Wind Turbine Service Agreement

Operating expenses (OPEX) can be 25-30% of the total lifetime cost of a wind farm – especially if it is an offshore facility. The majority of these costs fall under a single contract – the Turbine Service and Maintenance Contract (SMA)[1]. Given SMA`s significant impact on the entire owner`s business case, it is crucial to have a clearly defined and optimized contract. This article examines the SMA contract from the owner`s perspective and addresses the key issues that often arise during negotiations. [1] Also known as SAA (Service Availability Agreement) or SWA (Service Warranty Agreement) To decide on scope, decisions must be made about the degree of ownership involvement. Who should take care of the logistics? Should the provision of a certain number of technicians be the responsibility of the owner? Does the owner have the right to participate in technical investigations or root cause analyses? The level of ownership involvement must be consistent with O&M`s overall strategy. For example, considering a full operational takeover after the warranty ends requires significant involvement of the owner to ensure a smooth takeover and allow the owner to operate the wind farm independently. GE will also provide parts for corrective maintenance activities under a parts management program contract for wind turbines. Our multi-brand services bring operational excellence and advanced analytics to all your wind turbines. Often, it is not clear under which contractual defects will be corrected.

In the operation phase, the counterparty is often the OEM`s SMA contract manager, but remediation is often regulated by the TSA. Understanding the links between SMA and TSA contracts is just as crucial as appreciating the different escalation options offered by each contract. It is not uncommon for turbines to remain stationary due to ongoing discussions about liability in the event of failure. In order to maximize performance, the focus must be on effective and efficient repair of defects, followed by discussions on contractual liability and economic liability. It is also important to determine who is responsible for failure losses for defects that are corrected for the first time after the SMA Availability Guarantee expires. Tsa typically covers the design, construction, and delivery of these components to the site, as well as assembly, commissioning, and warranty for each WEA. The TSA form can be a custom form or a modified standard form, but it is tailored to the specific requirements of wind turbine supply contracts. „GE`s FSA [Full Service Agreement] for wind turbines is designed to best support the lifecycle of GE units,“ said Diarmaid Mulholland, general manager of wind services at GE Power & Water. .