Australia Wind Turbine Operation and Maintenance Market Size, Share and COVID-19 Impact Analysis, By Type (Scheduled and Unscheduled), By Location (Onshore and Offshore), and Country Forecast, 2021-2028

The Australia wind turbine operation and maintenance market size was USD 328.4 million in 2020. The market is projected to grow from USD 351.6 million in 2021 to USD 591.9 million in 2028 at a CAGR of 7.7% in the 2021-2028 period. The global impact of COVID-19 has been unprecedented and staggering, with the market witnessing a slow demand shock across all regions amid the pandemic. Based on our analysis, this market exhibited a stagnant growth of 6.9% in 2020 as compared to the average year-on-year growth during 2017-2019. The sudden rise in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.

Wind turbine operation and maintenance process is very important to keep the wind farm in working condition. Several components such as blades, generator, and gearbox are requiring regular condition monitoring to avoid breakdown. Without appropriate maintenance, there is a possibility of failure which can affect productivity. The increasing investment in wind energy as an alternative energy source would positively influence market growth in the forthcoming years.

Disturbance in Supply Chain amid COVID-19 Pandemic to Adversely Impact Wind Energy Projects

The COVID-19 pandemic has hit the renewables industry hard in Australia, thereby rescheduling or canceling the financial close of up to 3 gigawatts (GW) of projects. Majority of the renewable projects in the nation are mainly reliant on imports from other nations. But, owing to the lockdown in numerous countries, key wind equipment suppliers such as GE and Goldwin have confronted production stoppage, affecting a huge number of projects.

The delays and cancellations of several projects are largely the results of the falling Australian dollar, which has plummeted 20 percent relative to the U.S. dollar since the beginning of January. This has resulted in the surge of Capex for both utility PV and wind projects. For example, Forest Wind, Australia’s one of the largest wind projects with a planned capacity of 1.2 GW has been delayed by 15 months owing to COVID-19. Initially, installing Forest Wind was supposed to start in 2021, but the timetable is now shifted to the second half of 2022, and in all possibilities, construction will first commence in 2023.

COVID-19 has had a major impact on the Victorian renewable energy projects in 2020. The state’s lockdown forced the solar & wind industry to shut down completely for almost two months in the middle of the year.

LATEST TRENDS

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Surging Demand for Power is a Prominent Trend

In Australia, power demand is growing constantly. The strong growth of the economy, the flourishing industrial sector, and the rising population has led to the high demand for power. Hence, most of the companies are improving their power production capability by mounting new plants. These companies are opting for less carbon emitting technologies for power generation and mostly for solar and wind power owing to the stringent environmental protection rules. This is likely to enhance market growth.  

DRIVING FACTORS

Rising Capitalization in Wind Energy to Drive Market Growth

The Australian government is trying to decline their reliance on fossil fuels. Hence, they are spending largely in solar, wind and other renewable energy sources. Wind energy is a zero carbon emitting source, thus it has the ability to meet most of the power production problems experienced by the entire globe. In Australia, wind power deployment augmented to over 7.3 GW, as around 1.1 GW of novel wind ventures were developed across the country in 2020. Such notable development in the wind capacity needs incessant observation and maintenance. Therefore, the rising capitalization in wind energy is likely to increase the demand for wind turbine operation and maintenance services.

Advancement in Operation and Maintenance Technology to Propel Growth of Market

Earlier, wind turbine operation and maintenance were carried out manually by turbine operators. The manual system was incompetent to detect the component failure which might later result in a complete breakdown of the turbine. This used to also increase the operation and maintenance costs and result in the lower efficiency of wind turbines. Recently, the wind turbine maintenance is evolving significantly as various technologies and the use of advanced software has driven this market. The introduction of various advancements such as mobile Internet of Things (IoT) technology, advanced condition monitoring, database management, and analytics, and others has played a significant role in the Australia wind turbine operation and maintenance market growth.

RESTRAINING FACTORS

High Operation and Maintenance Cost to Hamper Market Growth

The operation and maintenance cost is very high for wind turbines and it accounted for approximately 30% of the total cost of the wind turbine. The operation and maintenance are very crucial for the smooth and extended life of the wind turbine. Without proper maintenance there are chances of failure leads to high downtime which leading to huge impacts. Thus, it is making operation and maintenance crucial for both onshore and offshore wind farms. The cost is a very big issue for these activities as it is very high and companies are constantly working to reduce the same. The high cost of wind turbine operation and maintenance may hinder the growth of the market during the forecast period.

SEGMENTATION

By Type Analysis

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Unscheduled Segment to Grow at the Highest Rate during 2021-2028

On the basis of type, the Australia wind turbine operation and maintenance market is segmented into scheduled and unscheduled. The unscheduled segment is anticipated to grow at a great CAGR amid the forecast period. This maintenance is majorly carried out in case of urgencies such as the failure of an equipment or fire on the turbines among other conditions. For offshore wind farms, such maintenance takes time to arrange for repair vessels to visit the site while onshore wind farms could require the coordination of large cranes to complete the repairs.

The scheduled maintenance segment is projected to contribute substantially during the forecast period. Scheduled maintenance is carried out at a regular time interval to keep the wind turbine working smoothly.

By Location Analysis

Onshore Segment Dominated Market in 2020

Based on location, this market is segregated into onshore and offshore. In 2020, the onshore segment holds the major share in the Australian market. Due to cheap structure cost, this segment involves low investment as compared to other segments. In Australia, around 1.1 GW of new wind power projects were installed onshore in 2020.

Currently, there are no offshore wind projects in operation, but the country has a huge potential for offshore wind projects. Thus, most companies in Australia and across the globe are starting to invest in the country’s offshore sector. Recently, in September 2020, Australian oil and gas specialist Pilot Energy Limited commenced a achievability review to chase the development of an offshore wind venture off the coast of the mid-west region of Western Australia.

KEY MARKET PLAYERS

Key Players Aiming for Novel Contracts

This market is largely dominated by OEM’s, who provide installation as well as operations and maintenance services. Several companies in the market have wider geographic presence. Presently, GE Wind Turbine, Suzlon Group, Siemens Gamesa and Vestas are dominating the Australian market with higher market share in 2020. Numerous strategies have been implemented by the crucial players to combine their positions in the market. Aiming for a new contract of wind turbine operation and maintenance is one of the ideal strategies of companies.

In April 2020, Siemens Gamesa Renewable Energy bagged a 30-year deal to provide operation and maintenance services for the 226 MW Murra Warra wind farm in Victoria, Australia. Siemens Gamesa is the first OEM to operate the wind farm and also provide additional services such as servicing both the wind turbines and the electrical balance of the unit.

LIST OF KEY COMPANIES PROFILED:

• GE (France)


• Siemens Gamesa (Spain)


• Suzlon Group (India)


• Vestas (Denmark)


• Goldwind (China)


• Wind Turbine Services Australia Pty Ltd. (Australia)


• G&S Abseiling (Australia)


• Australian Wind Services (Australia)


• Cosmic Wind Group (Australia)


• Professional Wind Services (Australia)


• Alpha Offshore Service (Denmark)


• Worley (Australia)


• Direct Wind Services (Australia)


• Ropepro High Access Services (Australia)


• RIGCOM Pty Ltd. (Australia)

KEY INDUSTRY DEVELOPMENTS:

• In May 2021 – Alpha offshore was awarded a contract in Australia at the Collgar wind farm. The aim of the contract is to upgrade the turbine blades. The Collgar wind farm has a total of 111 turbines and all of them are under blade upgrades and these upgrades will take five months to complete.


• In April 2020 – Siemens Gamesa announced that it has won a long-term i.e. a 20-year contract to provide wind turbine operation and maintenance services for a 135 MW Senvion wind farm located in Australia. The company will provide remote monitoring, specialty tooling, design, engineering support, and supply chain access along with software updates.

REPORT COVERAGE

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The Australia wind turbine operation and maintenance market research report provides a detailed analysis of the industry and focuses on key aspects such as leading companies, types, and locations of the services. Besides this, it offers insights into the market trends and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the growth of the advanced market over recent years.

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