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184 ENDNOTES 02 MARKET AND INDUSTRY TRENDS – WIND POWER Montgomery, “First US Offshore Wind Turbine Launches in Maine,” Renewable Energy World, 31 May 2013, http:// www.renewableenergyworld.com/rea/news/article/2013/05/ first-us-offshore-wind-turbine-launches-in-maine. 107 Tabuchi, op. cit. note 106; Kari Lundgren, “Britain’s Forgotten Ports Put Wind in Goldman’s Sails: Freight,” Bloomberg, 2 May 2013, http://www.bloomberg.com/news/2013-05-01/britain-s- forgotten-ports-put-wind-in-goldman-s-sails-freight.html. 108 UK’s Seajacks International joined with Samsung Heavy Industries (Korea) to the build world’s largest jack-up barge, from “Largest Offshore Wind Barge Under Construction,” Renewables International, 12 June 2013, http://www. renewablesinternational.net/largest-offshore-wind-barge-under- construction/150/505/63296/; Tildy Bayar, “A Bigger Boat: Offshore Wind Service Vessels Grow Up,” Renewable Energy World, 5 August 2013, http://www.renewableenergyworld. com/rea/news/article/2013/08/a-bigger-boat-offshore-wind- service-vessels-grow-up; David Appleyard, “New Offshore Jack-up Vessel Commissioned by Hochtief,” Renewable Energy World, 13 December 2013, http://www.renewableenergyworld. com/rea/news/article/2013/12/new-offshore-jack-up-vessel- commissioned-by-hochtief; Philippa Jones, “Booming Boats,” Wind Directions, September 2013, p. 48; Chinese from Navigant Research, op. cit. note 1. 109 Tildy Bayar, “Subsea Cables Bring Offshore Wind Power to the People,” Renewable Energy World, 19 December 2013, http:// www.renewableenergyworld.com/rea/news/article/2013/12/ subsea-cables-bring-offshore-wind-power-to-the-people. 110 Offshore wind power costs rose 41%/MWh from the second quarter of 2009 till the first quarter of 2014, as projects moved to deeper water farther from shore, from FS-UNEP Centre and BNEF, op. cit. note 76, p. 37. 111 Based on USD 4.7 million/MW (EUR 3.4 million/MW) of installed capacity and operational costs of USD 259 million/kW (EUR 187/ kW), from Aris Karcanias and Athanasia Arapogianni, Innovative Financing of Offshore Wind (London: FTI Consulting, April 2014). 112 Pike Research, “Small Wind Power,” http://www.pikeresearch. com/research/small-wind-power, viewed March 2013. By the end of 2011, more than 330 manufacturers around the world offered commercial systems, and more than 300 companies supplied parts and services, per Gsänger and Pitteloud, op. cit. note 60. 113 Gsänger and Pitteloud, op. cit. note 60. In 2013, for example, the United Kingdom had more than 10 manufacturers of wind turbines ranging in size from several hundred watts to 60 kW, from RenewableUK, op. cit. note 58. 114 As of 2011, 74% of commercialised one-piece small-scale wind manufacturers produced horizontal axis machines, 18% focused on vertical, and 6% on both, from Gsänger and Pitteloud, op. cit. note 60. 115 Table 2 derived from the sources outlined in this endnote. Note that all IRENA data are exclusive of subsidies, based on an assumed 7% weighted average cost of capital, derived from actual project data, with O&M costs sourced from International Renewable Energy Agency (IRENA), Renewable Power Generation Costs in 2012: An Overview (Abu Dhabi: 2013), http://costing. irena.org/media/2769/Overview_Renewable-Power-Generation- Costs-in-2012.pdf. POWER SECTOR Biomass power: Bioenergy levelised costs of energy for power generation vary widely with costs of biomass feedstock (typically USD 0.50–9/GJ), complexity of technologies, plant capacity factor, size of plant, co-production of useful heat (CHP), regional differences for labour costs, life of plant (typically 30 years), discount rate (typically 7%), etc. In some non-OECD countries, lack of air emission regulations for boilers means capital costs are lower due to lack of control equipment. So before developing a new bioenergy plant, individual cost analysis is essential. Bio-power plants that rely on seasonal crops, such as sugar cane in Latin America, may have average capacity factors below 50%. Sources: IRENA Renewable Cost Database 2014; IRENA, Renewable Power Generation Costs in 2012..., op. cit. this note; Frankfurt School–UNEP Collaborating Centre for Climate & Sustainable Energy Finance (FS–UNEP Centre) and Bloomberg New Energy Finance (BNEF), Global Trends in Renewable Energy Investment 2012 (Frankfurt: 2012), http://fs-unep-centre.org/ publications/gtr-2014; O. Edenhofer et al., eds., IPCC Special Report on Renewable Energy Sources and Climate Change Mitigation (Cambridge, U.K. and New York: Cambridge University Press, 2011), http://srren.ipcc-wg3.de/report; Joint Research Centre of the European Commission (JRC), 2011 Technology Roadmap of the European Strategic Energy Technology Plan (Petten, The Netherlands: 2011). Geothermal power: Capacity factor and from Edenhofer et al., op. cit. this note, pp. 425–26 and 1,004–06. Michael Taylor, IRENA, personal communication with REN 21, March–May 2014, input based on the “IRENA Renewable Costs Database” and analysis thereof; IRENA estimates the LCOE of a typical project to be USD 0.05–0.14/kWh for greenfield and brownfield projects. In 2010, the International Energy Agency (IEA) estimated the LCOE of a binary plant to be USD 0.08–0.11/ kWh, per IEA, Energy Technology Systems Analysis Programme, Geothermal Heat and Power, Technology Brief E07 (Paris: May 2010), Table 5, http://www.iea-etsap.org/web/E-TechDS/PDF/ E06-geoth_energy-GS-gct.pdf. Hydropower: Characteristics based on Edenhofer et al., op. cit. this note, and on Arun Kumar, Alternate Hydro Energy Centre, Indian Institute of Technology Roorkee, personal communication with REN21, March 2012. For grid-based projects, capital cost ranges and LCOE for new plants of any size provided in table are from Taylor, op. cit. this note. Off-grid capital costs and LCOE from REN21, Renewables 2011 Global Status Report (Paris: 2011), http://www.ren21.net/ Portals/0/documents/Resources/GSR2011_FINAL.pdf. Note that the cost for hydropower plants is site specific and may have large variations. Small capacity plants in some areas even may exceed these limits. The cost is dependent on several factors especially plant load factor, discount rate, and life of the project. Normally, small-scale hydro projects last 20–50 years compared to large-scale hydro plants, which may last 30–80 years. Hydro facilities that are designed to provide system balancing (rather than baseload) have lower capacity factors and therefore higher generation costs per kWh, on average, but provide additional value. Ocean Energy: All data are from Edenhofer et al., op. cit. this note. Note that this is based on a very small number of pilot and demonstration installations to date; LCOE range assumes a 7% discount rate. Electricity generation costs are in the range of USD 0.31–0.39/kWh (EUR 0.24–0.30/kWh), from Sarasin, Working Towards a Cleaner and Smarter Power Supply: Prospects for Renewables in the Energy Revolution (Basel, Switzerland: December 2012), p. 11. Solar PV: Rooftop solar systems: peak capacities are based on Europe and drawn from European Photovoltaic Industry Association (EPIA), Market Report 2011 (Brussels: January 2012), http://www.epia.org/uploads/ tx_epiapublications/Annual_Report_2011.pdf, and from EPIA, personal communication with REN21, 3 April 2012. Capacity factor from IRENA, Renewable Power Generation Costs in 2012…, op. cit. this note, p. 56. Note that values outside of this range are possible for exceptional sites (higher) or where siting is suboptimal (lower); adding tracking systems can raise these capacity factors significantly, from IRENA, idem. Capital costs based on: average of EUR 1,640/kW in Q1 2014 (using exchange rate of EUR 1 = USD 1.37) for residential systems from German Solar Industry Association (BSW-Solar), “Statistic Data on the German Solar Power (Photovoltaic) Industry,” 2014, at www.solarwirtschaft.de; U.S. range of 3,500 to 7,000 based on data from IRENA and CSI, (excludes top and bottom 5% of projects) and U.S. Solar Energy Industries Association (SEIA) and GTM Research, U.S. Solar Market Insight (Washington, DC and Boston: 2014); Japan from Hironao Matsubara, Institute for Sustainable Energy Policies (ISEP), personal communication with REN21, April 2014; Germany, United States, China, and Italy from Gestore Servizi Energetici (GSE) and provided by Taylor, op. cit. this note; Australia from Taylor, op. cit. this note; typical global range for industrial systems based on EUR 1,150–2,000/kW (converted using EUR 1 = USD 1.3), from Gaëtan Masson, EPIA and IEA Photovoltaic Power Systems Programme (IEA-PVPS), personal communication with REN21, April 2013. LCOE costs for OECD and non-OECD are real 2013 USD values, from lowest to highest, and based on 7% cost of capital, from IRENA, Renewable Power Generation Costs in 2012…, op. cit. this note, from IRENA Renewable Cost Database, 2013, and from Michael Taylor, IRENA, personal communication with REN21, May 2013; Europe based on costs in the range of EUR 0.12–0.29/kWh (converted using EUR 1 = USD 1.3) for residential, commercial, and industrial projects in the south and north of France, Germany, Italy, Spain, and the United Kingdom, from EPIA database, provided by Masson, op. cit. this note. Ground-mounted utility-scale systems: peak capacity from EPIA, Market Report 2011, op. cit. this note, from David Renne, International Solar Energy Society (ISES), personal communication with REN21, April 2013, and from Denis Lenardic, pvresources.com, personal communication with REN21, April 2013; also see relevant section and endnotes in Market and Industry Trends section. Capital costs 115