Project Summery
2 MW Wind Turbine
Canada
Norwich, Ontario, Canada
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<p>This pre-feasibility analysis report looks at an opportunity to build a wind turbine at a mink farm located in Norwich, Ontario. Two scenarios are evaluated for their viability as profitable initiatives. The first scenario is the use of a 250 kW turbine to generate electricity to offset the electricity consumed by the operation of the mink farm. As the avoided cost of energy and the renewable energy delivered is insufficient to offset the initial costs to develop and install the turbine, this approach is determined to be unviable.<br />The second scenario is to install a utility-scale turbine that will generate electricity that will be sold to a local utility. This project is viable with the estimates provided in the analysis. However, under certain conditions, this project also becomes unviable. Therefore, it is important to diligently monitor the project to mitigate those risks. Three different turbines were considered in this scenario. Only the 2.0 MW turbine was determined to be viable option. Because of the size of this turbine, a significant amount of effort will likely be required to perform an environmental study.<br />The report assesses the costs to build and operate the wind turbine as well as projected revenues to be accrued over a project life of 20 years. In the most favourable of the above options, the following financial results are anticipated:<br />1. The total initial costs for the project will be ,443,000.<br />2. The project achieves positive cash flow in year 6 of the project.<br />3. The After-Tax Internal Rate of Return and Return on Investment for the project will be 16.1%.<br />4. The Net Present Value of the project will be 4,000.</p>
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