Economics and location factors of wind power production

Relevance

In light of international climate goals such as those outlined in the Paris Agreement, which aim to limit global warming to well below 2 degrees Celsius compared to temperature levels in the late 19th century, analysing the environmental and economic impacts of renewable energy systems has become increasingly vital. As global efforts intensify to combat climate change, understanding the financial implications of renewable technologies like wind power becomes increasingly crucial. The background of this analysis lies in the intersection of economics and environmental science, where Levelized Cost of Electricity (LCOE) serves as a key metric for assessing cost-effectiveness. For students, engaging with these analyses provides valuable insights into how economic factors such as capital expenditures (CAPEX), operational expenditures (OPEX), and full-load hours influence project viability and resource allocation decisions.

Abstract

The Building Block focuses on the economic aspects of electricity generation from wind energy systems through a comprehensive analysis of Levelized Cost of Electricity (LCOE). By considering both CAPEX and OPEX, various scenarios are examined to understand how local conditions affect the economic costs of renewable energy. Detailed LCOE maps provide insights into cost trends across different years and scenarios. Students gain a deep understanding of the importance of thorough analyses for assessing the economic aspects of renewable energy.

Additionally, this module combines quantitative analysis of the economic viability of wind power plants with an ecological analysis from another Building Block. This integration enables a profound understanding of the significance of holistic assessments in evaluating climate impacts and economic aspects in achieving global climate goals.