A new study by one firm indicates the wind industry in Oklahoma and other states in the U.S. will soon start spending more on operations and maintenance than on installation of new wind turbines.
That’s because the turbines are aging and the turning point will be in three years, according to a study by IHS Markit. It found that companies are spending more than ever on operations and maintenance to keep the older turbines running and productive.
IHS Markit says energy companies spend as much as $6 billion a year on wind-related operations and maintenance and the costs are expected to grow nearly 40 percent to $8.3 billion a year by 2027.
The North American wind turbine fleet is aging with the average age rising from seven years today to 14 years in 2030, according to the study. As the turbines age, they cost more to maintain, which has become a new growth opportunity for companies eager to expand into that part of the wind industry.
Some of Oklahoma’s first wind turbines were installed commercially in 2005, making some of them at least 13 years old.
Some 50,000 utility-scale wind turbines producing nearly 100,000 megawatts of generating capacity have been installed in 42 states and 12 Canadian provinces and territories. Within a decade, IHS Markit predicts producers to add 50 percent more turbines, with most installed before federal tax credits expire during the early 2020s.
Wind companies spend the most running and maintaining older and larger wind turbines installed before 2010, according to the study. Newer and smaller wind turbines installed after 2010 typically cost 25 percent less per megawatt hour.