Comparison of Small-Scale Wind Energy Conversion Systems: Economic Indexes

Muhammad Shahzad Nazir, Yeqin Wang, Muhammad Bilal, Hafiz M. Sohail, Athraa Ali Kadhem, H. M. Rashid Nazir, Ahmed N. Abdalla and Yongheng Ma
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Muhammad Shahzad Nazir: Faculty of Automation, Huaiyin Institute of Technology, Huai’an 223003, China
Yeqin Wang: Faculty of Automation, Huaiyin Institute of Technology, Huai’an 223003, China
Muhammad Bilal: School of Life Science and Food Engineering, Huaiyin Institute of Technology, Huai’an 223003, China
Hafiz M. Sohail: School of Economics and Management, South China Normal University, Guangzhou 510631, China
Athraa Ali Kadhem: Center for Advanced Power and Energy Research, Faculty of Engineering, University Putra Malaysia, Selangor 43400, Malaysia
H. M. Rashid Nazir: School of Economics and Management, Yanshan University, Qinhuangdao 066004, Hebei, China
Ahmed N. Abdalla: Faculty of Electronics and Information Engineering, Huaiyin Institute of Technology, Huai’an 223003, China
Yongheng Ma: Faculty of Automation, Huaiyin Institute of Technology, Huai’an 223003, China

Clean Technol., 2020, vol. 2, issue 2, 1-12

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.

Keywords: renewable energy; wind energy; economic indexes; net present value; levelized cost of energy; HOMER (search for similar items in EconPapers)
JEL-codes: Q2 Q3 Q4 Q5 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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