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Title: Wind Levelized Cost of Energy: A Comparison of Technical and Financing Input Variables

Abstract

The expansion of wind power capacity in the United States has increased the demand for project development capital. In response, innovative approaches to financing wind projects have emerged and are proliferating in the U.S. renewable energy marketplace. Wind power developers and financiers have become more efficient and creative in structuring their financial relationships, and often tailor them to different investor types and objectives. As a result, two similar projects may use very different cash flows and financing arrangements, which can significantly vary the economic competitiveness of wind projects. This report assesses the relative impact of numerous financing, technical, and operating variables on the levelized cost of energy (LCOE) associated with a wind project under various financing structures in the U.S. marketplace. Under this analysis, the impacts of several financial and technical variables on the cost of wind electricity generation are first examined individually to better understand the relative importance of each. Then, analysts examine a low-cost and a high-cost financing scenario, where multiple variables are modified simultaneously. Lastly, the analysis also considers the impact of a suite of financial variables versus a suite of technical variables.

Authors:
;
Publication Date:
Research Org.:
National Renewable Energy Lab. (NREL), Golden, CO (United States)
Sponsoring Org.:
USDOE
OSTI Identifier:
966296
Report Number(s):
NREL/TP-6A2-46671
TRN: US200921%%406
DOE Contract Number:  
AC36-99-GO10337
Resource Type:
Technical Report
Country of Publication:
United States
Language:
English
Subject:
17 WIND ENERGY; CAPACITY; CAPITAL; ECONOMICS; ELECTRICITY; FINANCING; WIND POWER; LEVELIZED COST OF ENERGY; LCOE; NREL; ANALYSIS; WIND ENERGY; WIND PROJECT; WIND FINANCING; WIND DEVELOPERS; WIND MARKETS; TECHNICAL VARIABLES; WIND MODELING; PRODUCTION TAX CREDIT; PAUL SCHWABE; KARLYNN CORY; Energy Analysis

Citation Formats

Cory, K., and Schwabe, P. Wind Levelized Cost of Energy: A Comparison of Technical and Financing Input Variables. United States: N. p., 2009. Web. doi:10.2172/966296.
Cory, K., & Schwabe, P. Wind Levelized Cost of Energy: A Comparison of Technical and Financing Input Variables. United States. doi:10.2172/966296.
Cory, K., and Schwabe, P. Thu . "Wind Levelized Cost of Energy: A Comparison of Technical and Financing Input Variables". United States. doi:10.2172/966296. https://www.osti.gov/servlets/purl/966296.
@article{osti_966296,
title = {Wind Levelized Cost of Energy: A Comparison of Technical and Financing Input Variables},
author = {Cory, K. and Schwabe, P.},
abstractNote = {The expansion of wind power capacity in the United States has increased the demand for project development capital. In response, innovative approaches to financing wind projects have emerged and are proliferating in the U.S. renewable energy marketplace. Wind power developers and financiers have become more efficient and creative in structuring their financial relationships, and often tailor them to different investor types and objectives. As a result, two similar projects may use very different cash flows and financing arrangements, which can significantly vary the economic competitiveness of wind projects. This report assesses the relative impact of numerous financing, technical, and operating variables on the levelized cost of energy (LCOE) associated with a wind project under various financing structures in the U.S. marketplace. Under this analysis, the impacts of several financial and technical variables on the cost of wind electricity generation are first examined individually to better understand the relative importance of each. Then, analysts examine a low-cost and a high-cost financing scenario, where multiple variables are modified simultaneously. Lastly, the analysis also considers the impact of a suite of financial variables versus a suite of technical variables.},
doi = {10.2172/966296},
journal = {},
number = ,
volume = ,
place = {United States},
year = {2009},
month = {10}
}

Technical Report:

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