http://nozebra.ipapercms.dk/Vestas/Communication/TheGrid/September2011/TheGridSeptember2011UK/RSS.ashxVestas PagesFri, 30 Sep 2011 11:06:24 +0200http://nozebra.ipapercms.dk/Vestas/Communication/TheGrid/September2011/TheGridSeptember2011UK/http://nozebra.ipapercms.dk/Vestas/Communication/TheGrid/September2011/TheGridSeptember2011UK/?Page=1http://nozebra.ipapercms.dk/Vestas/Communication/TheGrid/September2011/TheGridSeptember2011UK/?Page=16 | Ditlev Engel: Ambitious targets set the direction 16 | Direct drive or gearbox? A guide to competing technologies 34 | New Zealand: Keeping up with a volatile energy market The Grid Connecting you to Vestas September | 2011 External experts: Six challenges for Vestas |82011-09-30T11:06:24+02:00http://nozebra.ipapercms.dk/Vestas/Communication/TheGrid/September2011/TheGridSeptember2011UK/?Page=2http://nozebra.ipapercms.dk/Vestas/Communication/TheGrid/September2011/TheGridSeptember2011UK/?Page=2Content teChnology: The reliable choice The Grid Connecting you to Vestas September 2011 While some competitors are developing direct drive turbines, Vestas has chosen to stick with its well-proven gearbox solution for both the V112 and the V164. We look at the pros and cons of these competing technologies. | 16 theme "This is where Vestas must improve" From business analysts to an HR expert, we have asked the people who follow Vestas from the outside to point to some of Vestas' and the industry's main challenges. We give some of Vestas’ leaders the chance to explain howVestas addresses them. | 8 10 11 12 13 14 15 | | | | | | Cut cost and stock Refine technology Get a clear message across about wind power Get quality right Manage your talent Increase political pressure A green trip on the blue Danube Transporting blades along waterways across Europe saves energy and minimises the transport challenges of navigating traffic. We joined the crew on a trip through Austria. | 18 “We will only be number one by being extremely ambitious” Ditlev Engel sees several reasons to be optimistic about Vestas’ prospects - but underlines the need for every department to deliver as promised if Vestas is to reach the targets for 2011. | 6 2 The Grid September 20112011-09-30T11:06:24+02:00http://nozebra.ipapercms.dk/Vestas/Communication/TheGrid/September2011/TheGridSeptember2011UK/?Page=3http://nozebra.ipapercms.dk/Vestas/Communication/TheGrid/September2011/TheGridSeptember2011UK/?Page=3A world of challenges Being a leader in a green growth industry – and a listed company at that – means intense attention is always aimed at Vestas. So what do outsiders see when looking at Vestas? Where do we need to improve to maintain a leading position when up against huge conglomerates and household names? In this issue of The Grid, we have asked some outside experts to point to some of those challenges. Turn to page eight to find out what they said – and how Vestas’ own experts, in politics, technology, branding and more , are approaching those very issues. We have also talked to Ditlev Engel, who presented an encouraging first half result in August after months of criticism. Find out why he believes Vestas is in a stronger position today than when the stock price was at its highest. We hope you enjoy this issue - remember we always welcome your feedback and ideas for stories at thegrid@vestas.com. The editorial team thegrid@vestas.com 4 26 27 28 32 34 | | | | | | The World Vestas by numbers Outside voice Minimum risk - maximum output My workplace Tararua's surprises The Grid is an international magazine for Vestas’ employees and is published in Chinese, Spanish, Italian, German, Danish and English. This edition closed September 5, 2011. Publisher: Vestas Wind Systems A/S, Alsvej 21, 8940 Randers SV, Denmark. Tel: +45 9730 0000, www.vestas.com. Print run: 18,000. Editorial team: Peter Wenzel Kruse (editorinchief), Peter Gisselmann Rasmussen (editor), Kenneth Ley Milling, Jens Velling, Jasmine Cargill. Email: thegrid@vestas.com. Design: Jannie Virklund. Text editing and translation: Courtney LaManna, Yalei Zhang, Emilia Sedran, Velia Senatore and Julia Fuamba. Print: Datagraf. September 2011 The Grid 32011-09-30T11:06:24+02:00http://nozebra.ipapercms.dk/Vestas/Communication/TheGrid/September2011/TheGridSeptember2011UK/?Page=4http://nozebra.ipapercms.dk/Vestas/Communication/TheGrid/September2011/TheGridSeptember2011UK/?Page=4view 1 2 3 4 The world 5 1 | Denmark 2 | Denmark The hotdog approach to Lean When employees at the Vestas Towers supply centre in Denmark were to present their Lean progress to management, they chose an appetizing way to show their new work principles. At a surprise event, management was asked to work according to the Lean principles in producing – a hotdog. “We had made a standard of how to make a hotdog according to a Danish hot dog stand. It was up to everyone to make his/her hotdog in accordance with the single piece flow principles – meaning finishing only one part of the hotdog at a time and only making one hotdog at a time,” says Henrik M. Løwe, Head of Supply Centre Europe, of the event that took the management by surprise. “I am really proud of the employees. The day gave a clear picture of what is going on, everybody understood the Lean principles and of course everybody got free lunch, which is always a good idea,” said Global Director, Charlotte Feldvoss. New headquarters to host Q3 results All eyes will be on Vestas’ new headquarters in Aarhus, Denmark, on 9 November this year. The quarterly results will be presented at the building, which is nearing completion. Along with the quarterly results, CEO Ditlev Engel will also explain what it will take for Vestas to reach the Triple15 targets. 4 The Grid September 20112011-09-30T11:06:24+02:00http://nozebra.ipapercms.dk/Vestas/Communication/TheGrid/September2011/TheGridSeptember2011UK/?Page=5http://nozebra.ipapercms.dk/Vestas/Communication/TheGrid/September2011/TheGridSeptember2011UK/?Page=55 | Vietnam 3 | Mediterranean 4 | China 1,000 safe days in Hohhot The Vestas Hohhot Factory in China reached 1,000 days of operation with no lost time injuries (LTIs) on 22 September. “I want to thank all employees at the Hohhot factory whole-heartedly for the effort and attention they’ve paid to conducting their job in a safe manner. Thank you for putting safety first and being role models to the organisation,” said Jakob Larsen, Senior Vice President, Sustainability. The longest period without LTIs anywhere in Vestas is six years – a record held by Vestas Technology R&D's test centre in Aarhus. Three other locations have reached the three year mark. A Vietnamese breakthrough No more DVDs for service technicians Field technicians in Vestas Mediterranean have been first to test a new system giving them constantly up-to-date service documentation delivered directly and securely to their computers, saving on costly DVDs. Service technicians who rely on valid documentation for safety and technical procedures will now receive updated information downloaded directly to their computers from the Service Documentation Distribution system. While minimising safety risks, the new solution also saves burning and distributing 5,000 DVDs every month. 6 MW is no large order, but the turbines recently installed at PhuQuy in Vietnam nonetheless mark an important step, as these are the first ever Vestas turbines sold in Vietnam. “Ultimately it was the credibility of Vestas as the world’s leading turbine supplier,” says Luke Eginton, Director, Service Sales in Vestas Asia Pacific, about the sale – which in spite of its modest size involved collaborations between many parts of Vestas due to a demanding deadline and the fact that Vestas was entering a new market. “For example, I relied on people in Sales Portfolio Management in Denmark, the SBU in Central Europe, Towers PBU in Mediterranean, Blades PBU in Denmark and China, Wind & Site analysis performed by an Indian colleague, project support from Korea and Australia, in addition to the more local support in Singapore and Japan. It was a great team effort.” With Vietnam added to the list, Vestas has now installed turbines in 67 countries. September 2011 The Grid 52011-09-30T11:06:24+02:00http://nozebra.ipapercms.dk/Vestas/Communication/TheGrid/September2011/TheGridSeptember2011UK/?Page=6http://nozebra.ipapercms.dk/Vestas/Communication/TheGrid/September2011/TheGridSeptember2011UK/?Page=6“Being ambitious will give you some push-back” After a slow start to the year and a falling stock price, Vestas delivered a good half-year result - at a time when several competitors were struggling to live up to their own expectations. In fact, although challenges remain, Vestas is in good shape, Ditlev Engel believes. By Jens Velling and Peter Gisselmann Rasmussen “ e made a downward adjustment of our full-year expectations back in the summer of 2010. We then changed our accounting policies at the end of the year - and finally we had a weak first quarter of 2011. Based on this, I do understand why we have received criticism recently,” says Ditlev Engel of the months leading up to the half-year results Vestas presented in August. Now it's time to look ahead. “We recognise that we have not been good enough at explaining to the rest of the world Vestas' business and the opportunities we see when looking ahead. We will address this gap when presenting how we connect the dots on 9 November.” “Right now, however, it’s very encouraging that after a difficult time, we finished the first half of this year with a small, but nonetheless very significant profit. It is notable that in a period when many of our competitors are showing less positive results. In fact, I think that Vestas is a much stronger company today than before the financial crisis hit in 2008. However, it is clear that we will make less of a profit this year than in say 2008.” W 6 The Grid September 20112011-09-30T11:06:24+02:00http://nozebra.ipapercms.dk/Vestas/Communication/TheGrid/September2011/TheGridSeptember2011UK/?Page=7http://nozebra.ipapercms.dk/Vestas/Communication/TheGrid/September2011/TheGridSeptember2011UK/?Page=7What do you base your optimism on? “A number of areas: We now have a Lost Production Factor of less than 2.5 per cent. Our turbines, in other words, have never performed better. At the same time, our service business is growing significantly. More than 97 per cent of our new orders include a service agreement – and the average length of these agreements is up from four to six years. Finally, we managed once again to improve considerably within safety. These are three areas that have great importance when customers choose their suppliers. So our performance here says a lot about our future opportunities.” But the share price is still low compared with the past? ambitious targets so far, I don’t think we would have achieved such good results within turbine reliability and safety. The alternative means that you want to be world champion, but don’t dare tell anyone about it. I think that we move much further by being ambitious and open rather than ‘not promising too much’. That approach will give you some push-back, but so be it.” Overcapacity is a theme throughout the industry. How does it affect Vestas? “As a principle, I never comment on our stock price, but yes, it seems paradoxical. However, one should remember that today there is great uncertainty regarding the global economy. A few years ago, Vestas’ share price was high, but customer satisfaction was low. Today, the stock price is lower, but customer satisfaction is higher than ever. Customer loyalty and our ability to focus on customer needs is the foundation for increasing our business every day.” Still, several analysts have questioned whether we will be able to reach our goals. Should we be setting less ambitious targets to limit the risk of not reaching them? “Looking at 2011, it is true that we will not use our entire production capacity. But we have changed several factories to diversify into new turbine types, while simultaneously globalising our organisation so we now produce and deliver 'in the region for the region'. That has meant that we have had some overlaps. But Vestas' activity level has increased considerably, and the second half of 2011 will be busy throughout the company.” You will present the plans for reaching Triple15 in November. What should I do as an employee until then? “That way of thinking is very foreign to me. We will only be number one by being extremely ambitious. Especially with the kind of competition we see today. Ambitious goals set a direction and express a clear, uncompromising attitude. Without “It's really quite simple: Each department has a budget – stick to it. We must deliver on what each of us has promised – at every level and every day – if we are to achieve our goals for 2011. Then we will look at the longer perspective in November – and I hope everyone will be watching. Whatever the future plans, everyone must commit to reaching the 2011 goals. In this respect, I am very impressed with the great efforts being made throughout Vestas. I see this both in our weekly State of Affairs in top management and out in the front line.” ▪ September 2011 The Grid 72011-09-30T11:06:24+02:00http://nozebra.ipapercms.dk/Vestas/Communication/TheGrid/September2011/TheGridSeptember2011UK/?Page=8http://nozebra.ipapercms.dk/Vestas/Communication/TheGrid/September2011/TheGridSeptember2011UK/?Page=8theme Addressing Vestas' challenges Competition is tough – both within wind and from other energy sources - but what exactly are the areas in which Vestas needs to perform better? We asked for some outside opinions. By Jens Velling and Peter Gisselmann Rasmussen 8 The Grid September 20112011-09-30T11:06:24+02:00http://nozebra.ipapercms.dk/Vestas/Communication/TheGrid/September2011/TheGridSeptember2011UK/?Page=9http://nozebra.ipapercms.dk/Vestas/Communication/TheGrid/September2011/TheGridSeptember2011UK/?Page=9September 2011 The Grid 92011-09-30T11:06:24+02:00http://nozebra.ipapercms.dk/Vestas/Communication/TheGrid/September2011/TheGridSeptember2011UK/?Page=10http://nozebra.ipapercms.dk/Vestas/Communication/TheGrid/September2011/TheGridSeptember2011UK/?Page=10theme vestas’ performance is scrutinised on a daily basis – by stock analysts, customers, press and many others outside the company. So what do they see? we asked eight external experts in various fields, from human resources and wind power technology to finance and business management, what they see as issues facing vestas and the rest of the wind power industry right now. over the following pages, see what they pointed to – and find out how vestas is responding. Cut cost and stock Tommy Rahbek Nielsen, Senior Vice President, Vestas Group Forecasting & Planning Who we asked • Robert Clover, Director, Global Head of Clean Technology Research, HSBC Global Research, USA • matthew yates, Research Analyst, Bank of America, UK • Peter Rothhausen, Senior Equity Analyst, Danske Markets, Denmark • mike Casey, founder and President of Tigercomm, Communications Counselor to cleantech CEOs and elected officials, USA • Alistair Craib, CEO, Collgar Wind Farm, Australia • Jean-Philippe Salomé, Vice President, Engineering, EDF Energies Nouvelles, Frankrig. • Steen hildebrandt, Professor, Organisation and Management, Aarhus School of Business, Denmark • Paul veers, Chief Engineer, NREL National Wind Energy Center, USA “ ast year, we decided to substantially reduce our inventory – from a total value of 5 billion EUR to half of that in 2011. Going forward, we are only producing for orders sold – and we will achieve this by the end of this year. At the same time, we will reduce the time between shipment from the production and commissioning of a turbine to 8 – 12 weeks. Previously, this was taking much longer, meaning expensive bridge financing was needed. With our ‘Make to Order’ initiative, Vestas’ Production Units will take part in reducing inventory themselves – and we are ahead of schedule. These initiatives will free up working capital for Vestas. They will also be an advantage to our customers because the time between when a turbine is ordered and begins producing electricity is reduced.” L Better forecasting must be a prerequisite for succeeding in reducing inventory? “Exactly – we need to be better at assessing the number of turbines to produce in the near future. All projects connected to forecasting are being evaluated, and we have already introduced much stricter rules for when to manufacture new turbines. These measures will also reduce inventory and improve cash flow. By doing so, we also accommodate a strong wish from our suppliers for more precise forecasting.” We still see massive fluctuations in production throughout a year – how are we addressing this? “It’s a challenge and many factors are involved, but we’re working on it. The American market illustrates why it can be difficult: The Tax Credit schemes for wind turbines expires at the end of 2012. This 10 The Grid September 20112011-09-30T11:06:24+02:00http://nozebra.ipapercms.dk/Vestas/Communication/TheGrid/September2011/TheGridSeptember2011UK/?Page=11http://nozebra.ipapercms.dk/Vestas/Communication/TheGrid/September2011/TheGridSeptember2011UK/?Page=11Refine technology Pratima Rangarajan, Senior Vice President, Vestas Global Research & Innovation “ The outside experts say: Vestas must bring down costs and reduce inventory to remain competitive. means all our American customers want their turbines delivered in the first half of 2012, whereas we probably will have only a modest production in the US for the rest of 2012. The solution is – in cooperation with our customers – to push the manufacturing of turbines, e.g. the Brazilian and Canadian market, to the last six months of 2012.” ind is a relaThe outside experts say: tively young With wind power becoming mainstream for industry and we are bullish that we can large utilities, it is crucial to improve reliability improve the technolin order to secure energy supply and lower ogy further. In keepthe cost of energy. ing with our belief, Vestas has built and Several competitors are launching announced state-of-the-art testing facilinew, very powerful offshore turbines. ties, demonstrating our long-term commitIs Vestas lagging behind? ment to improve reliability. The result is “Vestas always wants to deliver the best evident in the Lost Production Factor (the Business Case Certainty to our customers – share of the potential wind not harvested and we believe the new V164-7.0 MW is the by the turbines), which is at a historical low answer. It is full of ‘lessons learned’ and will of 2.5 per cent. Vestas measures and pubbe a thoroughly tested and very powerful lishes its LPF numbers as a commitment to machine when it goes into serial producfurther improvements. Yet this is only the tion in 2014. But the V164 is about a lot beginning. With our ongoing work in this more than power. With its record-breaking field, reliability will improve further.” rotor diameter of 164 metres, it will produce Some of our competitors have switched power at extremely low speeds, lowering to direct drive. Why is Vestas sticking the cost of energy for our customers. We are to traditional geared transmissions? confident that the V164 will be the industry “At this point in time, Vestas sees lower leader within offshore turbines.” risk and better Business Case Certainty for geared transmissions than for direct drive. Customers and analysts agree. However, this is our choice based on today’s proven technology capability. Vestas believes that there is significant scope for improvement in wind turbine transmissions yet to come. Vestas has announced its partnership with German gearbox supplier, ZF, to collaborate on improved geared transmission performance. We are also investing significant research and development dollars to develop our own next generation transmissions. ” W September 2011 The Grid 112011-09-30T11:06:24+02:00http://nozebra.ipapercms.dk/Vestas/Communication/TheGrid/September2011/TheGridSeptember2011UK/?Page=12http://nozebra.ipapercms.dk/Vestas/Communication/TheGrid/September2011/TheGridSeptember2011UK/?Page=12theme Get a clear message across about wind power Morten Albæk, Group Senior Vice President, Vestas Global Marketing & Customer Insight “ inancially, Vestas can not compete with the aggressive promotion of oil and gas that we are currently witnessing, e.g. in the United States. Our answer is initiatives like WindMade, which make it possible for consumers to actively select and advance products made with wind power. It’s by far a more effective initiative than traditional marketing, which we know has little or no impact. The idea behind WindMade is to get companies and NGOs outside the wind industry, as well as general consumers, to advocate for wind energy. By doing so we not only achieve a high degree of credibiity, we create a corps of wind ambassadors such as UN and PepsiCo with substantial political influence.” How does that distinguish Vestas from the competition? F “We know from our Global Consumer Wind Study that consumers favour wind over oil and gas. In this context, Vestas has a unique position: As The outside experts say: a pure player within the wind industry, Many people still think wind power is marwe can put action ginal, expensive and unreliable. The genbehind all the great eral public must understand that the shift words about being to clean energy is not just desirable, but a sustainable cominevitable and affordable. pany. Because they are anything but pure players, those half of this world’s big utilities and is not of our competitors that are industrial unknown to the rest. conglomerates can not do this in a credVestas is huge in terms of R&D, product ible way. offerings, worldwide presence, GovernMoreover, an initiative like WindMade ment Relations and so on. All these comis highly cost effective. So far, it has only petencies make Vestas the most credible cost Vestas the equivalent of buying 10 player within wind. We will use our unique full page ads in the Financial Times.” status as the small, agile giant to posiOur competitors are huge corporations, tion Vestas as the ‘go-to-company’ if you used to dealing with big utilities. want to know about and work with wind How does Vestas compete? power. When looking at wind alone, Ves“Compared to GE and Siemens, Vestas tas is a giant in an industry we pioneered is fundamentally different. That said, ourselves.” Vestas has commercial relations with 12 The Grid September 20112011-09-30T11:06:24+02:00http://nozebra.ipapercms.dk/Vestas/Communication/TheGrid/September2011/TheGridSeptember2011UK/?Page=13http://nozebra.ipapercms.dk/Vestas/Communication/TheGrid/September2011/TheGridSeptember2011UK/?Page=13Get quality right Søren Husted, President of Vestas Nacelles “ A is also a supplier of a bearing in that gearbox – and a supplier of the steel used for that bearing, all of which may be responsible for a component failing – so this is a huge task. For the V112-3.0 MW turbine, we have thoroughly evaluated suppliers of 1,200 single components so far, The outside experts say: which is a degree of control we have not had before.” Vestas needs to stay at the forefront in s consumers, we expect the light to come on as soon as we flick that switch. Our customers expect the same from us – and to compete, we need to provide that same reliability to our customers. That terms of product quality and reliability to remain competitive within the wind industry – and to be able to compete with other forms of energy. requires quality, and yes, we do need to improve. In fact, you could say that we need to do in very few years what it has taken the car industry 30 years to achieve.” So how are we doing that? So how far are we from where we need to be? How can Vestas consolidate this position? “We have a variety of tools to communicate these competencies. We offer Wind Summits for our key accounts and our top management engage in executive dialogues with customers. Last but not least, we are achieving encouraging results with our Key Account Management programme. With regards to the recent 2,000 MW frame agreement with EDF EN, the customer specifically mentioned Vestas’ Key Account approach as decisive for the historic agreement.” “We are making the necessary move away from fire fighting and fixing what isn’t working to a more systematic approach to improving quality. For example, we have introduced the Quality Before Delivery concept, which means an employee can raise a flag if he or she comes across a quality issue – or even suspicion of one. It is then quickly addressed by a special task force, and we catch potential problems early on.” At this year’s Suppliers Day, we said that only 30 per cent of quality issues can be traced back to Vestas’ own production. Shouldn’t we focus more on our suppliers? “We do need to look even closer at our suppliers, and we are moving further up the supply chain. Take a gearbox, for example. Apart from our supplier of the gearbox, there “I think the figures, most recently from the first half of this year, show progress, both in the production units and across Vestas. The fact that the Lost Production Factor is lower than ever is a strong indication of this. But we still have a long way to go. Everyone needs to be their own quality manager. If we accept passing things on that are not 100 per cent OK, most likely they will create more expensive problems somewhere else in the value chain.” September 2011 The Grid 132011-09-30T11:06:24+02:00http://nozebra.ipapercms.dk/Vestas/Communication/TheGrid/September2011/TheGridSeptember2011UK/?Page=14http://nozebra.ipapercms.dk/Vestas/Communication/TheGrid/September2011/TheGridSeptember2011UK/?Page=14theme Manage your talent Helle Bay, Senior Vice President Business Performance, People & Culture “ e have a challenge when it comes to retaining new hires beyond their first 12 months in the job. In 2011, we expect that 16 per cent of our new hires will have left Vestas within their first year. That’s not acceptable.” Why do we have this problem? W What about talent development? So what if I am not a leader? “Change is part of life at Vestas, and that’s not easy for many new hires. Vestas’ culture might not be what they were expecting in other ways, too. In recruiting, we must set the right expectations about the job and Vestas’ culture, and we must accurately assess candidates. They might have been a great success at another company, but will Vestas suit them, can they succeed in our environment? Induction is also important. Some BUs and managers have done a good job of introducing new employees to Vestas. But it is no secret that many employees have not had that experience.” So what are we doing about it? “We have launched a more cohesive talent management framework for leaders in all tracks this year, and we are beginning to see signs that it will be effective both for talented employees and for Vestas. For instance, BUs now talk with each other monthly about open positions and available talent to fill them. We also have revised the Leadership Role Model, and that is rolling out now. Among other things, it more clearly reflects the behaviours we have seen in high performers at Vestas.” “Talent management for other employees is handled locally in the BUs. The Performance and Development Dialogue (PDD) is a part of this, but we have a challenge. The Employee Survey indicates mediocre satisfaction with the process. In 2012, we will look at how we can improve the PDD for 2013. We know it can be more effective. Really, it should be a living process throughout the year. It should help employees truly understand, ‘How do I contribute to Vestas? How do I know when I succeed? How can I develop to do even better?’ And we need to make sure that it does.” The outside experts say: Vestas is good at attracting talented employees but seems less successful at retaining and developing that talent. In an industry with ever fiercer competition, that needs to be improved. “We will roll out new global induction processes later this year. A good introduction ensures that an employee truly understands the role they have been hired for, and what is expected of them. It ensures that they know their stakeholders because internal networks and stakeholder management are critical in many jobs. But you asked specifically about talent, and the retention picture for them is different. When you look at overall retention, not just the first 12 months, and you look at talent, you see a great retention rate among our high performers - at 97.6 per cent.” 14 The Grid September 20112011-09-30T11:06:24+02:00http://nozebra.ipapercms.dk/Vestas/Communication/TheGrid/September2011/TheGridSeptember2011UK/?Page=15http://nozebra.ipapercms.dk/Vestas/Communication/TheGrid/September2011/TheGridSeptember2011UK/?Page=15Increase political pressure The outside experts say: The global recession is a challenge for the renewables industry. In an economy under pressure, asking consumers to pay more for green electricity is difficult. This means a new political environment for wind power. Peter C. Brun, Senior Vice President, Group Government Relations “ R ecession or not, the megatrends remain the same. Societies across the globe are using more electricity, and the economic downturn will not change that long-term. But right now, obviously a number of economies are struggling and that influences the energy agenda, too. However, our role is the same: to provide the decision-makers with facts so they understand the technology, its advantages and potential, when they make decisions on the energy supply that will determine the conditions many years ahead. Often it is not the wisest decision to postpone important infrastructure investments that need to be made anyway.” How are we making the case for wind power in such a difficult political environment? and potential of wind power and are setting this into the broader societal context. It is not only about selling more turbines, but also being able to qualify why such investments are good for our communities and people.” Has the cost become more important? “This dialogue happens on a number of levels – from letters to ministers, meetings with government representatives, participation in advisory boards, hearings and so on. Legislation in numerous areas affects the wind power industry: from the development of a more flexible grid to transport restrictions, rules regarding noise levels and many more. Like any energy form, wind power is dependent on long-term planning. For better or worse, everyone has an opinion about wind power – and that can sometimes lead to decisions being made on a short-term basis. Whether through our political work or other initiatives, we are explaining the benefits “Cost, obviously, is a key issue not least in the present economic environment, but there is nothing new about the wind industry needing to lower the cost of energy. The recession has moved this discussion forward, so we do need to perform and improve fast. Everyone at Vestas is part of meeting this challenge. Basically, this is a question of making wind power cheaper and more reliable. Whether you are producing to a high standard of quality in the factories, developing new products or improving efficiency, everyone has a stake in this. But we need to execute this very fast because of the increased competition in our industry.” ▪ September 2011 The Grid 152011-09-30T11:06:24+02:00http://nozebra.ipapercms.dk/Vestas/Communication/TheGrid/September2011/TheGridSeptember2011UK/?Page=16http://nozebra.ipapercms.dk/Vestas/Communication/TheGrid/September2011/TheGridSeptember2011UK/?Page=16teChnology Gearbox versus direct drive Vestas has designed, developed and refined wind turbines with gearboxes for the past 30 years. Some of the company’s competitors have chosen a direct drive setup without gears instead. The Grid has asked Henrik Kudsk, Product Management Specialist in Technology R&D, to help take a closer look at the differences. By Kenneth Ley Milling Geared turbine Vestas has used this well-proven setup for 30 years. It consists of a main shaft connecting the rotor to a gearbox and a generator. Everything but the rotor is inside the nacelle. The generator uses electrical coil-magnets. Bearings: In a geared turbine, the bearings carry only the main shaft and hub. Gearbox: The gearbox increases the number of rotations from the rotor to the generator. Generator: Because of the gearbox, the generator is rather small and light-weight compared to a direct drive generator. Pros: It is a very easy turbine to service, built on highly reliable and proven parts that are easy to get. The cost is relatively low and there is no need for permanent magnets. + Cons: The energy efficiency is not as good as some direct drive turbines. The nacelle is relatively heavy. – Vestas stays with gears Vestas has chosen to stay with the gearboxes – including for the V112-3.0 MW and V164-7.0 MW turbines. ”Vestas always chooses the technology with the best business case for the customer,” says Finn S. Madsen, President for Vestas Technology R&D. “Wind turbines with gears have proven their worth unlike turbines with direct drive, which are yet relatively unproven. For now, we see the best business case is with gears. We have seen the Lost Production Factor decrease clearly with our turbines. The fact is that for the entire fleet of Vestas’ 2MW platform under our service, only 0.16 per cent of possible production is lost due to gearbox issues. And this figure will improve even more. This is why we have chosen a geared solution for V164.” Madsen also foresees problems with a development toward direct drive generators based on rare earth materials – called permanent magnet generators (PMG). “Direct drive with PMG heavily depends on rare earth materials. Price and access to this is unstable, hence creating an uncertain business case for our customers and Vestas.” 16 The Grid September 20112011-09-30T11:06:24+02:00http://nozebra.ipapercms.dk/Vestas/Communication/TheGrid/September2011/TheGridSeptember2011UK/?Page=17http://nozebra.ipapercms.dk/Vestas/Communication/TheGrid/September2011/TheGridSeptember2011UK/?Page=17Direct drive – Electrical excitation Enercon has used this setup for almost 20 years and has installed thousands of this type of turbine - a global installed market share of 11 per cent. It consists of a huge generator mounted directly on a short shaft. Like the geared generator, this turbine type uses electric magnets. The generator is partly inside the hub. Bearings: Basically support the weight of the entire drive train. On this type of turbine they have to be very solid in order to ensure the small distance between the rotor and stator, regardless of the stress and turbulence induced by the rotor. Magnets: The distance between the rotor and stator in the direct drive generator has to be held at the exact same distance at all times. If they touch, heat develops and the material expands – causing more friction and more heat. Generator: Enercon mounts their generators directly onto the shaft – hence the name ‘direct drive’. It uses electrical magnets like the ones used in a geared turbine. Pros: This turbine has a long history and is considered a proven concept. Efficiency compared to the geared turbine is 2-3 per cent higher. + Cons: The nacelle is very large and heavy. The turbine is not easily scalable. You can’t add a larger rotor without major changes or reducing the rating. The customer can only get spare parts from the supplier. – Direct drive – Permanent magnet Used primarily by Goldwind and Siemens, this is a new type of setup. However, these concepts are different; the only thing they have in common is the use of a large direct driven generator. The generator is integrated with the main bearings – and time will show if this is a good solution or not. Only a few are yet installed, so data and knowledge are limited. Though being a direct drive turbine, the similarities to the Enercon DD-turbine are fairly few. These turbines are more compact because they use permanent magnets. Magnets: This turbine got its name from the permanent magnets used in the generator. Permanent magnets are made from rare earth materials and do not require electricity to function. Generator: The permanent magnets make it possible to make the generator significantly smaller than the Enercon generator. The design is very compact. Pros: The nacelle is lighter than traditional turbines and permanent magnet generators are more efficient, especially during part load. + Bearings: The main bearings carry the rotor and hub like in the conventional geared turbine. Like Enercon’s platform, the bearings serve to secure the 5mm air gap between the magnets and the stator. Cons: It will take years before the actual products are proven and until then the risk for the customer is high. It can be difficult to repair due to a very compact design and the new technology. Permanent magnets are expensive and sometimes of dubious origin. ▪ – September 2011 The Grid 172011-09-30T11:06:24+02:00http://nozebra.ipapercms.dk/Vestas/Communication/TheGrid/September2011/TheGridSeptember2011UK/?Page=18http://nozebra.ipapercms.dk/Vestas/Communication/TheGrid/September2011/TheGridSeptember2011UK/?Page=1818 The Grid September 20112011-09-30T11:06:24+02:00http://nozebra.ipapercms.dk/Vestas/Communication/TheGrid/September2011/TheGridSeptember2011UK/?Page=19http://nozebra.ipapercms.dk/Vestas/Communication/TheGrid/September2011/TheGridSeptember2011UK/?Page=19Barging down the Danube Europe’s second longest river can make for more than a pleasure cruise. The Grid joined 15 blades from Southern Germany for the first leg of a ‘green’ voyage down the blue Danube. September 2011 The Grid 192011-09-30T11:06:24+02:00http://nozebra.ipapercms.dk/Vestas/Communication/TheGrid/September2011/TheGridSeptember2011UK/?Page=20http://nozebra.ipapercms.dk/Vestas/Communication/TheGrid/September2011/TheGridSeptember2011UK/?Page=20↑ Vienna Passau Ruse The Barge The Han Tervel is 115 metres long and travels at an average speed of 25 km/h. It has the capacity to carry over 1,500 tonnes of cargo. The blades onboard the Han Tervel were produced at the factory in Lauchhammer, Germany and then transported by truck to the harbour in Passau. Once off the barge in Bulgaria, they will be driven the last part of the journey to the site. → Positives Vestas uses barge transportation extensively, transporting blades, nacelles and towers across Europe on both the Danube and Rhine rivers. In most cases, barge use minimises travel distance, cost and manpower. “Barge transport is the cheapest, most efficient and ecological mode of transportation,” says Daniel Baron, Shipping Coordinator at Vestas Central Europe. 20 The Grid September 20112011-09-30T11:06:24+02:00http://nozebra.ipapercms.dk/Vestas/Communication/TheGrid/September2011/TheGridSeptember2011UK/?Page=21http://nozebra.ipapercms.dk/Vestas/Communication/TheGrid/September2011/TheGridSeptember2011UK/?Page=21he sun was streaking down on us as we passed through Passau, near the Czech-Austrian border. While on the deck of the barge, we could see the rugged cliffs above. Pocked with old houses and the ruins of an old fortress, they soared above the city. Below, tourists snaked through the romantic lanes and promenades, while Bavarian summer houses lined the banks of the Danube, where people swam, fished and sailed. We had just begun our journey from Passau, near the entrance of the Danube River in Germany, heading down river to Ruse in Bulgaria. We would be on board the Han Tervel barge, a long flatbottomed cargo ship, for the first leg of its journey. Ahead lies a journey of 1,300 kilometres with 44 metre blades headed for the 24 MW Vutcani wind power plant in Romania. ▪ T By Frud Bezhan Photos Carsten Ingemann Barges use less fuel and can carry a lot more cargo, which means they are a lot more environmentally friendly than other types of transportation.” Stiliyan, captain September 2011 The Grid 212011-09-30T11:06:24+02:00http://nozebra.ipapercms.dk/Vestas/Communication/TheGrid/September2011/TheGridSeptember2011UK/?Page=22http://nozebra.ipapercms.dk/Vestas/Communication/TheGrid/September2011/TheGridSeptember2011UK/?Page=22↓ River locks An hour after leaving Passau, we arrive at a river lock, the first of 14 on our journey. We enter through a large iron gate, which closes behind us. As the barge is locked between the two gates, a valve is released and we slowly begin to descend until we reach the same water level as on the other side of the river lock. “Rivers have different depths and slopes,” says Ivan, the Logistics Engineer onboard. “Locks are used to control water level so ships can easily navigate through the river.” ↓ The Crew The barge has 10 crew members, all from Bulgaria. Working 6 hours at a time in a 24 hour cycle, they remain proudly self-sufficient. “We do everything ourselves,” says Vasil, the second mate. “There is no cook on board so we take it in turns to clean and prepare meals. Tonight I’m making beef soup with salad and pork chops,” he says, standing over the stove. → Travelling by night After dinner, we move outside on the open deck. Thousands of stars scatter the dark sky overhead. Small boats nest on the banks of the river, while small cottages dot the hills. “The radar is your eyes during the night,” says Vasil. Through the constant traffic on the radio waves, we suddenly get a call. “There’s a ship coming our way,” says Vasil, who communicates our coordinates, speed and direction to the ship. After a kilometer, we safely pass the incoming ship, a large German barge heading for Passau. 22 The Grid September 20112011-09-30T11:06:24+02:00http://nozebra.ipapercms.dk/Vestas/Communication/TheGrid/September2011/TheGridSeptember2011UK/?Page=23http://nozebra.ipapercms.dk/Vestas/Communication/TheGrid/September2011/TheGridSeptember2011UK/?Page=23September 2011 The Grid 232011-09-30T11:06:24+02:00http://nozebra.ipapercms.dk/Vestas/Communication/TheGrid/September2011/TheGridSeptember2011UK/?Page=24http://nozebra.ipapercms.dk/Vestas/Communication/TheGrid/September2011/TheGridSeptember2011UK/?Page=2424 The Grid September 20112011-09-30T11:06:24+02:00http://nozebra.ipapercms.dk/Vestas/Communication/TheGrid/September2011/TheGridSeptember2011UK/?Page=25http://nozebra.ipapercms.dk/Vestas/Communication/TheGrid/September2011/TheGridSeptember2011UK/?Page=25← Towns of the Danube During the night, we sleep to the humming of the engines. After breakfast the next morning, we pass the city of Dürnstein, Austria, just one of the hundreds of small towns on the banks of the Danube River. The city lies on the ruins of an old fortress, with a white church towering over the houses and streets. The green hills in the background are lined with grape trees. ↑ A road for many Accompanying the barge on the river are cruise ships, ferries and private boats. Trucks and cars, meanwhile, fill the roads flanking the river’s sides. Decreasing congestions on roads and reducing noise and air pollution are among the advantages of barge transportation. “The barge is the most efficient way of getting around this part of Europe,” says Stiliyan, the captain. “For example, we use 30,000 litres of fuel going downstream. On land, you would have to use more than double that amount to transport the same cargo.” → Farewell “We’re in Vienna,” shouts one of the crew members. It's time for us to get off. We arrive at the docks, reluctantly saying our farewells to the crew. After stepping onshore, we climb a bridge, looking as the barge sails into the afternoon sun, heading another 1000 km into Eastern Europe. September 2011 The Grid 252011-09-30T11:06:24+02:00http://nozebra.ipapercms.dk/Vestas/Communication/TheGrid/September2011/TheGridSeptember2011UK/?Page=26http://nozebra.ipapercms.dk/Vestas/Communication/TheGrid/September2011/TheGridSeptember2011UK/?Page=2690 Percentage of consumers worldwide that are in favour of more wind energy, according to Global Wind Study 2011. 3.2 97 Vestas by numbers 32 Number of industrial injuries per one million working hours in Vestas during the first half of 2011. By comparison, the same figures stood at 25.3 in 2006. Percentage of Vestas’ energy consumption in first half of 2011 that came from renewable sources - below the full-year target of 40 per cent. Percentage of Vestas’ announced order intake this year that has included a service contract. Vestas’ service business is expected to generate revenue of 700 million euro this year, up from 396 million in 2008. 2,895 MW Total capacity of firm and unconditional orders received during the first six months of the year. The full-year target is 7,0008,000 MW. 26 The Grid September 20112011-09-30T11:06:24+02:00http://nozebra.ipapercms.dk/Vestas/Communication/TheGrid/September2011/TheGridSeptember2011UK/?Page=27http://nozebra.ipapercms.dk/Vestas/Communication/TheGrid/September2011/TheGridSeptember2011UK/?Page=27Time to give oil and gas some push-back By Mike Casey Mike Casey is founder and president of Tigercomm. Through the past 27 years he has been advising cleantech company executives, pro-sustainability nonprofit leaders and elected officials on building and running their communications programs. Casey has also served on two presidential campaigns and as spokesman for a U.S. Senator, a Congressman, and two national environmental groups. or a new technology to maintain viability, it must bridge the chasm between attracting early adopters and convincing general consumers of its worth. The wind industry now finds itself in this chasm. Competitors from the fossil fuel industry are aggressively working to stop this leap and prevent wind energy from reaching the mass market. In working for clean technology companies and pro-clean energy non-profits, my firm repeatedly sees evidence that coal, oil and gas companies use government and public relations as business competition tools against the wind industry. This must not be ignored. Markets, good technology, and smart business execution alone won’t be enough to successfully scale wind technologies. But by understanding the effort directed at the wind industry, wind companies can take steps to keep the adoption curve chasm crossable. As context, five years ago, a price on carbon and an international warming treaty were “inevitable”. Coal, oil and gas industries stopped these joint policy threats to their business by vastly expanding their already robust PR and lobbying capacities. They spent hundreds of millions of dollars in lobbying and advertising campaigns to defeat clean energy legislation between 2009 and 2010. F They have now re-purposed some of that capacity to damaging the commercial and policy credibility of wind energy by portraying it as expensive, unreliable and “not ready” to meet nations’ electricity needs. This message is being moved with a range of mutually reinforcing tactics such as professionally produced online television channels, paid spokespeople presented as unbiased sources, and faux membership groups. All are designed to form a message-disciplined, pro-fossil fuel echo chamber that perpetuates manufactured arguments against wind energy and “greenwashes” their own industry. The fossil energy industry sees this as a business investment, an approach built on the understanding that when you don’t have the facts, you need volume. In the new media age, communications volume matters almost as much as facts. This messaging challenge from competing energy sectors cannot be ignored. Decades of social science have shown that unchallenged messaging from one side typically gets through. Fortunately, wind energy is in a great position to push back. Though wind energy can’t match fossil fuel spending on PR and lobbying, they don’t have to. Unlike fossil fuels, wind energy has an asset that fossil fuels must do without: high public support. First, the industry must start using shared language like “affordable” and “ready” to describe the technology. Second, it needs to build an expanded echo chamber of supporters to push back on attacks. It can also use this echo chamber to proactively show wind energy success to the mass public. These tactics make the adoption chasm crossable and move the industry closer to long-term viability. ▪ Outside voice AN OUTSIDE VOICE In order to challenge our self-perception and perhaps ignite new, interesting thoughts, an “outsider” is invited to share their view on the energy sector, wind power, or Vestas in each issue of The Grid. Be provoked – it’s the whole idea! September 2011 The Grid 272011-09-30T11:06:24+02:00http://nozebra.ipapercms.dk/Vestas/Communication/TheGrid/September2011/TheGridSeptember2011UK/?Page=28http://nozebra.ipapercms.dk/Vestas/Communication/TheGrid/September2011/TheGridSeptember2011UK/?Page=28BACkgRound Minimum risk - maximum o To live up to customer requirements, turbine manufacturers need to look beyond supplying turbines and instead deliver solutions that ensure maximum output for the customer. Vestas is already adapting to the new reality. 28 The Grid September 20112011-09-30T11:06:24+02:00http://nozebra.ipapercms.dk/Vestas/Communication/TheGrid/September2011/TheGridSeptember2011UK/?Page=29http://nozebra.ipapercms.dk/Vestas/Communication/TheGrid/September2011/TheGridSeptember2011UK/?Page=29Vestas’ service revenue, million euro 623 700 504 396 298 214 2006 2007 2008 2009 2010 2011 (expected) I By Peter Gisselmann Rasmussen output t’s no longer about servicing the turbine – it is about servicing the customer. In short, that is the new reality that turbine manufacturers face, as more customers are demanding individual solutions that provide maximum output and minimum risk: a situation posing new challenges and potential for new markets and services. “Our customers look beyond installing and operating turbines; they look into solutions that will make the investment profitable. Predictability and control are key,” explains Jesper J. Michaelsen, Director of Customer and Product Solutions, Technology R&D. The change from customers buying a turbine to investing in a power plant that delivers a predictable return on investment may have been a long time coming. But never before has that shift been more apparent than today. Not least when it comes to the operation and maintenance of power plants, where industry analysts point to vast potential. “Tough competition in the new turbine business is increasing the pressure on prices and, as a result, on returns. Service will become a profit machine of the wind industry,” German consultancy Oliver Wyman stated in a study released earlier this year. Growing service business The equation is simple: more installed turbines means more potential service business. According to the study, the global market for operating and maintaining wind power plants will grow by more than 500 per cent between 2010 and 2020. In Vestas’ financial figures, too, this shift is starting to show. In 2011, revenue from the service business is expected to amount to 700 million euro– up from 214 million euro in 2006. Of all the orders Vestas announced during the first six months of the year, 97 per cent have included a service contract. And while the average service contract was four years long in 2008, today the average is over six years. “This brings stability to the service business, as it provides year on year business for Vestas, and it shows that customers are willing to enter into long-term partnerships with suppliers that are able to optimise the output from their plants,” says Vice President John Nielsen, Service Excellence. From site to power plant In early October, Vestas launches a range of new services designed to squeeze September 2011 The Grid 292011-09-30T11:06:24+02:00http://nozebra.ipapercms.dk/Vestas/Communication/TheGrid/September2011/TheGridSeptember2011UK/?Page=30http://nozebra.ipapercms.dk/Vestas/Communication/TheGrid/September2011/TheGridSeptember2011UK/?Page=30BACkgRound more power from the turbines. This includes four products, collectively named Power Plant Solutions. “In short, what we offer with Power Plant Solutions adds up to a better performing wind power plant,” says Jesper Michaelsen, Technology R&D. “We are able to do that at a number of stages: whether it is finding the most attractive site, the right turbine fit and locations for the conditions on that site or ensuring a stable, grid compliant plant operation – all elements that add up to extra output.” Closer partnerships Alistair Craib, CEO of Australian Vestas customer Collgar Wind Farm, sees the potential of the “one-stop-shop” approach. “Collgar is funded by institutional investors, and as such, we don’t seek to employ a large operational team ourselves. We therefore value working with a supplier that can deliver services from the first step of establishing a wind power plant. We would always get a second opinion and it would largely come down to cost and quality – but working with one partner means avoiding finger-pointing between suppliers and minimises interfaces for us, allowing us to focus on what we do best – the financial side of the project,” says Craib. Meeting the customer at every stage From before a site has been chosen to the end of a wind turbine’s life, Vestas is able to cover the whole life cycle of a wind power plant – from wind project planning to procurement, construction and finally operations and optimisation. Learn about some of the newest offerings here. SiteHunt® Vestas combines input from more than 35,000 meteorological stations with Vestas’ global wind data library. Using advanced calculations, this gives customers a precise prediction of wind resources available at any given site. The analysis also shows how the wind flow, as well as site specific conditions,will affect thewind power plant. This helps customers decide which site will provide the best business case. SiteDesign® Once the site has been chosen, Vestas can assist the customer in finding the most appropriate turbine for the site and the most suitable position for each individual turbine in the wind power plant. The result identifies the optimum plant layout, balancing maximum output with long-term maintenance cost. Electrical Pre-Design By combining Vestas’ experience of grid connections and turbine technology, along with cutting-edge capabilities in turbine generator modeling, the Electrical PreDesign provides an accurate simulation of the wind power plant. Vestas continuously monitors developments in grid codes worldwide and keeps a worldwide grid code library to ensure that the power plant is set up so that the electricity produced meets the often strict local requirements. The Electrical PreDesign study provides a complete balance of electrical plant and component specifications and an early evaluation of the grid compliance. 30 The Grid September 20112011-09-30T11:06:24+02:00http://nozebra.ipapercms.dk/Vestas/Communication/TheGrid/September2011/TheGridSeptember2011UK/?Page=31http://nozebra.ipapercms.dk/Vestas/Communication/TheGrid/September2011/TheGridSeptember2011UK/?Page=31“To us, this is about managing risk and building relationships. A supplier who is able to minimise the risk and provide an accurate and detailed forecast will allow more projects to get off the ground.” Jesper J. Michaelsen believes Vestas needs to make the most of a key advantage in this field. “We are the most experienced player in wind. For instance, the amount of data about climatic conditions and turbine per- formance that we are able to gather and analyse every day is unmatched. We need to use that to build long-term relationships with our customers.” ▪ Power Plant Controller Designed specifically for wind power plants, the controller allows real-time control of the wind power plant, resulting in optimised plant performance and reliability. The power plant controller is scalable and configurable, allowing plant owners to implement any control concept needed to meet local grid requirements. Vestas Performance Manager Vestas Performance Manager provides customers with easy access to an overview of how the customer’s fleet of Vestas turbines is performing. Through an online interface or an iPhone application, the customer can access real-time data from the SCADA system and an overview of planned service. Turbines installed More than 44,000 sold since the very first one more than 30 years ago. Data from already installed turbines provides Vestas with amounts of data unmatched in the industry. AOM Vestas’ service programmes (Active Output Management®) range from AOM1000 to AOM5000. The range extends from enabling customers to do service to Vestas taking on the full responsibility and risk for the operation of the wind power plant. AOM 5000 introduces an energy-based guarantee, which ensures the turbines are fully operational when the wind is blowing. This provides customers with a higher certainty of energy production, and with that, increased business case certainty and a more secure return on investment. September 2011 The Grid 312011-09-30T11:06:24+02:00http://nozebra.ipapercms.dk/Vestas/Communication/TheGrid/September2011/TheGridSeptember2011UK/?Page=32http://nozebra.ipapercms.dk/Vestas/Communication/TheGrid/September2011/TheGridSeptember2011UK/?Page=32Award: Best IT Support “Oh yes, that is my award. I was made Best IT Support Engineer in June . It is always nice to get something from your colleagues and your workplace. Makes you feel good.” 2 x 22 inch screens “Sometimes I have several tickets and remote desktop icons open at the same time. In order to be able to see them all at the same time, I need those two screens.” My workplace Process charts “These memos contain new updates for ticket handling and escalations. They are really my best reference to ensure that all support requests and critical incidents are prioritised in a timely manner.” Wind turbines “The one that really sticks out is the wooden one, right?! It is actually a souvenir from the Bangui Bay Wind Farm in the northern part of the Philippines. They sell them to the tourists up there.” Coloured pot plants “They’re actually photo holders – currently holding some of the pictures from our last Christmas party. But I really love these. I like to think they reflect my personality: lively, cheerful, happy. I just love the colours.” Phone and headset “With my PCs, these are of course my most important tools. Without them my job would be quite impossible, I guess. Quality of the headset needs to be fairly good, as local English dialects vary a lot around the world. A good headset helps me hear more clearly through those dialects.” 32 The Grid September 20112011-09-30T11:06:24+02:00http://nozebra.ipapercms.dk/Vestas/Communication/TheGrid/September2011/TheGridSeptember2011UK/?Page=33http://nozebra.ipapercms.dk/Vestas/Communication/TheGrid/September2011/TheGridSeptember2011UK/?Page=33Wall Screens “We call them wall boards. The one to the far right is server issues. Red of course means ‘needs attention now’. The screen in the middle is our statistics, showing how many pending tickets there are and so on. On the left one you can see how many supporters are in the office and how many clients are waiting in line and for how long, etc.” Mildred Megias (Meg) Support Engineer, EUR Global IT Service Centre Manila, Philippines By Kenneth Ley Milling Photos Albert Tagle N ot many people in Vestas get as many phone calls in a normal workday as she does. Mildred Megias – or just ‘Meg’ – is one of Vestas’ 19 IT support engineers based in the Global IT Service Centre in Manila. On a normal workday she files between 80-120 tickets sourced from calls and emails every day, each containing a question about everything from account management to phones, basic network connection or software malfunction. The support office in Manila runs a 24/7 schedule working in shifts of eight hours. During a normal shift Meg and her colleagues get to talk to Vestas employees from all around the globe. “This is really one of the best things about this job. I love talking to different kinds of people and getting small insights to their cultures and everyday lives,” Meg explains and laughs, “I always know what the weather is like everywhere.” Meg has been with Vestas since April 2010, during which time she’s been covering shifts both night and day. She is currently with the EUR team covering calls from Europe. Two other teams - ASP and AME - cover Asia and North and South America. ▪ Yoshi and Stitch “Yoshi is a dear memory from the place I worked before I came to Vestas. I used to play Mario Kart on the Wii with my colleagues. It was great fun. Stitch is just cool to have. When the sun shines upon him he dances. You can’t see that on the photo, of course.” Post-It notes “Post-It notes we use to communicate internally in the team. We often have perpetual calls and can’t talk with the other team members. For instance, when one of the others goes to the pantry for food, I’ll quickly write a note saying if I want anything or not.” MY WORKPLACE My Workplace is a recurrent feature in The Grid – a snapshot of a colleague’s daily workplace. You can suggest the next interesting workplace – send an email to thegrid@vestas.com September 2011 The Grid 332011-09-30T11:06:24+02:00http://nozebra.ipapercms.dk/Vestas/Communication/TheGrid/September2011/TheGridSeptember2011UK/?Page=34http://nozebra.ipapercms.dk/Vestas/Communication/TheGrid/September2011/TheGridSeptember2011UK/?Page=34Tararua’s surprises It takes flexibility to make the most of the wind resources at New Zealand’s largest wind power plant. Changeable weather and volatile electricity prices make for a challenging job on site. I’m lucky to have the team that I have. It’s not really a job when you’re working with your mates.” Robert Johnson npredictability is one of the things Robert Johnson likes most about his job. Johnson is the Site Supervisor on the 160MW Tararua wind power plant, situated on a mountain range that runs from the East Coast to the West Coast of New Zealand’s North Island. “The conditions are something I’ve never experienced before in my life,” says Johnson, who is originally from Australia. “You can have a low wind speed one day and then everything’s off on high speed. Recently the whole site was covered in snow and then the next week it was sunny. I enjoy the variety.” It’s not just the weather and wind conditions that are unpredictable at Tararua. Johnson also has to pay attention to changes in the electricity market. Spot market prices in New Zealand change U By Jasmine Cargill 34 The Grid September 20112011-09-30T11:06:24+02:00http://nozebra.ipapercms.dk/Vestas/Communication/TheGrid/September2011/TheGridSeptember2011UK/?Page=35http://nozebra.ipapercms.dk/Vestas/Communication/TheGrid/September2011/TheGridSeptember2011UK/?Page=35Did you know? • Approximately 74 per cent of NZ’s electricity production is renewable: 56 per cent hydroelectricity, 13 per cent geothermal, 4 per cent wind, (1 per cent from other sources). • The NZ Government is committed to a target of 90 per cent renewable by 2025. • NZ has always been nuclear free. • Legislation prohibits nuclear powered ships entering NZ’s waters, as well as the dumping of nuclear waste and manufacturing of nuclear devices. • Humans have inhabited the islands of NZ for less than 1,000 years. • New Zealand was founded as a nation in 1840 when a treaty was signed between Maori Chiefs and the British Crown. • Aotearoa, the Maori name for New Zealand, is often translated as land of the long white cloud. • New Zealand currently has 4.4 million people and 40 million sheep. • Vestas New Zealand has 231 turbines and 51 staff. every 30 minutes and can leap from an average of $70 per megawatt hour to $400 per megawatt hour and occasionally much higher. Hydropowered whole farm, if we’re stopping turbines we’d be costing the customer quite a bit of money. When we see the price skyrocket, we do the best thing in the customer’s eyes and actually cease maintenance so that there’s full capacity on site.” Hitting the right spot A range of factors make the market complex and volatile. The majority of electricity comes from hydropower, which is dependent on rainfall and water levels. It is also mostly produced in the South Island and consumed in the North. If the DC link between the islands goes down, prices will go up. Sudden weather events can also have a dramatic impact. When a rare snow storm hit the entire country a few weeks ago, prices surged. “We’ve had a few occasions where the spot price is $20,000 a MW hour,” explains Johnson. “When you add that up over the Lars Pedersen, General Manager of Vestas NZ, describes the culture change that is taking place across sites. “We used to focus only on availability,” he says. “But we need to focus also on making the turbines available when the spot price is good. I know of one site where they were able to achieve in one month the whole profit that they had forecast for the year just because the turbines were running when the price was high.” In conditions like these, being prepared and ready to adapt to change makes a world of difference for customers. It also adds to the variety and excitement of the job. “I’ve got a roster and a plan in place of what’s going to happen for the week or couple of weeks,” says Johnson. “But things could change at the drop of a hat; I like that about the job. It’s like one big jigsaw puzzle.” ▪ September 2011 The Grid 352011-09-30T11:06:24+02:00http://nozebra.ipapercms.dk/Vestas/Communication/TheGrid/September2011/TheGridSeptember2011UK/?Page=36http://nozebra.ipapercms.dk/Vestas/Communication/TheGrid/September2011/TheGridSeptember2011UK/?Page=36Vestas Wind Systems A/S, Alsvej 21, 8940 Randers SV What do you think is Vestas’ main challenge? Name: Amanda Rosser Title: Project Purchaser & Planner Department: Production Engineering, Control Systems “I think it is the fierce competition. There are more competitors now, especially in Asia compared to 20 years ago. They have upped their game, so we have to really stay on our toes to keep our position as market leader. At my location, this means we are trying out new technologies, and we have a lot of development projects in the pipeline. Not everything is successful, but I feel that we are making the right decisions within development of new technology, so I am very hopeful.” Name: Stefan Shaba Title: Graduate Department: Global Performance & Diagnostic, Technology R&D “The greatest challenge right now is to drive down the cost of wind energy. So many people are coming up in the industry. As technology expands, more players are willing to actively participate. We already have quality on our side. But with quality comes cost and the challenge is to drive that down. Time is of the essence, and we need to be able to deliver the solutions that our customers demand. I am confident that we have visionary people who are able to ensure that we do.” Name: Andrea Pettazzoni Title: Key Account Director Department: KAM, Mediterranean “Vestas needs to faster develop and bring to the market a continuous flow of product enhancements. Not only new products, but also small improvements on the existing products. The main global competitors have proven faster than Vestas in introducing enhanced units. We have to be seen, especially by our key accounts, as the supplier who best improves our customers’ return on investment. To do so, Vestas has to maintain its technological leadership.” ▪ The Grid September 20112011-09-30T11:06:24+02:00