Economic assessment of small-scale electricity generation from wind

Abstract

Analysis was done to determine if small-scale wind energy could be economically feasible on a cotton farm with 1,200 irrigated acres, a house, and a barn. Lubbock and Midland were locations chosen for this model farm and the twenty-year analysis. A 10 kW wind turbine on a 30m tower was installed and five different scenarios were calculated for both locations. Wind speeds for both locations were collected and analyzed to find the closest fitting distribution to incorporate the appropriate risk. This distribution was the empirical distribution at both locations every month except December in Lubbock, which closely matched the Gamma distribution. Electricity production, usage and costs were analyzed to find the net present value of the investment. The economic analysis of this system showed that the wind turbine under all situations was much less economical than purchasing electricity solely from the electric company. Small-scale wind energy produced under thesis assumptions was over $10,000 more expensive than traditional electricity in Lubbock and Midland over the twenty year planning horizon.