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A Net-Present Value Analysis for a Wind Turbine Purchase at a Small US College
Principia College, Elsah, IL 62028, USA
Department of Social Sciences, Michigan Technological University, Houghton, MI 49931, USA
* Author to whom correspondence should be addressed.
Received: 29 March 2010 / Accepted: 20 April 2010 / Published: 6 May 2010
(This article belongs to the Special Issue Wind Energy
Abstract: Wind power is becoming an increasingly attractive method of electric power generation due to concerns with global climate change, increasing uncertainty of future oil supplies, and energy security. While most large-scale wind turbines are part of wind farms, which help states meet state renewable energy standards, several colleges and universities in the United States have purchased wind turbines for financial and educational purposes. This paper gives details of a cost-benefit analysis completed for a small liberal arts college in Illinois, Principia College, which is considering buying a single large-scale turbine. The process set forth here can easily be adapted to any college, university, or school. It is found that the project has a positive net present value for both a 20-year scenario and a 30-year scenario. Assuming the project did not receive any grants, Principia College would need to have an annual real return rate of about 6% on its initial investment to gain the same economic benefits.
Keywords: cost-benefit analysis; education; net-present value; renewable energy; wind power
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Cite This Article
MDPI and ACS Style
Johnson, N.H.; Solomon, B.D. A Net-Present Value Analysis for a Wind Turbine Purchase at a Small US College. Energies 2010, 3, 943-959.
Johnson NH, Solomon BD. A Net-Present Value Analysis for a Wind Turbine Purchase at a Small US College. Energies. 2010; 3(5):943-959.
Johnson, Nicholas H.; Solomon, Barry D. 2010. "A Net-Present Value Analysis for a Wind Turbine Purchase at a Small US College." Energies 3, no. 5: 943-959.