A Framework for Statewide Analysis of Site Suitability, Energy Estimation, Life Cycle Costs, Financial Feasibility and Environmental Assessment of Wind Farms: A Case Study of Indiana

Indraneel Kumar, Purdue University

Abstract

In the last decade, Midwestern states including Indiana have experienced an unprecedented growth in utility scale wind energy farms. For example, by end of 2013, Indiana had 1.5 GW of wind turbines installed, which could provide electrical energy for as many as half-a-million homes. However, there is no statewide systematic framework available for the evaluation of wind farm impacts on endangered species, required necessary setbacks and proximity standards to infrastructure, and life cycle costs. This research is guided to fill that gap and it addresses the following questions. How much land is suitable for wind farm siting in Indiana given the constraints of environmental, ecological, cultural, settlement, physical infrastructure and wind resource parameters? How much wind energy can be obtained? What are the life cycle costs and economic and financial feasibility? Is wind energy production and development in a state an emission free undertaking? The framework developed in the study is applied to a case study of Indiana. A fuzzy logic based AHP (Analytic Hierarchy Process) spatial site suitability analysis for wind energy is formulated. The magnitude of wind energy that could be sited and installed comprises input for economic and financial feasibility analysis for 20-25 years life cycle of wind turbines in Indiana. Monte Carlo simulation is used to account for uncertainty and nonlinearity in various costs and price parameters. Impacts of incentives and cost variables such as production tax credits, costs of capital, and economies of scale are assessed. Further, an economic input-output (IO) based environmental assessment model is developed for wind energy, where costs from financial feasibility analysis constitute the final demand vectors. This customized model for Indiana is used to assess emissions for criteria air pollutants, hazardous air pollutants and greenhouse gases (GHG) across life cycle events of wind turbines. The findings of the case study include that, Indiana has adequate suitable land area available to locate wind farms with installed capacity between 11 and 51 GW if 100 meters high turbines are used. For a 1.5 MW standard wind turbine, financial feasibility analysis shows that production tax credits and property tax abatements are helpful for financial success in Indiana. Also, the wind energy is not entirely emission free if life cycle events of wind turbine manufacturing, production, installation, construction and decommissioning are considered. The research developed a replicable and integrated framework for statewide life cycle analysis of wind energy production accounting for uncertainty into the analyses. Considering the complexity of life cycle analysis and lack of state specific data on performance of wind turbines and wind farms, this study should be considered an intermediate step.

Degree

Ph.D.

Advisors

Sinha, Purdue University.

Subject Area

Alternative Energy|Civil engineering|Energy

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