IEEE Power Engineering Society

Technology costs have come down hugely, and wind is now knocking at the door of coal, nuclear, and even gas as the least-cost energy source in developed countries. The UK has experienced wind farms that have put in bids under the Non-Fossil Fuel Obligation (NFFO) at about US$0.03/kWh, and this is probably a benchmark for many projects in the United States. Yet in many of the World Bank´s client countries, which have good and in some cases outstanding wind regimes, costs are much higher, installed capacity is low, and the prospects are gloomy. The primary concern should be to build sustainable long-term markets in which wind can compete on a level playing field with the private sector undertaking most, if not all, of the construction, financing, operation, and maintenance of wind farms with their output being sold into the wholesale electricity market. That is what the World Bank is increasingly focusing on, a long way from old-fashioned lending for big lumps of infrastructure. They do this by working on policy and regulatory issues relating to renewables. Of particular importance is the introduction of mandated market schemes (renewables portfolio standards, systems benefit charges, and feed-in tariffs) accompanied market development measures to help support the growth of the market infrastructure.