The Namibian wind power project
Recently it was announced that a wind power project would be tested on the coast of Namibia. Our project management exercise will be to do a brief investigation of this idea.
The technology is very simple - these futuristic looking windmills (see video above) are rotated by the wind, which drives generators which produce electricity. The claimed advantages are obvious - that clean 'free' inexhaustible power will be generated without any burning of fossil fuels or production of 'greenhouse' gases. Have a look at a nice animation to see how the equipment works.
Your assignment will consist of the following:
1) There are also disadvantages to wind power, both in the concept and in terms of finance and the equipment. Write a report for Government discussing the advantages and disadvantages in detail, especially in the Namibian context (you can consult the wikipedia article). Also mention aspects of the time, cost and risk management which may be involved.
2) The planning and preparation of the project is complex. It may be simplified as follows:
| Phase | Timescale |
| Planning: | |
| Feasibility study | 2 months |
| Selection and acquisition of site | 4 weeks |
| Environmental assessment | 3 months |
| Approval of government and agencies | 3 months |
| Selection of contractor | 2 months |
|
Drawing up of contract |
1 month |
| Preparation of site | |
| Clearing of site | 2 weeks |
| Housing for on-site staff | 2 weeks |
| Fencing and security | 1 week |
| Construction | |
| Selection of local contractor | 1 month |
|
Building of towers by local contractor |
6 weeks |
| Importation | |
| Order of turbine, blades and generators | 2 months |
| Testing of equipment | 2 weeks |
| Installation of generators | 1 week |
| Erection of blades and turbine | 3 weeks |
| Infrastructure | |
| Erection of linking power lines | 2 months |
| Installation of switching transformers | 1 week |
| Connection to grid and testing | 2 weeks |
Draw a Gantt chart schedule for the above process, and assuming a start will be made on 1st July 2007, estimate a completion date.
3) Cost benefit and pay-back. Assuming the equipment costs N$ 50 million and the power output is 4 megawatt (50% of the time!). Assume maintenance of the equipment costs N$ 500 000 per year, and that a profit of N$400 per megawatt-hour is made from the electricity generated. Will the project pay for itself over a 20 year lifetime? Assume a maintenance cost escalation rate of 15% per year, and a discount rate of 10%. Discuss and report.
HAND-IN:
By Wednesday 23rd May - a hard-copy report of all of the above. If you do not have access to printing facilities please let me know so that we can arrange for soft-copy submission.
Enquiries to me bill@iway.na