cost of offshore wind power

Larger turbines drive a need for technology development at a component level, as offshore wind turbines use the largest castings, bearings, generators and composite structures in series manufacture in any industry. FLOW can be considered an assembly of three systems, the floater, the buoy and the mooring system. Not even taking into consideration the maintenance costs of these offshore wind farms, or the fact that its electricity production is unreliable (mother nature is indeed very unreliable), the initial cost of development far exceeds that of the turbines' counterpart on land. Offshore wind turbines, however, can be as large as 12 MW. The higher offshore capital costs are due to the larger structures and complex logistics of installing the towers. The costs of offshore foundations, construction, installations and grid connection are significantly higher than for onshore. To get the same name plate for offshore wind we need … – Fred Pearce The Climate Files: This dissertation research uses a stated preference mail survey to collect data on public preferences for offshore wind development in Delaware. But Government has to accommodate these extra costs. It is equipped with 80 machines of 2 MW, with a total capacity of 160 MW. On average, investment costs for a new offshore wind farm are expected be in the range of 2.0 to 2.2 million €/MW for a near-shore, shallow-water facility. Reports of the costs of building new offshore wind farms in the early 2020s imply that their costs may fall by 2025, but such reports are consistently unreliable as well as being incomplete. The Normalised Capital Costs of Offshore Wind and Nuclear Power. offshore wind farms. Source empirical offshore wind farm operational and cost data to populate these models. Project Cost Evaluation of North Sea Offshore Wind Post 2030 Client North Sea Wind Power Hub Consortium Document Status Final Date 4 February 2019 Reference 112522/19-001.830 Project code 112522 Project Leader K.A. The 2019 auction will have offshore in Pot 2 but in future auctions the remainder of the £557million would need allocating via Pot 1 in accordance with State Aid Rules – … The strategy’s primary objectives are to reduce the cost of offshore wind This is a print on demand edition of a hard to find publication. Large cost cuts are achievable for both floating and bottom-fixed wind farms in the future. Offshore wind turbines are becoming enormous, with General Electric’s GE +1.2% Haliade X featuring blades 360 feet long and generating 14 megawatts. While everyone else is freezing in the winter blackout caused by unreliable energy production I will be sleeping in my nice warm truck listening to Pink Floyd. Operation and maintenance costs make up 25–30% of the total costs of an offshore wind farm (Miedema 2012, cf. Life Cycle Costs and Carbon Emissions of Offshore Wind Power. Final costs tend to be significantly higher, so little weight can be attached to forecasts of future costs. Project FORCE . See also As a result, the average costs of future offshore farms are expected to be higher. 2 EEA, (2009). Coral Reefs are Dying Because of Climate Change, Coal Pollution Can Be Seen Pouring From Power Plant Smokestacks, Greenland Ice Loss Will Cause Dangerous Sea Level Rise, Sea Level Rise is Accelerating Dramatically, The Global Temperature Record Says We Are in a ‘Climate Emergency’, The 130-Degree F Reading in Death Valley Is A World Record, Unprecedented Heat Wave in Pacific Northwest was Driven by Climate Change. You can expect typical costs to be about $1.3 million per megawatt (MW) of electricity (this is producing capacity). The Future of Offshore Wind in the UK 6.1. You can expect typical costs to be about $1.3 million per megawatt (MW) of electricity (this is producing capacity). The average investment costs related to these two farms are shown in Table 2.8, Table 2.8: Average Investment Costs per MW Related to Offshore Wind Farms in Horns Rev and Nysted. The majority of commercial wind turbines you spot while driving along the highway have a total capacity of 2-3 MW. This book details the various aspects of wind energy, and is accessible to the lay reader without any specialist knowledge. Fact 2: Onshore wind costs just £65/MWh now and forecasted at £46/MWh in 2022 (4.6p/kWh). The higher economic costs of offshore wind power relative to onshore wind power could be justified if the ecological or social costs of offshore wind were significantly different from onshore wind power, but this seems not to be the case. Despite mounting evidence to the contrary, we keep being assured that offshore wind costs have tumbled to under £50/MWh. (Miriam O’Brien aka slandering “Sou” from Hotwhopper, that means you.). As the… T1 - Life Cycle Costs and Carbon Emissions of Offshore Wind Power. For example, offshore turbines are generally 20  per cent more expensive and towers and foundations cost more than 2.5 times the price of those for a similar onshore project. $2.6 – $4 million per average-sized commercial wind turbine. The large wind resource off the United States West Coast has the potential to generate wind power for millions of homes, yet the high cost of energy for offshore wind power compared to traditional sources has slowed the development of ... Nov. 5, 2021 The utility’s executives say customer impacts will be the same, forecast annual bill growth of 2.1% … A 2013 … We are dedicated to securing continued reductions in the Levelized Cost of Energy from offshore wind power, an essential factor for the expansion of offshore wind markets around the globe. This book is open access under a CC BY 4.0 license. On that basis, Hywind’s £200,000 per megawatt is very disappointing. The topics addressed in this book involve the major concerns in the wind power generation and wind turbine design. Offshore costs depend largely on weather and wave conditions, water depth and distance from the coast. Recognizing this offshore wind energy potential, GE has invested more than $400 million to develop the most powerful offshore wind turbine—an investment that will also drive down offshore wind farms’ levelized cost of energy (LCOE), helping make offshore wind energy more competitive for our customers. IRENA’s latest global cost study shows solar and wind power reaching new price lows. The report highlights cost trends for all major renewable electricity sources. The sole responsibility for the content of this webpage lies with the authors. They regularly assess the levelised costs of all power sources, and only a year ago calculated that the cost of offshore wind was $115.04/MWh, roughly £84/MWh, at current prices. For permission, contact us. Floating turbines can be competitive against fixed-bottom solutions at shallower depths, perhaps even as shallow as 40 m. Wind power plays a crucial role in reaching the EU’s renewable goals. Despite mounting evidence to the contrary, we keep being assured that offshore wind costs have tumbled to under £50/MWh. Offshore wind only accounts for a small amount of the total installed wind power capacity in the world – approximately 1 per cent. The European Commission is not responsible for any use that maybe made of the information contained therein. o-called levelized costs aren’t level at all. van Druten MSc, B.H. Big turbines push down O&M costs. Europe is the world leader in offshore wind power, with the first offshore wind farm (Vindeby) being installed in Denmark in 1991.In 2009, the average nameplate capacity of an offshore wind turbine in Europe was about 3 MW, and the capacity of future turbines was expected to increase to 5 MW. Powered by Pure, Scopus & Elsevier Fingerprint Engine™ © 2021 Elsevier B.V. We use cookies to help provide and enhance our service and tailor content. It is expected that the O&M cost for wind farms further offshore will rise due to longer travel time and accessibility issues leaving less time to carry out maintenance once maintenance crews can get to wind turbines. Estimated total installed costs for offshore wind farms . Y1 - 2015/6/2. WORLDWIDE: Windpower Monthly's annual review of wind energy costs show offshore wind installation costs falling for the first time, bringing down generation costs. China Mocks Joe Biden’s Powerlessness at COP26, Manhattan Contrarian Announces The Arrival Of “Peak Oil-Hysteria”, Black carbon aerosols heating Arctic: Large contribution from mid-latitude biomass burning, ‘Already too late’ to save Churchill polar bears claim a false NY Times climate change cliché for COP26, Clear Evidence of a Low Altitude Cometary Air Burst Over the Atacama Desert ca. “Their figure does include transmission costs of $3.15, so excluding this we are looking at £82/MWh.”. The 2019 auction will have offshore in Pot 2 but in future auctions the remainder of the £557million would need allocating via Pot 1 in accordance with State Aid Rules – … LCOE for six floating and two bottom-fixed offshore wind turbines is calculated. Profitable for some. But battery costs were going to keep coming down until everyone depended on them. ClimateXChange has commissioned a briefing paper to help Scottish policy makers and other interested parties better understand these perspectives, the uncertainties associated with them, and the differing underpinning assumptions. The electrical systems needed for offshore wind farms to collect power from wind turbines--and transmit it to shore--will be a significant cost element of these systems. Let me begin with the £1.8 billion price tag for the 950 MW Moray wind farm. An updated and expanded new edition of this comprehensive guide to innovation in wind turbine design Innovation in Wind Turbine Design, Second Edition comprehensively covers the fundamentals of design, explains the reasons behind design ... Marshall MTech Author(s) E.C.M. Then, the researchers used the models to compare the cost of a representative 2019 fixed-bottom offshore wind power plant, which used one hundred 6-MW wind turbines for a total capacity of 600 MW, with various wind turbine and power plant sizes—up to a maximum of 20-MW wind turbines with a plant capacity of 2,500 MW.The models showed that scaling up both wind turbine and power … Ian Baring-Gould . The Feed in Tariff for wind turbines varies according to the size of the array and how much power it produces. offshore wind turbines in shallow waters rest on fairly simple monopile foundations, while more complex (and expensive) gravity or are used in deeper watersjacket foundations. Operations and maintenance costs for offshore wind plants are expected to be significantly higher than the current costs for onshore plants. G. B. Europe’s onshore and offshore wind energy potential. The US Energy Information Administration however don’t agree. Orsted, the global leader in offshore wind power, wants to build a 3,900-MW plant in the northern city of Hai Phong at a cost of $11.9-13.6 billion. Estimated total installed costs for offshore wind farms. N2 - There is a significant diversity of views on the life cycle levelised costs and carbon emissions of energy technologies, including offshore wind. from the offshore wind industry, insurance, academic and finance communities over a period of six months. The size of the wind farms also vary substantially, from the fairly small Samsø wind farm of 23 MW, to Robin Rigg, the world’s largest offshore wind farm, with a rated capacity of 180 MW. Offshore floating wind turbine technology is growing rapidly and has the potential to become one of the main sources of affordable renewable energy. Source empirical offshore wind farm operational and cost data to populate these models. More complicated Table 2.3: Operating and Planned Offshore Wind Farms in The Netherlands, Table 2.4: Operating and Planned Offshore Wind Farms in Denmark, Table 2. Costs of offshore wind power are decreasing much faster than expected. $0.55 billion. There are a number of ways to skin this cat. Sure, politicans are twisted and deranged and incompetent people- always have been and always will be. Presently, higher costs and temporary capacity problems in the manufacturing stages, as well as in the availability of installation vessels, cause some delays, but even so, several projects in the UK and Denmark will be finished within the next three years, as seen in Tables 2.2-2.6. A 2017 study of decommissioning eight offshore wind farms off the British coast estimated an average cost of over £200,000 per MW. abstract = "There is a significant diversity of views on the life cycle levelised costs and carbon emissions of energy technologies, including offshore wind. The Cost of Electricity Produced. According to the Department’s latest electricity generation cost report, offshore wind projects which come online between now and 2030 will produce power at an average cost of £47 per megawatt-hour over the course of their lifetime.BEIS’s previous … The 3200 MW Hinkley C nuclear power station is now reported to be pushing £20 billion, a point that many Green commentators point out is outrageous. ... IRENA’s latest global cost study shows solar and wind power reaching new price lows. Taking into account the UK with the greatest operating capacity in its waters, offshore wind levelised cost of energy reached £140/MWh in 2011 (The Crown Estate, 2012). The Breakdown of Initial Wind Turbine Costs. Final costs tend to be significantly higher, so little weight can be attached to forecasts of future costs. Published Nov 1, 2021 5:25 PM by The Maritime Executive. Sect. “Walk toward the fire. They regularly assess the levelised costs of all power sources, and only a year ago calculated that the cost of offshore wind was $115.04/MWh, roughly £84/MWh, at current prices. In November 2016, Vattenfall won a tender to develop the Kriegers Flak windpark in the Baltic Sea for 49.9 €/MWh, and similar levels were agreed for the Borssele offshore wind farms. John Olav Giæver Tande. While offshore projects remain more expensive to operate, economies of scale will play an increasing role as arrays featuring hundreds of … It does not necessarily reflect the opinion of the European Communities. As with most technological innovations, the bigger it is the more it costs. Research output: Book/Report › Commissioned report, © University of Edinburgh 2015 on behalf of ClimateXChange, Research output: Contribution to conference › Other. Their figure does include transmission costs of $3.15, so excluding this we are looking at £82/MWh. NATIONAL RENEWABLE ENERGY LABORATORY. Table 2.7 gives information on some of the recently established offshore wind farms. If we do this correctly, floating wind turbines will be able to compete with bottom-fixed wind turbines by 2030. Offshore wind power 03 Cost/benefit • The onshore and offshore wind power required to meet the EU renewable energy target could result in a net addition of 8% to retail electricity prices and less than 20% to wholesale electricity prices 1 by 2020. Despite all these advantages, harvesting energy from offshore wind is still much more expensive than power generation from onshore wind farms. ... IRENA’s latest global cost study shows solar and wind power reaching new price lows. e Because the larger turbines to be built off the Atlantic Coast will be more difficult and costly to remove and dispose of, the per-MW costs are likely to be higher, perhaps much more so. wind turbine installation cost module which, coupled with the NREL offshore wind plant balance of station (BOS) model, is capable of analyzing many scenarios including the six (6) turbine assembly strategies and three (3) additional project installation strategies that this study analyzes. The average cost share for these analyses accounts for approximately 6 per cent of total costs, but part of these costs are related to the pilot character of these projects and are not expected to be repeated for future offshore wind farm installations. Surface Temperature Record Reliable? The Horns Rev project, located approximately 15 km off the west coast of Jutland (west of Esbjerg), was finished in 2002. Giant offshore turbines set to drive plummeting cost of wind power. Offshore wind turbines, however, can be as large as 12 MW. This study presents options to speed up the deployment of wind power, both onshore and offshore, until 2050. It builds on IRENA’s global roadmap to scale up renewables and meet climate goals. More complicated To illustrate the economics of offshore wind turbines in more detail, the two largest Danish offshore wind farms can be taken as examples. Last year Europe built 2.9 GW of new offshore wind. Distributed Energy Resources Portland General Electric Power Plans Would Triple Clean Energy Resources Oct. 15, 2021. • Floating (ballast, mooring, buoyancy stabilizations, etc.) In 2009, shallow-water turbines cost US$2.4-3 million per megawatt to install, according to the World Energy Council, while the practical feasibility and per-unit economics of deep-water, floating-turbine offshore wind was yet to be established. $3.85 billion. Figure 4.4: Wind turbine cost breakdown (5 MW offshore wind turbine) 23 Figure 4.5: Wind turbine cost in selected countries, 2008 and 2010 24 Figure 4.6: Copper and steel prices, 1990 to 2010 25 Figure 4.7: o&M costs for wind power projects in the united States, 1980 to 2008 26 This book analyses the key issues of the offshore wind farm's energy transmission and grid integration infrastructure. 100km. Turbines now generate over four times the power of the first UK offshore wind turbines, dramatically reducing costs across the industry. This book will provide the reader with a clear picture of the current status and future challenges of the offshore wind industry globally, incorporating both a technical analysis of the cost drivers as well as a detailed analysis of policy ... Bulder MSc (ECN part of TNO) Offshore wind CfD prices are expected to decline and become cheaper than gas, where the price is expected to surpass £55/MWh by 2023-24. Temperatures are rising dramatically, Urban Heat Islands Do Not Exaggerate Global Warming, Climate Change is Causing Accelerated 21st Century Surface Warming, We are in the ‘Hottest Ever’ Period Due to Climate Change, Climate Models have Accurately Predicted 30 Years of Warming, Instrumental Temperature Records Demonstrate Man-Made Global Warming, Tipping Point – 1.5 Degrees Celsius Warming, Climate change may have driven the emergence of SARS-CoV-2, Claim: Global Warming May have Started in 1825. Summary: The OffshoreGrid project proves the financial benefits of building a meshed European grid offshore and outlines two cost efficient designs. coal even cheaper. Buying and installing a commercial wind turbine could cost anywhere from £345,000 for a 100 kW turbine, to £3.13 million for a 3.5 MW turbine. Turbines now generate over four times the power of the first UK offshore wind turbines, dramatically reducing costs across the industry. The total costs of each of the two offshore farms are around €260 million. levelised cost of electricity (LCOE) for offshore wind to £100. The prime minister's pledge to power every home in the country with offshore wind turbines by 2030 will cost £50bn and require massive reform of … The 3200 MW Hinkley C nuclear power station is now reported to be pushing £20 billion, a point that many Green commentators point out is outrageous. / Thomson, Camilla; Harrison, Gareth. This thesis reviews the technologies required for all-electric, wind-powered ammonia production and offers a simple design of such a system. The development of offshore wind has mainly been in northern European counties, around the North Sea and the Baltic Sea, where about 20 projects have been implemented. Despite all these advantages, harvesting energy from offshore wind is still much more expensive than power generation from onshore wind farms. Instead of the previously estimated $7.8 billion, the 2.6-gigawatt Coastal Virginia Offshore Wind (CVOW) commercial project will cost approximately $9.8 billion, Blue… Costs are reported for commercial-scale projects of 1,000 MW. Where possible, data from real offshore wind turbines and wind farms was used. Taking into account the UK with the greatest operating capacity in its waters, offshore wind levelised cost of energy reached £140/MWh in 2011 (The Crown Estate, 2012). • made smaller changes to specific assumptions for some technologies, including combined cycle gas turbines (CCGT), anaerobic digestion (AD) and tidal stream (2017-19). The Normalised Capital Costs of Offshore Wind and Nuclear Power. Under a “best guess” (or median) scenario, experts anticipate 17%-35% reductions in the levelized cost of energy by 2035 and 37%-49% reductions by 2050 across the three wind applications studied, relative to 2019 baseline values. This essential book examines the main problems of wind power integration and guides the reader through a number of the most recent solutions based on current research and operational experience of wind power integration. from the offshore wind industry, insurance, academic and finance communities over a period of six months. The excess costs of Weather Dependent Renewable power generation in the EU(28): 2020 – Watts Up With That? Dominion Energy Inc.’s offshore wind farm will cost about $2 billion more than expected, the Richmond-based Fortune 500 utility’s chair, president and CEO, Bob Blue, said during a third quarter earnings call Friday. 1. Typical cost is $1.3 million per megawatt (MW) of electricity-producing capacity; Most commercial wind turbines have a capacity of 2-3 MW, but offshore turbines … Reducing the cost of offshore wind to £100/MWh by 2020 is achievable DECC has put forward a challenge that offshore wind should reach a Levelised Cost of Energy (LCOE) of £100/MWh by 2020, in order to maximise the size of the industry. The most detailed cost information on recent offshore installations comes from the UK, where 90 MW in 2006 and 100 MW in 2007 were added, and from Sweden with the installation of Lillgrunden in 2007. The book explains grid management, repowering, development of offshore wind power projects and wind–solar hybrid power projects. Future renewable energy costs: Offshore wind 57 technology innovations that will have greater impact on reducing the cost of electricity from European offshore wind farms 7. Viewpoints - Published 19.07.2021. Installation costs contribute around 13% of the LCOE for offshore wind energy, while it is estimated that the pre-assembly of floating foundation and turbine could cut this cost by up to 50%. Let me begin with the £1.8 billion price tag for the 950 MW Moray wind farm. Usually, the bigger the turbine, the less you pay per kW. The Future of Offshore Wind in the UK 6.1. Haans MSc Project Director M.T. The first offshore wind projects to be awarded CfDs received strike prices of £150/MWh, shown in the chart above adjusted for inflation, at £167/MWh in current money. This report presents a comprehensive analysis and comparison of the levelised cost of energy (LCOE) for the following offshore floating wind turbine concepts: Spar-Buoy (Hywind II), Tension-Leg-Spar (SWAY), Semi-Submersible (WindFloat), Tension-Leg-Wind-Turbine (TLWT) and Tension-Leg-Buoy (TLB). This paper discusses the major challenges facing anyone estimating the costs for decommissioning of offshore renewable assets for bond security purposes. Both onshore and offshore wind projects are eligible to claim the ITC in lieu of the PTC. cost of offshore wind energy. This book offers a complete examination of one of the most promising sources of renewable energy and is a great introduction to this cross-disciplinary field for practising engineers. “provides a wealth of information and is an excellent ... Reducing the cost of offshore wind to £100/MWh by 2020 is achievable DECC has put forward a challenge that offshore wind should reach a Levelised Cost of Energy (LCOE) of £100/MWh by 2020, in order to maximise the size of the industry. CLINTEL to IPCC/COP26: AR6 Summary for Policymakers Flawed, China Mocks Joe Biden's Powerlessness at COP26, Manhattan Contrarian Announces The Arrival Of "Peak Oil-Hysteria". Sheer madness for society. I suspect the US has no idea of what’s actually happening out there in Europe. It CAN NOT be seen to lose face or have made a foul up of the initial tendering, Because there is effectively only One Buyer in the market, things pan-out (Read=Costs skyrocket) exactly as if there was only one supplier, Government has efficiently crippled itself and Cronies cash in in Epic Style so as to ‘help’ Government out of their own mess – by for example, putting out rumours about ‘Falling Costs’, Then the suppliers to the suppliers latch on and it all just goes off the scale. According to the latest WindEurope data, Europe raised €26.3bn to finance 7.1 GW of new offshore wind capacity in 2020. Offshore wind is on track to become the backbone of Britain’s electricity system, providing reliable, low-cost clean power to homes and businesses across the country. They did mention a breakthrough (or maybe it was two) were needed first. President Joe Biden’s administration has set a 2030 target to have installed 30,000 megawatts of U.S. offshore wind power capacity. It was the cheapest renewable power source listed, against large scale solar plants at £158 per MWh and offshore wind at £122 per MWh and above. On that basis, Hywind’s £200,000 per megawatt is very disappointing. Offshore wind is on track to become the backbone of Britain’s electricity system, providing reliable, low-cost clean power to homes and businesses across the country. Fact 1: Offshore wind cost £120/MWh in 2018 with new installations forecasting a lower cost of £58/MWh (5.8p/kWh) in 2022. This book will provide the reader with a clear picture of the current status and future challenges of the offshore wind industry globally, incorporating both a technical analysis of the cost drivers as well as a detailed analysis of policy ... Table 2.7: Key Information on Recent Offshore Wind Farms, Note: Robin Rigg is planned to be in operation in 2008. I am keeping my gas guzzling truck as long as I can. Dive into the research topics of 'Life Cycle Costs and Carbon Emissions of Offshore Wind Power'. the price of steel, copper, neodymium, safety compliance costs, wildlife damage minimisation, the appearance of the highly endangered greater lesser spotty non spotty bog-rat-toad. Sorry, your blog cannot share posts by email. Both wind farms have their own on-site transformer stations, which are connected to the high voltage grid at the coast via transmission cables. On the other hand, renewables advocates claim that the true operating costs of fixed offshore wind are well below £100,000/MW. Evaluation of the different RES-E support schemes... Policy recommendations for the design criteria of RES-E support instruments, The Impact of Wind Power on the Power Market: DK Case, Dronten, Ijsselmeer (inland freshwater lake), to the outside of the dyke, Lim fjord, off Rønland peninsula, in the Nissum Bredning , off NW Jutland, Blåvandshuk, Baltic Sea (10km west of Horns Rev), 9km off Rødsand, Lolland in the Baltic Sea, Turbines ex works, including transport and erection, Transformer station and main cable to coast. 6. Estimated total installed costs for offshore wind farms. Key features: provides in-depth treatment of all systems associated with wind energy, including the aerodynamic and structural aspects of blade design, the flow of energy and loads through the wind turbine, the electrical components and ... $2.6 – $4 million per average-sized commercial wind turbine. For a thorough analysis of levelised costs and system integration costs as per the the UK, see here: For more on the cost of future generation systems as per the UK, see here: https://www.thegwpf.org/uk-consumers-grossly-overpaying-for-electricity/ Table 2.2: Operating and Planned Offshore Wind Farms in the UK. Evolution of total installed costs and weighted averages of commissioned. The first offshore wind projects to be awarded CfDs received strike prices of £150/MWh, shown in the chart above adjusted for inflation, at £167/MWh in current money. Below are ten facts and figures about wind power for the UK. The Nysted offshore wind farm is located south of the isle of Lolland. Five countries have operating offshore wind farms: Denmark, Ireland, The Netherlands, Sweden and the UK, as shown in Table 2.1. To the end of 2018, thirty-nine offshore wind farms had been built by the sector, with ambition to grow the offshore wind farm operating capacity from 6.9GW at the end of 2017, to 30GW in the 2030s. What Does Offshore Wind Power Really Cost? There was an oblique reference to replacing all the ICE powered vehicles in San Francisco with BEVs would require 7% more electricity than the city currently consumes, to which I read that the city would suffer more than a 50% shortfall in power supply. AU - Harrison, Gareth. They should be required to work for free and be beaten every Tuesday. 3 WindEurope, (2017). It was the cheapest renewable power source listed, against large scale solar plants at £158 per MWh and offshore wind at £122 per MWh and above. Evolution of total installed costs and weighted averages of commissioned. This is almost as much as the cost of the wind turbines and about as much as the costs of construction and installation. 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