[L10]_WIND FARM FINANCIALS Flashcards
ENGY-688
US electric power demand is projected to grow at an annual rate of approximately 1.8%.
[L10]
True
[L10]
ENGY-688
Which of the following is true about Renewable Portfolio Standards (RPS)?
A. RPS applies to only federally-owned utilities.
B. Over 30 US states have implemented RPS targets.
C. RPS reduces wind farm eligibility for federal tax credits.
D. RPS standards are universal across all US states.
[L10]
B. Over 30 US states have implemented RPS targets.
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ENGY-688
True/False: Wind electricity output increased from 1% to 6% of total US electricity output from 2006 to 2020.
[L10]
True
[L10]
ENGY-688
Match the REC market with its characteristic:
1. RPS Market
2. Voluntary Market
A. RECs bundled with electricity in a Power Purchase Agreement (PPA).
B. RECs sold separately to corporations and residential customers.
[L10]
1 = A
2 = B
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ENGY-688
A common method for revenue modeling in wind projects is the (fill in the blank), which ensures utilities pay for all generated power regardless of demand.
[L10]
Power Purchase Agreement (PPA)
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ENGY-688
What percentage of a wind project’s total installed cost is typically attributed to the turbine?
A. 25%
B. 50%
C. 75%
D. 90%
[L10]
C. 75%
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ENGY-688
True/False: LCOE accounts for total installed costs, recurring operational costs, energy production, and the discount rate.
[L10]
True
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ENGY-688
How much did the price of RECs increase between 2002 and 2007 in the voluntary market?
A. $0.25 to $2.00
B. $0.50 to $3.00
C. $0.25 to $3.00
D. $1.00 to $4.00
[L10]
C. $0.25 to $3.00
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ENGY-688
True/False: Market-based pricing offers more revenue predictability than Power Purchase Agreements (PPAs).
[L10]
False
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ENGY-688
Match the financing structure with its description:
1. Strategic Tax Investor
2. Institutional Tax Investor
3. Pay-As-You-Go
A. Tax investor funds equity over time as PTC benefits are realized.
B. Developer provides some capital and retains cash benefits while tax investor gets tax benefits.
C. Tax investor provides up to 99% of funding in exchange for tax and cash benefits.
[L10]
1 = C
2 = B
3 = A
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ENGY-688
True/False: The distance of a wind farm to the power grid impacts the overall capital cost due to transmission line expenses.
[L10]
True
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ENGY-688
What is a significant barrier to entry for new wind farm developers?
A. High competition in turbine manufacturing.
B. Long lead times for wind turbine procurement (18-36 months).
C. Reduced demand for renewable energy.
D. Oversaturation of power grids.
[L10]
B. Long lead times for wind turbine procurement (18-36 months).
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ENGY-688
True/False: Green-E is a certifying entity that inspects power facilities and audits their output to certify RECs.
[L10]
True
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ENGY-688
Land lease payments for wind farms are typically negotiated as a percentage of (fill in the blank).
[L10]
Revenue from energy production
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ENGY-688
Which is NOT a primary risk factor for wind farm development?
A. Grid connection challenges
B. Price fluctuations in energy markets
C. Decreasing global electricity demand
D. Inadequate wind resource validation
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C. Decreasing global electricity demand
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