The role of taxation policy and incentives in wind-based distributed generation projects viability: Ontario case study

M. H. Albadi, E. F. El-Saadany

Research output: Contribution to journalArticle

5 Citations (Scopus)

Abstract

Taxation policy and incentives play a vital role in wind-based distributed generation projects viability. In this paper, a thorough techno-economical evaluation of wind-based distributed generation projects is conducted to investigate the effect of taxes and incentives in the economic viability of investments in this sector. This paper considers the effects of Provincial income taxes, capital cost allowance (CCA), property taxes, and wind power production Federal incentives. The case study is conducted for different wind turbines and wind speed scenarios. Given turbine and wind speed data, the Capacity Factor (CF) of each turbine and wind speed scenario was calculated. Net Present Value (NPV) and Internal Rate of Return (IRR) for different scenarios were then used to assess the project's viability considering Ontario Standard Offer Program (SOP) for wind power.

Original languageEnglish
Pages (from-to)2224-2233
Number of pages10
JournalRenewable Energy
Volume34
Issue number10
DOIs
Publication statusPublished - Oct 2009

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Keywords

  • Economic viability
  • Incentive programs
  • Power generation economics
  • Taxation policy
  • Wind-based distributed generation

ASJC Scopus subject areas

  • Renewable Energy, Sustainability and the Environment

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