Solving the Environmental Problems Smart
Group Member: LEE ILSEOK, DAVID DUVALL, MANISH BARAL, SHIYI GAO.
1 Selection of Case
The theme of this project is to provide the details on a company names, Vestas. The Vestas deals with the renewable energy technology especially the wind power. In this industry, the research on the physical property of the wind power such as the turbine and the efficient shape of the propeller seems to be the most important since the purpose of the wind power is to transform the rotational energy by wind to electric energy. However, the technology is not the only problem. There must be wind before this technology. Therefore, there must be huge data on other things so that the actual wind power can be built.
Actually these other things come from the disadvantages of the wind power. The first is that if there is no wind, there is no meaning of constructing the wind power. This is the physical geographical problems because the features of the surrounding decide the direction and the magnitude of the wind velocity. Since the velocity decides the amount of electric energy produced from the wind power, these various features in the world must be researched to build the efficient wind power. The second is that the wind power makes big noise. Since turning of the turbine causes the noise pollution, people are not willing to agree on building the wind power. The development of the turbine technology can solve this problem. Since the wind power should be used for many years, developing the turbine technology has also the limitation. Therefore studying the distribution of the population can also help on building the wind power. There are more disadvantages of the wind power. To reduce these disadvantages, many data is required. To acquire this, the big data plays the important role. Vestas uses the special computers to collect many data from all over the world such as climate and geographical features of the places where the wind power is going to be built and to analyze this data to find the most efficient place to build the wind power.
The developing the renewable energy is important since the fuel energy is limited and if the uses of these fuels are continued, then many environmental problems threat the ecosystem of the earth such as polar bear and human itself. Since the demand of the energy is increasing tremendously, the more dangerous way of generating electricity is coming such as nuclear energy. Therefore these are the reasons why the demand of the renewable energy must be increased. To increase this demand, the disadvantages of the renewable energy must be solved. Though big data, this can be achieved and be used to save the people from the environmental problems such as global warming and air pollutions. Big data seems to be Big Brother, but it can be a great partner for the mankind.
- Features of Vestas with Big Data
The strength of Vestas is that the company research on the turbine itself as well as the collecting the data of the physical geographical properties of the places where the wind power is established. The corporation has ClearSight.™ which is largest wind data networking and used to check the state of the wind around the world so that the optimal condition is satisfied. From the biggest fleet of turbines in the world, we are able to transfer huge amounts of data real-time to the Vestas data eco-system enabling our customers to take decisions based on insights. Choosing the location of the wind power farm is chosen through simulation of geographical properties of the location. When the wind power farm is built, the constant forecasting the weather also helps in increasing the efficiency of the wind power.
The offerings from the ClearSight.™ are a combination of infrastructure solutions, analytical/computational software, data products, consulting services and operational services. The role of the ClearSight is to detect the abnormal situations that might lead to the failure of generating the amount of electricity that the owner desires. Therefore, it records the latest and best practice with the wind power as well as other results for the comparison. The ClearSight also does the inspection and monitors the wind power facility so that the constant data can be obtained. Since the energy industry is always affected by the oil price, the ClearSight also reads this fluctuation of the oil price so that the counter-action can be prepared before the clouds come. All of these features of ClearSight is to do the earlier prediction so that the least failure is made in the wind power system and the results can be optimized.
Vestas empowers the customers to make decisions based on a deep understanding of the specific conditions of their site, allowing them to lower cost of energy and increase business case certainty. Vestas measures meteorological conditions and historic wind data down to areas of 3×3 m with world-class siting technology. Then the simulation of the turbine in this conditions are described as following; apply performance data from turbines in the field, global meteorological data and data from various applications. From wind resources over turbine data to atmospheric conditions, the simulation enables us to find the best possible place for any wind farm. The ability to know and map a site in detail is key to predicting the energy output and service requirements over the life-time of a turbine. This will make customers to make least failure. Using virtual simulations, Vestas predicts how turbines react and performs in different conditions and forecasts how each individual turbine impacts nearby turbines. Advanced data analytics ensure the customers install the best possible solution by matching the site with the most optimal product. The turbines can be inserted in virtual environments to match with the real world. Accelerated lifetime simulations can predict how the turbines perform in different conditions and are beneficial to our clients in matching the specific site conditions with the best turbine fit for the site. The weather is checked for the next ten minutes and up to seven months ahead. In forecasting, data is crucial to both operation and power production decision making – the more accurate the prediction, the easier it is for you to make the correct choice.
- Challenges and Opportunities
(1) The Challenges on Balancing the Environmental Protection and the Benefit of Company
Since the efficiency of generating the energy from the renewable technologies is less than to fossil fuel or the nuclear plant, the percentage that the renewable energy is involved in the world is smaller than the nonrenewable technologies. Therefore, it is questionable whether it is profitable on this small market comparing to nonrenewable industries. The Vestas has made many challenges to endure this problem and the company has been quite profitable. The following information is from the business article of the Wall Street Journal.
Since the seriousness of the environmental problems is a fact nowadays, many countries start to invest on the renewable energy. It is famous that the U.S and Germany are countries that are interested in the environmental problems. Therefore, the Vestas also makes benefits from higher demands from U.S and Germany. The Vestas announced that their net profits more than doubled to 278 million euros in three months from June 30 this year from 125 million euros in the same period a year earlier. Therefore the benefit became larger by 46%. The trend of wind power industry is growing because the revenue of competitors such as Gamesa Corporacion Tecnologica from Spain and Nordex SE from Germany is growing as well.
The reason why the wind power technologies are flourishing is the education of the awareness of the environmental problems. This educational policies show how the governments concerns the environment seriously. The most influential reason is the Paris Climate Agreement las year. The agreement is on protecting the environment, and this helps the company of renewable technologies to expand and grow. The technological reason is that as the renewable energy technology is developing, the price of electricity from wind power becomes cheaper and this means that the wind power grows more competitive to fossil-fueled power plants.
Vestas has the potential to encounter distinct threats, which must be accounted for in order to maintain their strong market share. A pronounced threat to Vestas business is the potential for oil prices to fluctuate. In the case that oil prices decrease, Vestas, along with the renewable energy sector, would likely experience negative effects. The volatility of stock markets is also a viable threat to Vestas. An economic depression in a major market such as the United States of America or China could lead to a direct decrease in business dealings within the country and has the potential for a global recession. Government policies regarding subsidies of renewable energy and the regulation of renewable energy are feasible threats to Vestas as well. Subsidies provide incentive to invest in a nation’s renewable energy projects. A reduction in these allocations would likely reduce new investment prospects and would negatively affect the renewable energy industry within the nation negatively. The implementation of new government regulations on renewable energy could affect Vestas because they have the potential to fundamentally change the prospect of further investment in the sector within a nation. The additional threat is from the competition amid consolidation among Western manufacturers and rapid expansion by Chinese rivals. For the competition, the price is important. Since the Chinese company can use the cheaper labor work, the wind power price from China can be reduced. The Vestas have the threats as above and these are the challenges that they must face to make benefit from the renewable technology market.
(2) Opportunities of Contributing to the World
It is important to have global competitiveness of the renewable energy so that the technology can have proper competition with the fossil fuel market. The potential of combination of the big data and the wind power started to emerge as the countries from all around the world, such as China, Australia, Sweden and Brazil, order the technologies of the Vestas.
When the contract has been made with the Austrian wind power industry, the big data takes great role in the 30 MW orders of the Vestas V126-3.45 MW turbines constructed for the Kiata wind farm located in the southeastern Australia. In contracts, the Vestas ensures the defined level of availability and performance a SCADA Vestas-Online Business for data-driven monitoring and preventive maintenance. The Kiata wind farm is a project by the international wind energy company, Windlab Limited. Dr. Nathan Steggel, General Manager Operations of Windlab says that, “We are pleased to continue our partnership with Vestas to add another wind farm project to our Australian portfolio. Windlab highly appreciates Vestas’ support and is looking forward to the successful completion of this exciting project”.
From the eastern Sweden, OX2 ordered 18 V 126-3.45 MW turbines with power optimized mode to 3.6 MW. The OXs and Vestas are the companies that have many contributions to the the Högkölen wind farm. It has been 10 years and the more than 900 MW has been generated across the northern Europe. Paul Stormoen, Managing Director of OX2 Wind quotes “with the Högkölen wind farm, we further strengthen our long-standing partnership with Vestas as well as our market position in northern Europe as a leading developer and EPC supplier. Högkölen will be OX2’s 36th wind power project in the Nordics.”
Vestas has received 40 MW energy production order from Brazil. Vestas received order from long term global partner of Brazil i.e. Gestamp Eolica Brazil to install 20 MW turbines at the wind parks located in Rio Grande do Norte, Brazil. This contract and strong partnership with Gestamp Wind has made Vestas stronger and increased the opportunities for Vestas to expand its market.
The Vestas participated the the Nan’an Xiangyun project located in in Xiangyun County, Quanzhou City, in the Fujian Province. This is the one of the project from the long term customer CGN Wind Energy Limited from southern China. The Vestas got order for turbines developed by the Vestas and supervised the installation. Chris Beaufait, President of Vestas Asia Pacific and China said that “This is CGN’s first order with Vestas since the partnership reached the important 1 GW of cumulative orders milestone in late September. Long-term partnerships like the one we have with CGN are the foundation of Vestas’ development in China, and we look forward to continue building on the mutual trust in this new chapter of our cooperation”
Since the fossil fuels are not the limitless resource and cause a lot environmental problems such as global warming and air pollution, it is important to develop the renewable energy technologies that do not affect the environment. There are many renewable energy technologies such as solar, wind, and tidal energy and many companies try to develop this technology. The Vestas is one of these companies that has business on wind power. The wind power is clean and one of major renewable energy technologies. However it has also the disadvantages; the wind power facilities take too many spaces, it also causes the noise pollution while the turbine rotates and the wind power is useless when the place has high wind which is often occurred in Mexico. Therefore, this company tries to find the most efficient place to construct the wind power facilities so that the disadvantage is minimized. The tool to solve this problem is big data processing and the supercomputer. They collect the huge amount of data on the climate and weather of the particular location so that they can find the most ideal place for the wind power. This is important because the efficient power generation is possible as well as decreasing the effect of the disadvantages of the wind power. This is one of the examples of using big data to solve the environmental problems as well as the problem occurred by the limited fossil fuel.