Economic Sensitivities and Options Surrounding Wind Farm Life Extension

Abstract

Some North American wind owners and operators are approaching and surpassing the halfway points of their power purchase agreements (PPAs). The initial 20-year contracts were intended to align with the operational life of the assets, however it is expected that some assets will continue to be operational if proactively maintained. An LCOEEXT was previously proposed to evaluate the economic feasibility of lifetime extension. This metric is sensitive to many variables and a robust analysis of these sensitivities will provide improved guidance when considering lifetime extension. Lifetime extension is an attractive option, offering higher rates of return for projects when economic analysis supports this pursuit. Options for operating beyond the first PPA are also detailed and discussed.