Northern Power Systems Corp. (NPS) says it has decreased the levelized cost of energy (LCOE) of wind power by its turbines after making substantial operational improvements to its 100 kW platform.
The LCOE – which includes the capital, operating and financing costs of an NPS 100 kW wind turbine over a 20-year-plus operating life – has reached parity or better with electricity purchased from the grid, the company says.
"The current LCOE makes the Northern Power platform even more affordable for farmers, local businesses and on-site generation users trying to limit the ever-increasing cost of electricity," explains Reinout Oussoren, vice president of global sales. "Small wind is now an even more viable alternative for commercial and industrial users."
Oussoren continues, "When installed at locations with an average 6.5 m/s wind speed, a typical wind turbine installation will deliver energy costs of approximately $0.08/kWh, with a return on equity (ROE) of up to 14 percent and payback in just over five years. If a customer leverages its purchase with 70 percent debt at a commercial rate of seven percent, the ROE can exceed 30 percent."
Photo courtesy of Northern Power Systems