Windpower project ownership and financing: The cost impacts of alternative development structures
- Lawrence Berkeley National Lab., CA (United States)
This paper uses traditional financial cash-flow techniques to examine the impact of different ownership and financing structures on the cost of wind energy. While most large-scale wind projects are constructed, operated, and financed by non-utility generators (NUGs) via project financing, investor- and publicly-owned utilities have expressed interest in owning and financing their own facilities rather than purchasing wind energy from independent generators. A primary justification for utility ownership is that, because of financing and tax benefits, windpower may be cheaper when developed in this fashion. The results presented in this paper support that justification, though some of the estimated cost savings associated with utility ownership are found to be a result of shortcomings in utility analysis procedures and implicit risk shifting. This paper also discusses the comparative value of the federal production tax credit and renewable energy production incentive; estimates the financing premium paid by NUG wind owners compared to traditional gas-fired generation facilities; and explores the impact of electricity restructuring on financing.
- Research Organization:
- American Wind Energy Association, Washington, DC (United States)
- DOE Contract Number:
- AC03-76SF00098
- OSTI ID:
- 570056
- Report Number(s):
- CONF-970608-PROC.; ON: DE98001975; TRN: 98:001071-0030
- Resource Relation:
- Conference: WindPower `97: annual conference and exhibition of the American Wind Energy Association (AWEA), Austin, TX (United States), 15-18 Jun 1997; Other Information: PBD: [1997]; Related Information: Is Part Of Proceedings: American Wind Energy Association; PB: 636 p.
- Country of Publication:
- United States
- Language:
- English
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