Cost analysis of wind mill

In order to make an accurate estimation of economic feasibility, the total cost

of the project must be calculated, including the capital cost (initial cost of the
construction and devices), replacement cost as necessary, and maintenance
costs. Operation costs should also be considered for the whole project.
However, due to the low cost of operation in wind turbines, the operation cost
can be considered part of maintenance costs. By accurately estimating these
costs, the price of power generation per kW can be estimated. This price is a
suitable indicator for choosing the best possible turbine for a wind power
plant.

In this research, the cost of energy (C.O.E.) per kW was the distinguishing
feature considered among the turbines studied.

Here the numerator stands for annual total cost and denominator for energy
load.
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Capital cost breakdown of a windmill.

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Towers: These are an important part of the wind turbine cost (up to one
quarter), but are a relatively mature component. Most are rolled steel, with
costs being driven by steel prices. However, increased competition, the
integration of lightweight materials and the more distributed location of
manufacturers that will be possible as markets expand means tower costs may
come down, perhaps by 15% to 20% by 2030.

Blades: Wind turbine rotor blades can account for one-fifth of turbine costs.
The key driver behind blade design evolution is weight minimisation as this
reduces loads and helps improve efficiency. Using more carbon fibre in blades,
as well as improving the design of blades (with production efficiency and
aerodynamic efficiency in mind) can help reduce weight and costs, although
the high cost of carbon fibre is a problem. Cost reductions of 10% to 20%
could be possible by 2021.

Gearboxes: Typically represent 13% to 15% of wind turbine costs The R&D
focus for gearboxes is to improve reliability and reduce costs. Vertical
integration of gearbox manufacturing by wind turbine suppliers should help
reduce costs. Cost reductions may also stem from the increasing share of
gearless drive generators using permanent magnet synchronous motors.
Overall, cost reductions could reach 15% by 2021.

Other components: The most significant remaining components are Cost

Analysis of Wind Power the generator, control systems (including pitch and
yaw systems), transformer and power converter. These components, as well as
the other miscellaneous components of the turbine, all have opportunities for
cost reductions through increased manufacturing efficiency and R&D efforts.
These components could see cost reductions of 10% to 15% by 2021.
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COST ANALYSIS OF BLADES :-

Manufacturing cost:
1) Material cost: Different materials used to determine
cost.

2) Labor cost : Manufacturing processes to determine

cost.
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Indirect Manufacturing Cost:

1) Overhead Cost: Operating a commercial wind turbine blade
manufacturing plant requires staffing and overhead costs which are not
directly related to the fabrication cost of an individual blade. These costs
include management oversight, sales and marketing, after-sales customer
support, warranty repairs, insurance, and other miscellaneous costs associated
with running a manufacturing business.

2) Development Cost:
Blade development costs were calculated for each of the three blade sizes. It
was assumed that the costs for engineering design and documentation were
essentially constant with the blade size if current fabrication materials and
methods were used. This simplifying assumption is based upon the need for
similar types of analyses and design documents regardless of the blade scale.
The cost associated with the fabrication of tooling and prototypes was
estimated by assuming the cost to be dependent upon the blade scale, as is the
cost of static, fatigue, and operational field testing.

3) Facilities Cost:
The annual blade production capacity and the plant conceptual design were
used to develop tooling, equipment, and facilities cost estimates.

4) Transportation Cost:
Transportation of large wind turbine blades can be difficult and expensive.
Careful analysis of cost required is necessary.
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Overall Blade costs of 30,50,70 metro blades:

Blade power specific cost as a function of blade length:

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The Breakdown of Initial Wind Turbine Costs:

$2.6 – $4 million per average-sized commercial wind turbine.

● Typical cost is $1.3 million per megawatt (MW) of
electricity-producing capacity
● Most commercial wind turbines have a capacity of 2-3 MW,
but offshore turbines can be as large as 12 MW
● Cost increases as turbine size increases, though there are
benefits to using fewer, larger turbines – complexity and
construction of the overall farm site is greatly reduced with
fewer and larger turbines.

Wind Turbine Maintenance Costs

Once built, maintenance is an ongoing expense.

● 1-2 cents per kilowatt-hour produced, or

● $42,000 – $48,000 per year

What Does Operation & Maintenance Consist of?

Operation & maintenance (O&M) is made up of the following:

● Insurance
● Land rent
● Service, repair and spare parts
● Administrative tasks
● Power (it does take some electricity to run)
● Miscellaneous
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Wind turbines cost more the bigger they get, but they produce
more electricity with larger nacelles and turbine blades.

In 2019, it was reported that the average rotor diameter had risen to
129 meters.

Common commercial wind turbine sizes in megawatts:

● 1.5 MW (onshore, or land-based)

● 2.5 MW (onshore)
● 4 MW (onshore)
● 6-8 MW (offshore)
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LAND BASED TURBINE: COE calculation summary from a run of the

cost model for the land-based 1.5-MW baseline turbine in 2002
dollars
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OFFSHORE TURBINE: cost estimate and COE calculation summary from a

run of the cost model for the offshore (shallow water) 3-MW baseline
turbine in 2005 dollars.
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REFERENCES:
https://jrenewables.springeropen.com/articles/10.1186/s40807-020-00062-
7
https://publications.lib.chalmers.se/records/fulltext/179861/179861.pdf
https://weatherguardwind.com/how-much-does-wind-turbine-cost-worth-it/
https://www.irena.org/-/media/Files/IRENA/Agency/Publication/2012/RE_
Technologies_Cost_Analysis-WIND_POWER.pdf
https://www.nrel.gov/docs/fy07osti/40566.pdf
https://windpower.sandia.gov/other/031428.pdf