A Methodology for the Economic Study of a Wind Energy Project

Abstract

An economic evaluation is essential before any energy project. It can be used to decide on energy purchases, to select on the competing technologies, to finance an energy project, to control costs, to analyze benefits or to make a decision. This work summarizes the needed theory to support decision makers in evaluating the economic profitability of a wind energy project and making decision on investing in it. Moreover, those practical economics analysis can be applied for judging other renewable energies projects. It can be also used to compare different technologies, to compare alternative renewable energies or compare it with conventional energies. Moreover, the results of two applications of this methodology are presented (Estimation of the cost per kWh of wind produced energy at nine wind farms in Morocco and comparison of six turbine models to be installed at Dakhla city in Morocco basing on the cost per kWh of wind generated energy, the payback period and the net present values).