The future of end-of-warranty inspections

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Richard Heap
May 8, 2015
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The future of end-of-warranty inspections

Take a swig of coffee and steady yourself. You may not want to hear the next four words of this article: end-of-warranty inspections.

This increasingly common four-word phrase is liable to cause headaches for many developers and investors with established operational wind portfolios. But why?

Primarily, because these end-of-warranty inspections — or EOWs as they are known by their friends — often mark the beginning of developers and investors having to take on proactive operations and maintenance of turbines in their schemes. This marks the start of increased financial exposure to turbine failures on projects.

But these EOWs are still highly necessary. These inspections help owners to detect failures of critical components in their turbines in order to establish warranty claims; and to ensure that their turbines provide effective operation for as long as possible. That is a good thing when managed effectively.

In fact, if handled appropriately from the outset, EOWs actually present an opportunity for portfolio owners and investors to hold manufacturers to account and create a far more compelling finance and insurance proposition. This can only ever be a good thing.

The trouble for owners and operators, however, has been finding an effective and impartial way to manage these inspections. These companies have been keen to find alternatives to the more traditional approaches that are simply too closely linked to either turbine manufacturers, developers or operations and maintenance (O&M) service providers.

The reason they are looking for alternatives is that, in each of the instances above, there’s a vested interest that all too often sits at odds with the long-term benefits of the owner and operator.

All of this makes a joint venture, which was set to be announced by energy consultant Dulas and WTG Partners this week, all the more interesting. This collaboration is set to provide independent third party UK inspections and due diligence support, to portfolios of all sizes, from January 2016.

For new investors that are beginning to deploy capital into the market, that’s a compelling proposition since it presents an alternative, impartial opinion to traditional type certifiers from two parties with a clear market track record.

However, perhaps more interesting are the long-term ramifications that such a service will have on the finance and investment markets. In an instant, it is set to provide far greater visibility and insight into a project portfolio and into the operational specifics of individual turbines. In turn, that enables more effective planning of scheduled servicing and maintenance, minimising project downtime and helping portfolio performance.

End-of-warranty inspections have, for too long, been viewed as a unwelcome cost that can throw up complex problems that create acute, short-term challenges. However, with increasing numbers of portfolios reaching the end of warranty periods and/or changing ownership as developers sell projects on, the outlook on such necessary inspections needs to change.

As the Dulas/WTG deal demonstrates, EOWs are an opportunity, not just a challenge – and the benefits of absolute impartiality are quickly becoming critical to managing long-term financial risk.

Take a swig of coffee and steady yourself. You may not want to hear the next four words of this article: end-of-warranty inspections.

This increasingly common four-word phrase is liable to cause headaches for many developers and investors with established operational wind portfolios. But why?

Primarily, because these end-of-warranty inspections — or EOWs as they are known by their friends — often mark the beginning of developers and investors having to take on proactive operations and maintenance of turbines in their schemes. This marks the start of increased financial exposure to turbine failures on projects.

But these EOWs are still highly necessary. These inspections help owners to detect failures of critical components in their turbines in order to establish warranty claims; and to ensure that their turbines provide effective operation for as long as possible. That is a good thing when managed effectively.

In fact, if handled appropriately from the outset, EOWs actually present an opportunity for portfolio owners and investors to hold manufacturers to account and create a far more compelling finance and insurance proposition. This can only ever be a good thing.

The trouble for owners and operators, however, has been finding an effective and impartial way to manage these inspections. These companies have been keen to find alternatives to the more traditional approaches that are simply too closely linked to either turbine manufacturers, developers or operations and maintenance (O&M) service providers.

The reason they are looking for alternatives is that, in each of the instances above, there’s a vested interest that all too often sits at odds with the long-term benefits of the owner and operator.

All of this makes a joint venture, which was set to be announced by energy consultant Dulas and WTG Partners this week, all the more interesting. This collaboration is set to provide independent third party UK inspections and due diligence support, to portfolios of all sizes, from January 2016.

For new investors that are beginning to deploy capital into the market, that’s a compelling proposition since it presents an alternative, impartial opinion to traditional type certifiers from two parties with a clear market track record.

However, perhaps more interesting are the long-term ramifications that such a service will have on the finance and investment markets. In an instant, it is set to provide far greater visibility and insight into a project portfolio and into the operational specifics of individual turbines. In turn, that enables more effective planning of scheduled servicing and maintenance, minimising project downtime and helping portfolio performance.

End-of-warranty inspections have, for too long, been viewed as a unwelcome cost that can throw up complex problems that create acute, short-term challenges. However, with increasing numbers of portfolios reaching the end of warranty periods and/or changing ownership as developers sell projects on, the outlook on such necessary inspections needs to change.

As the Dulas/WTG deal demonstrates, EOWs are an opportunity, not just a challenge – and the benefits of absolute impartiality are quickly becoming critical to managing long-term financial risk.

Take a swig of coffee and steady yourself. You may not want to hear the next four words of this article: end-of-warranty inspections.

This increasingly common four-word phrase is liable to cause headaches for many developers and investors with established operational wind portfolios. But why?

Primarily, because these end-of-warranty inspections — or EOWs as they are known by their friends — often mark the beginning of developers and investors having to take on proactive operations and maintenance of turbines in their schemes. This marks the start of increased financial exposure to turbine failures on projects.

But these EOWs are still highly necessary. These inspections help owners to detect failures of critical components in their turbines in order to establish warranty claims; and to ensure that their turbines provide effective operation for as long as possible. That is a good thing when managed effectively.

In fact, if handled appropriately from the outset, EOWs actually present an opportunity for portfolio owners and investors to hold manufacturers to account and create a far more compelling finance and insurance proposition. This can only ever be a good thing.

The trouble for owners and operators, however, has been finding an effective and impartial way to manage these inspections. These companies have been keen to find alternatives to the more traditional approaches that are simply too closely linked to either turbine manufacturers, developers or operations and maintenance (O&M) service providers.

The reason they are looking for alternatives is that, in each of the instances above, there’s a vested interest that all too often sits at odds with the long-term benefits of the owner and operator.

All of this makes a joint venture, which was set to be announced by energy consultant Dulas and WTG Partners this week, all the more interesting. This collaboration is set to provide independent third party UK inspections and due diligence support, to portfolios of all sizes, from January 2016.

For new investors that are beginning to deploy capital into the market, that’s a compelling proposition since it presents an alternative, impartial opinion to traditional type certifiers from two parties with a clear market track record.

However, perhaps more interesting are the long-term ramifications that such a service will have on the finance and investment markets. In an instant, it is set to provide far greater visibility and insight into a project portfolio and into the operational specifics of individual turbines. In turn, that enables more effective planning of scheduled servicing and maintenance, minimising project downtime and helping portfolio performance.

End-of-warranty inspections have, for too long, been viewed as a unwelcome cost that can throw up complex problems that create acute, short-term challenges. However, with increasing numbers of portfolios reaching the end of warranty periods and/or changing ownership as developers sell projects on, the outlook on such necessary inspections needs to change.

As the Dulas/WTG deal demonstrates, EOWs are an opportunity, not just a challenge – and the benefits of absolute impartiality are quickly becoming critical to managing long-term financial risk.

Take a swig of coffee and steady yourself. You may not want to hear the next four words of this article: end-of-warranty inspections.

This increasingly common four-word phrase is liable to cause headaches for many developers and investors with established operational wind portfolios. But why?

Primarily, because these end-of-warranty inspections — or EOWs as they are known by their friends — often mark the beginning of developers and investors having to take on proactive operations and maintenance of turbines in their schemes. This marks the start of increased financial exposure to turbine failures on projects.

But these EOWs are still highly necessary. These inspections help owners to detect failures of critical components in their turbines in order to establish warranty claims; and to ensure that their turbines provide effective operation for as long as possible. That is a good thing when managed effectively.

In fact, if handled appropriately from the outset, EOWs actually present an opportunity for portfolio owners and investors to hold manufacturers to account and create a far more compelling finance and insurance proposition. This can only ever be a good thing.

The trouble for owners and operators, however, has been finding an effective and impartial way to manage these inspections. These companies have been keen to find alternatives to the more traditional approaches that are simply too closely linked to either turbine manufacturers, developers or operations and maintenance (O&M) service providers.

The reason they are looking for alternatives is that, in each of the instances above, there’s a vested interest that all too often sits at odds with the long-term benefits of the owner and operator.

All of this makes a joint venture, which was set to be announced by energy consultant Dulas and WTG Partners this week, all the more interesting. This collaboration is set to provide independent third party UK inspections and due diligence support, to portfolios of all sizes, from January 2016.

For new investors that are beginning to deploy capital into the market, that’s a compelling proposition since it presents an alternative, impartial opinion to traditional type certifiers from two parties with a clear market track record.

However, perhaps more interesting are the long-term ramifications that such a service will have on the finance and investment markets. In an instant, it is set to provide far greater visibility and insight into a project portfolio and into the operational specifics of individual turbines. In turn, that enables more effective planning of scheduled servicing and maintenance, minimising project downtime and helping portfolio performance.

End-of-warranty inspections have, for too long, been viewed as a unwelcome cost that can throw up complex problems that create acute, short-term challenges. However, with increasing numbers of portfolios reaching the end of warranty periods and/or changing ownership as developers sell projects on, the outlook on such necessary inspections needs to change.

As the Dulas/WTG deal demonstrates, EOWs are an opportunity, not just a challenge – and the benefits of absolute impartiality are quickly becoming critical to managing long-term financial risk.

Take a swig of coffee and steady yourself. You may not want to hear the next four words of this article: end-of-warranty inspections.

This increasingly common four-word phrase is liable to cause headaches for many developers and investors with established operational wind portfolios. But why?

Primarily, because these end-of-warranty inspections — or EOWs as they are known by their friends — often mark the beginning of developers and investors having to take on proactive operations and maintenance of turbines in their schemes. This marks the start of increased financial exposure to turbine failures on projects.

But these EOWs are still highly necessary. These inspections help owners to detect failures of critical components in their turbines in order to establish warranty claims; and to ensure that their turbines provide effective operation for as long as possible. That is a good thing when managed effectively.

In fact, if handled appropriately from the outset, EOWs actually present an opportunity for portfolio owners and investors to hold manufacturers to account and create a far more compelling finance and insurance proposition. This can only ever be a good thing.

The trouble for owners and operators, however, has been finding an effective and impartial way to manage these inspections. These companies have been keen to find alternatives to the more traditional approaches that are simply too closely linked to either turbine manufacturers, developers or operations and maintenance (O&M) service providers.

The reason they are looking for alternatives is that, in each of the instances above, there’s a vested interest that all too often sits at odds with the long-term benefits of the owner and operator.

All of this makes a joint venture, which was set to be announced by energy consultant Dulas and WTG Partners this week, all the more interesting. This collaboration is set to provide independent third party UK inspections and due diligence support, to portfolios of all sizes, from January 2016.

For new investors that are beginning to deploy capital into the market, that’s a compelling proposition since it presents an alternative, impartial opinion to traditional type certifiers from two parties with a clear market track record.

However, perhaps more interesting are the long-term ramifications that such a service will have on the finance and investment markets. In an instant, it is set to provide far greater visibility and insight into a project portfolio and into the operational specifics of individual turbines. In turn, that enables more effective planning of scheduled servicing and maintenance, minimising project downtime and helping portfolio performance.

End-of-warranty inspections have, for too long, been viewed as a unwelcome cost that can throw up complex problems that create acute, short-term challenges. However, with increasing numbers of portfolios reaching the end of warranty periods and/or changing ownership as developers sell projects on, the outlook on such necessary inspections needs to change.

As the Dulas/WTG deal demonstrates, EOWs are an opportunity, not just a challenge – and the benefits of absolute impartiality are quickly becoming critical to managing long-term financial risk.

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Not a member yet?

Become a member of the 6,500-strong A Word About Wind community today, and gain access to our premium content, exclusive lead generation and investment opportunities.