Revisiting the 'Buy versus Build' decision for publicly owned utilities in California considering wind and geothermal resources

Bolinger, Mark; Wiser, Ryan; Golove, William

doi:10.2172/789168

Cited by 4 publications

(7 citation statements)

References 5 publications

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“…90.0% -18.8% -16.2% -13.9% -11.9% -10.1% -8.5% -7.0% -5.7% -4.5% -3.3% -2.3% Positive (and unshaded) means the ITC (or equivalent cash grant) provides more value Negative (and shaded) means the PTC provides more value Table 5 presents results for a geothermal project over a range of installed costs from $3,000/kW to $6,000/kW, and for capacity factors ranging from 70% to 95%. The modeling assumes that 75% of the project is depreciated using a 5-year MACRS schedule, while the rest of the project's costs are, for tax purposes, either expensed or depleted (Bolinger et al, 2001), and are therefore ineligible for the ITC. Geothermal projects are eligible for the full PTC (i.e., $21/MWh in 2008), which is assumed to escalate at 2%/year.…”

Section: Net Capacity Factor (%)mentioning

confidence: 99%

PTC, ITC, or Cash Grant? An Analysis of the Choice Facing Renewable Power Projects in the United States

Bolinger¹

2009

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Section: Net Capacity Factor (%)mentioning

confidence: 99%

PTC, ITC, or Cash Grant? An Analysis of the Choice Facing Renewable Power Projects in the United States

Bolinger¹

2009

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“…The debt payments will be Figure 6.44 Cost of energy from a $1000/ kW, 50-MW windfarm including PTC, depreciation, financing charges, and tax implications (O&M 1¢/kWh, inflation 2.3%, 60% equity with return 15%, debt interest 5%, income tax rate 40.7%, PTC 1.8¢/kWh for 10 yrs, CEC 5-yr incentive 0.75/kWh, discount rate 5%, MACRS 5-yr depreciation, property taxes 1.1%). Based on Bolinger et al (2001).…”

Section: Solutionmentioning

confidence: 99%

“…A careful analysis including PTC, equity and debt financing, depreciation, and inflation for a $1000/ kW, 50-MW windfarm with a 0.30 capacity factor yields a cost of wind power of 4.03¢/kWh (Bolinger et al (2001). Scaling that result for varying capacity factors yields the graph shown in Fig.…”

Section: Solutionmentioning

confidence: 99%

Renewable and efficient electric power systems

Masters

2005

Choice Reviews Online

330

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Limit of Liability/Disclaimer of Warranty: While the publisher and author have used their best efforts in preparing this book, they make no representations or warranties with respect to the accuracy or completeness of the contents of this book and specifically disclaim any implied warranties of merchantability or fitness for a particular purpose. No warranty may be created or extended by sales representatives or written sales materials. The advice and strategies contained herein may not be suitable for your situation. You should consult with a professional where appropriate. Neither the publisher nor author shall be liable for any loss of profit or any other commercial damages, including but not limited to special, incidental, consequential, or other damages.

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“…Based on Bolinger et al (2001). Example 6.19 leaves out a number of other factors that affect the economic viability of doing the wind farm, including depreciation, income taxes, and a special tax incentive called the wind energy production tax credit (PTC).…”

Section: Solutionmentioning

confidence: 99%

“…The levelized price at which electricity needs to be sold is therefore .44 Cost of energy from a $1000/ kW, 50-MW windfarm including PTC, depreciation, financing charges, and tax implications (O&M 1¢/kWh, inflation 2.3%, 60% equity with return 15%, debt interest 5%, income tax rate 40.7%, PTC 1.8¢/kWh for 10 yrs, CEC 5-yr incentive 0.75/kWh, discount rate 5%, MACRS 5-yr depreciation, property taxes 1.1%). Based on Bolinger et al (2001).…”

Section: Solutionmentioning

confidence: 99%

Wind Power Systems

Masters

2004

Renewable and Efficient Electric Power Systems

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Wind has been utilized as a source of power for thousands of years for such tasks as propelling sailing ships, grinding grain, pumping water, and powering factory machinery. The world's first wind turbine used to generate electricity was built by a Dane, Poul la Cour, in 1891. It is especially interesting to note that La Cour used the electricity generated by his turbines to electrolyze water, producing hydrogen for gas lights in the local schoolhouse. In that regard we could say that he was 100 years ahead of his time since the vision that many have for the twenty-first century includes photovoltaic and wind power systems making hydrogen by electrolysis to generate electric power in fuel cells.In the United States the first wind-electric systems were built in the late 1890s; by the 1930s and 1940s, hundreds of thousands of small-capacity, windelectric systems were in use in rural areas not yet served by the electricity grid. In 1941 one of the largest wind-powered systems ever built went into operation at Grandpa's Knob in Vermont. Designed to produce 1250 kW from a 175-ft-diameter, two-bladed prop, the unit had withstood winds as high as 115 miles per hour before it catastrophically failed in 1945 in a modest 25mph wind (one of its 8-ton blades broke loose and was hurled 750 feet away).

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Revisiting the 'Buy versus Build' decision for publicly owned utilities in California considering wind and geothermal resources

Cited by 4 publications

References 5 publications

PTC, ITC, or Cash Grant? An Analysis of the Choice Facing Renewable Power Projects in the United States

PTC, ITC, or Cash Grant? An Analysis of the Choice Facing Renewable Power Projects in the United States

Renewable and efficient electric power systems

Wind Power Systems

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