Chapter 25

Economics of Wind Power Generation

Magdi Ragheb,    University of Illinois at Urbana-Champaign, Urbana, IL, United States    Email: mragheb@illinois.edu

Abstract

A discussion of the economics of wind power generation is presented. Sustainable development will depend on whether energy prices of other sources will stay high. Developers of wind power installations are looking at a 20-year investment span. If natural gas prices fall over that period, a project that is presently profitable could become uncompetitive a few years into the future. The growth is driven by tax incentives, utility demand, falling costs, and improved technology, including taller towers and lighter rotor blades.

A benchmark calculation of the levelized cost of wind ...

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