Capital Costs

This worksheet shows the breakdown of capital costs for 4 AR1500 devices installed at the Meygen si
locations shown in Figure 1 of the coursework brief. For the purposes of the coursework project, you c
assume that all of the costs stated are accurate.

Project Management & Insurance Costs £k % of total

project cost
without
contingency
3000 11

Electrical Costs

Cable Lengths m
Length of 6.6kV Cable 10000 Assumes 4 turbines with a si

Cable Costs Specific Cost Total Cost

£k/m £k
6.6kV Cable 0.30 3,000 11
Cable Installation 0.30 3,000 11

Transformer & Connection Costs

Grid Connection at onshore substation 1,000 4

Total Electrical Cost 7,000 27

Device Specific Costs AR1500

Device Rating (MW) 1.5

Device Mass (tonne) 1400

£k
Turbine/Generator 2000 30 % of total project cost values
Foundation and Support Structure 500 8
Device Installation (Turbine & Foundation) 1600 24
Device Total 4100 62

No of Turbines 4
Total Device Cost (£k) 16400

Total Project Cost (no contingency) 26,400

Contingency Cost (10%) 2640
Total Project Cost (£k) 29,040 The total project cost, includi

Page 1
 Capital Costs

stalled at the Meygen site at the

oursework project, you can

Assumes 4 turbines with a single 2.5Km cable from each turbine to the onshore substation.

% of total project cost values (without contingency) in cells D31 to D34 account for the number of turbines.

The total project cost, including the contingeny, is the value transferred to the cash flow analysis worksheet.

Page 2
 Cash Flow Analysis

This worksheet performs a cash flow analysis and calculates an Internal Rate of Return (IRR), NPV an
separate 'Tidal Turbine Performance and Energy Yield' spreadsheet and 'Capital Costs' worksheet. On
requested in the Conclusions & Recommendations section of the group coursework project.
PROJECT DETAILS
Turbine AR1500
Rated capacity 1.5 MW
Number of turbines 4 Number of turbines in farm (a single row of 4 devices is
Installed capacity 6 MW
Ideal annual output per turbine 4.29 GWh Calculated using turbine power curve and annual tidal fl
Ideal tidal farm output 17.16 GWh Ideal annual output per turbine * No. of turbines
Wake Losses 0% Assumed as 0%
Electrical Losses 2% Assumed as 2%
Availability Losses 5% Assumed as 5%
Total annual output 15.96 GWh Ideal Output * Total Losses
Capacity factor 0.30
Capex 29.04 £m Capex value obtained from Capital Costs Spreadsheet.
Opex 0.15 £m/MW/yr A default value of £0.15m/MW/yr has been assumed (ap
Energy Strike Price (Year 1) 305 £/MWh This is no longer accurate (refer to finance lecture) but s
Wholesale Energy Price (Year 1) 40 £/MWh
Inflation rate 2.00% per year Inflation rate assumed to be 2% throughout project lifeti
CASHFLOW 1 2 3 4 5
Cash in
Energy Strike Price £/MWh 305 311 317 324 330
Wholesale Energy Price £/MWh 40 41 42 42 43
Production (GWh) 0 16.0 16.0 16.0 16.0
Cash income (£m) 0.0 5.0 5.1 5.2 5.3
Cash out
Capex (£m) 29.0
Opex (£m) 0.0 0.9 0.9 1.0 1.0
Cash flow (£m) -29.0 4.0 4.1 4.2 4.3
Cumulative cash (£m) -29.0 -25.0 -20.9 -16.7 -12.4
FINANCIAL PERFORMANCE
IRR 12.76%
Discount Rate 0.10
20 yr NPV 4.91 £m
NPV Cost of Capital 29.0 £m
NPV O&M 8.9 £m
NPV Energy 135.9 GWh
LCOE 279.5 £/MWh

Page 1
 Cash Flow Analysis

of Return (IRR), NPV and LCOE using data generated from the
tal Costs' worksheet. Only the LCOE is required for the chart
ework project.

(a single row of 4 devices is the default setup).

ower curve and annual tidal flow data from Turbine Energy Yield worksheet.
bine * No. of turbines

Capital Costs Spreadsheet.

MW/yr has been assumed (approx 3% of CAPEX per year).
(refer to finance lecture) but shows the level of financial support needed for the project to be profitable.

e 2% throughout project lifetime.

6 7 8 9 10 11 12 13

337 343 350 357 365 372 379 387

44 45 46 47 48 49 50 51
16.0 16.0 16.0 16.0 16.0 16.0 16.0 16.0
5.4 5.5 5.6 5.7 5.8 5.9 6.1 6.2

1.0 1.0 1.0 1.1 1.1 1.1 1.1 1.1

4.4 4.5 4.6 4.6 4.7 4.8 4.9 5.0
-8.0 -3.5 1.0 5.7 10.4 15.3 20.2 25.2

Page 2
 Cash Flow Analysis

14 15 16 17 18 19 20 21

395 402 410 419 427 436 444 453

52 53 54 55 56 57 58 59
16.0 16.0 16.0 16.0 16.0 16.0 16.0 16.0
6.3 6.4 6.6 0.9 0.9 0.9 0.9 0.9

1.2 1.2 1.2 1.2 1.3 1.3 1.3 1.3

5.1 5.2 5.3 -0.4 -0.4 -0.4 -0.4 -0.4
30.4 35.6 40.9 40.6 40.2 39.8 39.5 39.1

Page 3
 5.93 -2.9
8.895 3.2 20
11.86 7.8
14.825 11.8
17.79 15.5

15

10

IRR (%)
5

0
4 6 8 10 12 14 16

-5
Annual Energy Yield (GWh)
Figure 1: Change in IRR for a +/-50% variation in ene
 10 12 14 16 18 20

nual Energy Yield (GWh)

R for a +/-50% variation in energy yield