Manuscript - Financing Modeling of Renewable Energy Projects

Specific Characteristics - 2
Wind in general
• Problems in accurately measuring capacity factor with P50, P75, P90, etc.
• Long-term trends in Wind Speed and Global Warming
• Performance of P50 studies
• Difference between 1-year P75 and 10-year P75
• Technology risks of technology evolution
• Costs of Grid Connection
Difficulties in connecting wind turbines to the grid can contribute significantly to
the risks and costs of a project.
Off-Shore Wind in specific
• The potential for offshore wind is enormous, but the technical challenges are also
great. The capital costs are higher than onshore, the risks are greater, the
project sizes are greater and the costs of mistakes are greater.
• Methods of installation and operation are already very different from onshore
wind generation, with great attention being given to reliability and access.
• Off-shore can have high construction risks, revenuer risks (from partial
merchant), scheduling risks, wind risks (from wake effect estimation) and O&M
risks (need for helicopters and ship hotels).
• Cabling from Off-shore may be subject to regulated risks
• Costs of Grid Connection for Off-Shore
Depending on the location of the project, cable must be laid over many of hostile
and inaccessible environment and, usually, ploughed into the sea bed. As a
result, costs for grid connection kilometers can constitute a very large share of
the total investment in an offshore project, easily 40%. This contrasts sharply
with onshore where, for most projects, costs for grid connection account for
around 10% of total project cost.
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