Your point is spot on. I didn't consider maintenance or repairs either, so calling it 'production cost' is inaccurate. Is there a better term to describe lifetime generation divided by installation cost ?
I like that calculation for it's simplicity and for trending.
Do you know if the local communities benefit from these hydro and wind plants, and how much ?
Well, the press release talks about construction jobs in the area and some jobs for the ongoing (for decades it says) operations and maintenance (although that will probably not be many, the farms will e.g. be on-shore). The president of Vestas Northern Europe talks about a 20+ years maintenance contract.
Electricity prices are already very low and the grid stability is already excellent, so nothing special there.
What is maybe more interesting is that I can find no indication that there are any subsidies involved. About half of the investment is from normal European capitalists. The consortium behind the wind farms have entered into a 20-year contract with Norsk Hydro, to annually deliver up to 1TWh electricity (for aluminium production), giving the investors a sufficiently low risk. As far as I can understand this contract is there in place of the hitherto normal state-guaranteed contract to buy the electricity at a given minimum price for some years.
That is a pretty big deal.
Last edited: