Assessment of the Economic Viability of Low Power Wind Farms in Mexico

Abstract

In this paper, it is presented the methodology for assessing the economic viability of low-power wind farms in Mexico. The main expanses considered as input parameters in the economic model are the capital costs, the operation and maintenance costs and the financial costs. The annual energy production of the wind farm is another input parameter of the economic model that is calculated with the evaluation of the wind resource at a given site, the number of wind turbines and the power curve of the wind turbine. The annual income of a low power wind farm is estimated through the type of interconnection contract and the energy sale price. The proposed economic model also includes the calculation of taxes and incentives based on Mexican laws. The assessment of economic viability is applied for planning a low-power wind farm project of 200-kW in the state of Oaxaca, Mexico. This assessment of economic viability includes the comparison of two types of interconnection contracts for distribution.