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Asia Alternative Energy Programme (Astae) Working Paper Statistical Analysis of Wind Farm Costs and Policy Regimes

By The World Bank

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Book Id: WPLBN0000064619
Format Type: PDF eBook
File Size: 0.4 MB
Reproduction Date: 2005
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Title: Asia Alternative Energy Programme (Astae) Working Paper Statistical Analysis of Wind Farm Costs and Policy Regimes  
Author: The World Bank
Language: English
Subject: Economics, Finance & business, World Bank.
Collections: Economics Publications Collection
Publication Date:
Publisher: The World Bank


Introduction: 1.1 Background World wind energy capacity doubled every three years from 1990 to 2000. It is doubtful whether any other energy technology is growing, or has grown, at such a remarkable rate. Installed capacity in 2000 grew by 30% so that total world wind turbine capacity at the end of the year was around 17,600 MW (see Figure 1). Germany, with over 6,000 MW, has the highest installed capacity but Denmark, with over 2,000 MW, has the highest level per capita and wind production accounts for about 13% of Danish electricity consumed. Wind provided 21% of the electricity consumed in Western Denmark in February 2001. It is generally acknowledged that the extraordinary growth in German wind power is attributable to a very favorable policy regime (the so-called ?Feed-in Law?) that guarantees fixed prices ? as much as 9 US cents/kWh -- for wind energy. The resulting growth in the equipment market has provided incentives for technological innovation in turbine design, and for the exploitation of scale economies at the project and equipment manufacture scale ? just in the past five years, the typical rated capacity of a wind turbine has grown from 600kW to over 1MW. On the other hand, the lowest wind energy prices have occurred in countries where the policy regime emphasizes competitive structures, notably in the UK where the competitive Non-Fossil Fuel Obligation (NFFO), Scottish Renewables Obligation (SRO) and Northern Ireland NFFO (NI-NFFO) process resulted in prices as low as 3-4 US cents/kWh by 1998.


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