Introduction
One Megawatts Multiaxis Turbosystem
Mass Production Cost allows for less cost of materials and labor with increased opportunities for production automation.
Rate of return at 7.5 cents kWh without leveraged financing
Class 4 (13 mph wind at 30 feet) = 14.6 % New York
Class 5 (13.5 mph wind at 30 feet) = 19.8 % New Hampshire, Maine
Class 6 (15 mph wind at 30 feet) = 28% California, Colorado
With leveraged financing of 9% interest and 65 % loan ( 12 year repayment of principle is funded from the non cash expense of the 10 year depreciation), the rate of return would be approximately the following. Based on specific finance terms, the actual rate of return may be different. Your local banker may give similar , higher or lower actual rates of return with leveraged financing. Tax credits and 5 year accelerated depreciation are additional benefits.
Class 4 (13 mph wind at 30 feet) = 21 % New York
Class 5 (13.5 mph wind at 30 feet) = 34 % New Hampshire, Maine
Class 6 (15 mph wind at 30 feet) = 58 % California, Colorado
Brief explanation of cost reduction
The cost reductions are results from improvements in the vertical-axis wind power plant design. For example, the small MAT blades can be mass-produced with many standard and readily available parts. It permit more cost-effective components to be used. The small blades are more resistant to wear than most standard technologies, which require large, custom-finished turbine blades. Using smaller blades is another area of major cost reductions In comparing a 30 foot blade with a three foot blade, the thirty foot blade may have a 100 times the output but it uses 1000 times more material. In addition to the blade cost reductions, there are other innovations leading to more cost reduction. There is cost reduction in eliminating the changing of the configuration and orientation of the wind power unit. As a result, the MAT, more efficiently, gathers the mechanical power of the wind. It also reduces the structural complexity and costs. Another key advantage lies in locating the drive train and generator at the ground level. This allows easier access and reduces vibration stresses. As a result, there is a reduction in maintenance costs. It makes it likely that the MAT units will last longer than standard wind turbines.
Average wind speed may be different 10 percent or more from year to year and the rate of return may be greater or less each year.
Budget Summary using 7.5 cents kWh
Cost of one megawatt wind system and installation is $630,000
Add projected cost of project development $120 per rated kilowatt
Total project cost (projected) $750,000 not including land
Note: In this draft, we have added $120 kW cost for site development (not including land). In some cases it may be higher or lower and it is only an estimate. We also added 10 percent of sales maintenance fee for Mass Megawatts which include administrative and royalty expenses.
Revenue Projections
Calculation is based on the following:
Total Kilowatt hour per year
At 12.3 mph 1.58 million kWh per year
X price per kilowatt/hour x 0.075
Total Revenue $118,500
For 13.4 mph ($118,500 x 1.25) $148,125
For 14.1 mph ($148,125 x 1.20) $177,750
Income for 14.1 mph (class 4) 7.5 cents kWh
Revenue $177,750
Less: Expenses
15 year depreciation 50,000
Operation and
Maintenance 17,000 67,000
Income $110,750 or 14.6% rate of return
Income for (class 5) 7.5 cents kWh
Revenue $221,000
Less: Expenses
15 year depreciation 50,000
Operation and
Maintenance 22,000 72,000
Income $149,000 or 19.8% rate of return
Income for (Class 6) 7.5 cents kWh- New Mexico
Revenue $ 288,000
Less: Expenses
15 year depreciation 50,000
Operation and
Maintenance 28,000 78,000
Income $210,000 or 28% rate of return
One Megawatt
Capital Cost-mass production estimate
Note: Mass Megawatts gross profit margin is higher than the previous pro forma statements and Mass Megawatts receives royalties on the sale of electricity which is not including in the power plant sales gross margin.
$ 492,000 Cost per Megawatt
18,000 Sales Expense
120,000 Gross Profit
$630,000 Sales price ( with current strong market demand at $1,100,000 selling price)
Actual sales price may be higher with the 2 year backlog of wind turbines at an industry selling price of $1,100,000 per megawatt
One Megawatt parts and labor list
(Please see nine attachments for details.)
Parts list
Augmenter $104,241 (Please see attachment).
Furling 20,631 (Please see attachment).
Tower supplies 198,108 including generators (Please see attachment).
Blades 15,696 (Please see attachment).
Steel 51,000 subject to market changes (Please see attachment).
Electrical 8,482 including installation labor (Please see attachment).
Cables and wires 9,185 (Please see attachment).
Total parts $ 407,343
Labor List
Augmenter $750 (Please see attachment).
Furling 1,410 (Please see attachment).
Site Construction 16,560 (Please see attachment).
Tower Parts 5,280 (Please see attachment).
Total labor $24,001
Miscellaneous $60,000
Total Cost $481,344
