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Re: Ecomike post# 5075

Thursday, 03/17/2011 2:20:13 AM

Thursday, March 17, 2011 2:20:13 AM

Post# of 5964

There is one number we do know.
BCON is working a deal with Northwestern energy for a one-megawatt (1 MW) Beacon Smart Energy Matrix flywheel energy storage system.

The initial term of the lease will be 15 months, which, at NorthWestern Energy's option, can be extended up to two additional 12-month terms. NorthWestern Energy will pay Beacon $500,000 for the first 15-month term and $500,000 for each subsequent term should it choose to extend the lease to a second or third term.At any point NorthWestern Energy can opt to purchase the 1 MW system outright for approximately $4 million. A portion of lease payments already made under the agreement would be applied to the purchase, depending on when the purchase was made.

So then a 20 mw plant would have a value of $10 million a year as a rental to a business like a power company. Or approximately $20,512,000 million to purchase over a 39 month time frame.
BCON must assume they will make more money then that regulating power or they would sell all the product to power plants and drop the idea of regulating power.

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