Financing a wind energy project. Encyclopedia of radio electronics and electrical engineering

Encyclopedia of radio electronics and electrical engineering / Alternative energy sources

 Comments on the article

Estimating project costs

Before starting work, it is necessary to prepare a feasibility study (FS), which examines the possibility of building a wind turbine and costs. A feasibility study can be prepared by consultants, which takes from 3 to 12 months depending on the project. And only after the completion of this stage of work and confirmation of the availability of sufficient wind energy resources, the possible ways of financing the project are determined.

Wind energy project cost

The project cost consists of two main categories - initial capital costs and annual operating costs. Below are the possible cost categories for the project.

Initial Capital Cost

Expenses for preliminary studies

These include initial design and wind measurements to confirm the sufficiency of wind energy resources.

Design Permit Costs

This includes the costs of obtaining a permit in the planning department, as well as the costs of assessing the environmental damage from the project.

Project management costs

Such costs are typical not only for large, but also for relatively small projects, when part of the costs falls on project management.

Legal costs

If the project was owned by a cooperative, legal costs would include individual contracts, share allocations, and other costs.

Purchase of wind turbines

This includes the cost of purchasing all necessary equipment. Infrastructure costs

This category takes into account the cost of laying cables and foundations. For larger projects, these costs include access roads.

Installation, shipping and commission costs

Delivery costs include fixed costs that are not related to the distance from the supplier to the consumer, and variable costs that are directly related to mileage. Shipping often includes commissions and installation costs. Therefore, the buyer needs to discuss all necessary payments with equipment suppliers in advance. Also, depending on where the wind turbines were manufactured, customs fees may need to be paid.

Additional costs for warranty repairs

An additional payment for warranty repair of individual parts of the wind turbine is possible.

Banking expenses

If the wind energy project is financed by a bank, then the bank costs must be taken into account.

Costs for connecting to the local power grid

This applies to large scale projects that will be connected to the local power grid. These costs may include the cost of the transformer, cabling, etc.

Annual operating costs

Insurance

The supplier of wind turbine equipment must provide the consumer with the possibility of insuring the purchased equipment. It is very important. For example, if a technical problem occurs after the end of the warranty period specified by the wind turbine manufacturer, or if the equipment is damaged due to lightning strikes, etc., the system owner will not pay for repairs if the system equipment was previously insured. Specialized organizations are engaged in insurance.

Land lease payments

If the land is not owned by the owner of the wind turbine, then the annual cost will include lease payments to the owner of the land.

Maintenance and Maintenance Costs

Wind turbine equipment needs to be monitored and maintained, and some parts need to be replaced periodically. The frequency of maintenance depends on the scale of the project, but in most cases does not exceed 2 times a year. These costs can be significant.

Interest on a loan

If the capital for the implementation of the project was provided, for example, by a bank, then the annual costs include payments for the repayment of the loan or interest on the loan in one form or another.

Other expenses

If we are talking about a large wind turbine connected to the power grid, then there may be additional costs, for example, for the consumption of electricity from the network to start and excite the generator. For stand-alone WPPs, this category may take into account the cost of fuel for a standby diesel generator, the cost of replacing batteries, etc.

Another cost item to be taken into account at the feasibility study stage is the cost of dismantling the WPP equipment and returning the site to its original state.

Financing a wind energy project

WPP construction projects can be financed by both individuals and legal entities, as well as public organizations. However, if they cannot provide the amount necessary for this, then you need to contact the bank.

During the construction of a wind turbine, the owner can receive a loan from a bank for the implementation of the project on general terms.

In the event that the wind turbine is included in the Program for the Development of New RES at the federal or regional level, then the owner can receive up to 15% of the estimated cost of the project from the budget.

To obtain a loan from a bank, a potential borrower needs to collect a package of documents for project evaluation.

Typical information you need to provide to a bank for a loan

• the charter of the enterprise (with all changes);
• memorandum of association;
• certificate of state registration;
• financial statements for the last three years. Here we note that if the period of operation of the enterprise is less than three years, then the issue of lending will be very difficult to solve, due to the inability to analyze the dynamics of cash flow on the balance sheet;
• audit report;
• a list of creditors and debtors with a breakdown of receivables and payables by maturity;
• certificate of turnover on the current account for 12 months;
• a certificate from the tax service (STI) on the absence of debt to the budget and on accounts opened with other banks;
• decoding of long-term and short-term financial investments, credits and loans.
• a loan application signed by the borrower (head of an organization or legal entity) is drawn up in an arbitrary form and must disclose the purpose of the requested loan, the repayment period and the expected collateral.

In addition, in order to receive an investment loan from a bank, a potential borrower must meet the following requirements:

• the investment in the project of own funds should be at least 20-30% for investment lending (a loan for the purchase of equipment, vehicles, purchase of raw materials and components for production) and at least 40-50% for project financing (a loan for working capital, purchases of goods );
• the amount of own funds of the enterprise must be greater than the amount of the proposed loan;
• it is necessary to provide comprehensive security covering the principal and interest on the loan;
• the cash flow forecast business plan must confirm the possibility of repaying the loan and interest with a coverage ratio of at least 1,5;
• the annual turnover of the enterprise must be at least three times the size of the balance sheet.

Authors: Kargiev V.M., Martirosov S.N. and etc.

See other articles Section Alternative energy sources.

Read and write useful comments on this article.

<< Back

Latest news of science and technology, new electronics:

Alcohol content of warm beer 07.05.2024

Beer, as one of the most common alcoholic drinks, has its own unique taste, which can change depending on the temperature of consumption. A new study by an international team of scientists has found that beer temperature has a significant impact on the perception of alcoholic taste. The study, led by materials scientist Lei Jiang, found that at different temperatures, ethanol and water molecules form different types of clusters, which affects the perception of alcoholic taste. At low temperatures, more pyramid-like clusters form, which reduces the pungency of the "ethanol" taste and makes the drink taste less alcoholic. On the contrary, as the temperature increases, the clusters become more chain-like, resulting in a more pronounced alcoholic taste. This explains why the taste of some alcoholic drinks, such as baijiu, can change depending on temperature. The data obtained opens up new prospects for beverage manufacturers, ... >>

Major risk factor for gambling addiction 07.05.2024

Computer games are becoming an increasingly popular form of entertainment among teenagers, but the associated risk of gaming addiction remains a significant problem. American scientists conducted a study to determine the main factors contributing to this addiction and offer recommendations for its prevention. Over the course of six years, 385 teenagers were followed to find out what factors may predispose them to gambling addiction. The results showed that 90% of study participants were not at risk of addiction, while 10% became gambling addicts. It turned out that the key factor in the onset of gambling addiction is a low level of prosocial behavior. Teenagers with a low level of prosocial behavior do not show interest in the help and support of others, which can lead to a loss of contact with the real world and a deepening dependence on virtual reality offered by computer games. Based on these results, scientists ... >>

Traffic noise delays the growth of chicks 06.05.2024

The sounds that surround us in modern cities are becoming increasingly piercing. However, few people think about how this noise affects the animal world, especially such delicate creatures as chicks that have not yet hatched from their eggs. Recent research is shedding light on this issue, indicating serious consequences for their development and survival. Scientists have found that exposure of zebra diamondback chicks to traffic noise can cause serious disruption to their development. Experiments have shown that noise pollution can significantly delay their hatching, and those chicks that do emerge face a number of health-promoting problems. The researchers also found that the negative effects of noise pollution extend into the adult birds. Reduced chances of reproduction and decreased fertility indicate the long-term effects that traffic noise has on wildlife. The study results highlight the need ... >>

Random news from the Archive Samsung Galaxy A7 smartphone 12.01.2015 Samsung has officially unveiled the Galaxy A7 smartphone, which was demonstrated earlier at the presentation of the Galaxy A3 and Galaxy A5 models in Malaysia. The device has the thinnest case among manufactured Samsung smartphones - 6,3 mm. For comparison, the thickness of the Galaxy S5 is 8,1 mm, the iPhone 6 is 6,9 mm. The Samsung Galaxy A7 will be available in two versions: 64-bit Qualcomm Snapdragon 615 SoC and 32-bit Exynos 5430. Both chipsets feature octa-core processors (four 1,5GHz ARM Cortex-A53 cores + four ARM Cortex-A1,0 cores in the Snapdragon 53 and four 615GHz ARM Cortex-A1,8 cores + four 15GHz ARM Cortex-A1,3 cores in the Exynos 7). Both versions have 2 GB of RAM and 16 GB of flash memory. There is also a slot for microSD memory cards. The Samsung Galaxy A7 is equipped with a 5,5" HD Super AMOLED display. On the back of the case, there is a 13MP autofocus camera with LED flash and support for 1080p video recording. There's also a 5MP front-facing selfie camera with support for Wide Selfie and Beauty Face. You can also take selfies with the rear camera thanks to the Rear-Cam Selfie feature. The smartphone supports Cat networks. 4 LTE. On board the device there are Bluetooth 4.0 wireless adapters, Wi-Fi 802.11 b / g / n, a GPS (A-GPS) / GLONASS receiver, an NFC chip, a Micro-USB 2.0 port, an audio jack, as well as an accelerometer, proximity sensors, ambient light, RGB, Hall effect, digital compass. The dimensions of the Galaxy A7 case are 151 x 76,2 x 6,3 mm, weight - 141 g. The battery capacity is 2600 mAh. The operating system is Android 4.4 KitKat with TouchWiz UI interface. In the future, the device will receive an update to Android 5.0 Lollipop. The Galaxy A7 will come in navy blue, white and gold with single and dual SIM slots. The price of the smartphone will be ?509. The novelty will appear on sale at the end of the first quarter of 2015.

Other interesting news:

▪ Lunar radio telescope

▪ 5W fast wireless charging IC from Toshiba

▪ Robot sapper

▪ Huawei is already working on 6G connectivity

▪ Exercise bike for the metaverse

News feed of science and technology, new electronics

Interesting materials of the Free Technical Library:

▪ section of the site Application of microcircuits. Article selection

▪ article by Mark Anney Lucan. Famous aphorisms

▪ article What celestial object accompanied the birth and death of Mark Twain? Detailed answer

▪ article Wood grinder engaged in grinding parts on disk and drum machines. Standard instruction on labor protection

▪ article Overheat sensor, 60 degrees 10 seconds. Encyclopedia of radio electronics and electrical engineering

▪ article Radio channel module on TDA8304 in ZUSTST. Encyclopedia of radio electronics and electrical engineering

Leave your comment on this article:

All languages ​​of this page

Arabic	Hebrew	Polish
Bengali	Hindi	Portuguese
Chinese	Italian	Spanish
English	Japanese	Turkish
French	Korean	Ukrainian
German	Malay	Vietnamese

Home page | Library | Articles | Website map | Site Reviews

www.diagram.com.ua
2000-2024