Back in 2004, the inhabitants of the Isle of Gigha, off the west coast of Scotland, invested in three second-hand Vestas wind turbines, becoming among the first to tap into Europe's rising market for used wind turbines. The 675-kilowatt wind farm on which these turbines were installed now churns out enough power to meet almost all of Gigha's annual electricity needs.
The success of Gigha's reconditioned turbines – known locally as the Dancing Ladies –highlights a fast-growing new market coming off the back of the global boom in wind power.
Why second-hand?
The growing demand for renewable energy in developing countries is stimulating the market for wind turbines but new turbines are beyond the reach of many of these nations. The answer: second-hand, reconditioned machines.
According to Repowering Solutions, a company involved in this market, second-hand turbines offer the following advantages: capital costs are lower because the turbines are up to 40% cheaper than new ones; project lead times are shortened because developers do not need to wait for new turbines to be manufactured, therefore financial risk is reduced; as second-hand turbines tend to be smaller (150 to 600 kW), they can be transported more easily; and older turbines can be maintained and repaired with lower levels of technical know-how because they are not as complex as modern machines. Furthermore, their typically smaller size makes it easier to get local approval for their installation.
According to Business Week, with companies such as Iberdrola Renovables and E.On looking to upgrade their existing fleets of turbines over the next five years, more than 5,000 second-hand machines could be released onto the market by 2013.
Repowering Solutions is just one company looking for new homes for these turbines. “No price is fixed for second-hand turbines,” explains Alfonson Álvaro, from this company’s sales department. “We assess each machine based on its power rating, age, model and condition and aim to achieve a happy balance between the interests of the owner, the buyer and ourselves”.
Repowering currently has a variety of turbines on its books including 20 Enercon E-40 660 kW turbines with an asking price of €280,000 and nine Vestas V90 1.8 MW turbines for €1,350,000. It also has 30 new GE 2.5 MW turbines stored at a Japanese port ready for immediate shipping.
“The norm is that the older the machine, the greater the saving,” says Álvaro. “We can sell 12 year-old machines at 30 to 40% the cost per kW of a new machine. This saving is what encourages many customers to opt for second-hand machines”.
Windbrokers is another company specialising in this market. The company, founded by Vermeulen in 2002, has seen revenues soar from just over €2 million in 2004 to an estimated €73 million last year and also offers services such as guarantees on reconditioned equipment. Windbrokers believes demand for used turbines will continue to outstrip supply.
Other leading players in this new market include: J.P. Sayler & Associates which operates their Wind Turbine Warehouse, Danish Used Windturbines Ltd, and Wind Partners Bg.
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