Economics of Small Wind Power Plants in Urban Settings: An Empirical Investigation for Germany
AbstractIn this paper we investigate the location-specific attractiveness of small wind turbines (SWT) for private households. In order to assess the economic viability of an investment in SWT, we analyze a set of scenarios that incorporate different types of SWT, various storage system options, support schemes, and specific urban surroundings for the case of Germany. As urban structures substantially influence local wind speeds, and hence the potential energy yield of a turbine, the potential location of the SWT in the urban area is crucial for the economic feasibility. We find that SWT today are only profitable under very favorable conditions, the most important parameters being prevailing wind speeds and the location’s degree of urbanization. In most cases, the coupling of the SWT to a storage system is crucial for cost-effectiveness. A feed-in tariff system specifically adapted to the SWT technology is found to be an important driver of diffusion. Further research needs are identified in the field of long-term performance and yield projections for SWT. Based on the findings from our study, significant SWT diffusion can be expected, if at all, only in coastal suburban and rural areas.
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Bibliographic InfoPaper provided by E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN) in its series FCN Working Papers with number 1/2013.
Length: 41 pages
Date of creation: Jan 2013
Date of revision:
small wind turbine; energy storage; urban environment; feed-in tariffs;
Find related papers by JEL classification:
- O18 - Economic Development, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
- Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
- Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-07-20 (All new papers)
- NEP-ENE-2013-07-20 (Energy Economics)
- NEP-EUR-2013-07-20 (Microeconomic European Issues)
- NEP-REG-2013-07-20 (Regulation)
- NEP-SBM-2013-07-20 (Small Business Management)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Anselm Mattes, 2012. "Grüner Strom: Verbraucher sind bereit, für Investitionen in erneuerbare Energien zu zahlen," DIW Wochenbericht, DIW Berlin, German Institute for Economic Research, vol. 79(7), pages 2-9.
- Palmer, Johannes & Sorda, Giovanni & Madlener, Reinhard, 2013. "Modeling the Diffusion of Residential Photovoltaic Systems in Italy: An Agent-based Simulation," FCN Working Papers 9/2013, E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN).
- Rohlfs, Wilko & Madlener, Reinhard, 2013. "Challenges in the Evaluation of Ultra-Long-Lived Projects: Risk Premia for Projects with Eternal Returns or Costs," FCN Working Papers 13/2013, E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN).
- Bruns, Stephan B. & Gross, Christian, 2013. "What if Energy Time Series are not Independent? Implications for Energy-GDP Causality Analysis," FCN Working Papers 10/2013, E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN).
- Rohlfs, Wilko & Madlener, Reinhard, 2013. "Optimal Power Generation Investment: Impact of Technology Choices and Existing Portfolios for Deploying Low-Carbon Coal Technologies," FCN Working Papers 12/2013, E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN).
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