PPA on a wind turbine

[Old earwig]

D


Hi DG.
Apologies for inducing an involuntary supper ejection.
Site rent is clearly a priority here that this embryonic Ppa has not allowed for.
Judging by the discussion on another thread this too is a challenging area of debate.
I think the p/kW needs some work as does the escalator mechanism. it is worth noting that there is no insistence in their draft proposal to buy the leccy from the turbine.
I believe that the size of the turbine offered is ideal for our situation as for me it's not so much about FIT harvesting and more about generating power locally and sustainably. Others may also take this view..Also we are in a national park where turbine heights are severely restricted. This despite the fact that I can see well over a dozen hewge turbines in every direction from my farm.
That said it's not a commentary on the profitability of the exercise. Which is also a consideration.
Important matters of access roads, grid connection site, liability for every occasion need costing clearly.

Great feedback so far. Many thanks. Eocycle, if you are watching this thread is think you can see there's a bit of work to do!

Would it get FIT?
Also make sure that there is an agreement in the contract that it gets felled if it's dead for 366 days and make sure that there is a locked in escrow fund for the clean up with specified conditions to release it to the land owner. Most likely need to take the founds down 60 -100cm.

 

[DaveGrohl]

Soz but I still don't get the sell it to you for 8.5p part when they can only get 5p from the market. I can see why they want it of course.

 

[Courier]

WRONG. We have a 250kw turbine and it returns us proper £. It's a terrible deal because they are offering you a pittance.

Presumably you have a significant FIT on yours ?
It makes a massive difference to viability and as at December 2016 stands at £0.0392 for a 250 kWh turbine so was effectively abolished by Amber Rudd in Dec/Jan 2015 / 6 for "New" projects and also for second stages of existing projects with full planning permission where funding had previously been arranged on the basis of the 10% per 6 months FIT regression.
There are a number of projects around where infrastructure for more than one has been installed but only the first turbine commissioned.

Unless someone has found a way through yet ?

 

[Foregoneconclusion]

0-50kw is 8.39p/kwh at the momment.. by the look of things.., I don't know what the export rate is.

 

[therenewablesman]

Been following this thread on ppas.
As a renewables chap I am able to offer a PPA offering at 8.5p/kWh, which if linked to retail prices index and NOT the energy market is a sensible protection of business costs.
The turbine is simply the deliverer of the energy source.
The benefit for the turbine company is a tariff of up to 9p and the PPA figure to give about 18p/kWh revenue. Turbine costs are about £200 to £220,000 installed cost and planning and running costs are free.
This size of tariff( under 50kW) is the only sensible tariff left and if you can use the energy it gives price stability in an otherwise turbulent farming world.
Energy usage as your businesses grow will also grow so a PPA gives an element of certainty.
Consider the PPA provider as the same as dealing with say EON, but with more stability.

 

[Foregoneconclusion]

Thanks for the comments..; i directed them to the turbine makers and here is the response..

Hi


Thanks for putting on the Forum – very interesting feedback (Paul – please read comments on the forum – link below)


I can understand the argument re peak / off peak rate but at 8.5p kWh the electric is significantly cheaper than most grid contracts – typically 12.2p – 16p kWh


Annual inflation of 1.9% is approximately 50% increase over 20 years – half the forecast increase in the price of electric

https://www.theguardian.com/environ...lectricity-double-next-20-years-national-grid


Eocycle take all the risks including maintenance and insurance.



ends

So ... thoughts on the inflation argument?

 

[Courier]

Been following this thread on ppas.
As a renewables chap I am able to offer a PPA offering at 8.5p/kWh, which if linked to retail prices index and NOT the energy market is a sensible protection of business costs.
The turbine is simply the deliverer of the energy source.
The benefit for the turbine company is a tariff of up to 9p and the PPA figure to give about 18p/kWh revenue. Turbine costs are about £200 to £220,000 installed cost and planning and running costs are free.
This size of tariff( under 50kW) is the only sensible tariff left and if you can use the energy it gives price stability in an otherwise turbulent farming world.
Energy usage as your businesses grow will also grow so a PPA gives an element of certainty.
Consider the PPA provider as the same as dealing with say EON, but with more stability.

Can you offer the 8.5p per kWh PPA on an existing installation?

If so I would like a reference from 3 of your existing customers and would consider an agreement from approx. October this year when my OPUS agreement runs out.

PS.

I have just re-read this thread from the beginning and suspect that your representation of a PPA is somewhat different from that which is universally understood by renewables producers....

 

[therenewablesman]

Unfortunately not.
We are not a buyer and seller of energy- I've always found Opus a decent buyer of your energy. My turbines are receiving 5.5p at the moment.
We are looking to put new under 50kw machines in or purchase assets which are already spinning but can be linked to an ongoing rental or low PPA if turbine is purchased from you
You have some turbines up and running I think?

 

[Eocycle-Wind]

Lots of interesting comments - Thanks

If anyone would be willing to meet the sales director when he is here from Canada please contact me on [email protected] or 01200 443090 / 0556 556 5556 and I will arrange to their convenience
I think the concerns can be addressed
The deal offers lower cost power for 20 years with zero financial commitment and zero risk
Removal in a disaster situation is very straightforward with the hydraulic lifting tower which hinges down to ground level

 

[Eocycle-Wind]

Sorry ! My mobile 0779 556 5556 !!!!!

 

[therenewablesman]

Can you offer the 8.5p per kWh PPA on an existing installation?

If so I would like a reference from 3 of your existing customers and would consider an agreement from approx. October this year when my OPUS agreement runs out.

PS.

I have just re-read this thread from the beginning and suspect that your representation of a PPA is somewhat different from that which is universally understood by renewables producers....

PPA (power purchase agreement) is simply that. You have a power purchase agreement with Opus to buy your energy which you produce. I am simply offering the same PPA deal but supplying the turbine in the deal foc to produce the energy. Hope this clears things up!

 

[Courier]

.................
PS.

I have just re-read this thread from the beginning and suspect that your representation of a PPA is somewhat different from that which is universally understood by renewables producers....

PPA (power purchase agreement) is simply that. You have a power purchase agreement with Opus to buy your energy which you produce. I am simply offering the same PPA deal but supplying the turbine in the deal foc to produce the energy. Hope this clears things up!

 

[Insider]

Just learnt "Stephen Tasker is no longer employed at Eocycle. His email box is being monitored on a regular basis" ...very sudden - I was only speaking to him last week - very motivated for the product but unable to answer several reasonable technical questions I put to him - not down to him personally he has good knowledge of the wind industry. I'm going to contact him and find out why such a sudden departure. If anyone want to contact his mobile 0779 556 5556 and home 01200 443090

Happy to share the questions if anyone is considering - no answer = No Purchase in my book - if the company dont know the answers they are not professional - if they know and wont share then this is the answer in itself