Quote:
Originally Posted by bodaggin
Economics on the 2,500mw Lake Manitoba Wind Project
Assumptions:
-Installed cost: $2 million per MW ($1m is common, but MB Hydro is dumb).
-Export price: $0.1/kwh or $100/mw
-Capacity Factor: 40%
-Maintenance: 15% of revenue
-Annual generation: 8,760,000mw (2500mw * 24hr * 365 days) * 40% capacity.
-Useful life 25yr.
Financials
-Installation: $5 billion
-Annual revenue: $876 million
-Annual profit: $745 million (after maintenance)
-Capitalization Rate: 15%
-Years to pay off: 6.7yrs (before debt servicing).
-Pure profit years: 18yrs
-Lifetime profit: $13,410 million
-Annualized post capex net profit to MB Gov: $536 million
Lets get building.
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Interesting, but I am not so sure SaskPower, for example, would pay 10 cents per KWH for intermittent wind power. I realize they may pay more than that for some renewable generation in Saskatchewan, but those have an economic development component and I believe the newer projects can be cheaper. What importers really want is peaking power and perhaps baseload once they are forced to shutter coal. At some point wind and solar get maxed out unless there is a storage tech breakthrough and/or the grid is completely rebuilt.