Economic analysis of a wind power plant: A case study for the Cappadocia region

Abstract

The scenario analysis was conducted for a wind power plant in the Cappadocia region, which was selected due to its importance as a historical region and high wind potential. This study determined that the construction of wind power plant can be suitable for the Cappadocia region by using the escalation method of inflation. This study aims to determine the feasible investment cost for wind power plant construction with a suitable economic method. This case study predicted that a 3 MW wind energy plant would be constructed, and an energy production of 7884000 kWh/y can be economical for the Cappadocia region of Turkey. Total investment cost of the wind power plant was estimated to be $ 13540800, and unit electricity cost was approximately 0.14689 $/kWh. The construction of the wind energy plant was evaluated by escalation method for three successive years (2014, 2015 and 2016). Results show that a wind energy plant is economical for the Cappadocia region (Turkey) due to its high-energy wind potential (Wind data acquisition station of Derinkuyu, Cappadocia region). The Government of Turkey, which supports the entrepreneur, imposes no taxes for wind power plant (1 MW). The unit of electrical energy cost for the Cappadocia region was compared with benchmarks from case studies. The effectiveness of wind energy potential is apparently high for the Cappadocia region. The cost of electrical energy for the Cappadocia region was more efficient than the other case studies that referred the significance of an economic analysis of the wind power plant.