Sample Wind Energy Project
600kW Enertech E48
| 600kW |
|
| $/kW | % | |
Turbine | | | | |
Turbine and tower | $1,200,000 | $2,000 | | |
Freight | 200,000 | 333 | | |
FAA lights | 3,600 | 6 | | |
Subtotal | 1,403,600 | 2,339 | 70.0% | |
| | | | |
Balance of Plant |
|
|
| |
Site Development | 150,000 | 250 | | |
Foundations | 37,800 | 63 | | |
Cranes plus labor | 38,400 | 64 | | |
Electrical System & Transformer | 36,000 | 60 | | |
Supervision | 11,400 | 19 |
| |
Subtotal | 273,600 | 456 | 13.6% | |
| | | | |
Interconnection |
|
|
| |
HV line extension | 12,000 | 20 | | |
Interconnection Feasibility Studies | 5,150 | 9 | | |
Interconnection/Construction | 10,000 | | | |
Labor (electrical) | 7,200 | 12 |
| |
Subtotal | 34,350 | 57 | 1.7% | |
| | | | |
Soft Costs |
|
|
| |
Legal | 18,000 | 30 | | |
Permitting | 29,225 | 49 | | |
Development/Engineering | 120,000 | 200 | | |
Insurance (construction & transportation) | 9,000 | 15 | | |
Title Insurance | 4,200 | 7 | | |
Financing (Application,
underwriting, loan fees) | 4,800 | 8 | | |
Feasibility Study | 53,500 | 89 | | |
MET Tower | 30,000 | | | |
Contingencies | 24,000 | 40 |
| |
Subtotal | 292,725 | 488 | 14.6% | |
| | | | |
Total | $2,004,275 | $3,340 |
| |
| | | | |
Operating Costs |
| |
| |
Operations & Maintenance | $ 12,000 | 20 | | |
Repair & Reserve | 7,800 | 13 | | |
Management/Administrative | 6,000 | 10 | | |
Property Taxes | 9,000 | 15 | | |
Land Lease | 3,000 | 5 | | |
Equipment Insurance | 6,000 | 10 | | |
Miscellaneous | 3,600 | 6 |
| |
Total | $ 47,400 | 79 |
| |
TURBINE
Turbine and tower: The estimates were obtained from various manufacturers. For any turbine where more than one quote was given, the amounts were averaged and the average was used.
Freight: The turbine, tower, and other components typically need to be shipped to the site. The quotes are from several turbine manufacturers. These estimates can vary greatly depending on the size of the turbine, number of turbines, and where the turbine is being shipped to and from.
FAA Lights: The lights are required by the FAA for any turbine over 200 feet tall. There are numerous companies which manufacture lights designed specifically for wind turbines. It was assumed for the 10.5 project with 5 turbines that at least 3 turbines would have lights installed on them. The cost of installing the lights is mixed in with the construction costs.
BALANCE OF PLANT
Site Development: The site development consists of geotechnical, surveying, turbine layout, and other site engineering work.
Foundations: The foundation is the base on which the turbines are erected.
Cranes plus Crane & Erection Labor: This line item is the cost for the rental of the cranes and labor associated with the construction process.
Electrical System & Transformer: This involves the process of hooking the electrical system (turbine wiring) to the transformer located at the power station which converts the power into energy.
Supervision: The cost associated with having the developer oversee the construction.
INTERCONNECTION
HV Line Extension: The line extension is when the turbine is interconnected either with transmission/distribution lines or a substation.
Interconnection Feasibility Studies: There is a flat rate for an application and an additional price per kilowatt fee for system impact studies.
Interconnection/Construction: This is to implement the necessary upgrades recommended by the system impact studies.
Labor (electrical): This line item consists of hiring electrical engineers and electricians to do the interconnection.
SOFT COSTS
Legal: Legal fees include title work and contracts. Additional fees may apply in areas without an adopted wind ordinance.
Permitting: Permitting includes Erosion and Sedimentation, wildlife impact studies, building permits, and National Pollutant Discharge Elimination System (NPDES) permits.
Development/Engineering: The development/engineering fees include fees for surveying, cut/fill, road construction, site clearing, and electrical engineering fees.
Insurance: This line item is for the insurance on the construction of the project.
Title Insurance: Title insurance protects the financiers of a project.
Financing: The financing line item is the cost associated with financing applications and associated legal fees.
MET Tower: The meteorological (MET) towers are installed to conduct feasibility studies for potential sites. The feasibility study helps to determine if a site has a developable wind resource.
Contingencies: Contingencies are the amount reserved for unforeseen costs which may arise during construction.
OPERATING COSTS
Operations and Maintenance: The monitoring and annual maintenance of turbines.
Repair and Reserve: The repair and reserve is money set aside typically based on a percentage of the original turbine cost. The money is used for any unexpected repairs necessary for the turbines.
Management/Administrative: The costs associated with the administrative duties required for a wind farm.
Property Tax: This was calculated by taking the appropriate tax rate and estimating the potential taxes for each project.
Land Lease: The land lease is the amount of money to be paid to the owner of the land.
Equipment Insurance: This line item covers the insurance on the equipment used in the operation and maintenance of the wind farm.
Miscellaneous: The miscellaneous line item is a fund of monies set aside for any unforeseen expenses that may arise.