A proposed wind farm installation is based on the use of thirty 2 MW wind turbines. The installed capital cost is estimated at $1000/kW and the annual operation and maintenance costs are estimated to be 3% of the original capital cost. Financing for the project is to come from two sources: (1) A 20-year loan at 7% (75%), and (2) an equity investment that has a return of 15% (25%). The average capacity factor of the wind farm is estimated to be 0.35. Determine the estimated cost of energy ($/kWh) from this proposed wind farm.

Elements Of Electromagnetics
7th Edition
ISBN:9780190698614
Author:Sadiku, Matthew N. O.
Publisher:Sadiku, Matthew N. O.
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A proposed wind farm installation is based on the use of thirty 2 MW wind turbines. The installed capital cost is estimated at $1000/kW and the annual operation and maintenance costs are estimated to be 3% of the original capital cost. Financing for the project is to come from two sources: (1) A 20-year loan at 7% (75%), and (2) an equity investment that has a return of 15% (25%). The average capacity factor of the wind farm is estimated to be 0.35. Determine the estimated cost of energy ($/kWh) from this proposed wind farm.

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