Erik Duncan, Invenergy LLC October 20, 2009 The Cost of Developing and Constructing Wind Farms.
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Transcript of Erik Duncan, Invenergy LLC October 20, 2009 The Cost of Developing and Constructing Wind Farms.
![Page 1: Erik Duncan, Invenergy LLC October 20, 2009 The Cost of Developing and Constructing Wind Farms.](https://reader036.fdocuments.net/reader036/viewer/2022081418/55165b4d550346c6758b5da4/html5/thumbnails/1.jpg)
Erik Duncan, Invenergy LLC
October 20, 2009
The Cost of Developing and Constructing Wind
Farms
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Invenergy
2
Overview Invenergy Background Development Costs Construction Costs Key Cost Drivers Other Costs Questions
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Invenergy
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Invenergy - Overview U.S. company, based in Chicago, IL Over 300 employees worldwide Business model includes:
Development Construction management Financing Operation and maintenance Long-term ownership
Recognized by utilities, construction companies, and turbine manufacturers as a proven and reliable business partner
2nd Largest U.S. Purchaser of General Electric Wind Turbines (over 3,000 MW of orders between 2005 & 2010)
Largest privately-owned wind energy developer in the U.S. Six U.S. natural gas generation projects in operation or construction
(2,100 MW)
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Invenergy
Invenergy Project Locations
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Invenergy
Invenergy Projects
Buffalo Mountain Oliver Springs, TN
Judith Gap Wheatland Co., Montana
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Invenergy
Invenergy Projects
Forward Energy Center Fon-du-Lac Co., Wisconsin
Spring Creek Wind Farm Logan Co., Colorado
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Invenergy
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Typical Development Process
Assumptions: No lengthy appeals Single year of wildlife studies
Year 1 2 3 4
Site Selection / Feasibility
Permitting Studies /Applications
Permitting Process
Power Marketing
Interconnection Studies
Interconnection Construction
Construction
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Invenergy
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Development Costs (100 MW Project)
Item Low Mid High
Site Control 100,000 300,000 500,000
Wind Analysis 170,000 310,000 450,000
Interconnection 200,000 300,000 400,000
Envir. Studies 100,000 500,000 1,000,000
Permitting 0 500,000 1,000,000
Litigation/Appeal 0 200,000 2,000,000
Miscellaneous 450,000 800,000 1,100,000
TOTAL 1,020,000 2,910,000 6,450,000
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Invenergy
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Development Cost Drivers Competition Site Complexity Regulatory Environment Site-specific Permitting Issues Local Support / Opposition Appeals/Litigation
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Invenergy
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Construction Costs (100 MW Project)
Item Low Mid High
Wind Turbines 100,000,000 137,500,000 175,000,000
Engineering & QC 3,000,000 4,000,000 5,000,000
Erection 3,000,000 5,000,000 8,500,000
Civil 14,300,000 17,000,000 21,500,000
Electrical 15,900,000 20,000,000 23,800,000
Transmission 0 6,000,000 12,000,000
Miscellaneous 1,150,000 3,500,000 5,500,000
TOTAL 134,350,000 193,000,000 251,300,000
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Invenergy
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Construction Cost Drivers Turbine Costs (Demand) Site Complexity Regulatory Environment Interconnection Costs Commodity Costs
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Invenergy
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Additional Costs (Not Included)
Multi-year preconstruction studies Construction contingencies Delay costs Transaction costs Financing costs
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Invenergy
Questions?