ECONOMICS AND FEASIBILITY

Wind and hydroelectric power generation have negligible fuel costs and relatively low maintenance costs ; in economic terms, wind power has a low marginal cost and a high proportion of capital cost. The estimated average cost per unit incorporates the cost of construction of the turbine and transmission facilities, borrowed funds, return to investors (including cost of risk), estimated annual production, and other components, averaged over the projected useful life of the equipment, which may be in excess of twenty years. Energy cost estimates are highly dependent on these assumptions so published cost figures can differ substantially. A British Wind Energy Association report gives an average generation cost of onshore wind power of around 3.2 pence (between US 5 and 6 cents) per kWh (2005).Cost per unit of energy produced was estimated in 2006 to be comparable to the cost of new generating capacity in the US for coal and natural gas: wind cost was estimated at $55.80 per MWh, coal at $53.10/MWh and natural gas at $52.50 Other sources in various studies have estimated wind to be more expensive than other sources.In 2004, wind energy cost a fifth of what it did in the 1980s, and some expected that downward trend to continue as larger multi-megawatt turbines were mass-produced. However, installed cost averaged €1,300 a kW in 2007, compared to €1,100 a kW in 2005. Not as many facilities can produce large modern turbines and their towers and foundations, so constraints develop in the supply of turbines resulting in higher costs. Research from a wide variety of sources in various countries shows that support for wind power is consistently 70–80% among the general public .Global Wind Energy Council (GWEC) figures show that 2007 recorded an increase of installed capacity of 20 GW, taking the total installed wind energy capacity to 94 GW, up from 74 GW in 2006. Despite constraints facing supply chains for wind turbines, the annual market for wind continued to increase at an estimated rate of 31%, following 32% growth in 2006. In terms of economic value, the wind energy sector has become one of the important players in the energy markets, with the total value of new generating equipment installed in 2007 reaching €25 billion, or US$36 billion .
Although the wind power industry will be impacted by the global financial crisis in 2009 and 2010, a BTM Consult five year forecast up to 2013 projects substantial growth. Over the past five years the average growth in new installations has been 27.6 percent each year. In the forecast to 2013 the expected average annual growth rate is 15.7 percent. More than 200 GW of new wind power capacity could come on line before the end of 2013. Wind power market penetration is expected to reach 3.35 percent by 2013 and 8 percent by 2018 .