A proposed wind farm installation is based on the use of fourteen 2.5 MW wind turbines....
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A proposed wind farm installation is based on the use of fourteen 2.5 MW wind turbines. The installed capital cost is estimated at $1100/kW & the annual operation & maintenance costs are estimated to be 3% of the original capital cost. Financing for the project is to come from two sources: 1) A 12 year loan at 4% (60%), and 2) an equity investment that has a return of 18% (40%). The average capacity factor of the wind farm is estimated to be 0.32. a) Determine the estimated cost of energy (S/kWh) from this proposed wind farm. b) What should be the minimum price of electricity so that this wind farm would be profitable? A proposed wind farm installation is based on the use of fourteen 2.5 MW wind turbines. The installed capital cost is estimated at $1100/kW & the annual operation & maintenance costs are estimated to be 3% of the original capital cost. Financing for the project is to come from two sources: 1) A 12 year loan at 4% (60%), and 2) an equity investment that has a return of 18% (40%). The average capacity factor of the wind farm is estimated to be 0.32. a) Determine the estimated cost of energy (S/kWh) from this proposed wind farm. b) What should be the minimum price of electricity so that this wind farm would be profitable?
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a To determine the estimated cost of energy from the wind farm we need to calculate the levelized co... View the full answer
Related Book For
Cost Management Measuring, Monitoring and Motivating Performance
ISBN: 978-1119185697
3rd Canadian edition
Authors: Leslie G. Eldenburg, Susan K. Wolcott, Liang Hsuan Chen, Gail Cook
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