Wind farm capacity (MW) Capital investmen (€) Period of operation (years) Decommissioning costs (€) O&M costs (€/kWh) Annual energy production (kWh) Electricity selling price, tariff (€/kWh) Annual discount rate (%)
50 65000000 20 3000000 0.0091 110000000 0.075 8
Net present value (NPV) of the wind farm project Question 1 1. What are the O&M costs in euro for each year (€/year)? € (1,001,000.00) Question 2 2. What is annual revenue from selling the electricity (€/year)? capacity factor 0.25 Annual Energy Production AEP [MWh] 109500 Annual revenue
€
8,250,000.00
Question 3 3. What is the annual net income (€/year)? annual net income
€
7,249,000.00
7249000
Question 4 4. What is the net present value of this wind farm project(€)? Hint: when calculating with NPVfunction don't forget NPV Net Income NPV Project
$71,171,750.56 $5,528,105.93
The levelised cost of energy (LCOE) from a wind farm. Question 1 1. Again, using the NPV function, what is the present value of all the maintenance costs for the 20years of operat NPV O&M
($9,827,965.55)
Question 2 2. What is the present value of the payment cost made to decommission the wind farm (€)? Hint: Use the PV func PV Decomissioning
($643,644.62)
Question 3 3. Finally, add these two together with the initial capital cost to give the present value of all the costs (€). NPV costs
($75,471,610.18)
Question 4 4. What is the levellised annual cost (€/year)? PMT Project
($7,686,950.20)
Question 5 5. What is the levellised cost of energy (LCoE) for the wind farm (€/kWh)? LCoE
($0.069881) -6.9881365454
with NPVfunction don't forget to extract the decommissioning cost from the last years net income.
sts for the 20years of operation (€)? Hint: For calculating NPV of costs, the sign of each annual entry should be negative. Note
m (€)? Hint: Use the PV function but take care as the annual payment is zero and the decommissioning cost is the future value
of all the costs (€).
ntry should be negative. Note also that the initial capital investment should not be included here.
