considered a best practice.

OPERATING PROJECTS: ASSET MANAGEMENT, OPERATIONS AND MAINTENANCE
FUNDAMENTALS OF MANAGING RE ASSETS

    Payment Mechanisms Options - Wind

         Some or all of these:

         Overall onshore wind O&M costs are the range of 10 – 20 US$/MWh
         • Base price per WTG
             o generally includes the cost of all consumables and spare parts required
                  as part of the scheduled and unscheduled maintenance
         • Price per kWh
         • Base price + price per kWh
         • Availability bonus (over term or per year)
         • Deferral of availability LDs
         • OM price included in the TSA price for warranty period duration
         • Obligation to purchase spare parts to warrant a particular availability %.

OPERATING PROJECTS: ASSET MANAGEMENT, OPERATIONS AND MAINTENANCE
FUNDAMENTALS OF MANAGING RE ASSETS

      Risks that follow through from the Supply Agreement

        Technical Aspect
        Equipment Design & Defects
        Siting Risk
        Grid Code
        Wind delay for cranage
        Transportation risk
        Performance Warranties
        Availability
        Power Curve
        Noise
        General Warranties
        Design
        Workmanship & material quality (manufacturing)
        Defects
        Fitness for purpose
        Serial defects

OPERATING PROJECTS: ASSET MANAGEMENT, OPERATIONS AND MAINTENANCE
Reporting

www.harmattanrenewables.com
FUNDAMENTALS OF MANAGING RE ASSETS

     KPIs
                                                       Performance
                                                       • Power curve
                                                       To be revisited in the power curve module

                                                       • Wind conditions
                                                       so that the operator can distinguish between WT under-performance and wind strengths below expected
                                                       levels; it allows for comparison of the production of a WF with the available wind resource.

                                                       • P50 deviation
                                                       During the process of wind resource assessment, the P50 energy yield gives the level of AEP that is
                                                       expected to be exceeded with a probability of 50%. Many operators currently look at the deviation of the
                                                       actual AEP from the calculated P50, especially when looking into deviations of planned budget. From our
                                                       experience, the P50 is subject to important uncertainty.

                                                       • Time-based availability
                                                       Defined as the accumulated time that the WT is operational divided by the total period of time. This indicator
                                                       is specific, since the observed value is clearly defined and is the time that a WT is operational; measurable
                                                       and easy to understand, it is relatively easy to distinguish periods of power production from periods of
                                                       inactivity; strategies to reduce the downtime result in an increase of this metric.it does not provide
                                                       information about WF efficiency or power losses due to unavailability.

                                                       • Capacity factor
                                                       It is a measure of energy actually generated Vs. the maximum possible output under ideal conditions. It is
                                                       affected by the weather.

OPERATING PROJECTS: ASSET MANAGEMENT, OPERATIONS AND MAINTENANCE
FUNDAMENTALS OF MANAGING RE ASSETS

 KPIs
 Maintenance
 • Response time
 Defined as the time between failure occurrence and maintenance intervention, it informs about the efficiency in maintenance planning. Since it is often
 difficult to detect the failure starting time, it can be redefined as the time between
 failure detection and intervention.
 • Total Downtime
 Mean down time is the expected or average down time after a system fails and stops operation. Consistent definitions are provided by different ISO and
 IEC guidelines. Down time is defined as the total time between stop and restart of operation of a considered unit while the unit is in a down state. This
 period of time includes all subcategories as for example waiting time, administrative delays, transportation time, failure detection and finally repair time.
 In most cases failures and the related down times are assigned to the causative system or component to gain detailed results for further use.
 •      Number of Downtime Events
 •      Duration of Events
 •      Duration of Time between Events

 • Interventions per wind turbine
 An intervention is any field work done to maintain operational capacity of a wind turbine. This metric indicates the success of the implemented O&M
 strategy. Higher wind turbine reliability results in less interventions needed. This metric however does not account for a lot of information, such as the
 duration of the interventions, and their related costs. There are also issues with comparability between wind farms, but this can be mitigated by
 normalising the number of interventions by the number of turbines in a farm.

 • Corrective Maintenance (%)
 The ratio between corrective interventions and the total of all interventions expressed in hours. Corrective interventions also tend to be costlier than
 other interventions. This making up for some limitations of the Interventions per wind turbine metric. It however does not differentiate between
 immediate and non-immediate corrective intervention activities.
 • Schedule Compliance (%)
 The ratio between scheduled maintenance tasks completed on time and the total number of tasks. It is important to note that the total number of tasks
 includes unscheduled tasks. This metric is to assess the efficiency and accuracy of maintenance planning and execution. The more unscheduled tasks
 there are, the smaller the percentage. It does not completely distinguish between scheduled and unscheduled tasks.

OPERATING PROJECTS: ASSET MANAGEMENT, OPERATIONS AND MAINTENANCE
FUNDAMENTALS OF MANAGING RE ASSETS

                                                        KPIs

                                                        Finance
                                                        • Operational Expenditures (OPEX)
                                                        The OPEX include the cost of operating the site, planned O&M and unscheduled maintenance. These costs can
                                                        be grouped into two different categories: the O&M costs, which represent approximately 60% of the OPEX and
                                                        tend to increase as the WF reaches the end of its lifetime ; the other category covers other operating costs like
                                                        rent, taxes and insurance. In order to be comparable, this metric should be normalised by WF installed capacity
                                                        • Revenue

                                                        HSE
                                                        • Environmental incidents
                                                        • Health & Safety incidents

OPERATING PROJECTS: ASSET MANAGEMENT, OPERATIONS AND MAINTENANCE
FUNDAMENTALS OF MANAGING RE ASSETS

    KPIs

OPERATING PROJECTS: ASSET MANAGEMENT, OPERATIONS AND MAINTENANCE
Maintenance strategies

www.harmattanrenewables.com
FUNDAMENTALS OF MANAGING RE ASSETS

                                                           Corrective/Reactive maintenance
                                                           Majority of activities address individual equipment only to the extent the problem is
                                                           impacting efficient operations.
                                                           Reactive maintenance focus is on repairing or replacing equipment and restore to its
                                                           normal conditions only after its broken or believed faulty

                                                           Strongly recommended that Reactive maintenance is only carried out on components
                                                           that are inexpensive, easy to replace and where the failure does not cause collateral
                                                           damage in the system or where the costs of reactive maintenance are not greater
                                                           than the costs of preventative maintenance

OPERATING PROJECTS: ASSET MANAGEMENT, OPERATIONS AND MAINTENANCE
FUNDAMENTALS OF MANAGING RE ASSETS

                                                             Preventive maintenance
                                                             Preventive maintenance is classified as use-based or predictive maintenance and
                                                             the former is performed at predetermined instances which is related to the age of
                                                             the equipment (regardless of its condition) or at certain expired calendar times.
                                                              Use-based maintenance can lead to over or under maintenance as resources are
                                                             not optimally used.
                                                             Condition based maintenance has the capability to estimate the remaining useful life
                                                             of equipment in order to implement the best maintenance strategy before failure
                                                             occurs. Doing inspections or monitoring certain variables using sensors like
                                                             temperature, voltage, current, noise or vibrations and oil analysis to determine the
                                                             condition of the equipment can do it. The process of condition monitoring can be
                                                             online or offline and is made up of three primary steps:
                                                             • Data acquisition—gathering data that is pertinent to equipment health;
                                                             • Data processing—analytical verification, comprehension and refinement of
                                                               collected data;
                                                             • Decision-making—deciding which maintenance strategy is ideal to ensure long
                                                               term plant health at the lowest cost.

                                                             Current wind turbine condition monitoring focus on critical equipment like the
                                                             gearbox, generator and main bearing, which are high, cost components and cause
                                                             long downtimes.
   Impact of maintenance strategies on component condition
                                                             thermographic inspection aiming to identify defective panels on a PV plant. Indeed,
                                                             several categories of anomalies (hot spots, hot strips, moisture ingress, soling, etc.)

OPERATING PROJECTS: ASSET MANAGEMENT, OPERATIONS AND MAINTENANCE
FUNDAMENTALS OF MANAGING RE ASSETS

   P-F Curve

                                                                   Maximizing the P-F Interval Using Condition-Based
                                                                   Maintenance Technologies
                                                                   The method and frequency of inspection makes a difference in the
                                                                   length, and therefore the utility of the P-F Interval.
                                                                   Generally, technologically-based Condition-Based Maintenance
                                                                   (CBM) methods (on-line inspections) provide the greatest P-F
                                                                   Intervals, and are less disruptive than alternative time-based,
                                                                   shutdown inspections.

                                                                   The most commonly used techniques of condition monitoring are:
                                                                   1. Lubricant Sampling and Analysis
                                                                   2. Corrosion Monitoring
                                                                   3. Motor Current Analysis
                                                                   4. Acoustic Emissions Detection (e.g., ultrasound)
                                                                   5. Vibration Measurement and Analysis
                                                                   6. IR Thermography
                                                                   7. Process Parameter Trending (e.g., flows, rates, pressures,
                                                                   temperatures, etc.)
                                                                   8. Process Control Instrumentation (measurement and trending)
                                                                   9. Visual Inspection (look, listen and feel).

OPERATING PROJECTS: ASSET MANAGEMENT, OPERATIONS AND MAINTENANCE
FUNDAMENTALS OF MANAGING RE ASSETS

                                                                     Downtime

                                                                     1. Create an asset registry
                                                                     Lists and details all the items an organization owns to
                                                                     generate revenue
                                                                     A wind turbine typically comprises 8000 parts or more
                                                                     with the blades, rotor, main bearing, drivetrain and
                                                                     power module its major components

                                                                     2. Assess performance levels and failure modes
                                                                     3. Residual life, lifecycle and replacement costs

                                                                     Investment decision making – maintain, repair,
                                                                     refurbish, replace or augment?

                                                                   Mechanical failures occur most often, gearbox failures cause
                                                                   the longest downtimes and failure rates above one failure
                                                                   per turbine annually is still common

OPERATING PROJECTS: ASSET MANAGEMENT, OPERATIONS AND MAINTENANCE
FUNDAMENTALS OF MANAGING RE ASSETS

   Failures
                     Component               Failure rate          Downtime per failure
                                                                   [h]
                     Gears                   0.045                 256.7
                     Control System          0.050                 184.6
                     Electric System         0.067                 106.6
                     Yaw system              0.026                 259.4
                     Blades and pitch        0.052                 12.5
                     system
                     Generator               0.021                 210.7
                     Sensors                 0.054                 49.4
                     Hydraulics              0.061                 43.2
                     Drive Train             0.004                 291.4
                     Mechanical Brake        0.005                 125.4

OPERATING PROJECTS: ASSET MANAGEMENT, OPERATIONS AND MAINTENANCE
FUNDAMENTALS OF MANAGING RE ASSETS

  Downtime - Solar             Failure Energy Loss                 Total Failures

OPERATING PROJECTS: ASSET MANAGEMENT, OPERATIONS AND MAINTENANCE
Spare Part management

www.harmattanrenewables.com
FUNDAMENTALS OF MANAGING RE ASSETS

       Spare Parts – Leave it to the O&M?

       Why does management of spares matter?

       Ensure you have what you need, when you need it

       Source of information

       Surely if parts aren’t available, it’s covered by the availability warranty?

       What you lose vs what you are reimbursed….

OPERATING PROJECTS: ASSET MANAGEMENT, OPERATIONS AND MAINTENANCE
FUNDAMENTALS OF MANAGING RE ASSETS

                                                   The True Cost of Failure
                                                   Did you know that a blade failure will often cost you more in lost
                                                   revenue than for the parts and installation?

                                                   If a blade isn’t in stock, it goes like this:
                                                   • Lead time for manufacturing ~100 days
                                                   • Transportation time (assuming no permit delays) ~20 days
                                                   • Installation ~3 days

                                                   • Labour cost ~$25k
                                                   • Crane hire cost ~$40k

                                                   • Failing to notice a $1,000 bearing problem can lead to a $100,000
                                                     gearbox replacement, a $50,000 generator rewind and a $75,000
                                                     crane hire. Add lost production revenue, and one post-warranty
                                                     gearbox failure can cost 10-15% of the price of the turbine

OPERATING PROJECTS: ASSET MANAGEMENT, OPERATIONS AND MAINTENANCE
O&M Alternatives

www.harmattanrenewables.com
FUNDAMENTALS OF MANAGING RE ASSETS

                                                  Service Agreements – Overview of providers

                                                  Owners chose an O&M strategy depending on technical and commercial
                                                  drivers, typically from 3 types:

OPERATING PROJECTS: ASSET MANAGEMENT, OPERATIONS AND MAINTENANCE
FUNDAMENTALS OF MANAGING RE ASSETS

  Different OEM Warranties

     Parts only Warranty, new parts are shipped to the project, however
     installation costs such as labour, cranes or downtime are excluded.

     Full Warranty – inclusive of installation costs

     Partial Warranty – excluding certain parts or a mix of a Parts warranty &
     Full Warranty.

OPERATING PROJECTS: ASSET MANAGEMENT, OPERATIONS AND MAINTENANCE                 HARMATTAN RENEWABLES|2020
End of Warranty inspections

www.harmattanrenewables.com
FUNDAMENTALS OF MANAGING RE ASSETS

   Why?
 It may be difficult to find a way to justify the cost to perform EOW inspections under a long term
 O&M agreement. Not understanding or even attempting to get the truth on the assets long term
 performance not only reduces the revenue made by the plant but may also be reducing the life of
 the plant.

 Checking the quality of and performance of the equipment prior to expiry of the warranty can be
 seen of as equal importance as the Handover after commissioning.

 Defects liability period or even Defects Notifications period. In all of these the basic premise is the
 same there is defined period to which the Original Equipment Manufacturer has signed up to and if
 the part has not performed as designed or has failed that that the OEM will replace that component
 and the owner will not pay for this.

OPERATING PROJECTS: ASSET MANAGEMENT, OPERATIONS AND MAINTENANCE                                           HARMATTAN RENEWABLES|2020
FUNDAMENTALS OF MANAGING RE ASSETS

      Recommended process?
  •   Complete the inspections at least 3 months prior to the end of the warranty period
  •   Sort the list of findings and characterise ( e.g. high, medium or low )
  •   Estimate the cost for each repair ( be sure to capture unseen costs such as outages or extra costs
      such cranes ) – This is for your own information
  •   Schedule a meeting with the OEM and share the list ( its recommended that the formal reports are not
      provided at this stage, if the OEM is fulfilling its obligations under the TSA & O&M agreements none of
      these items should be a “surprise”, allow the OEM to refute the claim before showing the reports )
  •   At the meeting work through each item and capture any agreement with close out dates to close out
      items. Formalise the meeting agreement by sending the minutes of the meeting. Request a formal
      notification of recognition that agreed items will be closed out.
  •   Items not agreed, here as the owners take any information that may have been provided and share
      with the inspection company and after discussion it may be that the issue is in fact closed or it may be
      that the issue is still a concern and now proceed to a formal claim.
  •   Formal claim and append the original list of Items. On the list note the rejected/open items, closed
      items and Accepted Items with agreed timelines for resolution.
  •   Agree to meet to work out the close out items, the OEM should be requested to bring technical people
      to the meeting.

OPERATING PROJECTS: ASSET MANAGEMENT, OPERATIONS AND MAINTENANCE                                                 HARMATTAN RENEWABLES|2020
O&M Alternatives

www.harmattanrenewables.com
FUNDAMENTALS OF MANAGING RE ASSETS

                                                   Service Agreements – Overview of providers

                                                   • Owners chose an O&M strategy depending on technical and
                                                   commercial drivers, typically from 3 types:

OPERATING PROJECTS: ASSET MANAGEMENT, OPERATIONS AND MAINTENANCE
FUNDAMENTALS OF MANAGING RE ASSETS

   Different OEM Warranties
      Parts only Warranty, new parts are shipped to the project, however installation costs such
      as labour, cranes or downtime are excluded.

      Full Warranty – inclusive of installation costs

      Partial Warranty – excluding certain parts or a mix of a Parts warranty & Full Warranty.

OPERATING PROJECTS: ASSET MANAGEMENT, OPERATIONS AND MAINTENANCE                                   HARMATTAN RENEWABLES|2020
Asset Management
FUNDAMENTALS OF MANAGING RE ASSETS

                                                                O&M                    Asset Management
                                                        Preventative Maintenance                   Operations
                                                     Corrective Maintenance (repair)         Site/BOP maintenance
                                                               Monitoring              Administration – billing, accounting
                                                              Spare parts                     Metering for revenue
                                                             Consumables                      Hiring subcontractors
                                                                                           Enforcement of warranties
                                                                                          Management of budget and
                                                                                                 reserves
                                                                                         Property – Site Maintenance –
                                                                                            Vegetation Management

OPERATING PROJECTS: ASSET MANAGEMENT, OPERATIONS AND MAINTENANCE
FUNDAMENTALS OF MANAGING RE ASSETS

   Asset Management
                                                                             The Goal of Asset Management is to increase and maintain the “Economic Life”
   What is an asset?
                                                                             of an asset
   Anything from which the organisation derives value.
                                                                             The fundamentals that need to be managed
                                                                             • Reliability of Operation: Through early detection & action on defects
   How would you define Asset Management?
                                                                             • Reliability of Performance: Through early detection of drop in performance &
   The systematic and coordinated activities and practices through
                                                                             actions thereof
   which an organization optimally and sustainably manages its assets
                                                                             • Reliability of yield/output : Through early detection of energy loss and actions
   and asset systems, their associated performance, risks and
                                                                             thereof
   expenditures over their lifecycles for the purpose of achieving
                                                                             • Lower Operating costs
   its organizational strategic plan.
                                                                             • Lower Maintenance costs
                                                                             • Extend “Useful Life” of an asset
   Poor asset management can lead to inefficiency in the delivery of the
                                                                             All of the above, together, contribute to higher “Economic Life” of an asset.
   lifecycle of renewable energy assets like increased downtime and higher
   costs of operation and maintenance resulting in higher LCoE and thus
                                                                             •None of the above fundamental requirements, are a part of the “Comprehensive
   decreased profits
                                                                             Services Contract” with the OEMs. All that an OEM does through their field services
                                                                             team is continuous monitoring of operating turbines and trouble-shooting as & when
                                                                             the issues arise.

OPERATING PROJECTS: ASSET MANAGEMENT, OPERATIONS AND MAINTENANCE
FUNDAMENTALS OF MANAGING RE ASSETS

  Asset Management

  • First rule of operating wind farms: “keep them spinning…”
  • Tasks of the technical management from the view of the owner:
         o High (energetic) availability
         o Reduction of costs for service / repair
  o Long life time of equipment
         o Conservation of evidence for negotiation with manufacturer and insurance
         o Prompt acquisition of basic data for controlling purposes and transparent presentation of
            improvement actions to share holders / owner
  • From the point of view of the technical operator:
         o Optimization of time based availability by short reaction time in case of failures
         o Early detection of problems by own and independent inspections
         o Schedule inspections and preventive maintenance
                 o Visual inspections 2-4 times a year
                 o Periodic inspections should be done at leas twice a year.
                 o Shift necessary measures that need shutting down the plant, i.e. that reduce availability
                    (e.g. service on wind turbine to a time of low predicted yield; service on PV plant at
                    night)
                 o Acquisition and statistical analysis of all available operating data

OPERATING PROJECTS: ASSET MANAGEMENT, OPERATIONS AND MAINTENANCE                                               HARMATTAN RENEWABLES|2020
HARMATTAN RENEWABLES

THANK YOU

                       HARMATTAN RENEWABLES | 2021
PANEL DISCUSSION

                                             SPEAKERS

                                                                                   Panel Discussion Topic: Successfully operating and
                                                                                   maintaining RE assets. Looking at the challenges and
                                                                                   opportunities. Lessons learnt to optimise RE plant longevity.

                                                                                   ➢ Facilitated by Ntombifuthi Ntuli, SAWEA (CEO)

                                                                                   ➢ PANEL:
        NTOMBIFUTHI NTULI              CHANDA NXUMALO        LINDANI BUTHELEZI       Lindani Buthelezi, Dorper Wind Farm (Technical
                SAWEA
                 CEO
                                      Harmattan Renewables    Dorper Wind Farm       Manager)
                                                              Technical Manager
                                             Director
                                                                                     Tom Goss, Vestas (Team Lead Planning Africa)
                                                                                     Ramona Mohanlall, RustMo Solar Farm (Head:
                                                                                     Operations & HR)
                                                                                     Compton Saunders, Globeleq (Asset Director)

            TOM GOSS                 RAMONA MOHANLALL         COMPTON SAUNDERS
        Vestas South Africa           RustMo Solar Farm             Globeleq
   Team Lead Planning South Africa   Head: Operations & HR        Asset Director

OPERATING PROJECTS: ASSET MANAGEMENT, OPERATIONS AND MAINTENANCE
Q&A

                                                 QUESTIONS AND ANSWERS SESSION

                                                 Please type your questions in the message box and we will respond

         Niveshen Govender
         SAPVIA
         Chief Operating Officer

OPERATING PROJECTS: ASSET MANAGEMENT, OPERATIONS AND MAINTENANCE
CLOSING REMARKS

                                                 CLOSING REMARKS

                                                 Thank you for joining our final webinar of the ‘Developing Developers’ series

         Niveshen Govender
         SAPVIA
         Chief Operating Officer

OPERATING PROJECTS: ASSET MANAGEMENT, OPERATIONS AND MAINTENANCE
DEVELOPING DEVELOPERS WEBINAR SERIES

                                                                   o   4 associations
                                                                   o   7 sessions
                                                                   o   15 hours over 6 months
                                                                   o   28 topics
                                                                   o   38 Speakers
                                                                   o   3473 Registered
                                                                   o   1903 in full Attendance
                                                                   o   284 Average attendance per webinar
                                                                   o   11 partners/sponsors

OPERATING PROJECTS: ASSET MANAGEMENT, OPERATIONS AND MAINTENANCE
DRIVING DISTRIBUTED GENERATION WEBINAR SERIES

                                                               DATE                   WEBINAR TOPIC

                                                                                      Distributed Generation    Policy     and   Regulatory
                                                               29th April 2021
                                                                                      Framework

                                                                                      The Business Case for Distributed Generation
                                                               27th May 2021
                                                                                      (Various Business Models)

                                                               24th June 2021         PPAs

                                                                                      Fundamentals of Building Distributed Generation
                                                               29th July 2021
                                                                                      Projects

                                                               26th   August     2021 Operating and Maintaining Distributed Generation
                                                                                      plants

                                                               30th September 2021    Solar PV + Storage = energy future

OPERATING PROJECTS: ASSET MANAGEMENT, OPERATIONS AND MAINTENANCE
DEVELOPING LOCAL SUPPLY CHAIN WEBINAR SERIES

                                                                   22 April 2021 – 16 September 2021

OPERATING PROJECTS: ASSET MANAGEMENT, OPERATIONS AND MAINTENANCE
DEVELOPING
    DEVELOPERS
   LIVE WEBINARS

            OPERATING PROJECTS:
ASSET MANAGEMENT, OPERATIONS AND MAINTENANCE                  THANK YOU

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