assumptions.docx - 1-20 years Average hourly power output per turbine Operational days per year MWh 0.31 days 363.00 Capital expenditure per turbine $

assumptions.docx - 1-20 years Average hourly power output...

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1-20 years Average hourly power output per turbine 0.31 MWh Operational days per year 363.00 days Capital expenditure per turbine 3,000,000.0 0 $ Life 20.00 years Turbines will be dismantled at end of 20 years if not overhauling. Salvage per turbine 200,000.00 $ Market value at end of 20 years. Expected price per MWh of power in first year 80.00 $ Price per MWh is then expected to increase at inflation. Expected price per MWh of renewable energy certificate in first year 70.00 $ For each MWh generated by the wind turbines, SAI will be issued with a renewable energy certificate which it can sell to electricity retailers who have sold renewable energy to customers. Price of certificates is then expected to increase at inflation. Expected operating expenses per turbine in first year
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Unformatted text preview: 100,000.00 $ Annual operating expenses then expected to increase by inflation. Depreciation method Straight Line Working capital- $ Given service agreements, there is no working capital requirement Inflation Rate (p.a.) 0.026 Tax Rate 0.30 Tax payment occurs at the same year as income Discount Rate 0.10 Additional Information to extend life to 40 years Overhaul cost at end of 20th year per turbine 1,500,000.0 0 $ Life of overhaul 20.00 years Salvage - $ Depreciation method of overhaul cost Straight Line Overhaul expense is capitalised and then depreciated over extended life. Treatment of existing capital expenditure (e.g. original outlay)- $ Remaining book value of original capital expenditure written down to zero in year 20....
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