The purpose of a wind farm is to use renewable resources to generate green energy. Wind energy makes good economic sense, but of course it is a significant capital expenditure, too. It is imperative that at the end of the day a wind energy project becomes a worthwhile investment.
There are two different types of cost:
- the planning and development cost and the building and installation cost of a wind farm (investment cost)
- operation and maintenance cost during the operation of the wind farm (operation cost).
The investment cost represents all expenditures which arise until the commissioning of the wind turbines on the wind farm. Some are related to the development, such as:
- met mast installation & monitoring,
- all surveys and reports required for the building permit,
- building permit fees, council rates, taxes or levies
- fees for entries into any land register.
Other costs are directly connected with the building of the wind farm, such as:
- building of access roads,
- construction of foundations for the wind turbines,
- underground cabling to connect the wind turbines,
- the grid connection, a substation if required,
- fees for shipping and transport including permits,
- duties and taxes,
- a suitable crane for the installation of the wind turbines,
- the wind turbines including blades and associated equipment,
- the installation and commissioning of the wind turbines.
Wind turbines are designed for a life span of at least 20 years. During this time the wind farm has to pay back all investment costs and all operation costs, such as:
- land lease costs,
- service and maintenance costs for the wind turbine,
- operation and management taxes,
- finance costs,
- any other costs.
You need to have a certain level of experience to prepare a convincing and credible calculation of profitability. NewEn has already taken part in many projects, including overseeing infrastructure calculations (including foundations, access roads, grid) and operational management, and is a dependable professional for wind farm project management.