O&M expenses for wind power assets will cost the industry $7.5 billion annually by 2021

Written By: Jen Neville
January 4, 2019

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Operations and maintenance (O&M) expenses for wind power assets would cost the industry about $7.5 billion annually by 2021, according to new analysis from IHS Markit, a leader in critical information, analytics and solutions. IHS Markit estimated the current North American wind O&M market to be valued at approximately $5 billion to $6 billion annually but is expected to exceed $8.3 billion by 2027, an increase of nearly 40 percent.

In 2021, the industry expects to reach a critical turning point, as operating expenditure (OPEX) for the North American (United States and Canada) wind industry would, for the first time, eclipse capital expenditure (CAPEX), according to the 2018 IHS Markit Wind O&M Benchmarking in North America: Aging Turbines, Rising Costs – a study of O&M costs for North American wind power plants. 

“The O&M market for North American wind installations is a steadily growing industry,” stated Maxwell Cohen, associate director at IHS Markit, and co-author of the annual IHS Markit report. “Growth is driven both by more turbines and—as those turbines age—more spending per turbine. The North American wind turbine fleet is aging overall – the average age of installed capacity will rise from 7 years in 2018, to 14 years in 2030. As projects age, they cost more, making the O&M business even more intriguing than it is today, and many players are expanding into this sector of the business,” Cohen added.

Wind Power Finance & Investment

Maxwell Cohen
Associate Director
IHS Markit

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