2010 Green Energy Act Finance Forum Presentation on Risk Management for small RE projects by Uwe Roeper
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The document discusses managing technical and project risks on small renewable energy projects with budgets less than $20 million. It outlines that legal and financing costs are too high, and the due diligence process is too time consuming and complicated for smaller projects. It then discusses the key risks - project design, construction, and operational risks - and how a new financing process and fresh approach is needed to manage risks on small projects. Specifically, it suggests simplifying due diligence on operational risks, combining it with lower debt coverage ratios and cross-security between projects to minimize transaction costs and facilitate financing.
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June 18, 2010
By: Andrew Chant
With the Assistance of: Alex Tsopelas
Bonnie Choi
AWMA Presentation Application of Two State-of-the-art Dispersion Models
- The document discusses the application of two state-of-the-art air dispersion models, AERMOD and ADMS, to assess compliance with new air quality requirements at Nanticoke Generating Station near Lake Erie and Lake Ontario.
- The models were used to model SO2 emissions from eight coal-fired power generation units and produced significantly different outputs due to their different treatment of key parameters like Monin-Obukhov length and boundary layer depth.
- Model selection was found to strongly influence the identification of compliance parameters and therefore the cost of achieving compliance. ADMS also offers a shoreline module that AERMOD currently lacks.
Firstly, Why Wind ?
This document discusses the advantages and potential of wind energy in Canada. It outlines the economic, social and environmental benefits of wind farms, including job creation, rural economic development, and clean energy production. It notes Canada's present reliance on fossil fuels and potential for growth in wind energy. Provincial targets could lead to over 12,000 MW of wind capacity by 2016, enough to power 4% of Canada's electricity demand and represent 20-25% of new generation over that time period. Wind energy is a viable option to increase Canada's energy independence and security while reducing environmental impacts.
Wind Sector Building a Business Strategy Our Lessons Learned
The company struggled when first entering the wind energy market between 2000-2003 due to changing market conditions and losing a power contract. They realized in 2005 they needed to strategically focus on wind consulting. Key lessons included that emerging sectors are complex, electricity is highly regulated, and policies can change quickly. Mistakes included not having a clear strategy and not dedicating enough resources initially. After 2005 they focused on building expertise in wind, and by 2009 were a recognized player in the industry. They learned it is important to have a strategy,
O&M Budgeting
This document discusses budgeting for operation and maintenance costs of wind turbines after warranty expiration. It notes the lack of reliable data available and variability in costs between turbine models and sites. It recommends budgeting $39,000 per turbine per year initially for limited extended warranty and service costs. Over the 20 year design life, maintenance is estimated to cost $4,000 per turbine annually while establishing a capital repair reserve of $16,000 per turbine annually to cover major repairs.
Wind Resource Assessment
This document discusses wind resource assessment for wind farm development. It covers how wind is generated, accessing wind resources through measurement and modeling, and estimating energy production with uncertainties. Key steps include measuring wind speeds on site, correlating to long-term reference stations to predict long-term distributions, modeling wind flows, planning turbine layouts, and estimating annual energy yields while accounting for production losses and uncertainties. Accurate wind assessment is critical for maximizing energy production estimates and ensuring project viability.
Wind Industry and Gear Boxes
1) Gear boxes in wind turbines are responsible for transferring power from the rotor to the generator but are prone to failure which impacts the financial performance of wind farms.
2) Underperformance of wind farms compared to predictions has been a major topic of discussion, with typical underperformance of 10% attributed to issues including gear box failures.
3) Early detection of gear box issues through condition monitoring and preventative maintenance can help reduce life cycle costs which vary widely from $0.4 million to over $2 million per turbine depending on maintenance approach.
Opacity of Visible Emissions Ontario Regulation 419/05 Section 34 (Amended)
The document summarizes Ontario Regulation 419/05 Section 34, which establishes opacity limits and requirements for visible emissions from industrial sources. It outlines the general 20% opacity limit for emissions, as well as exemptions for sources using high-ash fuels or those with approved alternative monitoring plans. Sources are required to notify the Ministry of the Environment of any exceedances of opacity limits. The regulation also establishes opacity limits and reporting requirements during start-up, shutdown, and maintenance activities.
Community Wind – Making Them Work
Small wind projects face challenges due to lack of economies of scale. They have higher costs for purchasing, balance of plant equipment, and finding financing due to smaller size. However, community wind projects allow local participation in renewable energy and improve wind industry acceptance. To overcome challenges, small projects can team up with local utilities, access government programs, and seek specialized financing. Alternatively, communities can organize larger joint projects or work with third parties who provide turbine supply, equity, debt financing, and long-term management. Understanding challenges is key to completing small wind projects successfully.
Odour Management 101 Wef2008
This document discusses issues related to odour sampling and measurement. It notes that methods are not standardized internationally and reviews some common techniques used for different source types, including dilution, lung, flux chamber, and wind tunnel methods. It emphasizes the importance of proper sampling procedures like collecting multiple samples per source, using dilution for high temperature sources, and assessing ambient odour levels. A lack of proper sampling can result in significant underreporting of odour levels.
Financial Sensitivity in the Wind Industry The Numbers You Really Need to Know
1) The document examines the financial sensitivity of various factors on the rate of return of a wind energy project, ranking revenue/operating costs as the highest risk followed by capital costs and then interest rates.
2) It finds that a 10% decrease in projected energy output can eliminate equity returns completely, whereas a 5% decrease reduces rate of return to around 7%.
3) Maintaining output within 10% of projections and controlling operating costs are identified as the biggest challenges due to difficulties accurately forecasting wind resource and future maintenance expenses.
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