Wind power.
Local project estimated to cost 65 million. Estimated to gross 5.5 million a year. 20 year service life. Construction cost is always underestimated, revenue is based on rosy power generation numbers they should have no problem meeting as long as the wind blows just the right speed 24/7/365.
I
love sticking these things into a loan calculator.
Because the calculator likes things monthly, I stuck in 458k, 65,000k loan amount, 5% interest.
Payback period? 18 years, 1 month.
Kick it up to a mere 6% interest and you're busting the expected lifetime of the plant - 20 years 9 months.
That's assuming no cost overruns and that their revenue expectations are met. Oh, and operations and maintenance is zero for the 20 years.
Assume 5% interest and 5 million loan service a year, it'll be paid off 1 year 3 months past it's service life.
Take a 1GW Nuclear plant, 5% discount rate, $2B construction cost. It should produce ~7.8Billion kw/h a year. At 5 cents a kw/h, that's $394 Million a year. Figure 200 million/year to service the loan. Payback would be a mere 14 years at a 5% rate.
Hmm...
$29 per kw of capacity O&M in 93?. That'd give us an O&M budget of $29 million a year. A big sight from my $194 Million. Faster loan service = quicker payback. And 2B is highballing construction cost. There's many figures for $1-1.5B for a plant of that size.
