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Chapter 1: Cost of on-land wind power

Cost and investment structures

The main parameters governing wind power economics include:

  • investment costs, such as auxiliary costs for foundation and grid connection;
  • operation and maintenance costs;
  • electricity production / average wind speed;
  • turbine lifetime;
  • discount rate.

The most important parameters are turbine electricity production and investment costs. As electricity production depends to a large extent on wind conditions, choosing the right turbine site is critical to achieving economic viability.

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