Increasing profitability in the energy sector
Green electricity at an affordable price
Our client is a leading global manufacturer of wind turbines. The company sees itself as a technology leader in the field of wind energy and covers the entire value chain, from research and development, production and project planning to logistics, construction site and service services.
Objective: Optimization of the levelized costs of energy
The energy industry is changing, playing a critical role in reducing emissions and increasing sustainability. However, competitive lifecycle costs of energy generation remain the key objective for an energy supply based on renewable energy sources.
To optimize the relative cost position compared to competitors as well as other forms of energy generation, we were tasked with significantly reducing operating costs. In addition to the direct project costs, these indirect costs as well as project-related services have a significant impact on the levelized costs of energy and thus on the profitability of the wind turbines.
Approach: Reduction of construction and operating costs
During the initial analysis, our consultants identified considerable potential in the procurement of indirect requirements and services. There was a lack of clear structures in procurement, especially for project-related standard services in the context of construction projects. Construction site managers used very different, proprietary specifications to secure their requirements on site.
To optimize these processes, we standardized the specifications for all countries and construction sites and then identified the top suppliers for each country.
The biggest initiative during the project was to optimize the cost of site security, as this was also handled very differently in each country. By identifying the optimal suppliers and switching to modern camera technology, efficiency was significantly increased and savings of almost 50 percent were achieved.
Together with our client’s procurement department, we were also able to reduce costs for occupational safety, maintenance, rental containers and waste disposal services, thus making a significant contribution to the competitiveness of the wind turbines.
Result: Competitive cost structures
- Significant savings in indirect spend
- Professionalization of procurement processes
- Optimization of levelized cost of energy
- Increase in economic efficiency