Random Notes on Wind Energy Costs

It was my understanding a wind farm comes in at about $1 million to $1.5 million / megawatt.

The Bison Wind Energy Center, just completed, in North Dakota: $500 million / 160 megawatts = $3,000,000/megawatt (the way the story is written, there exists some doubt, in my mind, that the numbers are entirely complete, but be that as it may: $300,000/MW). Corrected: see the comment from the second reader below.  Huge thanks to an alert reader.  The project is for 160 megawatts; cost is projected at $500 million. Cost per MW: about $3 million.

Off-shore, wind is, they say, more expensive. How much more expensive?

Cape Wind, off Massachusetts: $2.6 billion / 454 MW = $6 million/MW.

The London Array, phase I: 2.2 billion euros/630 MW (1 euro = $1.30); therefore, $2.86 billion/630 MW = $4.5 million/MW 

So, this is is what we have:

• North Dakota: $3 million/MW.
• On-shore average, wiki: $1 million/MW
• Off-shore, London (England): $4.5 million/MW
• Off-shore, Massachusetts: $6 million/MW

Disclaimer: I often make simple arithmetic errors.  

Solar Farms

Examples for cost comparisons:

Announced June 3, 2013: Universal Bioenergy Inc. announced that its subsidiary, NDR Energy Group, has signed ... with JSG Solar Inc., to build a solar power farm in eastern North Carolina, USA. The estimated cost to build the facility is $167 million. The project is projected to generate an estimated $301 million in revenues over 25 years. 

The solar facility would be built on approximately 425 acres of land and generate 80-100MW (megawatts) of electricity for sale to electric public utilities in the North Carolina service area. The estimated annual electricity production is 143.9 million kilowatt hours (kWh). 

• one section of farmland; not dual-use
• $167 million/100 MW = $1.67 million/MW 
• $167 million / 25 years = $7 million/year
• at 5% borrowing rate, $8 million/year in the early years just for interest payments
• $300 - $170 = $130 million over 25 years = $5 million in revenue/year
• reminder: profits = revenue - costs (simplified)