United States

United States

US O&M spending to reach $6 billion by 2025

UNITED STATES: Annual spending on operations and maintenance (O&M) in the US wind industry will double from just under $3 billion this year to nearly $6 billion in 2025, accounting for 29% of total capital expenditures in the sector.

Google Translate

In a new report, the consulting firm IHS Emerging Energy Research says it expects O&M spending to grow at a 5.5% compound annual rate as total installed onshore capacity grows from 47GW at the end of 2011 to a projected 127GW over the next 14 years.

IHS EER North American Wind Energy Advisory program associate director, Matt Kaplan said: "O&M strategies are increasingly vital to improving the operational performance and bottom line of a wind owner’s collective investment."

The growth in spending is making the market for O&S services more competitive, the report says. Large wind owners are bringing more of the work in-house to leverage economies of scale.

Additionally, turbine manufacturers are aggressively expanding the O&M side of their businesses to help make up for an expected drop in orders after this year. At the same time, a host of independent service providers are entering the business.

The competition is driving companies to offer new types of products aimed at improving project output. Kaplan added: "The industry’s intense focus on O&M today will ultimately result in more cost-effective methods for managing and maintaining wind projects, driving down the overall cost of wind in the future."

Have you registered with us yet?

Register now to enjoy more articles
and free email bulletins.

Sign up now
Already registered?
Sign in