Economics - Wind Energy: Renewable Energy and the Environment - page 261

9. The estimated cost of energy from a wind farm is around $0.08/kWh. Make a comparison
to proposed new nuclear power plants. What is their COE (retail rate) for latest nuclear
power plants installed in the United States? (Do not calculate; find an estimate from any
source.)
10. What are today's values for fuel inflation, discount rate, interest rate? What is your esti-
mate for the year 2015?
11. A 100 MW wind farm (100 wind turbines, 1 MW) is installed in the class 4 wind regime.
The production is around 3,000 MWH/turbine/year. The utility company is paying an
estimated $0.04/kWh for the electricity produced. Estimate the yearly income from
the wind farm. If the landowners get 4% royalty, how much money do they receive per
year?
12. For the previous problem, installed costs are $1,600/kW, FCR 9%, capacity factor
35%, AOM 0.008/kWh. Calculate the COE using Equation 12.4. You will need to
estimate the levelized replacement costs or calculate LRC using Equations 12.5-12.7.
Compare your answer to the $0.05/kWh, which is the estimated price the wind farm is
receiving. How can the wind farm make money?
13. A number of wind farms are again being installed in the United States. In Texas the wind
farm boom has seen over 7,500 MW installed from 2000 to 2008. Why? Explain in terms
of economics.
14. What is the price of oil, $/bbl, today? Estimate the price for oil, $/bbl, for the years 2010,
2020, and 2030. Compare to the U.S. Energy Information Administration projections for
the same years. Place results in a table.
15. Estimate the price for oil, $/bbl, if the costs for the U.S. military to keep the oil flowing
from the Middle East are added.
16. Why were wind turbines installed primarily in California during 1981-1985? Discuss in
terms of economics.
17. How much should the U.S. federal government fund for conservation and efficiency,
renewable energy, and wind energy? Compare your answer to the FY 08 budget for the
same activities. What was the FY 08 budget for fossil fuels and nuclear energy (nuclear
fusion counts)? See “ Links ” section.
18. At what dollar level should your national government fund renewable energy? Wind?
Fossil fuel? Nuclear? Compare your numbers to the national budget for this fiscal year, or
the latest year for which information is available.
19. Estimate the cost of energy for a Bergey windpower, 10.1 kW, hybrid (PV/wind) system.
You will have to estimate FCR and O&M.
20. Estimate the cost of energy for a Southwest Windpower, 1.3 kW, hybrid (PV/wind) sys-
tem. You will have to estimate FCR and O&M.
21. Estimate the cost of energy just for the three, 100 kW, wind turbines at Toksook Bay,
Alaska. You will have to estimate FCR, O&M, and LRC.
22. A village power system in China consists of 10 kW wind plus battery bank and inverter.
IC $4,500/kW, energy production 50 kWh/day, FCR 0.03, AOM $0.01/kWh.
Calculate the cost of energy.
23. A renewable village power system in China consists of 20 kW of wind and 10 kW of PV.
Use an average cost of $4,300/kW, annual energy production 65,000 kWh, FCR 0.03,
AOM $0.01/kWh. Calculate the cost of energy. How does that compare to the present
rate you are paying for electricity?
For the following problems use data reported to the U.S. Federal Energy Regulatory
Commission, http://eqrdds.ferc.gov/eqr2/frame-summary-report.asp . Pick any wind
farm; however, if uncertain, pick Llano Estacado Wind (White Deer, installed capacity
80 MW).
24. What is the rate of the power purchase agreement?