Best Practices Award Template - Winergy

BEST PRACTICES RESEARCH

2013

2013 Global Gearboxes for Wind Energy Product Differentiation Excellence Award

© 2013 Frost & Sullivan

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Product Differentiation Excellence Award Gearboxes for Wind Energy Global, 2013 Frost & Sullivan’s Global Research Platform Frost & Sullivan is in its 50th year of business with a global research organization of 1,800 analysts and consultants who monitor more than 300 industries and 250,000 companies. The company’s research philosophy originates with the CEO’s 360-Degree Perspective™, which serves as the foundation of its TEAM Research™ methodology. This unique approach enables us to determine how best-in-class companies worldwide manage growth, innovation and leadership. Based on the findings of this Best Practices research, Frost & Sullivan is proud to present the 2013 Global Product Differentiation Excellence Award in Gearboxes for Wind Energy to Winergy.

Significance of the Product Differentiation Excellence Award Key Industry Challenges The output power of a standard wind turbine increases in proportion with the square of the rotor diameter, whereas the mass of a standard turbine increases in proportion with the power of three to the rotor diameter. Turbines of higher mass require towers and bases of higher masses, indirectly increasing the overall capital expenditure for the wind turbine manufacturer. Thus, the return on investment (ROI) decreases as the power rating of the wind turbines increases. As the drive train in a wind turbine is a major contributor to the mass of the turbine, reducing the mass of the drive train without reducing its input torque rating is an important way to increase the ROI on a wind turbine. Gearbox manufacturers for the wind industry face the challenge of reducing the mass of the drive train and gearbox. Another major challenge faced by wind energy drive train customers is the price volatility of the permanent magnets (PM), which are used in the generators (high speed, medium speed, and direct drive). Since end users in the wind industry do not have the option to couple other types of generators with the gearbox, the volatility in the price of PM generators affects them in terms of budgeting difficulty and higher installation cost. As end users look for innovative gearbox solutions to address these challenges, they expect the product to have a significant statistics of successful usage. Achieving a tradeoff between these two complementary expectations poses a challenge for the manufacturers of gearboxes for wind energy application. In such a market environment, companies that can differentiate themselves from the rest of their competitors by reducing the mass of the drive train to help wind turbine users increase the ROI for larger turbines can acquire new customers who will use the product to provide testimony for product performance. They can also eliminate dependency on PM


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generators, putting themselves in a strong position to overcome the key challenges. This makes them well poised to attain a competitive edge over competitors in the market.

Key Benchmarking Criteria f or the Product Diff erentiation Excellence Aw ard For the Product Differentiation Excellence Award, the following criteria were used to benchmark Winergy’s performance against key competitors: • Unique Features/Functionality • Quality/Complexity • Customization • Matched to Target Markets Needs • Brand Perception

Decision Support Matrix and Measurement Criteria To support its evaluation of best practices across multiple business performance categories, Frost & Sullivan employs a customized Decision Support Matrix (DSM). The DSM is an analytical tool that compares companies’ performance relative to each other with an integration of quantitative and qualitative metrics. The DSM features criteria unique to each Award category and ranks importance by assigning weights to each criterion. The relative weighting reflects current market conditions and illustrates the associated importance of each criterion according to Frost & Sullivan. Fundamentally, each DSM is distinct for each market and Award category. The DSM allows our research and consulting teams to objectively analyze each company's performance on each criterion relative to its top competitors and assign performance ratings on that basis. The DSM follows a 10-point scale that allows for nuances in performance evaluation; ratings guidelines are shown in Chart 1. C har t 1 : P erf o rm an c e - Bas e d Ra t i ng s fo r D e cis i on S u pp o r t Ma tr i x

This exercise encompasses all criteria, leading to a weighted average ranking of each company. Researchers can then easily identify the company with the highest ranking. As a final step, the research team confirms the veracity of the model by ensuring that small


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changes to the ratings for a specific criterion do not lead to a significant change in the overall relative rankings of the companies. C har t 2 : Fr os t & S ul l iva n ’s 10-S t e p P r oc ess f or I de n t ify in g Awa rd R ec ip i en ts

Best Practice Award Analysis for Winergy The Decision Support Matrix, shown in Chart 3, illustrates the relative importance of each criterion for the Product Differentiation Excellence Award and the ratings for each company under evaluation. To remain unbiased while also protecting the interests of the other organizations reviewed, we have chosen to refer to the other key players as Competitor 1 and Competitor 2.

Measurement of 1–10 (1 = lowest; 10 = highest)

Award Criteria

Unique Features/Functionality

Quality/Complexity

Customization

Matched to Target Markets Needs

Unique Name/Brand Recognition

Weighted Rating

C har t 3 : D ec is io n S u p po r t M at ri x f or t h e P ro d uc t D iff er e n ti a t io n E xc e ll e nc e Aw ar d

Relative Weight (%)

20%

20%

20%

20%

20%

100%

9

9

9.5

9.5

9

9.2

Competitor 1

8.5

8.5

8.5

9

8

8.5

Competitor 2

8.5

8

8

8.5

8

8.2

Winergy


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Criterion 1: Unique Features/Functionality Winergy’s HybridDrive, which was first installed in September 2013, is a medium-speed drive train that consists of 2 gear stages and a generator. The 2 gear stages are made of planetary gearboxes that have a gear ratio (ratio between output speed and input speed of the drive train) of 35.524. The generator used for the prototype is a 24 pole PM Synchronous machine, in an integrated system well optimized to the gearbox. HybridDrive supports wind turbines of power rating ranging from 3MW to 8MW. The modular design of HybridDrive minimizes the complexity and the cost of service. The uniqueness of HybridDrive lies in its modular design. Unlike its competitor products, HybridDrive can be coupled with an electrically excited generator in addition to the option of coupling it with a PM generator. This unique feature helps customers to become independent from the price volatility of PM, respectively rare earth elements (RE). Similarly, customers of HybridDrive systems can choose to have journal bearings, bearings that do not have rolling elements, instead of the standard anti-friction bearings available with the competitors’ products. The first prototype of HybridDrive uses a single-bearing solution for the main shaft instead of a standard double-bearing solution. The shaft bearing is about 3m in diameter. Criterion 2: Quality/Complexity The design of HybridDrive is compliant with the 2010 edition of “GL Guideline for the Certification of Wind Turbines.” The compliance evaluation has been done based on reference standards mentioned in the certification reports for load assumptions, machinery components, and electrical equipment. A component certification was done by 3rd party (TÜV Rheinland) in April 2013. When compared to competitors’ medium-speed drive trains, HybridDrive has a higher torque-to-weight ratio, which is considered the best attainable value in practical conditions. The power transmission efficiency of the gearbox combined with the generator is more than 96.5%. Criterion 3: Customization The length of the drive train can be reduced by about 35% up to 50%, based on customer preference. If the emphasis is on minimizing the diameter of the drive train rather than the length of the drive train, HybridDrive’s length can be reduced by about 35%. If the emphasis is on minimizing the length of the drive train, the length of HybridDrive is reduced by about 50%.


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In terms of the weight of the drive train, weight reduction can be about 6% in the case of smaller turbines, which have a power rating of less than 3MW. For larger turbines, which have a power rating of 8MW and above, weight can be reduced by more than 10%. In the standard product, a PM generator is coupled with HybridDrive. However, the customer can change the type of generator that is coupled with HybridDrive by using an electrically excited generator. The advantage obtained by this design flexibility of HybridDrive is that the price of the drive train is independent of the price volatility of rare earth materials that are used to make a PM generator. This reduces the overall cost of installation of the wind turbine. Customers have the option to choose between a HybridDrive with journal bearings and a HybridDrive with anti-friction bearings. Journal bearings have so far been used in another Winergy drive train to produce more than 3GWh of electricity. Journal bearings require less space, are less expensive, and are suitable for high load applications. Criterion 4: Matched to Target Markets’ Needs The reduction in the length and the mass of the drive train provides various options to the original equipment manufacturers (OEMs) and wind turbine manufacturers. The 1st option is to place the transformer and the frequency converter at the top of the tower, along with the drive train. This enables the usage of a medium-voltage cable instead of a low-voltage cable to transmit electricity from the turbine to the grid. This helps reduce the cable loss associated with low-voltage transmission. Another option is to place only the frequency converter at the top of the tower and to place the transformer at ground level. The 3rd option is an ultra-compact design that places only the drive train at the top of the tower. Customers who focus on the ease-of-logistics of installation can choose the ultra-compact design. By decreasing the mass and increasing the torque-to-weight ratio of the drive train, HybridDrive addresses one of the major challenges of the trend of decrease in ROI with increasing the power capacity of a wind turbine in contrast to its target market. Criterion 5: Brand Perception The first HybridDrive unit is currently being installed in the greater Rostock area in Germany. As of the 2nd week of November 2013, about 600.000kWh of electricity has been produced from the wind turbine. Wind turbine developer W2E has been the 1st customer to install HybridDrive. W2E has designed a wind turbine featuring HybridDrive, which has already been licensed by some of the wind energy companies, including Nupower, FWT and PMVE. The licensees of the design are expected to become the users of HybridDrive, who will contribute to creating testimonials for the performance of HybridDrive. In addition,


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Winergy’s brand image, with a track record of contributing to producing over app.100GW of wind power, is expected to enhance HybridDrive’s brand value. The 2nd and the 3rd wind turbine using a HybridDrive are under production and they are going to be installed in spring 2014.

Conclusion Adoption of Winergy’s HybridDrive drive train with its higher torque-to-weight ratio, lower length and mass, helps increase the ROI for wind-energy-producing companies. Through HybridDrive's modular design, Winergy provides its customers the option to deploy an electrically excited generator in the wind turbine, which allows them to become independent from the price volatility of PM generators and reduce the overall cost of wind turbine installation. Through a customization option that allows its customers to choose journal bearings with the gearbox, Winergy provides an opportunity to its customers to further reduce the cost and the space required to install the drive train. Winergy has been successful in acquiring new customers, who deploy HybridDrive in their new wind tower installations. Based on Frost & Sullivan's independent analysis of the Global Wind Energy Gearboxes market, Winergy is recognized with the 2013 Product Differentiation Excellence Award.

Critical Importance of TEAM Research Frost & Sullivan’s TEAM Research methodology represents the analytical rigor of our research process. It offers a 360-degree view of industry challenges, trends, and issues by integrating all seven of Frost & Sullivan's research methodologies. Our experience has shown over the years that companies too often make important growth decisions based on a narrow understanding of their environment, leading to errors of both omission and commission. Frost & Sullivan contends that successful growth strategies are founded on a thorough understanding of market, technical, economic, financial, customer, best practices, and demographic analyses. In that vein, the letters T, E, A and M reflect our core technical, economic, applied (financial and best practices) and market analyses. The integration of these research disciplines into the TEAM Research methodology provides an evaluation platform for benchmarking industry players and for creating high-potential growth strategies for our clients.


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C har t 4 : B e nc h mar ki ng P e rf or ma nc e w i t h TE A M R es ea rc h

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