Economics - Wind Energy: Renewable Energy and the Environment - page 252

9.3. Market rates
9.4. Term of debt
9.5. Assignable documents
9.6. Third-party due diligence
10. Turbine purchase
10.1. Power curve (output projection)
10.2. Turbine cost
10.3. Turnkey construction cost
10.4. Warranties, equipment and maintenance
10.5. Construction financing
10.6. Past history of manufacturer
10.7. Availability of turbines, date
11. Construction (turnkey)
11.1. Roads
11.2. Water and gravel
11.3. Turbine foundations (excavation, concrete)
11.4. Interconnection to utility (substations, transformers, wire)
11.5. Turbine assembly and erection (cranes)
11.6. Commissioning
11.7. Environmental restoration
11.7.1. Reduce road width?
11.7.2. G rass
11.7.3. Control of noxious weeds
11.7.4. Assembly area
12. Maintenance
12.1. Fixed cost per turbine per year
12.2. Availability warranties
12.3. Penalties for nonperformance
12.4. Types of costs
12.5. Labor
12.6. Management
12.7. Insurance, taxes
12.8. Maintenance equipment: cranes, vehicles, other
12.9. Parts on hand
12.10. Nonrecurring costs, major repairs
12.11. Roads, maintenance and access for landowner
The following example shows the main points of a contract signed by the Permanent University
Fund, State of Texas, for a Woodward Mountain wind farm (32 MW) near McCamey (year
2000).
Area: 602 ha (1,487 acres); period, 20 years, with option to terminate early
Installation bonus: $2,000/MW security deposit
Royalty: 4% years 1-10, 6% years 11-20, minimum annual royalty projected income stream
Turbine: 48, Vesta V47, 660 kW
RECs: Royalty paid if any value realized
Removal bond: Mutual agreement
Hunting: Company indemnified
University audits, independent outside auditor
Meter calibration required every 3 years
Curtailment shared by all landowners