Comparison of Small-Scale Wind Energy Conversion Systems: Economic Indexes
Muhammad Shahzad Nazir, Yeqin Wang, Muhammad Bilal, Hafiz M. Sohail, Athraa Ali Kadhem, Hammad Nazir, Ahmed N. Abdalla, Yongheng Ma
Abstract
Wind energy is considered as one of the most prominent sources of energy for sustainable development. This technology is of interest owing to its capability to produce clean, eco-friendly, and cost-effective energy for small-scale users and rural areas where grid power availability is insufficient. Wind power generation has developed rapidly in the past decade and is expected to play a vital role in the economic development of countries. Therefore, studying dominant economic factors is crucial to properly approach public and private financing for this emerging technology, as industrial growth and energy demands may outpace further economic studies earlier than expected. In this study, a strategy-focused method for performing economic analysis on wind energy based on financial net present value, levelized cost of energy, internal rate of return, and investment recovery period is presented. Numerical and simulation results depict the most optimal and economical system from a 3 and a 10 kW wind energy conversion system (WECS). Moreover, the aforementioned criteria are used to determine which WECS range is the most suitable investment with the shortest payback period. Finally, an economically viable and profitable wind energy system is recommended.