The levelized cost of energy (LCOE) of wind power is rapidly gaining equilibrium with other energy sources, making it one of the most attractive options for utilities and developers looking to increase the penetration of renewables in their portfolio.
However, the LCOE of wind energy can vary widely from wind farm project to project, and developers need to keep a sharp eye on five main factors that influence project profitability: risk, deliverability, efficiency, reliability/maintainability, and safety.
Of all the issues that keep wind farm developers up at night, risk has to be the biggest. From site selection to project development to operations, producing energy from wind is not as easy as it might appear to the general public.
Gunnar Ohras, senior financial advisor at ABB, stresses the importance of controlling risk.