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  "documentTitle": "ey net zero centre carbon offset publication 20220530",
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  "authorName": "Grantham Research Institute",
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  "notes": "The chart uses a log-log scale. The text provides an economic analysis of wind farm cost drivers.",
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      "text": "The combination of a fixed up-front cost and a constant cost per MW means that the average cost per MW is declining in the scale of the project.",
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      "text": "Figure 2: Capacity and project costs. Source: Bloomberg New Energy Finance",
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      "text": "Project cost: 49.23",
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      "text": "developments suggest that these costs make up about 8-10% of up-front investment (Blanco, 2009). If we regress project costs on capacity and distance for the subset where all three are observed, the intercept is ≈ INR 20 million, which corresponds to nearly 8% of project costs on average. The combination of a fixed up-front cost and a constant cost per MW means that the average cost per MW is declining in the scale of the project.",
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      "text": "Maintenance costs, vyt, and taxes, τlyt, could in principle undo some of the benefits of scale, but in practice they do not. Similar to prices, maintenance costs are contracted at the time of construction, and they tend to follow an industry-standard schedule. A typical maintenance contract charges a flat fee per MW of built capacity, which subsequently increases by some fixed percentage with each passing year. Therefore, if we are comparing two wind farms of the same size, built in the same year, they will have the same maintenance cost over the lifetime of the project.",
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      "text": "To summarize, power output is an increasing function of generation capacity, and to some extent, so is the revenue per kWh. Because of planning costs, larger wind farms will have a lower",
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      "text": "When it comes to taxes, wind farms pay the same state and national taxes in India as any other enterprise, with the exception of the Accelerated Depreciation Benefit. Starting in 1994, wind farm developers were permitted to apply a 100% rate of depreciation to their newly built projects. The rate was lowered to 80% in 2002, then to 0% in 2012, before returning to 80% in 2014. This means that wind farm developers in India would have paid almost no taxes on their developments during our period of study. To the extent that wind farm developments are subject to different tax regimes, these will differ primarily by vintage. We have found no evidence that there were any state tax policies that disproportionately increased the cost of building larger wind farms.",
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