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Wind Turbine L25-L26 Revised
Wind Turbine L25-L26 Revised
1
• Wind Energy System Economics
(Chapter 11)
• Environmental Aspects and Impacts
(Chapter 12)
• Prospects -- Bright and Challenging
2
Wind Energy System Economics
3
• Why so important ?
4
• We can reliably produce wind energy.
• That is, we have the capabilities for
• Design and analysis
• Manufacturing
• Installation
• Operation and maintenance (O&M)
• Transportation
5
Given these capabilities, is wind
energy cost effective?
Market value
Cost of
generating
wind energy ≤ of the wind
energy
produced
6
Costs of generating wind energy
Capital
9
Economics of Wind energy
10
Availability = fraction of the life time in a
year the WT is able to generate electricity
(p. 506)
11
95%
12
Availability
~ 1990 95 % availability
13
“ When assessing the availability figures,
the required maintenance effort must not
be ignored. From an economic point of
view, a technical availability of 95%,
achieved by servicing and maintenance
costing, e.g. 10% of the total investment, is
a disastrous result. A commercially viable
situation requires an availability of at
least 95% with annual maintenance costs
of no more than 2 to 3% of the investment
cost.” E. Hau, Wind Turbines Springer,
2006, p. 530
14
WT availability WT capacity factor (CF)
15
Typical numerical values: 0.2 ≤ CF ≤ 0.4
•Small turbine with 15 m rotor diameter
•55 kW rated power
•rated power per rotor-swept area 311 W/m2
•annual energy yield 110000 kWh,
capacity factor = 110000/(55*8760) =0.23
17
Capital costs of Wind Energy
Systems
18
“The determination of the capital costs of a wind energy
system remains one of the more challenging subjects in
wind energy. The problem is complicated because wind
turbine manufacturers are not particularly anxious to share
their own cost figures with the rest of the world, or, in
particular, with their competitors. Cost comparisons of
wind turbine research and development projects are
particularly difficult; that is, the development costs cannot
be compared consistently. Also, costs other than the
turbine may be site specific. This problem can further
complicate capital cost estimates. This is especially true for
offshore systems, in which installation costs may be large
relative to the wind turbine costs.” p. 433
19
In determining the cost of the wind turbine itself, one must
distinguish between the following types of capital cost estimates:
20
3. Cost of a new (not previously built) wind turbine design.
This type of capital cost estimate is much more complex
since it must first include a preliminary design of the new
turbine. Price estimates and quotes for the various
components must be obtained. The total capital cost
estimate must also include other costs such as design,
fabrication, testing, etc.
4. Future cost of a large number of wind turbines of a new
design. This type of cost estimate will involve a mixture of
second and third types of cost estimates. (p. 433)
21
Wind Turbine installed prices in the US
(Wind Energy Explained, second edition, Figure 11.5, p. 509) 22
Operation and maintenance costs (p. 510)
≈ 1.5 % to 3% of the original turbine cost
23
Economic Analysis methods
• Learning curves or experience curves and
progress ratio
24
Learning Curve
A component or system is produced in large quantities
Reduction in production cost
25
Let
y = cost of an object
x = cumulative volume
dy dx
m
y x
m is a constant of proportionality
As the volume x increases, the cost decreases.
Therefore the sign is negative.
26
dy/y = -m dx/x
As the volume increases from x1 = x to x2 = x(2n), the
cost decreases from y1 to y2 :
y2 2 x
dy dx
y m x
y1 x 1
y2 x2
ln m ln
y1 x1
y2
ln mn ln 2
y1
y2
2 m
n
y1
y 2 y1 s n ; s 2 m progress ratio 27
y2/y1=(sn)=(x2/x1)-m
Given s and x2/x1 , y2/y1 versus x2/x1 is a
straight line on a log-log paper.
(see next figure for s=0.95 to 0.7)
28
0
10
95%
s=
90%
0.227
Normalized cost (y2/y1)
-1 85%
10
80%
-2
10 70%
-3
10 0 1 2 3 4 5
10 10 10 10 10 10
Cumulative volume (x2/x1)
Fig. 9.7 Normalized cost vs. cumulative volume for varying progress ratios, p. 513
29
HW
Plot Normalized cost vs cumulative
volume on a log-log scale for s = 90%.
(i.e. reproduce the previous figure but
only for s=90%)
30
Illustration: Consider,
x2
100 2 n
x1
m ln ( s )
s2 m
ln (2)
y x
ln 2 m ln 2
y1 x1
ln ( s ) ln (100)
ln 100 ln(0.8)
ln ( 2) ln ( 2)
( 0.2231) (6.6439)
1.4823
y2
e 1.4823 0.227
y1 31
s = 2–m = progress ratio
= quantifies the cost reduction as we progress
to produce more.
x 2 x 1 2 n
, x1 x
m
y2 x2
2 mn
y1 x1
32
In the text,
y C(V), y 1 C(V0 ), y 2 C(V)
x V, x 1 V0 , x 2 V
m
y2 x2
y1 x1
(11.1) p. 512
b
C(v) V
(9.3.1) p. 438
C(v ) V
0 0
m (class) b (text)
33
Summary of the concepts of learning curve
(experience curve) and progress ratio:
(widely used and well tested.)
x 2 x 1 2 n
x2
ln
x1
n and
ln(2)
m
y2 x2
2 mn s n
y1 x1
s progress ratio 2 m
34
P. 656 B.11.1
35
We also solve this problem a bit differently:
x≡ volume of production (no. of items produced)
x 2 x 2 , x 1 x
n
x2
ln
x1 ln100
n 6.6438
ln(2) ln(2)
y 2 y 1s n
$ 29,000
36
37
38
Key findings of this study are :
This study is based on experience or learning
curve and progress ratio (s≡PR)
39
40
Although the experience curve for wind turbines indicates
relatively moderate reductions in the cost of wind turbines,
the cost of wind-generated electricity may be considerably
reduced in the future. This is due to the fact that a reduction in
cost of wind-generated electricity will also arise from
improved performance and reduced O&M costs, in addition
to the cost reduction of wind turbines. The results of this
study show that the average cost of wind-generated electricity
will be reduced by approximately 45% up to the year 2020,
assuming an annual market growth of
15–20%. 41
Economic Analysis Methods
Capital Costs
42
Scaling
Use the cost data for smaller existing WTs
Unit cost per kW of rated power
=> or
Unit cost per unit area of rotor
At best a crude estimate during planning
studies.
Why?
43
Scaling
• Does not account for continually evolving
design process -- improved design
methods, materials technology and
manufacturing, and related impact on cost
reduction
• Inherent nonlinearity
44
• A fundamental approach is used:
1. Divide the machine into various
components and determine the cost of each
component
45
, p. 436
46
, p. 437
47
p. 712 (Eric Hau)
48
p. 712 (Eric Hau)
49
p. 711 (Eric Hau)
50
p. 711 (Eric Hau)
51
Comprehensive Computer Codes
calibratio n
cost weight cost per unit weight complexity factor
coefficien t
52
, p. 516 53
Capital costs of offshore Wind turbines >
25% more to three times as much
54
Factors affecting cost
1. Distance from shore
2. Depth of water (details to follow)
3. Environmental conditions
4. Soil type
5. Technology and project size
55
56
, p. 518
57
p. 519
58
59
, p. 520
60
, p. 521
61
Economic Analysis Methods (pp. 530-538)
Following the text, we assume that we have
reliable estimates of:
1.Capital costs
2.O&M costs
63
Simplified Models
• Simple Payback period analysis
• Cost of Energy analysis
64
Simple Payback Period Analysis
1. Basically, we determine the length of time
required to recoup our initial investment.
2. Free of detailed economic variables.
3. Neglects several variables such as loan
costs, depreciation on capital costs, O&M.
4. Suitable for a preliminary estimate of
wind energy system’s feasibility.
65
Simple Payback Period=SP=Cc/AAR
Cc =installed capital cost
AAR= average annual return from energy
production
=(Ea) Annual Energy Production
(kWh/year) x (Pe) Price obtained for
electricity ($ /kWh)
66
Example:
Cc=installed capital cost= $ 50,000
Ea=annual energy production (kWh/y)
=100,000 kWh/y
Pe=price obtained for electricity ($/kWh)
= $ 0.10 $/kWh
SP=Cc/AAR
= Cc/(Ea. Pe)
=$ 50,000/100,000 kWh/y x 0.1 $/kWh)
SP=5 years
67
Cost of Energy Analysis
• An improved version of the simple
payback period analysis in that it includes
loan costs and costs of O&M.
• COE=unit cost to produce energy ($/kWh)
from the wind energy system
COE=(Operating cost)/(Energy produced)
=[(Cc x FCR)+CO&M]/Ea
68
Cc =Capital cost of system
(as in Simple Payback Period Analysis)
69
Example:
• Cc = $50,000 = initial capital cost
• Ea = annual energy production
=100,000 kWh/y
FCR =10%
CO&M =2% of Cc
=2/100 x 50000
=$1000 /y
COE =[50,000 x 0.1+1000]/100,000
=6000/100,000=$ 0.06 /kWh
70
B.11.3 Simple Cost of Energy, p. 656
71
COE =[(Cc x FCR)+CO&M]/Ea ---(11.17), p. 531
72
Life-Cycle Costing Methods
(LCC methods, pp. 453-458)
The value of money can increase because
of interest from some investment;
or
The value of money can decrease because
of inflation.
Time value of money
LCC method accounts for this time value
of money.
73
LCC method requires some key concepts of
engineering economics:
• Time value of money:
Present value (PV), Future Value (FV), and
Present worth factor (PWF)
• Levelizing
• Capital Recovery Factor (CRF)
• Net Present Value
74
Present Value (PV)
r= interest (or discount) rate with annual
compounding
(discount rate ≡ “the next best rate of return
which one could expect to obtain”, p. 454)
We take a loan of value PV, and repay it in
N equal installments of A
75
A A A A
Year 0
~
Year 1 Year 2 Year 3 Year N
PV
76
1 r N 1
PV A N
(9.6.9), P.455
r 1 r
1 1 r N
A (9.6.9), P.455
r
77
Example
What is the present value of a yearly payment of $100 for
20 years with 12% interest rate
From Eq (9.6.9), p. 455
1 1 r N 1 r N 1
PV A A N
r r 1 r
1 0.12 20 1
100 20
0.121 0.12
$746.94
78
Equivalently :
Say we deposit $ 746.94 in the bank at 12%
interest compounded annually.
We withdraw $ 100 at the end of each year.
At the end of 20 years, the balance is zero.
79
Example
80
PV(A)1-20
~
0 1 2 3 n
81
PV=$ 982521
1 2 3 4 5 6 7 8 9 10 20
~
A A A A A A A A A A A
1 0.05 20 1
PV(A) 1 20 78840 $ 982521
0.051 0.05
20
82
Example :
πd 2 π 6 2
A 28.27m 2
4 4
The cost per unit area is then
C c 10,000
Ca $ 354/m 2
A 28.27
The cost per kilowatt is
10,000
C kw $ 2380 /kW
4.2
We need the total yearly energy production Ea to find the unit cost of
electricity. The capacity factor CF=0.380. The yearly energy production is
then
Ea=4.2(0.380)(8760)=13,980 kWh/y
84
The annual payment A is found from equation (11.11); p 533
10,000
A $1390.65
1 0.11 20 1
0.111 0.11
20
A 1390.65 $/y
Cu $0.099/kWh
E a 13,980 kWh/y
85
The future value FV of a present value of PV with annually
compounded interest rate of r:
FV=PV(1+r)N ----- (11.8) p. 532
86
87
Capital recovery factor CRF is defined as the ratio of A to PV
1 r N 1
PV A N
r 1 r
A r 1 r N
CRF
PV 1 r 1
N
r
CRF (9.6.10)
1 1 r N
(11.12) p. 534
A PV (CRF)
89
Cost of wind-generated electricity (kWh/y)
90
We considered earlier
COE =[(Cc x FCR)+CO&M]/Ea -- (11.7), p. 531
(11.6.1.2), p. 531
PV
1 2 3 N
~
A A A A
93
REVIEW
1 2 3
~
year N
1 r N 1
PV (C O & M ) mC c
r 1 r
N
1 r N 1
NPV C c 1 m
r 1 r
N
94
Net present value (NPV) of yearly cost:
NPV C c 1 r N 1
1 m
r 1 r
N N N
95
Revisit Capacity Factor :
Cc 1 1 r N 1
1 m
r 1 r
8760 N ( Prated )(CF ) N
97
Example
98
Here, the installation cost of turbine is
550000 x 30/100=$165000
So the total initial investment for the project is
550000+165000=$ 715000.
Hence, the cost of one kWh of electricity is
715000 1 1 0.05 20 1
c 1 0.035 $ 0.04 /kWh
8760 20 (600)(0.25) 0.051 0.05
20
CF
99
Example
capacity factor.
100
Effect of capacity factor on the unit cost of electricity is
shown in next Figure. The break-even capacity factor is
the CF for which the generating costs are equal to the
selling cost. Hence we have
715000 1 1 0.05 20 1
0.03 1 0.035
8760 20 (600)(CF) 0.051 0.05
20
101
0.1
cost of generating $/kWh
0.08
0.06
0.04
0.02
0
0 0.05 0.1 0.15 0.2 0.25 0.3 0.35 0.4 0.45 0.5
capacity factor
102
Environmental Aspects and Impacts
(Chapter 12)
An overview
103
Negative Impacts concerning:
• Noise
•Interference with radio and TV
transmission and Radar
•Hazardous to avian life in some areas
(raptor kill)
•Aesthetic impact
•*Land use
•*Worker Hazard
* Not covered
104
Sustainable Energy
Choosing Among Options (2005)
The MIT Press
Cambridge, Massachusetts
London, England
105
AWEA Weekly, August 2009
Sound from Wind Turbines Not Harmful: Expert Panel
Full report available at:
http://awea.org/newsroom/releases/AWEA_CanWEA_SoundWhitePaper_1
2-11-09.pdf
106
A multidisciplinary panel has concluded that the
sounds generated by wind turbines are not
harmful to human health
107
The expert panel was established by AWEA and the
Canadian Wind Energy Association (CanWEA) to review
all current literature available on the issue of perceived
health effects of wind turbines. Composed of medical
doctors, audiologists, and acoustical professionals from the
United States, Canada, Denmark, and the United Kingdom,
the panel undertook extensive review, analysis, and
discussion of the large body of peer-reviewed literature,
specifically with regard to sound produced by wind
turbines.
108
"The panel’s multidisciplinary approach helped to fully
explore the many published scientific reports related to the
potential impact of wind turbines on people’s health," said
Dr. Robert J. McCunney, one of the authors of the study
and an occupational/environmental medicine physician
and research scientist at the Massachusetts Institute of
Technology (MIT). "There is no evidence that the sounds,
nor the sub-audible vibrations, emitted by wind turbines
have any direct adverse physiological effects on humans."
109
In one section, the report put the second issue in
perspective with one particular analogy, stating
that “if sound levels from wind turbines were
harmful, it would be impossible to live in a city
given the sound levels normally present in urban
environments.”. The report also found that “sub-
audible, low frequency sound and infrasound
from wind turbines do not present a risk to human
health.”.
110
“Some people may be annoyed at the presence of
sound from wind turbines. Annoyance is not a
pathological entity.”
111
“For more than thirty years, people have been living
near the more than 50,000 wind turbines operating in
Europe and the more than 30,000 in North America.
The vast majority of people have had a positive
experience living near wind turbines, with no ill
effects.”
112
"The objective of the panel was to provide an
authoritative, scientific reference document for those
making legislative and regulatory decisions about
wind turbine developments," said AWEA CEO
Denise Bode. "This study is another indication that
wind is one of the most environmentally benign
sources of electricity available."
113
Aesthetic impact
“The best wind farm sites are often in locations
with a certain degree of wilderness cachet in the
US and near the crests of horizon-defining
topography. The resulting visual impact is
distressful to a non-negligible fraction of the
public.”
114
Design as if People Matter: Aesthetic Guidelines for the
Wind Industry
by P.B. Gipe, Paul Gipe & associates, Tehachapi,
California, U.S.A.
http://www.wind-works.org/articles/design.html
116
“Interference with radio and TV transmission
and radar. This has been, and still is,
problematic in some instances, but appears to
be diminishing as cable and satellite systems
proliferate, as electronic technology improves
and as fiberglass blades are used in lieu of metal
and siting guidelines evolve.”
117
Summary – Be a good Neighbor
In general, the prescriptions for optimizing aesthetic
acceptance can be summarized by noting that
designers, developers, and operators should make
every effort to be a good neighbor. Only when the
wind industry places much importance on being
good neighbor as on aerodynamic efficiency will the
public welcome wind turbines into their backyards.
118
Text, p. 548
119
A widely shared consensus:
120
Prospects -- Bright and challenging
1. Reasons
2. Three research areas (modeling turbulence and
wake)
121
Renewable energy ~ virtually an indispensable
component of electricity-generating infrastructure.
Examples:
122
“Among all available renewable energy sources, wind
123
Research Areas
124
Wind farm array schematic
125
Deep inside a wind farm, the mean wind
126
•Dynamic Inflow modeling deep inside a wind
farm
turbines
127
A Recent Exploratory Study
128
Offshore wind turbine deployed in deeper
waters
Depth:
Shallow ~ less than 20 meters deep
Transitional ~ 20 to 50 meters
deep ~ greater than 50 meters
129
Mounted on semi-submersible platforms, the floating wind
turbines being developed by Principle Power can be built in
shipyards and towed into place.
130
TLP = tension lag platform
132
In a fjord southwest of Karmøy Island, Norway, the HyWind
spar-type hull supports a 2.3 MW turbine. The hull displaces
some 5,300 tons.
133
Technical Challenges
134
REPOWER 5M
135
We believe :
136
I Thank you and wish you well
137