Power generation has historically relied on fossil fuel plants that can adjust output to meet demand. In contrast, renewable energy sources, such as wind power, are weather-dependent and can fluctuate significantly. To manage these fluctuations, operators must implement effective grid management strategies to prevent underloading or overloading the grid according to the transmission system operator’s requirements.
Ancillary services and energy storage systems play a crucial role in stabilising the grid in response to the variability of wind power generation to provide a consistent and predictable energy supply. They also enable wind farms to optimise operations by storing excess energy during periods of oversupply.
To enhance the profitability and reliability of renewable energy projects, investors should focus on funding technologies and infrastructure, such as storage, advanced forecasting tools, and grid-friendly systems, that support operators and enhance the integration of renewable energy.
The European Energy landscape
The European Union (EU) aims to become the first climate neutral continent by 2050, as outlined in the European Green Deal. But to achieve this ambitious objective, renewable electrification is key to the EU’s strategy, aiming to supply clean electricity across all sectors.
By 2030, electricity is projected to account for at least 30% of final energy demand—double today’s share—and rise to 57% by 2050. Wind energy is poised to lead this transition, becoming the EU’s primary electricity source after 2025, supplying 50% of the EU’s electricity by 2050, with 33% from onshore wind and 17% from offshore.
In response to these ambitious goals, the EU has launched the REPowerEU plan, targeting 510 GW of wind energy capacity by 2030, of which 168 GW is expected to come from onshore wind. By the end of 2022, Europe had already made significant strides, installing 255 GW of wind capacity (204 GW within the EU-27), with 88% from onshore and 12% from offshore installations. These milestones underscore the region’s commitment to a sustainable and secure energy future.
Why should we invest in onshore wind digitalisation?
Onshore wind investments are set to drive the green energy shift in the coming years. To maximise profitability and return on investment, stakeholders must accurately forecast and evaluate the economic performance of wind assets.
While larger turbines have reduced wind energy costs significantly over the past decades, further upscaling may no longer be feasible without innovative approaches. Digitalising wind farms—both new and existing—offers a game-changing opportunity to optimise operations, enhance efficiency, and reduce costs across the entire lifecycle, from design and construction to maintenance and decommissioning.
Even a 1% increase in global wind turbine efficiency through better design, planning, and operations could generate 30 TWh of extra electricity annually, equivalent to the average consumption of over 8 million European households.
How can we achieve these targets?
To achieve these targets, investments in onshore wind must focus on improving operational efficiency and cost-effectiveness.
Digitalisation is key to this green shift, offering opportunities to optimise wind farm design, construction, and operation. Advanced digital tools enable stakeholders to enhance energy production, reduce operational costs, and extend the lifetime of wind assets. For example, predictive maintenance and real-time monitoring can significantly lower the levelised cost of electricity (LCOE) by preventing costly downtime and maintenance events. Moreover, better planning and design can lead to a more effective setting of wind farms, maximising electricity yields and reducing capital expenses.
By integrating innovative digital solutions, stakeholders can drive the energy transition while achieving financial sustainability and operational excellence, supporting Europe’s leadership in renewable energy.
What parameters do we need to consider to optimise the return on investment from wind farms?
Turbine selection and farm siting
Optimising turbine specifications and farm’s layout for maximising energy production as well as minimising and preventing wake effects.
Wind resource assessment
Accurately predicting the wind availability will determine the energy production and prevent penalties due to balancing costs for wind energy producers who deviate from their energy generation prediction plans.
Financial analysis
Optimising CAPX/OPEX, and therefore assess the required LCOE to match the demand and price of energy is complex topic due to energy market volatility.
Regulatory and Policy Frameworks
Understanding local regulations and policies affecting grid connection and requirements for ancillary services when planning an investment.
Risk Assessment and Mitigation
Identifying risk regarding equipment reliability and maintenance, grid constraints, and extreme natural events.
