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Wind Farm Economics Overview

This document summarizes the economics of wind energy, including: 1) The typical timeline of a wind farm project, from development through decommissioning, takes up to 10 years. 2) The major cost components of a wind farm are development, construction, operation, decommissioning, and cost of capital. 3) Wind farm projects are capital intensive compared to conventional energy projects due to their large upfront installation costs.

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Silvio Nunes
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360 views6 pages

Wind Farm Economics Overview

This document summarizes the economics of wind energy, including: 1) The typical timeline of a wind farm project, from development through decommissioning, takes up to 10 years. 2) The major cost components of a wind farm are development, construction, operation, decommissioning, and cost of capital. 3) Wind farm projects are capital intensive compared to conventional energy projects due to their large upfront installation costs.

Uploaded by

Silvio Nunes
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Economics of wind energy

The cost of wind farms

Tom Cronin
Learning objectives

After this lecture you will be able to:

•Name the four phases of a typical wind farm timeline

•List five of the major components of the cost of a wind farm

•Describe the economic profile of a wind farm project


The wind farm project timeline

Development Implementation Operation Decommissioning

•Finding a site •Procurement •Operation •Remove


•Site characteristics •Construction •Maintenance or
•Wind farm design •Re-power
•Permissions & licences
•Financing
•Public engagement

Up to 10 years 1-2 yrs 20 – 25 years <1 yr


Components of the cost
Development
Site assessment
Wind resource 5-10 €c
A per kWh
Permissions & licences
Preliminary design
Legal & contracts
Environmental study
Calculation of the
50MW economics of a Decommissioning
onshore wind farm
B D
€65M
€3M for
Implementation wind farm
Turbines €40k per
Foundations C 2MW
Operation
Sub-station Operation machine
Cabling Maintenance
Grid connection Administration
Wind farm economic profile
Economy of wind power operation

“Wind turbines are expensive generating


installation investments. Hence the
production costs are highly dependent on
installation costs and their financing.”
Offshore Wind Power - Danish Experiences and Solutions
Published by the Danish Energy Agency
October 2005

Another component of the cost:


Cost of Capital
The cost of the money needed to build the
wind farm
Summary
In this lecture you have learnt that:

•A wind farm has


development, construction, operation and decommissioning
phases
•Cost components for a wind farm are
planning, construction, maintenance, decommissioning & capital
•Wind energy projects are
capital intensive compared to conventional energy projects

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