Capital investment Annual 0&M costs Electricity sales Decommissioning 50MW onshore €65M €40k per 2MW 5-10 €c per kWh €3M for wind machine farm • Assume wind farm operates for 20 years • 110GWH @ 7.5 €c/kWh gives 8.2M€ annual income • 25×2MW wind turbines gives annual expenditure 1M€ • Discount rate = 8% Find net present value for the wind farm? Find LCOE for the wind farm?

Capital investment Annual 0&M costs Electricity sales Decommissioning 50MW onshore €65M €40k per 2MW 5-10 €c per kWh €3M for wind machine farm • Assume wind farm operates for 20 years • 110GWH @ 7.5 €c/kWh gives 8.2M€ annual income • 25×2MW wind turbines gives annual expenditure 1M€ • Discount rate = 8% Find net present value for the wind farm? Find LCOE for the wind farm?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Capital investment
Annual 0&M costs
Electricity sales
Decommissioning
50MW
onshore
€40k per
2MW
ЄЗM for
5-10 €c
wind
farm
per kWh
€65M
machine
• Assume wind farm operates for 20 years
• 110GWH @ 7.5 €c/kWh gives 8.2M€ annual income
• 25×2MW wind turbines gives annual expenditure 1M€
• Discount rate = 8%
Find net present value for the wind farm? Find LCOE for the wind farm?

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