COST ANALYSIS

The NW 100/19 has a rated capacity of 100kW. However, given that there is unavoidable down time from variation in wind patterns, icing, and maintenance, each turbine would operate at their rated capacity only a fraction of the time. As detailed in the previous section, the total electricity generated per year, for the combination of the two turbines would be approximately 560,000kW.

To find out the cost of the electricity generated, we must first look at the initial capital costs of installation. Mott estimates that the installation cost would be around $2000 per installed kW. With 200 kW total, the cost of installation for the project would be about $400,000. The remaining portion of the capital costs would come from the interest on loans that the college may take out in order to fund the project. The college would most likely use internal funds, as opposed to a private equity group, to support this project. The College's capital fund would likely expect an interest rate of 9-11% from its investment. The loan is most likely to take place over 25 years, the average life expectancy of a turbine. With the use of a mortgage table, the total annual capital cost payments would be from $32,744 to $54,540.

The last factor that is important in considering the cost of wind energy is the operating and maintenance costs of the turbines. These costs include repairs, equipment replacement, and annual inspections. A general estimate of operation and maintenance costs are about $.01/kWh generated. Therefore, the annual operation and maintenance costs for the Snow Bowl would be $5,600.

The total annual cost and the cost/kWh can now be calculated. The total annual cost = the annual capital cost + the operation and maintenance costs. The cost/kW = the total annual cost/total annual electricity generated. Therefore the total annual costs lie between $38,344 to $60,140 or 6.8 to 10.7 cents per kWh. The variation in this estimate is based on differences in interest rates only. If the college finds a low interest rate or decides to take out a loan for a shorter period of time, the cost per kWh will decrease substantially.