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Consider a wind energy project consisting of 19 wind turbines with a rated power of 4MW each. Initial cost: $5M total for each turbine, installed.
Consider a wind energy project consisting of 19 wind turbines with a rated power of 4MW each. Initial cost: $5M total for each turbine, installed. Total estimated yearly energy produced: 9800 MWh for each turbine. The energy produced is sold at an average price of $55/MWh. Annual maintenance cost: $50,000 per turbine for each of the first 5 years, $70,000 per turbine for each of the next 10 years, and $90,000 per turbine for each of the following years until the end of the project Term for the project: 25 years. Salvage value: $0.2M for each turbine. No ROI and no incentives are assumed. Note: since all data is per turbine, it is easier to do the calculations for one turbine. a) Calculate the IRR for this project (percentage, with minimum one decimal point accuracy). If you use Excel, sheets, or other spreadsheet software include it in your uploads. b) Calculate the LCOE assuming an annual rate of 8%. Do not include the salvage value in this calculation
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