Assessment of Economic Viability of Wind Energy in Nepal : A Case Study of Ten Sites

This research assessed wind resource potential at ten sample sites using twelve months data measured in an hourly basis at site and analyzing recent global wind atlas dataset based on one kilometer resolution. Pertinent literatures on wind resources potential and its economic viability were reviewed with focus on the background, methodology and findings of those literatures. The wind speed data were received from different meteorological stations representing the sites under consideration. On the economic front, net present value cost and net cash flow were calculated by performing the life cycle cost analysis of each site considering 20 kW wind turbine. The average wind speed in sample sites ranges from 0.5m/s to 4m/s; the lowest wind speed recorded in Nepalgunj airport and the highest in Jumla airport. The result shows that Jumla airport has the highest wind resource potential followed by Patan Baitadi, Chainpur Bajhang, Thankot Kathmandu, Simikot airport and Biratnagar airport. The economic analysis resulted with negative net cash flow and net present value for all sites, therefore sensitivity analysis was conducted for four major parameters; investment costs, electricity production, subsidyloan mix and tariff rate. Both net present value and net cash flow remained negative even after sensitivity analysis in five sites namely Kathmandu airport, Nepaljung airport, Pokhara airport, Simara airport and Simikot airport. Net cash flow changes to positive but net present value remains negative in Chainpur Bajhang, Biratnagar airport and Thankot Kathmandu after scenario analysis. Jumla airport and Patan Baitadi have positive result in both net present value and net cash flow after scenario analysis. Jumla airport has the highest wind resource potential and most economical in comparison to other nine sites, however none of the ten sample sites were found to be economically viable without considering more than three-forth subsidy support.