Availon 20 years full service maintenance contract
In the shadow of the financial crisis in the late 00’s, we experienced an increase in demand for stability from many customers. As a result, Momentum had an instrumental role in inventing the 20 year full service maintenance contract for wind turbines together with Availon in Reine in Germany
What is it?
What did we do?
What was the outcome?
The 20 year full service contract is now the market standard from most service providers.
A different time
In the shadow of the financial crisis in the late 00′ in the beginng of the 10’s, many projects was suffering from a frozen financial market.
Both the banks and costumers was afraid of large components (gear boxes, generators, rotors) in wind turbines to break down with large costs to follow, if not covered by a warranty or insurance. There was a huge demand from financial institutes and owners to cover this risk, to distress the whole sitaution and bring comfort to the project and it’s owners.
At that time, it was not possible to have full service contracts for a period of more than 10 years from commissioning, and it was even more difficult to get it, if the project was already running and the owners hadn’t signed a full service contract at the time of commissioning.
A possible solution
We decided that something had to be done, and contacted our service providers to show our idea of creating a full-service contract for 20 years, which matched the time of the German subsidy scheme (EEG) running out.
But at that time, the interest was not so big, because the manufactures had more focus on delivering wind turbines. We were invited by the management of Availon to Reine in Germany, presenting our idea.
After a short, intensive period, the product developed and we tested the concept on our customers and their financial partners. They were very happy.
A market standard
Today most of our wind projects includes a 20 years full service contract.
All wind turbine manufacturers provide now 20 years full service contracts when delivering the projects and is has now become market standard.
Many independent service providers have now grown up in the marked, offering really competitive solutions for the owners of wind turbines.
Many independent service providers has now frown up in the marked, offering really competitive solutions for the owners of wind turbines.
Stability and longevity is our goal
We are proud to have started this development in the market where investors are looking for stable cash flows and no surprises during their ownership of the assets.
Momentum is now implementing solutions to cover the assets after the first 20 years life time, extenting the assets technical lifetime towards 30 years or more and improving the owners yield.