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).

Investment 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.

Operation cost:

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:

  • insurance,
  • 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.