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Three estimates of decommissioning cost  

Author:  | Economics, Michigan, Minnesota

Brian R. Zelenak, Manager, Regulatory Administration, Xcel Energy, February 8, 2011 – re: Nobles Wind Energy Project, Minnesota, 1.5-MW turbines. [download]

A conservative estimate for a decommissioning expense is approximately four-hundred forty-five thousand dollars ($445,000) per turbine (2009 dollars).*

*Includes allowance for salvage value and based on total dismantling cost estimate for the project of 8.7% of the total plant balance of $510,965,406, equaling an estimated dismantling cost [of] $44.5 million or $445,000 per turbine. [NWW note: The Nobles project consists of 134 1.5-MW turbines, not 100, which would make the assumed 8.7% decommissioning cost $332,000 per turbine (2009 dollars).]

[$445,000 in 2009 is equivalent to $533,000 in 2019, $332,000 to $397,000.]

Wenck Associates, April 2017 – re: Palmer’s Creek Wind Farm, Minnesota, 2.5-MW turbines. [download]

The estimated cost to decommission Palmer’s Creek Wind Farm was provided by Fagen, Inc., construction contractor, in a letter dated November 16, 2016. The estimate is considered to be the current dollar value (at time of approval) of salvage value and removal costs. The estimated salvage value of each turbine will be based upon the worst-case scenario assuming the only salvage value of the turbine is from scrapping the steel. The estimate was based upon the total weight of one turbine, which is 275 tons consisting primarily of steel. Because it does not separate the scrap value of all the constituent materials, the estimate is very conservative. Also, it is highly likely that there would be opportunities for re-sale for reuse of all or some of the turbines or turbine components. Based on the current estimate, the cost of decommissioning is $7,385,822 with a potential scrap return value of $445,500 [net cost of $385,573 per turbine, $403,881 in 2019 dollars].

Henry Blattner, Senior Estimator, Blattner Energy, to Ryan Pumford, Nextera Energy, 2017 – re: Tuscola Wind III, Michigan, 2-MW turbines. [download]

To mobilize a crew and equipment, take down a GE wind turbine and haul off site the cost would be $675,000.00. Assuming a salvage value of $150 per ton and weight of 188 tons for the steel in the turbine and tower we [would] be able to reduce this cost by $28,200. The total price minus the salvaged steel would be $646,800.00.

This material is the work of the author(s) indicated. Any opinions expressed in it are not necessarily those of National Wind Watch.

The copyright of this material resides with the author(s). As part of its noncommercial effort to present the environmental, social, scientific, and economic issues of large-scale wind power development to a global audience seeking such information, National Wind Watch endeavors to observe “fair use” as provided for in section 107 of U.S. Copyright Law and similar “fair dealing” provisions of the copyright laws of other nations. Send queries to query/wind-watch.org.

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