Evaluating an Onshore Wind Farm Enlargement Project: A Contingent Valuation Study in Central Italy

Abstract

In many European countries the most suitable onshore sites for wind installations are almost fully engaged; furthermore, the existing onshore wind farm capacity will be replaced in the next 10 years, given that wind power plants are progressively aging; without an adequate policy intervention, the Italian installed wind power capacity would return to the size of 2011 by 2030. In this scenario, two opportunities exist for further growth in wind energy generation: repowering or wind farm enlargement. The choice between these two options mainly depends on local characteristics. The aim of this chapter is twofold. First, we investigate whether existing wind farms affect respondents’ attitudes and perceptions towards the potential enlargement of a wind farm, using a contingent valuation (CV) method. Second, we investigate the perception of the risk associated with the enlargement of a wind farm. In this case we explicitly take into account the existence of respondents’ heterogeneity in perceiving the new project externalities. To do this, we use both willingness to pay (WTP) and willingness to accept (WTA) measures in order to appraise welfare change due to the enlargement project. Each of these measures is elicited jointly with the respective appraised externality impact perceived by the respondents. The findings can offer useful insights for planning and design of enlargement schemes in order to achieve further growth in wind energy generation.