Worked Example
Revenues from land leases. These are typically 6% of total revenues in the first 10 years of the project, rising to 8% thereafter. A minimum payment of £3200/MW installed is guaranteed, irrespective of actual operations.
Potentially lower electricity costs. For projects which can feed an on-site energy demand, PfR offers a long term electricity supply contract at a substantial discount to market prices. This offers a safeguard against volatile electricity costs.
This worked example below illustrates the potential scale of the economic benefits available from a single 2.3MW turbine with a private wire.
Cost Savings
|
Annual Electricity Cost Saving for Onsite Load |
|
Current Electricity Cost |
£461,000 |
|
PfR Contract Discount |
17% |
|
Saving on Electricity Supply |
£83,500 |
|
Cost of Peak Supply |
£5,500 |
|
Electrical Upgrade Years 1-5 |
£50,000 |
|
Net Saving on Supply
Years 1-5
Years 6+ |
£28,000
£78,000 |
Lease Income
|
Annual Land Lease Income |
|
Guaranteed Minimum |
£7,360 |
|
Lease Income Years 1-10 |
£38,000 |
|
Lease Income Years 11+ |
£51,000 |
Total Annual Value
|
Total Annual Value
(Net Annual Saving on Electricity Supply Plus Annual Land Lease Income) |
|
Years 1-5 |
Years 6-10 |
Years 11-20 |
|
£66,000 |
£116,000 |
£129,000 |
Lifetime value from a single 2.3MW wind turbine = £2.2million