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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; and
  • 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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