Identification

Wind farms are an inexhaustible form of renewable energy. Turbines harness power from the wind to generate electricity. To be cost effective, a wind farm should generate at least 20 MW of electricity when all turbines are operating at 100 percent capacity, according to the American Wind Energy Association.

Turbine Costs

The expense of installing wind turbines varies based on several factors, including financing rates, construction costs and location. The cost for most individual wind turbines runs about $3.5 million per 2 MW of power capacity, according to Windustry.org.

Additional Costs

In addition to paying for individual wind turbines, project developers must secure land for a project. Landowners are typically compensated with royalties from wind farm profits or through other terms outlined in a lease agreement.

Considerations

For a wind farm to be cost efficient, the site where the project is developed should have an average annual wind speed of 11 to 13 miles per hour. To keep costs down, the project should be constructed in close proximity to power transmission lines.

Fun Fact

In 2007, oil tycoon Boone Pickens launched a multibillion-dollar wind farm project to combat high oil prices. When oil prices later retreated, Pickens postponed the wind farm project until a more opportune time. He was depending on partial financing for the project.

Source:

American Wind Energy Association: Wind Energy Fact Sheet

Windustry.org: Planning a Small Wind Project

Resource:

Powermag.com: T. Boone Pickens Suspends Mega-Wind Farm In Texas

Wasatch Wind: Spanish Fork Wind Park