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Economic Evaluation of Wind Farms 
Based on 
Cost of Energy Optimization 
Jie Zhang*, Souma Chowdhury*, Achille Messac# and Luciano Castillo* 
* Rensselaer Polytechnic Institute, Department of Mechanical, Aerospace, and Nuclear Engineering 
# Syracuse University, Department of Mechanical and Aerospace Engineering 
13th AIAA/ISSMO Multidisciplinary Analysis Optimization Conference 
September 13-15, 2010 
Fort Worth, Texas
Outline 
• Motivation 
• Research Objectives 
• Literature Review 
• Response Surface Based Wind Farm Cost 
(RS-WFC) Model 
• Cost of Energy Optimization 
• Concluding Remarks and Future Work 
2
Motivation 
 The global installed wind capacity has been growing at an 
average rate of 28% per year. 
 Wind energy is planed to account for 20% of the U.S. electricity 
consumption by 2030. 
 Efficient planning and resource management is the key to the 
success of an energy project. 
 Accurate (flexible to local market changes) cost models of wind 
projects would allow investors to better plan their projects. 
 Investors can provide valuable insight into the areas that require 
further development to improve the overall economics of wind 
energy. 
3
Motivation 
International ranking of wind power 
Country/Region 
Total capacity 
end 2009 [MW] 
Added capacity 
2009 [MW] 
Growth rate 
2009 [%] 
USA 35,159 9,922 39.3 
China 26,010 13,800 113.0 
Germany 25,777 1,880 7.9 
Spain 19,149 2,460 14.7 
India 10,925 1,338 14.0 
Italy 4,850 1,114 29.8 
France 4,521 1,117 32.8 
UK 4,092 897 28.1 
Portugal 3,535 673 23.5 
Denmark 3,497 334 10.6 
4 
Source: Berkely Lab estimates based on data from BTM Consult and elsewhere 
U.S. is lagging behind other countries in wind energy as a percentage of electricity consumption
Current 
Planned 2030 
10 fold increase 
Wind Energy 
Wind Energy 
Motivation 
5 
• Accurate cost models
Research Objectives 
Develop an accurate cost model of wind farms 
Construct a U.S. cost map for wind farm development 
Investigate the optimal cost of a wind farm 
6
Literature Review 
• Existing Cost Models 
• Short-cut Model 
• Cost Model for the Greek Market 
• OWECOP-Prob Cost Model 
• JEDI-Wind 
• Opti-OWECS Cost Model 
• Existing O&M Cost Models 
• The Operation & Maintenance Cost Estimator (OMCE) 
• Cost of Grid Connection 
7
Cost models comparison 
(a) (b) 
(c) (d) 
(e) (f) 
8
Advantages of RS-WFC Model 
• Evaluates the Cost of Energy (COE) 
• Evaluates the power generation 
• Includes life cycle cost 
• Considers financial parameters 
• Uses appropriate input and output parameters 
• Provides analytical expression 
9
Development of RS-WFC Model 
• STEP I: This step formulates the wind farm cost model using 
response surface method. The response surface is trained using the 
data from the Energy Efficiency and Renewable Energy Program 
at the U.S. Department of Energy. 
• STEP II: This step incorporates a power generation model 
(Unrestricted Wind Farm Layout Optimization (UWFLO)) with 
the RS-WFC model. 
• STEP III: The COE is evaluated and optimized in this step. COE is 
defined as the total annual cost divided by the energy generated by 
a wind farm in one year. 
10
11
Response Surface Methods 
 Typical response surface methods include: 
• Quadratic Response Surface Methodology (QRSM) 
• Radial Basis Functions (RBFs) 
• Extended Radial Basis Functions (E-RBF) 
• Kriging 
• Artificial Neural Networks (ANN), and 
• Support Vector Regression (SVR) 
12 
Local accuracy 
Nonlinear 
Extended Radial Basis Functions (E-RBF) method is adopted to 
develop the RS-WFC model in this paper. But the RS-WFC model 
also has the flexibility to use other response surface methods.
E-RBF Method 
13 
Extended Radial Basis Functions (E-RBF) is a combination of Radial 
Basis Functions (RBFs) and Non-Radial Basis Functions (N-RBFs). 
 Radial Basis Functions 
The RBFs are expressed in terms of the Euclidean distance, 
y (r) = r2 + c2 
where c > 0 is a prescribed parameter. 
The final approximation function is a linear combination of these basis 
functions across all data points. 
( ) 
% =å - 
f x sy x x 
1 
( ) 
np 
i 
i 
i 
= 
r = x - xi 
One of the most effective forms is the multiquadric function:
14 
E-RBF Method 
 Non-Radial Basis Functions 
N-RBFs are functions of individual coordinates of generic points x 
relative to a given data point xi, in each dimension separately 
It is composed of three distinct components 
( i ) L L ( i ) R R ( i ) ( i ) 
ij j ij j ij j ij j 
f x =a f x +a f x +b f b x 
 Extended Radial Basis Function (E-RBF) 
The E-RBF approach incorporates both the RBFs and the N-RBFs 
np np m 
( ) 
% =å - i +ååéë L L i + R R i + i 
ùû 
f x sy x x a f x a f x b f b x 
( ) ( ) ( ) ( ) 
i ij j ij j ij j 
i i j 
= = = 
1 1 1 
Methods: (i) linear programming, or (ii) pseudo inverse.
RS-WFC Model 
• Installation cost, 
• Annual O&M cost, 
• Total annual cost, 
in C 
O&M C 
t C 
 The number of coefficients of 
the E-RBF cost model, 
(3 1) u p n = m+ n 
p ( n , Number of data points) 
15 
Function list of the RS-WFC model 
Model Expression No. of 
variables 
Data 
points 
No. of 
coefficients 
Cin = f(CLC,CLT,CLM) 3 40 400 
CO&M = f(N,CLT,CLM) 3 500 5,000 
Ct = f(N,D) 2 101 707 
Parameter Selection for RS-WFC Model 
Parameter λ c t 
Value 4.75 0.9 2
Total Annual Cost VS. The Input Factors 
16 
 The total annual cost deceases from $131.3/KW 
to $126.4/KW (approximately 3.73%) when the 
rotor diameter of a wind turbine increases from 
50m to 100m. 
 The total annual cost decreases slowly when the 
rotor diameter is less than 70m. 
 The total annual cost begins to decrease sharply 
when the rotor diameter changes from 70m to 
85m. 
 If the rotor diameter continues to increase beyond 
85m, the change in the total annual cost is 
particularly limited. 
The total annual cost based on the rotor 
diameter of a wind turbine
17 
Total Annual Cost VS. The Input Factors 
 The total annual cost decreases from 
$131.48/KW to $126.38/KW (approximately 
3.88%) while the number of wind turbines 
increases from 10 to 100. 
 The total annual cost does not change 
significantly when the number of wind 
turbines increases beyond 60. 
The total annual cost based on the number of 
wind turbines
State Averaged Cost Map 
18
19
Power Generation Model 
• The Unrestricted Wind Farm Layout Optimization 
(UWFLO) Power Generation Model 
C 20 p: power coefficient curve, a: induction factor curve
21
Optimizing Cost of Energy (COE) 
• COE is measured by Levelized Production Cost 
(LPC) 
COE C P N 
= ´ ´ ´ 
AEP 
• AEPnet: Net Annual Energy Production 
22 
0 1000 t 
net 
365 24 net farm AEP = ´ ´ P
Wind Farm Optimization Problem Formulation 
Optimization Problem Constraints 
Minimum clearance 
Ensure the location of wind 
turbines within the fixed size 
23
Case Study 
Wind farm parameters Wind conditions 
Parameter Value 
Number of wind turbines 25 
Type of wind turbines ENERCON 
E-82 
Length of the wind farm 1,200m 
Breadth of the wind farm 800m 
Rated power (P0) 2MW 
Rotor diameter (D) 82m 
Hub height (H) 85m 
Cut-in wind speed 2m/s 
Cut-out wind speed 28m/s 
Rated wind speed 13m/s 
Parameter Value 
Average wind speed 8.35m/s 
Wind direction 00 with positive 
x-axis 
Air density 1.2kg/m3 
24
25 
Estimated i Estimated pnodwucetri ocno effafcictoiern ctu cruvrev, ea, Cp
Convergence history 
• COE decreases 
approximately by 5.41% 
• Annual cost savings for 
the wind farm is 
approximately 5.3%, 
$342,151 
26
Convergence history 
• The power generated 
increases approximately 
by 5.23% 
27
Conclusion 
• A Response Surface Based Wind Farm Cost (RS-WFC) model was 
developed, which can estimate: (i) the installation cost, (ii) the annual 
O&M cost, and (iii) the total annual cost of a wind farm. 
• A power generation model was incorporated into the RS-WFC model. 
• The Cost of Energy (COE) was minimized to improve the overall 
economics of wind energy project. 
• The preliminary cost map shows wide variation in wind farm cost in 
the U.S.. 
• The resulting cost model could be a useful tool for wind farm 
planning. 
28
Future Work 
Optimization of Operation and Maintenance (O&M) 
strategy for offshore wind farms; 
Pattern classification based market demand analysis 
methodology: investigate the demand pattern and 
identify markets niches for offshore wind turbines. 
29
30 
Selected References 
 Zhang, J., Chowdhury, S., Messac, A., Castillo, L., and Lebron, J., “Response Surface Based Cost 
Model for Onshore Wind Farms Using Extended Radial Basis Functions”. ASME 2010 International 
Design Engineering Technical Conferences. 
 Chowdhury, S., Messac, A., Zhang, J., Castillo, L., and Lebron, J., “Optimizing the Unrestricted 
Placement of Turbines of Differing Rotor Diameters in a Wind Farm for Maximum Power Generation”. 
ASME 2010 International Design Engineering Technical Conferences (IDETC). 
 Mullur, A. A., and Messac, A., 2005. “Extended radial basis functions: More flexible and effective 
metamodeling”. AIAA Journal, 43(6), pp. 1306–1315. 
 Mullur, A. A., and Messac, A., 2006. “Metamodeling using extended radial basis functions: a 
comparative approach”. Engineering with Computers, 21(3), pp. 203–217. 
 Goldberg, M., 2009. Jobs and Economic Development Impact (JEDI) Model. National Renewable 
Energy Laboratory, Golden, Colorado, US, October. 
 Sisbot, S., Turgut, O., Tunc, M., and Camdali, U., 2009. “Optimal positioning of wind turbines on 
gokceada using multi-objective genetic algorithm”. Wind Energy. 
 Pallabazzer, R., 2004. “Effect of site wind properties on wind-electric conversion costs”. Wind 
Engineering, 28(6), pp. 679–694. 
 Jin, R., Chen, W., and Simpson, T., 2001. “Comparative studies of metamodelling techniques under 
multiple modelling criteria”. Structural and Multidisciplinary Optimization, 23(1), pp. 1–13. 
 Lindenberg, S., 2008. “20% wind energy by 2030: Increasing wind energy contribution to u.s. 
electricity supply”. Tech. Rep. DOE/GO-102008-2567, U.S. Department of Energy: Energy Efficiency 
& Renewable Energy, July. 
 Cockerill, T. T., Harrison, R., Kuhn, M., and Bussel, G. V., 1998. “Opti-owecs final report vol. 3: 
Comparison of cost of offshore wind energy at European sites”. Tech. Rep. IW-98142R, Institute for 
Wind Energy, Delft University of Technology, August.
Questions 
and 
Comments 
31 
Thank you

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COST_MAO_2010_Jie

  • 1. Economic Evaluation of Wind Farms Based on Cost of Energy Optimization Jie Zhang*, Souma Chowdhury*, Achille Messac# and Luciano Castillo* * Rensselaer Polytechnic Institute, Department of Mechanical, Aerospace, and Nuclear Engineering # Syracuse University, Department of Mechanical and Aerospace Engineering 13th AIAA/ISSMO Multidisciplinary Analysis Optimization Conference September 13-15, 2010 Fort Worth, Texas
  • 2. Outline • Motivation • Research Objectives • Literature Review • Response Surface Based Wind Farm Cost (RS-WFC) Model • Cost of Energy Optimization • Concluding Remarks and Future Work 2
  • 3. Motivation  The global installed wind capacity has been growing at an average rate of 28% per year.  Wind energy is planed to account for 20% of the U.S. electricity consumption by 2030.  Efficient planning and resource management is the key to the success of an energy project.  Accurate (flexible to local market changes) cost models of wind projects would allow investors to better plan their projects.  Investors can provide valuable insight into the areas that require further development to improve the overall economics of wind energy. 3
  • 4. Motivation International ranking of wind power Country/Region Total capacity end 2009 [MW] Added capacity 2009 [MW] Growth rate 2009 [%] USA 35,159 9,922 39.3 China 26,010 13,800 113.0 Germany 25,777 1,880 7.9 Spain 19,149 2,460 14.7 India 10,925 1,338 14.0 Italy 4,850 1,114 29.8 France 4,521 1,117 32.8 UK 4,092 897 28.1 Portugal 3,535 673 23.5 Denmark 3,497 334 10.6 4 Source: Berkely Lab estimates based on data from BTM Consult and elsewhere U.S. is lagging behind other countries in wind energy as a percentage of electricity consumption
  • 5. Current Planned 2030 10 fold increase Wind Energy Wind Energy Motivation 5 • Accurate cost models
  • 6. Research Objectives Develop an accurate cost model of wind farms Construct a U.S. cost map for wind farm development Investigate the optimal cost of a wind farm 6
  • 7. Literature Review • Existing Cost Models • Short-cut Model • Cost Model for the Greek Market • OWECOP-Prob Cost Model • JEDI-Wind • Opti-OWECS Cost Model • Existing O&M Cost Models • The Operation & Maintenance Cost Estimator (OMCE) • Cost of Grid Connection 7
  • 8. Cost models comparison (a) (b) (c) (d) (e) (f) 8
  • 9. Advantages of RS-WFC Model • Evaluates the Cost of Energy (COE) • Evaluates the power generation • Includes life cycle cost • Considers financial parameters • Uses appropriate input and output parameters • Provides analytical expression 9
  • 10. Development of RS-WFC Model • STEP I: This step formulates the wind farm cost model using response surface method. The response surface is trained using the data from the Energy Efficiency and Renewable Energy Program at the U.S. Department of Energy. • STEP II: This step incorporates a power generation model (Unrestricted Wind Farm Layout Optimization (UWFLO)) with the RS-WFC model. • STEP III: The COE is evaluated and optimized in this step. COE is defined as the total annual cost divided by the energy generated by a wind farm in one year. 10
  • 11. 11
  • 12. Response Surface Methods  Typical response surface methods include: • Quadratic Response Surface Methodology (QRSM) • Radial Basis Functions (RBFs) • Extended Radial Basis Functions (E-RBF) • Kriging • Artificial Neural Networks (ANN), and • Support Vector Regression (SVR) 12 Local accuracy Nonlinear Extended Radial Basis Functions (E-RBF) method is adopted to develop the RS-WFC model in this paper. But the RS-WFC model also has the flexibility to use other response surface methods.
  • 13. E-RBF Method 13 Extended Radial Basis Functions (E-RBF) is a combination of Radial Basis Functions (RBFs) and Non-Radial Basis Functions (N-RBFs).  Radial Basis Functions The RBFs are expressed in terms of the Euclidean distance, y (r) = r2 + c2 where c > 0 is a prescribed parameter. The final approximation function is a linear combination of these basis functions across all data points. ( ) % =å - f x sy x x 1 ( ) np i i i = r = x - xi One of the most effective forms is the multiquadric function:
  • 14. 14 E-RBF Method  Non-Radial Basis Functions N-RBFs are functions of individual coordinates of generic points x relative to a given data point xi, in each dimension separately It is composed of three distinct components ( i ) L L ( i ) R R ( i ) ( i ) ij j ij j ij j ij j f x =a f x +a f x +b f b x  Extended Radial Basis Function (E-RBF) The E-RBF approach incorporates both the RBFs and the N-RBFs np np m ( ) % =å - i +ååéë L L i + R R i + i ùû f x sy x x a f x a f x b f b x ( ) ( ) ( ) ( ) i ij j ij j ij j i i j = = = 1 1 1 Methods: (i) linear programming, or (ii) pseudo inverse.
  • 15. RS-WFC Model • Installation cost, • Annual O&M cost, • Total annual cost, in C O&M C t C  The number of coefficients of the E-RBF cost model, (3 1) u p n = m+ n p ( n , Number of data points) 15 Function list of the RS-WFC model Model Expression No. of variables Data points No. of coefficients Cin = f(CLC,CLT,CLM) 3 40 400 CO&M = f(N,CLT,CLM) 3 500 5,000 Ct = f(N,D) 2 101 707 Parameter Selection for RS-WFC Model Parameter λ c t Value 4.75 0.9 2
  • 16. Total Annual Cost VS. The Input Factors 16  The total annual cost deceases from $131.3/KW to $126.4/KW (approximately 3.73%) when the rotor diameter of a wind turbine increases from 50m to 100m.  The total annual cost decreases slowly when the rotor diameter is less than 70m.  The total annual cost begins to decrease sharply when the rotor diameter changes from 70m to 85m.  If the rotor diameter continues to increase beyond 85m, the change in the total annual cost is particularly limited. The total annual cost based on the rotor diameter of a wind turbine
  • 17. 17 Total Annual Cost VS. The Input Factors  The total annual cost decreases from $131.48/KW to $126.38/KW (approximately 3.88%) while the number of wind turbines increases from 10 to 100.  The total annual cost does not change significantly when the number of wind turbines increases beyond 60. The total annual cost based on the number of wind turbines
  • 19. 19
  • 20. Power Generation Model • The Unrestricted Wind Farm Layout Optimization (UWFLO) Power Generation Model C 20 p: power coefficient curve, a: induction factor curve
  • 21. 21
  • 22. Optimizing Cost of Energy (COE) • COE is measured by Levelized Production Cost (LPC) COE C P N = ´ ´ ´ AEP • AEPnet: Net Annual Energy Production 22 0 1000 t net 365 24 net farm AEP = ´ ´ P
  • 23. Wind Farm Optimization Problem Formulation Optimization Problem Constraints Minimum clearance Ensure the location of wind turbines within the fixed size 23
  • 24. Case Study Wind farm parameters Wind conditions Parameter Value Number of wind turbines 25 Type of wind turbines ENERCON E-82 Length of the wind farm 1,200m Breadth of the wind farm 800m Rated power (P0) 2MW Rotor diameter (D) 82m Hub height (H) 85m Cut-in wind speed 2m/s Cut-out wind speed 28m/s Rated wind speed 13m/s Parameter Value Average wind speed 8.35m/s Wind direction 00 with positive x-axis Air density 1.2kg/m3 24
  • 25. 25 Estimated i Estimated pnodwucetri ocno effafcictoiern ctu cruvrev, ea, Cp
  • 26. Convergence history • COE decreases approximately by 5.41% • Annual cost savings for the wind farm is approximately 5.3%, $342,151 26
  • 27. Convergence history • The power generated increases approximately by 5.23% 27
  • 28. Conclusion • A Response Surface Based Wind Farm Cost (RS-WFC) model was developed, which can estimate: (i) the installation cost, (ii) the annual O&M cost, and (iii) the total annual cost of a wind farm. • A power generation model was incorporated into the RS-WFC model. • The Cost of Energy (COE) was minimized to improve the overall economics of wind energy project. • The preliminary cost map shows wide variation in wind farm cost in the U.S.. • The resulting cost model could be a useful tool for wind farm planning. 28
  • 29. Future Work Optimization of Operation and Maintenance (O&M) strategy for offshore wind farms; Pattern classification based market demand analysis methodology: investigate the demand pattern and identify markets niches for offshore wind turbines. 29
  • 30. 30 Selected References  Zhang, J., Chowdhury, S., Messac, A., Castillo, L., and Lebron, J., “Response Surface Based Cost Model for Onshore Wind Farms Using Extended Radial Basis Functions”. ASME 2010 International Design Engineering Technical Conferences.  Chowdhury, S., Messac, A., Zhang, J., Castillo, L., and Lebron, J., “Optimizing the Unrestricted Placement of Turbines of Differing Rotor Diameters in a Wind Farm for Maximum Power Generation”. ASME 2010 International Design Engineering Technical Conferences (IDETC).  Mullur, A. A., and Messac, A., 2005. “Extended radial basis functions: More flexible and effective metamodeling”. AIAA Journal, 43(6), pp. 1306–1315.  Mullur, A. A., and Messac, A., 2006. “Metamodeling using extended radial basis functions: a comparative approach”. Engineering with Computers, 21(3), pp. 203–217.  Goldberg, M., 2009. Jobs and Economic Development Impact (JEDI) Model. National Renewable Energy Laboratory, Golden, Colorado, US, October.  Sisbot, S., Turgut, O., Tunc, M., and Camdali, U., 2009. “Optimal positioning of wind turbines on gokceada using multi-objective genetic algorithm”. Wind Energy.  Pallabazzer, R., 2004. “Effect of site wind properties on wind-electric conversion costs”. Wind Engineering, 28(6), pp. 679–694.  Jin, R., Chen, W., and Simpson, T., 2001. “Comparative studies of metamodelling techniques under multiple modelling criteria”. Structural and Multidisciplinary Optimization, 23(1), pp. 1–13.  Lindenberg, S., 2008. “20% wind energy by 2030: Increasing wind energy contribution to u.s. electricity supply”. Tech. Rep. DOE/GO-102008-2567, U.S. Department of Energy: Energy Efficiency & Renewable Energy, July.  Cockerill, T. T., Harrison, R., Kuhn, M., and Bussel, G. V., 1998. “Opti-owecs final report vol. 3: Comparison of cost of offshore wind energy at European sites”. Tech. Rep. IW-98142R, Institute for Wind Energy, Delft University of Technology, August.
  • 31. Questions and Comments 31 Thank you

Editor's Notes

  1. These are four types of active windows. These are others efforts to decrease the energy lost through windows.
  2. We sought to design a window system that will compensate for all of the heat gained through the glass and maintain a thermal balance. This is our window design that improves upon the current passive window model.
  3. We chose thermoelectric units for our system because they are very small and are solid state.