Optimizing Wind Turbine Deployment: A Cost Analysis of Centralized Aggregation versus Decentralized Dispersion for Enhanced Financial Viability

Abstract

This study provides a complete cost analysis of two different wind turbine deployment strategies: centralized aggregation in a single location and decentralized dispersion across three locations. The main goal is to analyze the internal rate of return (IRR), a fundamental financial indicator for determining the economic sustainability of each deployment strategy. This research also identifies the most financially advantageous investment opportunity among various competing strategies. The analysis includes a comprehensive computation of annual cash flow forecasts. Furthermore, the analysis involves a detailed calculation of annual cash flow projections, providing a robust foundation for a thorough examination of the financial implications associated with each deployment method. Beyond a mere numerical comparison, this study goes deeper to illuminate the disparities in costs, revenues, and overall economic feasibility that emerge between the centralized and decentralized deployment scenarios. The analysis results underscore the imperative of thoughtful deployment strategies in enhancing the overall profitability of renewable energy projects, recognizing that financial considerations must be carefully weighed alongside technical and environmental factors for a holistic decision-making process in the renewable energy sector.