The Economics Of Wind Power

 

There are 2 fundamental considerations for calculating the economics of wind power.

The first consideration is wind speed because this determines the amount of power which the generator can produce. Because of the S shaped curve of wind power small difference in wind speed make a significant difference in power production. Wind speed also increases with altitude so even a small increase in the height of the tower (from 12m to 20m) will make a significant difference in power production.

The second consideration is the amount of power used by the installer versus the amount of power sold back to the grid.To explain, every unit of electricity produced by self generation will, with the new feed in tariff for a turbine up to 15Kw be worth 23p plus the buy back when sold to the grid. (The buy back price  a guaranteed minimum of 5p but by contract may be as much as 12p). Hence the value of the value of electricity produced is between 28p and 35p.


If producing 30,000 Kw /hr per year at 28p the annual value of the production is £8,400. This increases to £10,500


It should also be appreciated that there will be a seasonal effect for electricity production - more power will be produced by strong winter winds.There are also good and bad wind years

There are also many other factors which can be considered in calculating the economics of wind power including the future cost of electricity, changes in thegeneration and buy back tariff and, most important of all life of the generator.

An approximate indication of individual windspeed can be determined by reference to the web site which gives windspeed based on postcodes


http://www.berr.gov.uk/energy/sources/renewables/explained/wind/windspeed-database/page27326.html

 

It should, however, be recognised that this is only an approximate measure - actual wind speed varies within  a few 100 yards depending on the topography of the land, buildings, trees and other factors.

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