Wind farm capacity (MW) 50

Capital investmen (€) 65000000

Period of operation (years) 20
Decommissioning costs (€) 3000000
O&M costs (€/kWh) 0.0091
Annual energy production (kWh) 110000000
Electricity selling price, tariff (€/kWh) 0.075
Annual discount rate (%) 8

Net present value (NPV) of the wind farm project

Question 1
1. What are the O&M costs in euro for each year (€/year)?
€ (1,001,000.00)

Question 2
2. What is annual revenue from selling the electricity (€/year)?
capacity factor 0.25
Annual Energy Production AEP [MWh] 109500

Annual revenue € 8,250,000.00

Question 3
3. What is the annual net income (€/year)?

annual net income € 7,249,000.00 7249000

Question 4
4. What is the net present value of this wind farm project(€)? Hint: when calculating with NPVfunction don't forget

NPV Net Income $71,171,750.56

NPV Project $5,528,105.93

The levelised cost of energy (LCOE) from a wind farm.

Question 1
1. Again, using the NPV function, what is the present value of all the maintenance costs for the 20years of operat

NPV O&M ($9,827,965.55)

Question 2
2. What is the present value of the payment cost made to decommission the wind farm (€)? Hint: Use the PV func

PV Decomissioning ($643,644.62)
Question 3
3. Finally, add these two together with the initial capital cost to give the present value of all the costs (€).

NPV costs ($75,471,610.18)

Question 4
4. What is the levellised annual cost (€/year)?

PMT Project ($7,686,950.20)

Question 5
5. What is the levellised cost of energy (LCoE) for the wind farm (€/kWh)?

LCoE ($0.069881)
-6.9881365454
with NPVfunction don't forget to extract the decommissioning cost from the last years net income.

sts for the 20years of operation (€)? Hint: For calculating NPV of costs, the sign of each annual entry should be negative. Note 

m (€)? Hint: Use the PV function but take care as the annual payment is zero and the decommissioning cost is the future value
of all the costs (€).
ntry should be negative. Note also that the initial capital investment should not be included here.

ioning cost is the future value.