Global Energy Services: Growing renewable energy worldwide

Source: Exec Digital USA

Date :9/5/2008 4:54:10 AM

The company services wind and solar power projects in the US and international markets, promoting a greener future

Written by Sarah Wolfe and Produced by Shaheen Mohammadipour

Modern wind technology was first used in the 1920s throughout the rural US. During the 1970s energy crisis it grew more popular, continuing through the 1980s in California with government support. In 1982, Global Energy Services (GES) formed in Tarragona, Spain, to provide service for the petrochemical industry. It handled instrumentation and controls for traditional electricity generation technologies like oil, natural gas and coal plants.

Acquited by Spain’s wind power leader, Gamesa, in 1991, GES expanded to provide full services for wind power projects. It was acquired in 2006 by private equity firm 3i, becoming independent shortly after.

Today, GES is the leading service provider worldwide in engineering, construction, installation and maintenance for the renewable sector, with a major presence in both wind and solar energies. “We service 17 countries with almost 5,000 employees, and we have independent business subsidiaries throughout the world,” says David Fernandez, COO of the US subsidiary, GES USA, headquartered in Conshohocken, PA.

GES is also in Europe, North Africa and Mexico. Fernandez says GES’ worldwide services are a mix of renewables and conventional energy. GES has extensive experience assembling and maintaining electrical installations and instrumentation in industrial plants in traditional sectors as well as newer industries such as bio-fuels.

In the two-and-a-half years GES has been in the US, the focus has been solely renewable energy services.

Currently, wind power is a little more than 1 percent of the US electricity supply. However, “the US is installing over 5,000 Megawatts of wind energy per year, which is second only to Germany,” says Fernandez.

Texas, where GES has an office in Fort Worth, generates 50 percent of GES USA annual revenue. Fernandez says there’s good wind and the sites are enormous.

The other half of GES USA wind revenue is split evenly between the East Coast and Midwest, including California, Iowa, Montana and South Dakota.

In solar, this year Spain for the first time passed world leader Germany in capacity installed. GES has taken this opportunity to become a leader in the sector, having installed more than 150 MW and maintaining around 100 MW.

“Everyone involved in the industry believes the US will eventually become the leader in solar, but currently lacks adequate tax and investment credits,” says Fernandez. Solar and wind installations rely heavily on tax incentive credits. When credits are expiring and turned down, or there’s uncertainty over their presence long-term, developers are hesitant with projects which in turn impacts companies like GES. The upcoming US elections have stalled renewal discussions of tax credits expiring at the end of 2008.

For the wind sector, GES estimates it’s installed 10,500 MW worldwide, including more than 7,000 MW for which GES provided a complete range of services, and maintained 7,400 MW. GES’ competitive edge is extensive experience with nearly every major technology partner in the industry, including Gamesa, Acciona, Vestas, Bonus-Siemens, Made, Ecotecnia, Suzlon and Dewind.

Safety and Growth

The company’s commitment to safety begins at the top and is introduced to employees at orientation. Continuous training and inspections reinforce the standards. Compensation and career advancement is tied to optimum performance of this responsibility.

GES’ growth in the last two decades has occurred “in spikes.”

“We were growing in the 1990’s along with the entire wind industry in Spain and then our parent company started expanding internationally,” Fernandez says. “At the end of April 2006, GES was just short 2,000 employees. Now we have almost 5,000; that’s 150 percent growth in barely two years. Once we became independent we were also able to diversify the company’s services.”

GES believes in close relationships with suppliers. “Renewable energy is a relatively young industry and it helps to work with firms we can rely on time and time again,” Fernandez explains. Suppliers are chosen after a bid and due diligence process to find those that share GES’ health and safety priorities. It also places a premium on flexibility and thinking “outside the box” on projects.

“Our philosophy is we’re only as good as the performance of our line employees,” says Fernandez. GES adapts to changing situations like weather, unexpected supplier problems, or client requests. Above all else, the staff adheres to the health and safety guidelines, and always asks, ‘how can I best serve the client?’”

GES Training School

The “newness” of the renewable energy industry and rapid growth in the past couple years has caused a shortage of skilled labor worldwide.

The GES Training School – endorsed by the Spanish National Institute of Employment and located in Gijón, Spain – has offered courses ranging from wind farm maintenance to instrumentation and control to solar panel installation, as well as health and safety since 2000. GES personnel serve as teaching staff.

The school was one of the first in the world to offer a hands-on lab for renewable technology. Students, for example, can look at a nacelle on the ground and either reproduce tasks they’ll perform on-site or learn to diagnose and repair staged problems. More than 700 independent students have attended the school and 80 percent have joined the company’s development programs.

Fernandez says Mexico and the US are going through the same kind of rapid growth that Spain and parts of Europe experienced in the late 1990’s and early 2000’s, so it’s imperative to invest in training in those locales to build a skilled workforce. GES sends employees to teach courses at local schools near its locations, and an internship program helps identify and develop future employees.

Looking ahead

GES participates regularly in trade shows, promoting both its company and renewable energy. GES has been a major exhibitor at the American Wind Energy Association show and recently took part in a solar power exhibition in San Francisco.

Aggressive international expansion goals include new ventures in Asia and South America. The US will continue to be a major focus for growth, including a training school and new offices in California and the Midwest.

“Traditional energy sources are either dwindling or expensive in terms of capital investments or environmental impact,” says Fernandez. “We need a combination of renewables like wind and solar in partnership with traditional energy sources to meet future demand.”

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