Dingo Flats Renewable Generation: Expression of Interest Report

This report is an Expression of Interest (EOI) submitted by Amare Electrical LTD for a renewable generation portfolio in the Dingo Flats region. The report outlines a proposal for wind power generation, addressing the client's request for proposals. It details the company's background, project scope, and technical specifications including the proposed capacity of 350MW across two sites. The report includes a detailed cost breakdown for construction, cabling, land lease, and operation and maintenance, as well as financial projections over a 25-year period, considering factors such as performance degradation and weighted average cost of capital. The report provides a comprehensive overview of the proposed renewable energy project, covering all aspects from initial investment to long-term operational costs and energy production estimates.

1Running head: EXPRESSION OF INTEREST
EXPRESSION OF INTEREST (EOI) FOR RENEWABLE GENERATION
Name
Institutional Affiliation

2EXPRESSION OF INTEREST
Introduction
Amare Electrical LTD is a private Limited Company, established in 1989 and incorporated in the year
1997. It is registered under the Ministry of Public Works, and among the top contractors in the country.
The company’s business scope includes general electric works, security installation, Information
Communication Technology (ICT), and renewable energy solutions. The company is well equipped with
the latest technological equipment, specialized hardworking staff, and has a lot of potential in the
electrical engineering world. The company boasts of undertaking a wide range of projects, from hospitals,
to residential, hotels, schools, factories, sub-stations and big power reticulations, just to name a few.
Today, all services that have been undertaken by Amare Electrical LTD, have been of high standards and
have met all the standards by the regulation bodies like Chartered Institution of Building and Services
Engineering (CIBSE), Institution of Electrical Engineering (IEE), and International Electrotechnical
Commission (IEC). The company has had an enormous growth since its inception, with a turnover of
rising from US$60,000 in 1991 to US$14,800,000 by the end of 2018. This growth has paved way for job
creation thereby attracting top brains in the country to work for us, our workforce which currently stands
at 587, up from just 25 in the year 1995.
The Largest Capacity of Uncontrolled renewable
The threshold capacity of the renewable energy (Wind) that can be generated in the place is 350MW, this
is the wind power generation that is required. This load shall be distributed at node 2, we can generate up
to a maximum of 200MW worth of electricity and at node 3 which targets site A, connected to line 3, we
can generate a maximum of 150MW, this is since we are targeting side D, which is connected to line 7.
Line 2-3 is connected to a cable called Lacrosse of length 14.14km, while that of 6-7 is connected to a
cable called Bowls and is of length 30km and both have not been duplicated.
Bowls cable costs $ 300,000 per km, and Lacrosse cable costs $600,000 per km and since there’s no
duplication, that will be the cost.

3EXPRESSION OF INTEREST
The land lease cost per year shall be $5,000 and $10,000 per year for site A and D respectively.
We have a good wind production 65 days a year, not caring about solar production, this means that those
days, we can harness a maximum of 350MW of power for all the two sites, the remaining 300days, we
can produce an average of 175MW of power.
The construction cost a wind fam is $2.1M per MW,
Operation and maintenance cost of a wind farm is $500k and $30k per MW
Fixed development cost is $3M per project site
Performance degradation of a wind farm is 0.2% reduction in output per year
Weighted average cost of capital 10% per year
Financing period 25 years
Company tax rate 30%
For the batteries we shall go for high store type which goes for $225,000 per MW. If we calculate we get:
0.5 + 0.5(0.92 – (1/92 *2)) =0.9491MW; multiplied by $225,000 we get $213,554.35.

4EXPRESSION OF INTEREST
The initial cost of investment is shown in the table below:
Item Description Unit Qty Rate ($) Amount ($)
1.0
Cost of construction MW 350
2,100,000.00 735,000,000.00
2.0
Development of site Sum 2
3,000,000.00 6,000,000.00
3.0
Cables
(i) 2 to 3 Lkm 14.14
600,000.00 8,484,000.00
(ii) 6 to 7 Lkm 30
300,000.00 9,000,000.00
4.0
Cost of Batteries, high store Sum
213,554.35
Total
758,697,554.35
The annual constant cost of maintenance shall be:
Item Description Unit Qty Rate ($) Amount ($)
1.0
Land lease
Site A Sum
5,000.00
Site D Sum
10,000.00
2.0
Operational cost and maintenance MW 350
30,000.00 10,500,000.00
Fixed Sum
500,000.00
Total
11,015,000.00

5EXPRESSION OF INTEREST
For the period of 25 years, what will running the farm be like? Here’s the power lost that leads to the
calculation of the cost
i. The firm depreciates are the rate of 0.2% every year, meaning the production will be as
follows at the 25th year:
A=P (1− r
100 )nt
A=350 ( 1− 0.2
100 )
25
=258.81 MW
The amount of power lost during the 25 years period shall be 258MW