Costs and output wind energy

Costs and output wind energy

Wind mills were expensive and for this reason the dutch government stimulate, by means of subsidies, investments in wind turbine projects. The fact that wind mills were expensive has to do with a number of causes. In the first place the development of wind mills was at the beginning. This means that the costs for research and development had to be earned back. In second place the number of wind mills that are placed was still limited. This means that scale advantages were not yet realised. In fact this development is to be compared with the costs of computers. These have become better in the previous years and will cost less and less.

Technological advancement and economies of scale have driven the price down to the same level of coal and gas with much lower installation costs per kWh and a considerable lower total cost of ownership.

Who wants to build a (wind turbine)park has to do with several costs. The majority of it exists of the investment and the maintenance of the turbines, but also costs of ground, connection on the grid and such are taken along. The total investment is subsidised at this moment by the dutch government. In the long run we expect that which subsidies will be run down, whereas the capital outlay will decrease at the same time.

Costs and output are always weighed against each other. Important thereby is the price by kWh which is paid by the energy societies. At this moment the government subsidises also the output. We expect that in the coming decades the energy prices will increase, because other sources become scarcer. At the same time the faciliting by the government will decrease.

In the projects in which we are involved we make detailed forecasts of investments, costs and output. Eventually it is about realising a profitable investment. Generally we assume thereby a period of 15 up to 20 years.

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