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NREL SAM Final Project Briefing �Open Avenues Foundation Micro-Internship with Clearway Energy Group

Darren Huang

04/28/2022

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Abstract

This project investigates the design of a 216-megawatt wind energy development project in Southwestern MN. The site selection was informed by advantageous wind conditions and the excellent infrastructure available. The model of the 144 turbines used, the 1.5MW GE 1.5sle, was selected for their performance as well as their tested reliability and ability to be easily repaired and upgraded. The initial capital cost of this project is about $274 million and incurs an Operation and Maintenance cost of 43 $/kW-yr. This wind development is projected to produce about 783,785,600 kWh yearly at a levelized cost of energy of 2.57 ¢/kWh.

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Site Selection

Southwestern MN - flat lands

  • Advantageous site for wind capacity
  • MN CapX2020 project
    • Utility project improving transmission grid infrastructure
  • Proximity to Midwest population centers
    • Reduced capital/transmission costs

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Turbine Selection

  • GE 1.5sle (1.5 MW) turbines
    • 77m rotor diameter
    • 80m hub height
  • Tested multi-generational GE platform
    • High efficiency and reliability
    • Used throughout other MN wind projects
    • Designed for future conversion/uprate

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Energy Yield

  • 216,000 kW (216 MW) total capacity
    • Comparable to other MN wind projects (Buffalo Ridge: 225 MW, Fenton: 205.5 MW)
  • 783,785,600 kWh in year 1
  • 12x12 rectangular layout

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Project Costs/Incentives

Capital Costs

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Cost per kW

Total Installed Cost

Turbine Cost

$965.00/kW

$208,440,000

Balance of System Cost

$304.33/kW

$65,735,549

TOTAL COST

$1,269.33/kW

$274,175,549

LandBOSSE Model Inputs

O&M All-In Levelized Cost (from Stehly 2021)

43 $/kW-yr

Federal Production Tax Credit (10 years)

1.5 ¢/kWh PTC

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Project Economics

Project Economics

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Project Rates

Local Market Rates (MISO)

LCOE (nominal)

3.24 ¢/kWh

4.47 ¢/kWh (2020)

NPV

$19,763,908

n/a

PPA

3.5 ¢/kWh

3.75 ¢/kWh (2019)

  • Includes 1.5 ¢/kWh Production Tax Credit (PTC)

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Future Optimization

  • Analysis into current market conditions
    • Finances: interest and discount rate would likely be very different today
    • Effects and sensitivity of market fluctuations: how are supply chain disruptions affecting capital and O&M costs? How do you build the model to be more resilient to these changes?
  • Better-researched values of inputs
    • Values for land-based balance of system inputs
    • Local incentives and costs of project

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References

“Capex, LCOE, and PPA prices by region,” CapEx, LCOE, and PPA Prices by Region | Electricity Markets and Policy Group. [Online]. Available: https://emp.lbl.gov/capex-lcoe-and-ppa-prices-region. [Accessed: 26-Apr-2022].

“Production Tax Credit and Investment Tax Credit for wind,” WINDExchange. [Online]. Available: https://windexchange.energy.gov/projects/tax-credits. [Accessed: 26-Apr-2022].

Stehly, Tyler and Patrick Duffy. 2021. 2020 Cost of Wind Energy Review. Golden, CO: National Renewable Energy Laboratory. NREL/TP-5000-81209. https://www.nrel.gov/docs/fy22osti/81209.pdf.

“Wind Prospector,” National Renewable Energy Laboratory. [Online]. Available: https://maps.nrel.gov/wind-prospector/. [Accessed: 26-Apr-2022].

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