OREANDA-NEWS. June 04, 2012. Further expanding its portfolio of services for the wind industry, GE (NYSE: GE) today introduced a new concept in operations and maintenance (O&M) agreements at the American Wind Energy Association’s WINDPOWER 2012. Called “Production-Based O&M,” the new agreement further aligns the goals of GE and the customer to maximize energy yield from the site.

Historically, wind O&M contracts have provided an availability guarantee measured from time-based availability of wind turbines. Last year, GE moved from time-based availability to a production-based availability guarantee structure with the goal of maximizing production for customers. With today’s announcement, GE continues to move the wind services industry forward setting a new standard for service providers.

GE’s Production-Based O&M agreements incorporate both a fixed and variable fee. The variable portion is based directly on wind farm production relative to a megawatt hour target agreed upon by GE and the customer. The total cost of the O&M agreement, not just the availability bonus, is now based on production.

Production-Based O&M is a variable cost agreement that:

Reduces upfront costs to customers while better aligning the goals of GE and customers.
Better balances the risk between the owner and the services provider.
Promotes a “run it like we own it” approach towards service.
Ties into GE’s annual energy production enhancement initiatives.


GE will offer the new O&M agreement for both new and installed GE wind turbines at sites where comprehensive operating and wind resource information exists.

“Production-Based O&M is the latest example of how GE continues to develop flexible solutions to meet our customers’ specific needs,” said Andy Holt, general manager of wind services for GE Energy. “By focusing on production, we are adding value for customers. We are better aligning our goals with theirs and better sharing the risk between GE and our customer. Production-Based O&M brings us another step closer to running the turbines like we own them.”

Production-Based O&M is the latest addition to GE’s growing family of services offerings for the wind industry. GE more than doubled its investment in services research and development in 2010 and 2011 as it built a world-class portfolio of services. GE’s wind service solutions incorporate the company’s advanced technology, global resources and service facilities and a network of skilled, highly trained local technicians who are closely connected to GE’s engineering organization. GE service agreements give customers access to GE’s suite of wind turbine upgrades, which are based on technology evolution and in-depth product knowledge.