Basic Methods for Evaluating Small-Scale Wind Power Projects

Basic Methods for Evaluating Small-Scale Wind Power Projects

Evaluating the feasibility of a small-scale wind power project is a systematic process that combines objective data analysis with subjective value judgment. Its core purpose is to answer three key questions as clearly as possible before making an investment decision: Is the local wind sufficient to generate electricity? Is the project economically viable? And what are the real challenges during implementation? This evaluation method helps investors move from ideal to reality and mitigate major risks.

The cornerstone of the evaluation is the objective and quantitative analysis of wind energy resources. It all begins with an understanding of wind. The most reliable method is to use professional wind measurement equipment at the predetermined installation site for continuous monitoring for at least several months (ideally a whole year) to obtain core data such as average wind speed, wind speed distribution, prevailing wind direction, and extreme maximum wind speed. If conditions are limited, a comprehensive assessment should be made by observing the long-term wind-affected morphology of surrounding vegetation, consulting historical data from local meteorological stations, and studying the operational records of existing wind power projects. A reliable wind resource report not only predicts the potential annual power generation but is also the fundamental basis for selecting the appropriate wind turbine model and determining the safe tower height. Inaccurate resource assessments can render all subsequent calculations meaningless.

After confirming resource feasibility, a detailed economic analysis and financial calculation are necessary. This requires a comprehensive calculation of the project's total cost, including not only the purchase price of core equipment such as wind turbines, towers, controllers, batteries, and inverters, but also all one-time investments such as foundation construction, installation and commissioning, power grid connection, and potential grid connection modifications. Next, the annual power generation of the system should be estimated based on wind resource data, and the annual electricity cost savings should be calculated in conjunction with local electricity prices. If surplus electricity is allowed to be sold to the grid, the revenue from electricity sales should also be included. The core financial indicator is the "payback period," which is calculated by dividing the initial total investment by the average annual net income (electricity cost savings minus a small maintenance cost) to determine how many years it takes to recover the cost. Typically, the payback period for residential wind power projects ranges from 5 to 15 years, depending on wind conditions and electricity prices. Long-term operating costs such as equipment maintenance and component replacement (especially batteries) must also be considered.

Finally, a comprehensive review of non-technical practical conditions and risks is essential. This includes: Does the project site meet installation requirements, such as whether the site is open, the foundation is stable, and transportation routes are accessible? Are there local regulations regarding small wind power installation permits, height restrictions, noise regulations, or grid connection policies? Will the visual impact, minor noise, or flickering shadows from the wind turbine operation cause concern among neighbors? Furthermore, the supplier's brand reputation, equipment quality, after-sales service, and long-term technical support capabilities are all crucial to the project's ability to operate stably for over 20 years. A complete assessment requires combining technical data, financial models, and these practical constraints to form a comprehensive and prudent judgment, determining whether the project is worth proceeding with or how the plan needs to be adjusted to mitigate risks.