Finance Feasibility Analysis Of Wind Power Project Based On Life Cycle Cost

In recent years, as China's economic growrapidly, the national economy is well-developed at the same time. However, we consumed a large number of natural resources, and environmental pollutions have become increasingly serious. As a kind of clean energy and renewable energy, wind energy has a broad development space. In order to develop clean energy, improve the proportion of wind energy in China's energy structure, the government introduced a number of policies to support renewable energy. With the development of wind technology and the decline in the price of wind turbine, China's wind power industry has made considerable development, and the wind power installed capacity is largest around the world. However, there are some problems in the development and construction of windfarm. Some defects exist in economic evaluation of Chinese wind projects, windfarm developers concerned more about initial investment and tend to choose the cheaper wind turbines, but they often ignored the latter part of the project operation and maintenance costs, which eventually lead to the failure of wind projects investment. In the windfarm investment, how to make a scientific and reasonable economic evaluation of different investment proposals, become the focus of the entire wind power industry. To solve the problem, this paper uses life cycle cost theory to analyze total cost duringthe whole life cycle of windfarm, including planning and design, construction and operation as well as residual recycling. Apply the economic indicators and cost effectiveness based on life cycle cost, to analyze and screen different investment proposals, and discuss how to select investment proposal that enables the best economic benefits during entire life cycle of the program. In this paper, the author uses life cycle cost theory to analyze financial feasibility of wind power project, which has played a positive role for the follow-up windfarm developer to carry out scientific and rational economic evaluation for wind power project.