EVALUATING THE ECONOMICS OF SMALL WIND POWER IN NORTH CAROLINA
Abstract
“Small wind” is defined as wind-powered electric generators with rated capacities
of 100 kilowatts (kW) or less. Compared with utility-scale wind systems, small wind
enjoys many economic and social advantages including reducing costs of building transmission
lines, helping the public reduce peak power demand, diversifying the energy supply
portfolio, and increasing regional economic growth.
This Master’s Project is designed to evaluate the costs and benefits of small wind
systems in North Carolina from the perspective of residents and communities. It establishes
a basic Cost Benefit Analysis (CBA) Model to calculate Net Present Value (NPV), Levelized
Cost of Energy (LCOE), and Payback Period (PP) of a specific small wind project in
Class 3 wind region in North Carolina. The project addresses the impact of a potential
carbon tax, a potential state rebate program, and a state tax credit without a cap
on the economics of the typical small wind system in North Carolina. The results indicate
that a potential carbon tax would not have a significant impact on small wind economics,
but the combination of a state rebate program and a non-capped tax credit makes investments
in small wind much more attractive. It is recommended that North Carolina adopt a
combination of a state rebate program and a non-capped tax credit to stimulate the
development of small-scale wind power.
Type
Master's projectPermalink
https://hdl.handle.net/10161/2210Citation
Zhuang, Wenjie Jr (2010). EVALUATING THE ECONOMICS OF SMALL WIND POWER IN NORTH CAROLINA. Master's project, Duke University. Retrieved from https://hdl.handle.net/10161/2210.Collections
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