LCOE of wind energy
Introduction
Spain is one of Europe’s wind energy leaders, with over 29 GW of installed wind power capacity as of 2024. The country’s commitment to renewable energy and its strong wind resource make it an ideal market for wind projects. However, as the industry matures, cost-efficiency becomes a priority—particularly when comparing the use of refurbished wind turbines versus new ones. One of the key metrics for evaluating this is the LCOE (Levelized Cost of Energy), which measures the average cost per megawatt-hour (MWh) of electricity generated over the lifetime of a project.
In this article, we will analyze how refurbished wind turbines impact the LCOE compared to new installations in Spain, focusing on both economic and technical aspects. We’ll also explore the advantages of using used wind turbines, spare parts, and repowering strategies to reduce costs and maintain efficiency.
What is LCOE and why does it matter?
LCOE is the acronym for Levelized Cost Of Energy and represents the total cost of building and operating a power-generating asset over its useful life, divided by the total energy output. It’s calculated using the formula:
LCOE = (Total Lifetime Costs) / (Total Lifetime Energy Production)
In wind energy, the LCOE is influenced by:
- Initial capital costs (turbine purchase, installation)
- Operating and maintenance costs
- Capacity factor
- Project lifespan
- Decommissioning costs
Lowering the LCOE makes wind energy more competitive compared to fossil fuels and other renewables like solar energy.
The rise of refurbished wind turbines in Spain
The Spanish wind market is evolving. Many wind farms built in the early 2000s are reaching the end of their design life. Rather than being dismantled entirely, these assets are often repowered using refurbished wind turbines, especially models from top OEMs like Vestas and Siemens Gamesa.
Refurbished turbines are typically sourced from decommissioned sites across Europe or North America. After a detailed inspection and the replacement of worn-out wind turbine parts—such as gearboxes, main shafts, or blades—they are reinstalled either in the same location or at new sites.
Advantages:
- Reduction of upfront investment
- Faster deployment
- Lower environmental impact (reuse of components)
Comparing LCOE: Refurbished vs New Turbines
1. Capital Expenditures (CAPEX)
New Wind Turbines: Purchasing and installing a new 2 MW turbine can cost anywhere from €1.8M to €2M.
Used Wind Turbines: Refurbished turbines of similar capacity can cost 40–60% less, especially when sourcing used wind generators for sale or used windmill blades from specialized platforms like Aditae Technologies | Repowering Solutions | Repowerlab
Advantage: Refurbished turbines—significant reduction in CAPEX.
2. O&M and Spare Parts
Maintenance is a crucial LCOE component. New turbines often benefit from manufacturer warranties and modern remote diagnostics. However, refurbished turbines allow greater flexibility in sourcing spare parts, especially for models like:
- Vestas V52 / V80 / V90
- Siemens Gamesa G52 / G83
- Enercon E48 / E66
Access to a wide network of wind turbine parts suppliers in Spain, Germany, and Denmark helps reduce long-term maintenance costs, especially for standardized components like gearboxes in wind turbines, nacelles, or wind turbine hubs.
Advantage: Tie—depending on supply chain efficiency.
3. Financing and Incentives
Banks and investors usually favor new turbines due to their warranties and predictable performance. However, the growth of the second-hand wind market and ESG-driven investments are increasing the acceptance of repowering wind turbines projects.
In Spain, there is growing institutional support for circular economy principles, which include the reuse and refurbishment of industrial equipment, including wind turbines.
Advantage: Shifting towards refurbished turbines as financial models evolve.
4. Environmental Footprint
Refurbishing and reusing wind turbines reduces the environmental impact significantly. Manufacturing new turbines consumes more energy and raw materials, especially for components like blades, gearboxes, and steel towers.
The reuse of wind turbine components also helps reduce waste and supports the European Green Deal targets on sustainability.
Advantage: Refurbished turbines—clear environmental gain.
5. Performance and Efficiency
New turbines feature advanced controls, higher hub heights, and better aerodynamic performance. Their capacity factor—a key LCOE driver—is typically higher.
In contrast, refurbished turbines may suffer from lower capacity factors due to age or design limitations. However, when properly maintained and repowered, older models can still achieve acceptable efficiency levels, especially in regions with consistent wind resources.
Advantage: New turbines—higher output per MWh.
Real-world example: Vestas V52 vs new 2MW turbine
Let’s compare the LCOE over 15 years for a refurbished Vestas V52 850kW and a new 2 MW turbine in a mid-wind zone in Spain:
Parameter | Vestas V52 (Refurbished) | New 2 MW turbine |
CAPEX | €350,000 | €1,300,000 |
O&M (annual) | €20,000 | €15,000 |
Capacity factor | 26% | 32% |
Energy production | 29GWh | 84GWh |
Estimated LCOE | €39/MWh | €45/MWh |
Despite lower output, the V52 shows a more competitive LCOE, driven by low initial cost and accessible windmill spare parts.
Spain´s strategic position in the used wind market
Spain hosts numerous suppliers of wind turbine spare parts, gearboxes, nacelles, and repair services. Companies like Aditae Technology | Repoweringsolutions | Repowerlab are helping developers reduce costs by offering:
- Wind turbine repairs
- Used nacelle sales
- Main shaft replacements
- Blade storage & logistics
Spain’s role in this ecosystem helps support the national strategy on renewable energy and positions the country as a hub for second-life turbine projects.
Final thoughts: Is refurbishment the future?
The future of wind energy in Spain will likely be hybrid—combining new turbine projects with refurbished installations. While new turbines offer technological advantages, refurbished wind turbines provide a competitive edge in LCOE, environmental impact, and flexibility.
For developers, municipalities, and industrial operators, exploring the second-hand market—supported by reliable partners and spare part providers—can significantly improve project viability without compromising sustainability goals.
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