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The role of taxation policy and incentives in wind-based distributed generation projects viability: Ontario case study

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  • Albadi, M.H.
  • El-Saadany, E.F.

Abstract

Taxation policy and incentives play a vital role in wind-based distributed generation projects viability. In this paper, a thorough techno-economical evaluation of wind-based distributed generation projects is conducted to investigate the effect of taxes and incentives in the economic viability of investments in this sector. This paper considers the effects of Provincial income taxes, capital cost allowance (CCA), property taxes, and wind power production Federal incentives. The case study is conducted for different wind turbines and wind speed scenarios. Given turbine and wind speed data, the Capacity Factor (CF) of each turbine and wind speed scenario was calculated. Net Present Value (NPV) and Internal Rate of Return (IRR) for different scenarios were then used to assess the project's viability considering Ontario Standard Offer Program (SOP) for wind power.

Suggested Citation

  • Albadi, M.H. & El-Saadany, E.F., 2009. "The role of taxation policy and incentives in wind-based distributed generation projects viability: Ontario case study," Renewable Energy, Elsevier, vol. 34(10), pages 2224-2233.
    • Handle: RePEc:eee:renene:v:34:y:2009:i:10:p:2224-2233
    DOI: 10.1016/j.renene.2009.03.017
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    References listed on IDEAS

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    1. Ilinca, Adrian & McCarthy, Ed & Chaumel, Jean-Louis & Rétiveau, Jean-Louis, 2003. "Wind potential assessment of Quebec Province," Renewable Energy, Elsevier, vol. 28(12), pages 1881-1897.
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    Cited by:

    1. Albadi, M.H. & El-Saadany, E.F. & Albadi, H.A., 2009. "Wind to power a new city in Oman," Energy, Elsevier, vol. 34(10), pages 1579-1586.
    2. Wu, Zhanchi & Fan, Xiangjun & Zhu, Bangzhu & Xia, Jiahui & Zhang, Lin & Wang, Ping, 2022. "Do government subsidies improve innovation investment for new energy firms: A quasi-natural experiment of China's listed companies," Technological Forecasting and Social Change, Elsevier, vol. 175(C).
    3. Pérez de Arce, Miguel & Sauma, Enzo & Contreras, Javier, 2016. "Renewable energy policy performance in reducing CO2 emissions," Energy Economics, Elsevier, vol. 54(C), pages 272-280.
    4. Dong, Jun & Feng, Tian-tian & Sun, Hong-xing & Cai, Hong-xin & Li, Rong & Yang, Yisheng, 2016. "Clean distributed generation in China: Policy options and international experience," Renewable and Sustainable Energy Reviews, Elsevier, vol. 57(C), pages 753-764.
    5. Zhang, Lei & Qin, Quande & Wei, Yi-Ming, 2019. "China's distributed energy policies: Evolution, instruments and recommendation," Energy Policy, Elsevier, vol. 125(C), pages 55-64.

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