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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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