Benchmark rate of return for wind power generation projects

Tags: Benchmark Rate Return

4 FAQs about Benchmark rate of return for wind power generation projects

Who provides funding for wind energy technologies?

Funding provided by U.S. Department of Energy Office of Energy Efficiency and Renewable Energy Wind Energy Technologies Office. The views expressed in the article do not necessarily represent the views of the DOE or the U.S. Government.

What is the discount rate for a wind project?

For example, the discount rate of an operational onshore wind project over its remaining lifetime would be a high single digit number (7-8%), whereas it is 1% to 2% higher for an investment at ready-to-build (RTB), to pay for the higher construction risk and associated double digit compressed return.

How much is an offshore wind farm worth?

To give you an idea of the scale of valuations as a project progresses, we would typically say that an offshore wind farm in early-stage development could be worth less than ~ EUR 50k/MW, whereas one in mid-stage development (until shovel ready) could be in the range of ~ EUR 50-150k/MW .

How much does a distributed wind system cost?

This range is primarily caused by the large variation in CapEx ($3,000–$9,187/kW) and project design life. The residential and commercial reference distributed wind system LCOE are estimated at $240/MWh and $174/MWh, respectively.

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