Revenue

Wind energy revenues are related directly to the power generated from the capture of wind energy resources, measured in MegaWatt-Hours, by wind energy converters, typically known as wind turbines, multiplied by the energy selling price typically measured in $ per MegaWatt-Hour.

Conventional Wind Turbine Revenues

For example, if a wind power project generated 100,000 MWh of energy annually and the power purchase price was $100 per MWh, the annual revenues for the project would be $10 million. If the project costs were $88.5 million using conventional wind turbines with operating costs were $2.5 million per year and capital payback was $5 million per year the net profit would be, leaving taxes and depreciation aside, $2.5 million per year. A return of $2.5 million for an equity investment of $88.5 million would provide a simple return of approximately 4% on invested equity and a payback term of 16 years.

As illustrated by the example above, conventional wind turbines do not represent the most attractive of investments unless there are substantial tax incentives attached. The use of WindSource wind turbines however, presents a much more attractive return on investment as well a as shorter payback term due to both a potential increase in hourly electrical production and lower installed cost.

WindSource Wind Turbine Revenues

For example, a wind power project using WindSource turbines could generate 150,000 MWh of energy annually due to the efficiency of the technology in low wind conditions. If the power purchase price was $100 per MWh, the annual revenues for the project would be $15 million. In addition, the project costs would be approximately $60 million using less expensive WindSource turbines, and operating costs would be less averaging $1 million per year. Capital payback would remain the same at $5 million per year and net profit would be, leaving taxes and depreciation aside, $9 million per year. A return of $9 million for an equity investment of $60 million would provide a simple return of approximately 15% on invested equity and a payback term of just 12 years.

Clearly, there are profitable advantages in the use of WindSource wind turbines.