How does citing Beech Ridge help you to make any point you've been trying to make ?
Beech Ridge - a supposed
"green" project - was fought tooth-and-nail by a local group, Mountain Communities for Responsible Energy (which sounds
even greener)
specifically because they didn't like the way it looked, i.e., "degraded their 'viewshed'" which is apparently a newly-defined resource.
The study you cited was an attempt by MCRE to attack the project from a different angle, to force them to post huge bonds because of anticipated huge decommissioning costs of that "high value scrap" you were talking about.
They also enlisted an environmental extremist
super green group who were dead-set against Beech Ridge because they were afraid the turbines might kill
bats.
It dragged through the courts for
years and is a huge mess. I believe what's left of it is only permitted to operate when the bats are asleep.
It's hilarious to see the people that "renewable energy" claims to represent turn on it like that
Originally Posted By: SHOZ
Last month, EVA was hired by the Mountain Communities for Responsible Energy to evaluate a Decommissioning Cost Report prepared for the Beech Ridge Energy Project – a 124-turbine project proposed for Greenbrier County, West Virginia. The project wind developer (Invergy) had argued that the scrap value of the wind turbines would far exceed the cost to decommission the wind project and that therefore they should be responsible for bonding $2,500/turbine that would slowly escalate to $25,000/turbine by year 16.
EVA completed an independent estimate of the salvage value of the Beech Ridge Wind turbines. The applicant’s consultant estimated that its salvage value credit would reach $12.64 million ($101,900/turbine) in their decommissioning fund study based upon application of general scrap factors and prices. This scrap value credit would more than offset their estimated demo costs ($8.68 million: $70,000/turbine).
EVA contacted the major regional scrap yards directly and got current scrap prices for steel, copper and transport. From these data, EVA developed a Beech Ridge project–specific salvage credit estimate of only $2.63 million, i.e., $10.01 million less than the original applicant study. We uncovered several major flaws in the applicant study methodology and pricing. They not only used old scrap prices but failed to take into account that they would have to transport the scrap to a yard. In addition, to obtain the posted scrap price, they would need to break down the tower into 3-4 ft long pieces or else the quoted price would be significantly less. In addition, the copper materials must also have their insulation stripped and/or copper pieces separated to obtain their posted copper price. If not, their scrap value would be far less than the common posted price. Given the large drop in scrap prices this year (>40%), scrap value can no longer cover decommissioning costs.
EVA also compared the estimated demolition costs to another decommissioning report for another wind project developer that had contained detailed cost breakdowns. The other study estimated demo costs of $97K/turbine vs. $70K/turbine by Beech Ridge. The bottom line is that using the demolition costs from the other wind turbine project decommissioning study would translate to a Beech Ridge demo cost of $12.03 million, i.e., $3.35 million more the applicant’s $8.68 million estimate. (Note: In another very recent project I have just reviewed, the decommissioning costs were again severely underestimated by more than 50% by not taking into account recent crane rental rates, extremely low earth moving costs, and assuming high productivity rates (6 turbines/wk).)
The bottom line is that even if the permitting agency allows the salvage credit, the total net cost of decommissioning this project today would be $10.4 million ($83,900/turbine). Our analysis quantified the large scrap price and demo cost escalation risk being assumed by the local community. To protect the community, the permitting agency should require a bond of a minimum $100/K per turbine ($12.4 million) to capture demolition cost escalation risk. If the wind developer can convince the bonding company of the high salvage value, then they should be able to negotiate a lower rate for the bond. If they were right, there would be very little price difference for a larger $12+ million bond. Shift the risk to the bonding company. Let the developer and bonding company assume the price risk – not the community.
