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Here are the parameters:

  • your 1MW turbine costs €1.5M, which needs to be oaid upfront to the turbine manufacturer
  • once installed, it will produce between 2000 and 3000 MWh per year, depending on the wind (from the pure randomness of wind)
  • if you sell at market prices, you can get 50€/MWh, but you might get as low as 25 or as high as ... well, a lot more - let's say €75 for now.
  • you have €20,000 euros in operating costs per year, to keep things simple.

So, you generate between 50 and 225 thousand euros pet year of gross income, with an expectation of around 125 thousand. Before repaying investments, you thus have around €100,000 to distribute, but this may be as low as €30,000 or as high as €200,000 or more.

So please tell me how these net revenues are allocated between the investors who provided the initial €1.5M. Give me the formulas and convince me that this is a good investment for me or anyone else.

In the long run, we're all dead. John Maynard Keynes

by Jerome a Paris (etg@eurotrib.com) on Sat Jan 19th, 2008 at 05:33:13 AM EST
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