## 4 Economic Feasibility
### Assumptions and Input Data for the Analysis of the Hybrid System  
A spreadsheet was tailored specifically to KTD's hybrid system to perform the economic mathematical analysis. Various parameters were taken into account through the economic calculations. The most relevant for both the wind park and pumping system are:  
1. Wind Park Cost: * System size: Defined through the scale of the project. * Land size: Defined through the required land size in decacre (1000 m\({}^{2}\)). * System cost: Defined through the cost of the wind turbine per watt, and the cost of the transformer switchgear, electrical protection equipment, and aviation Light, in the local market. This parameter also includes the installation cost per Mega-Watt in the local market in addition to the grid interconnection fees, transportation fees, storage, start-up, and land cost.
* System life expectancy: Defined through the system components' lifespan and maintenance.
* Energy generation for 20 years \"lifetime of the project\": Defined through forecasting the amount of energy that can be produced from the wind park for 20 years of its operation.
* Average energy selling tariff or saving energy: Defined through the average tariff for selling electric energy to the local distribution company for 2017.
* Annual inflation in tariff: Defined through the percentage of inflation in the energy selling tariff to the local distribution company.
* Operations and Maintenance (O&M) cost percentage: Defined through the changed costs for operating and maintaining the system based on the lifetime of the system.
* Annual inflation in O&M cost: Defined through the percentage of inflation in the operation and maintenance costs per annum.
* Insurance percentage: Defined through the fixed costs for insurance as a percentage of the initial investment.
* Annual inflation in insurance: Defined through the percentage of inflation in the insurance costs per annum.  
Table 2 shows the estimated cost for the wind park based on current market price.  
2. Pumping System and Subsystem Estimated Cost  
The total estimated cost for pumping system comes from the development cost, mechanical cost, civil cost, and electrical cost, management cost, commissioning cost and testing cost as shown in detail in Table 3.  
* Development cost: studies, design, drawing, cost analysis and permissions/approvals will be approximately the 6-7% of the total cost.
* Electrical cost: Control system, transformers, auxiliary transformer, MV equipment, SCADA system, motors, junction boxes, cables, earthing system, connection to the grid, internal electrical lines, fire system, and lightning system.
* Mechanical cost: Steel pipes, isolations, base unit, valves, manifold systems, piping system, water flow meter, overhead lighting, air-conditioning units, water equipment, drainage system, fire system etc.
* Project management: Supervision, reporting, etc.
* Commissioning: Electrical, mechanical, and control systems.
* Civil works and labor cost: Excavation, levelling, water tanks, powerhouse building, pump foundation, control room, pipe's foundation.  
\begin{table}
\begin{tabular}{c c c} \hline \hline
**Parameter** & \multicolumn{2}{c}{**Specifications**} \\ \hline WIND TURBINE Vestas V90 & \multicolumn{2}{c}{90,0000 JOD/MW} \\  & Total Cost for 10 MW & Cost per MW \\ Lump Sum for Transportation & 309,350 & 30,935 \\ Lump Sum for Wind Turbine Generator & \multicolumn{2}{c}{} \\ WTG Erection & 250,000 & 25,000 \\ Lump Sum for Electrical Engineering & 189,302 & 18,930 \\ Lump Sum for Substation Civil Works & 98,430 & 9843 \\ Aqaba Port Storage Cost & 17,000 & 1700 \\ Lump Sum for WTG Civil Works & 923,566 & 92,357 \\ Total & 1,787,647 & 178,765 \\ Total Estimation Cost per MW & \multicolumn{2}{c}{1,078,765} \\ \hline \hline \end{tabular}
\end{table}
Table 2: Estimated initial cost for wind park.