Abu Dhabi government considers to offer a wind farm project for bidding. Use the
ID: 1138252 • Letter: A
Question
Abu Dhabi government considers to offer a wind farm project for bidding. Use the following data for energy production via a wind farm consisting of 80 wind turbines, each rated at 4 MW and a wind profile that provides 1300 FLH Total required area = 900 ha, capital costs = 1725 $/kW of rated turbine capacity, 4% return on debt, 13.5% return on equity, 60/40 debt-equity ratio, construction time = 1 year, Life time = 25 years, annual operations and maintenance costs = 3.5% of capital costs, land compensation cost = 210 $/ha/year. A. Calculate the LCOE of electricity (in $/kWh) generated from the wind farm B. Estimate the power purchase agreement (PPA) tariff that would need to be introduced in order for the project to achieve an IRR of 10%.
Explanation / Answer
The venture is due to be awarded on Dec. 18, in step with a govt announcement on Monday. It's going to be backed through a 20-12 months energy buy agreement with the Saudi energy Procurement corporation.
The 400MW wind farm will probably be developed in the northern Al-Jouf vicinity and is part of wider efforts to expand the proportion of renewable energy the nation produces to support diversify the economic system faraway from its reliance on oil.
the dominions first utility-scale wind undertaking opens a new chapter in our journey towards a various power mix. The progress of a wind energy enterprise in Saudi Arabia is an principal factor of our wider industrial diversification process,stated Khalid Al-Falih, minister of vigour, industry and mineral assets.
The delicate is the 2nd to be issued via the ministry underneath the national Renewable vigour application, a govt procedure which units out distinctive objectives on future renewable vigour construction.
The software targets to increase the nations renewable vigor share to three.Forty five GW by way of 2020 the an identical of 4 percentage of total energy construction. Through 2023, this proportion is predicted to increase to 9.5 GW, the identical of 10 percentage of total creation.
As soon as whole, the wind farm shall be in a position to generate adequate energy to give as much as 70,000 Saudi households, the ministry said.
The bids had been bought from firms already pre-certified following the issuing of a request for notion in August final year.
Frances EDF Energies Nouvelles and Abu Dhabi Masdar positioned the bottom bid of just below eight halalas per kilowatt hour, whilst the 2nd lowest was once submitted by way of the Dubai department of France Engie and Saudi services for Electro Mechanic Works.
A halala is the same as one hundredth of a riyal.
A consortium of Saudi Arabia's ACWA power and Portugal's Martifer Renewables positioned a bid of slightly over 10 halalas per kilowatt hour, even as Italy's Enel green power and regional organization Al Babtain Contracting bid simply over 12 halalas.
He brought that this challenge is an achievement and includes three stages: declaration of Intent, smooth and negotiations.
The assignment was once launched in September 2012 and then a ministerial committee used to be shaped in 2014 headed via the high minister, including representatives of the energy and Water, Finance, atmosphere, Justice Ministries and EDL.
He introduced that the ministry introduced in a number of consultants who helped it to reach a cost of 10.75 cents per kilowatts, and submitted the report to the cupboard, which agreed to this price.
we can get higher terms and the global fiscal institutions have asked for some amendments to the contracts signed on Feb. 1 to secure better financing stipulations. We have now stipulated that any modification to the contract should benefit the EDL, and after we took the choice to amend the contract, the fee was once lowered to 10.45 cents within the first three years, to be decreased again to 9.6 for the remaining 17 years of the contract, the minister stated.
Abi Khalil also mentioned that the climate conditions have averted the Turkish power barge from docking in the southern coastal town of Jiyyeh Monday, a day after its arrival to Lebanon.
The barge, set to provide 200 megawatts of electrical energy, was once avoided from coming into the premises of Jiyyeh's power plant, where a 2d vigour barge, additionally owned and operated by using Turkish corporation Karadeniz maintaining, has already been moored for the reason that 2013.
Previous in the day, the state-run country wide news agency stated that the boat was prevented from docking with the aid of involved authorities considering it didn't have a allow.
But Abi Khalil said at a news conference later that the crisis ... Was once triggered by the climate and high wind speed ... The captain of the ship advised us there was hazard [posed to the barge].
this implies the brand new Karadeniz barge, which in line with Abi Khalil is ready to furnish the 200 MW of electrical energy totally free for three months, has been unable to hook up with the Lebanese electrical power grid.
The barges arrival Sunday sparked anger and consternation from Jiyyeh's residents, with Jiyyeh Mayor George Kazzi pronouncing he used to be burdened by the determination to dock the barge there rather of in Zahrani within the south. We had been surprised in these days when we noticed this colossal ship heading toward us. They advised us it might be positioned in Zahrani, he advised The every day famous person Sunday.