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Return On Investment
As mentioned in our "Mission Statement", the 4-mega watt utility grade Mariah Vertical Axis Wind Turbine, offers quantum growth in the global sector. Depending on the demographic location, the resources needed to manufacture (under license) 2 to 4 units per month, can be found locally. There are exceptions; having a steel producer nearby is critical.
Mariah Technologies Inc., offers two choices to a potential investor. Both propose an amazing
R.O.I.
1. "Turn-Key" Production Facility: We estimate the cost to be 30 million USD. We believe the original "Capital Cost" (30 million) is recoverable within a 5-year period, (as seen on the Pro-Forma Balance).
2. "Wind Farm" (Based on 10 units): In this scenario, the main objective is to show potential investors a revenue stream based on quantifiable assumptions;
I. 10 acre parcel of land, located in Ontario, Canada. The average price is $ 25,000.00 CDN.
II. Ten 4-mega watt utility grade Mariah Wind Turbines. 1 unit per acre. The capital cost for each unit is $4.5 million for a total of $45 million CDN.
III. The underground infrastructure (conduit, wiring, etc.) required to connect to the grid; $1.3 million CDN.
IV. Access roads, security, drainage, de-watering, lightning protection, weather monitoring station and commissioning fees; $1.6 million.
V. The current feed-in tariff (O.P.C./O.P.A) rate for "Utility Grade Power", generated by a wind turbine is 19 cents per kilowatt hour.
VI. Total estimated cost for a Mariah Wind Farm; $48 million CDN. In this scenario, we are going to increase this amount to $56 million
CDN.
"Known Variables"
Mariah Wind Farm (10 Units) = 56 million (5.6 per unit)
Cost of Energy Formula
Whereas:
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C.O.E.
= Cost of energy in cents per kilo watt hour (kph)
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CC
= Capital cost of the wind turbine
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FCR
= Fixed charge rate
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LF
= Levelizing Factor
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O&M
= Annual operation and maintenance cost
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AE
= Annual energy produced, kilo watt per hour (kph)
| Definitions |
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C.O.E
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The "Cost of
Energy" is the conclusion variable in the
equation. The C.O.E. is a mitigating factor, to
show the investor, and us; how much it will cost
to produce 1 kilowatt of "Utility Grade
Power" after all costs associated to a
4-megawatt Mariah V.A.W.T. are totaled.
Furthermore; the C.O.E. helps determine, and show
the "Net Retained Earnings" over time.
In this case we will look at the N.R.E. during a
1-year period (365 days). |
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Capital Cost
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C.C. represents the total amount of money required to buy, install, and commission, on a 1 acre parcel of land.
C.C. for one 4-MW Mariah V.A.W.T. = $ 5.6 Million CDN. |
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Fixed Charge Rate
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F.C.R. is a function of financial parameters and includes the life expectancy of the Mariah V.A.W.T.; depreciation, taxes, ROI, insurance and inflation.
F.C.R. Is a Uniform Annual Payment (UAP) rate a.k.a. the recovery factor.
FCR = 16% (5% depreciation over 30 years) + (9% ROI) + (1% insurance and tax). Note* The recovery factor (16%) is also known as; the "Fudge Factor". More bang for the "Buck". A 9% R.O.I. is pretty good, during these economic times.
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Levelizing Factor
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Operation and maintenance costs will increase with time as it is directly linked to inflation. When compiling the COE of the Mariah V.A.W.T., the O&M costs are balanced by multiplying the first years O&M costs by the LF. The LF contains two variables: (1) The UAP applied to the capital component. (2) A factor which discounts inflation over time. |
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Annual Operation & Maintenance Cost
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O&M, costs are based on a cluster (25 wind turbines),
a.k.a. "Wind Farm". |
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Annual Energy Prod.
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Output of the Mariah V.A.W.T. is site-specific. Each geographical location provides natural wind power over any fiscal year. Therefore this factor must be computed for each site condition.
In this scenario; we will use a low-end prediction of; 55% projected energy production over a 1-year period.
55% of 1 year = 200.75 days. 1 day = 24 hrs.
24 x 200.75 = 4,818 hours of production.
A single 4-mw Mariah V.A.W.T produces 4,000 kilowatts per hour. 4,000kph x 4,818 hrs of prod. = 19,272,000kph
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