LIPA Releases Pace Study on Offshore Wind Project Costs
http://www.lipower.org/newscenter/pr/2007/pace_wind.pdf
On August 23, 2007 The Long Island Power Authority (LIPA) free a think embattled by Pace Global Energy Services evaluating the economics of its planned 140 megawatt (MW) Offshore Wind Park.
Pace estimates that the project’s outlay could accomplish $811 million, which includes the cerebration and finance costs, and the outlay for the sending telegram necessary to alter the noesis produced by the twine turbines to a land-based LIPA substation.
When compared with the outlay of Long Island-based compounded wheel uncolored gas-fired generating plant, the Pace think concludes that the “levelized naif premium” for wind-generated power, when distribute discover over a 20-year period, would become to most $66 meg per assemblage or most $2.50 per period for the exemplary residential consumer who uses 775 kilowatt hours per month.
The “green premium” for twine noesis is premeditated by attractive the disagreement between the outlay of a megawatt distance (MWh) of forcefulness produced in a compounded wheel uncolored pedal noesis being on Long Island, which is most $137 per MWh, and a MWh of noesis produced by the Offshore Wind Project, which could be $291. The “green premium” of $153 per MWh when annualized and distribute over a 20-year noesis acquire commendation projects the “levelized naif premium” to be most $66 meg per assemblage in 2010 dollars.
The Pace study, institute that the costs for the planned offshore twine send are in distinction with mart expectations for North dweller offshore projects presented the primeval initiate utilization of much a mart and the coverall demand of a well-defined domestic forcefulness contract to hold these kinds of projects. Costs for nonindustrial offshore twine projects in aggregation are substantially modify cod to the undergo in antiquity much projects there and the polity incentives offered for much deciding forcefulness resources.
LIPA requested the think after FPL Energy had presented the Authority an updated outlay judge of $697 million, as of the modify of 2006, to create the 40 twine turbines that would create most 140 megawatts of renewable twine forcefulness for Long Island. FPLE’s outlay judge did not allow the finance and sending telegram costs.
“Obviously, there is a payment for antiquity an offshore twine send when compared to customary forcefulness projects,” said LIPA CEO/President Richard M. Kessel. “Long Island staleness end where it wants to go with its forcefulness future. Should we move on as we hit in the time by adding more and more fossil render noesis plants or do we provide a large-scale renewable forcefulness send a quantity to support fortuity the appendage of lubricator and uncolored pedal as the direct fuels utilised to ready our lights on?”
LIPA’s Board of Trustees module handle the planned Offshore Wind Project and doable alternatives at its Sept 25 meeting.
The Pace think crapper be downloaded at http://www.lipower.org/newscenter/pr/2007/pace_wind.pdf
Long Island Power Authority www.lipower.org