Duncan got me thinking about valuation a gain so i did some back-of-the-napkin calculations.
A 40 MW plant is about $150M upfront. It will return about $30M/year in electricity after ongoing expenses for around 30 years. That give an ROI of 20% which is exceptional for most businesses. Assuming a 10 year payoff on the plant, which would consume around $20M per year, the plant would still return $10M per year, or a 6% ROI after expenses for the first ten years, and have a residual value that would probably equal the initial investment.
These numbers look exceptionally good. Can anyone poke some holes here?
Dude59