Wind Energy Feasibility Study - Town Of Orleans

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Wind Energy Facility Economic AnalysisTown of Orleans, MABCR which is greater than 1.00 predicates a positive return on the investment and anything lessthan 1.00 costs more than the benefit of the investment. A project with a BCR of 1.00 isconsidered breakeven.6.3 Project Cash FlowProject cash flow is based upon the amount of retail power which can be off set by the turbine,sale of any excess energy which may be produced and the sale of RECs to the market.6.4 Summary of Economic ResultsThe present value benefits are calculated to be $3,600,000 and the present value cost is$2,760,000, yielding a NPV of nearly $860,000. A net cash flow of $1,400,000 is expected over20 years, with annual positive cash flows occurring during the fifth year of the project. Themodel conservatively assumes that repayment of principal and interest would be begin before thewind turbine began producing revenue. Repayment terms would be dependent upon the structureof the loan or bond. A summary of the results is provided in Table 6-2 below:Table 6-2: Economic Results SummaryTurbine Size, kW 600Project Cost $2,320,500Cost per kW $3,868Capacity Factor, % 28.3%Annual Energy Output, kWh 1,338,703NPV (Discount Rate of 4%) $859,468Net Cash Flow (Over 20 Years) $1,439,320BCR 1.31The economic performance would improve when factoring in grant funding or other subsidies,decreasing the loan rate and overall project cost. Other economic factors which have an impact27
Wind Energy Facility Economic AnalysisTown of Orleans, MAthe project economics are the general and fuel-related energy costs. The economic performanceerodes as the discount rate and general inflation rise. The economic modeling herein assumesthat the project will be paid for through debt financing. Based on the estimated annual operation,maintenance and insurance cost of the wind turbines, the project is considered economicallyviable and an attractive investment. In addition, the model conservatively assumes that theproject has no value at the end of the 20 year term. Economic projections for similar projectsoften use a residual value of between 10%- 40% of development costs.Year to year cash flow calculations and all model variable inputs are included in Appendix E.28
Page 1: proposalTown ofMASSACHUSETTSFebruar
Page 4: Wind Energy Facility Economic Analy
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Page 34 and 35: NSTAR ELECTRICaccount no. site bill
Page 40 and 41: Bill Detail Page I of 2ffirumrHome
Page 42 and 43: ELECON - TURBOWINDSDESIGN AND SUPPL
Page 44 and 45: 1 GENERAL DESCRIPTIONThe T600 is de
Page 46 and 47: ManufacturerLMType and model 23.3PL
Page 48 and 49: 8 stepsNet power factor after compe
Page 50 and 51: 2 MECHANICAL2.1 RotorThe rotor asse
Page 52 and 53: 2.4 Yawing SystemA yaw system is pr
Page 54: 4 ELECTRICALThe electrical installa
Page 57 and 58: 4.4 Power Transformers ( For refere
Page 59 and 60: 5 CONTROLS & INSTRUMENTATION5.1 Con
Page 61 and 62: Display lay outs:Screen 1:RPM BLADE
Page 63 and 64: 6 TOWERThe wind generator support s
Page 65 and 66: Project:Orleans, MA Wind FSDescript
Page 73 and 74: APPENDIX DMUNICIPAL OWNERSHIP MODEL
Page 75 and 76: Project Summary• Single 1.65 MW V
Page 77 and 78: Project Ownership & Financing• Ow
Page 79 and 80: Pro Forma Economic ResultsBase Case
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Pro Forma Economic Results: BaseSum
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APPENDIX EECONOMIC CALCULATIONSANDP
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ECONOMIC SUMMARYWind Turbine Instal
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Wind Turbine Pro FormaOrleans, MAB
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Wind Energy Feasibility Study - Town Of Orleans

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