Comments on: Is the London Array good value? http://www.pennwellblogs.com/power/2009/05/12/is-the-london-array-good-value/ Just another WordPress weblog Thu, 17 May 2012 06:34:09 +0000 http://wordpress.org/?v=2.3.3 By: Tim http://www.pennwellblogs.com/power/2009/05/12/is-the-london-array-good-value/#comment-74 Tim Fri, 19 Jun 2009 11:24:29 +0000 http://www.pennwellblogs.com/power/2009/05/12/is-the-london-array-good-value/#comment-74 Qutie right, Nikhil. My calculator ran out of noughts! Qutie right, Nikhil. My calculator ran out of noughts!

]]> By: Nikhil Venkateswaran http://www.pennwellblogs.com/power/2009/05/12/is-the-london-array-good-value/#comment-72 Nikhil Venkateswaran Fri, 19 Jun 2009 10:01:19 +0000 http://www.pennwellblogs.com/power/2009/05/12/is-the-london-array-good-value/#comment-72 Your calculation is our by a factor of 10 - the unit cost is €3,492,063 ($4,768,400) per MW which is almost five times your "good value" rule of thumb. This high capital cost is partly why the developers only chose to proceed once the Government had announced it would increase the subsidy available through the Renewable Obligation mechanism in the Budget on 22 April (after considerable lobbying), granting 2 ROCs instead of 1.5 per MWh generated, despite this "banding" only having come into effect on 1 April. Your calculation is our by a factor of 10 - the unit cost is €3,492,063 ($4,768,400) per MW which is almost five times your “good value” rule of thumb.

This high capital cost is partly why the developers only chose to proceed once the Government had announced it would increase the subsidy available through the Renewable Obligation mechanism in the Budget on 22 April (after considerable lobbying), granting 2 ROCs instead of 1.5 per MWh generated, despite this “banding” only having come into effect on 1 April.

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