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Wind turbines ‘cost effective’ in marginal Colorado sites

A good idea of site wind speeds can be estimated using the NREL's Colorado 50-Meter Wind Resource Map, the study said

Farms in Colorado could find it cost effective to set up wind turbines even in sites with “marginal” wind speeds, according to a new study from the state’s Department of Agriculture.

The research was funded by the Department’s Advancing Colorado’s Renewable Energy program and carried out by consultancy Brink, Inc., of Erie, Colorado.

It said federal tax credits currently available to support renewable energy projects could lower typical payback times for wind turbines up to 100 kilowatts in output by four to six years.

These subsidies would make wind turbines economical at sites classed as marginal for wind speeds – which means average wind speeds between 13.2 and 15 miles an hour.

“This study is encouraging for Colorado agricultural producers that want to harness wind energy but are not located in areas with strong wind resources,” said Colorado Department of Agriculture’s Markets Division Director, Tom Lipetzky.

Research

The research monitored wind speeds at three agricultural operations – in Elbert, Morgan and Yuma Counties – and determined payback times for wind energy equipment based on the availability of tax credits, loans and grants.

It suggested that the 30% federal tax credit could largely offset interest costs for loans, and that federal tax credits actually make smaller turbines more economically feasible than larger machines.

The study, entitled Wind Resource Evaluation at Colorado Agricultural Operations, found that turbine payback times could range from four years to 23 years, advising buyers to examine carefully the ratio between turbine and tower costs compared to electricity output.

Along with Renewable Energy Credit value, the report stated that a wind turbine with a 15-year payback time would offer a return on investment of about 3% each year over a 30-year lifespan.

The report also confirmed that Colorado residents could determine an adequate estimate of wind speeds in their area from the National Renewable Energy Laboratory’s Colorado 50 meter Wind Resource Map.