Page 14 - Fluid Power Engineering

xii Contents

Renewable Energy Credits and Carbon
Credits ........................... 274
Revenue Computations ................ 275
Capital Costs ....................... 275
Cost of Turbine ..................... 278
Cost of Foundation, Erection, Access Roads,
and Other Civil Works ............... 278
Substation, Control System, Cables, Installation,
and Others Related to Grid Connection .... 279
Other Costs ........................ 279
Operating Costs ..................... 279
Depreciation and Taxes ................... 281
Financial Statements ..................... 282
Income Statement and Cash Flow for a
Wind Project ...................... 282
Balance Sheet for a Wind Project ........... 282
Financial Performance ................. 283
Net Present Value (NPV) ............... 286
Payback Period ..................... 286
Internal Rate of Return (IRR) ............. 287
Impact of Tax Credits and Accelerated
Depreciation on Financial Performance ..... 287
Financing and Structure of Wind Projects ........ 294
Financial Evaluation of Alternatives ........... 297
14 Planning and Execution of Wind Projects ....... 301
Introduction .......................... 301
High-Level Project Plan and Timeline .......... 301
Development ....................... 302
Prospecting ........................ 303
Wind Measurement and Detailed Wind
Assessment ...................... 303
Project Siting, Interconnection, and PPA ...... 305
Project Engineering and Procurement ....... 307
Project Financing .................... 312
Construction, Installation, and Commissioning .... 313
Construction of Infrastructure ............ 314
Site Preparation ..................... 314
Foundation Construction and Turbine Erection . 315
Collection System and Substation Construction . 318
Commissioning ..................... 318
Operations ........................... 320

Index .............................. 323