erik duncan, invenergy llc october 20, 2009 the cost of developing and constructing wind farms
TRANSCRIPT
Erik Duncan, Invenergy LLC
October 20, 2009
The Cost of Developing and Constructing Wind
Farms
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Overview Invenergy Background Development Costs Construction Costs Key Cost Drivers Other Costs Questions
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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)
Invenergy
Invenergy Project Locations
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Invenergy Projects
Buffalo Mountain Oliver Springs, TN
Judith Gap Wheatland Co., Montana
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Invenergy Projects
Forward Energy Center Fon-du-Lac Co., Wisconsin
Spring Creek Wind Farm Logan Co., Colorado
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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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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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Development Cost Drivers Competition Site Complexity Regulatory Environment Site-specific Permitting Issues Local Support / Opposition Appeals/Litigation
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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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Construction Cost Drivers Turbine Costs (Demand) Site Complexity Regulatory Environment Interconnection Costs Commodity Costs
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Additional Costs (Not Included)
Multi-year preconstruction studies Construction contingencies Delay costs Transaction costs Financing costs
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Questions?