Economic feasibility of onshore wind energy potential for electricity generation in Zambia

Zambia recently experienced extended hours of load shedding due to reduced hydroelectricity generation attributed to poor rainfall patterns. The inability to meet energy demand has influenced the government to consider alternative energy sources. This study aims to assess the economic feasibility of the eight sites using a 25-turbine layout for a 4 MW generic wind turbine at 130m hub height. An economic evaluation mathematical model was developed to analyze the economic feasibility using net present value, simple payback period, internal rate of return, and levelized cost of electricity (LCOE). The study shows that the Lusaka wind farm was the most economical with 386 GWh energy yield analysis (EYA), wind speed of 8 m/s, NPV of 316 million dollars, SPP of 2.9 years, IRR of 82%, and LCOE of $0.182/ kWh. The results also show that the other seven sites are economically feasible, with Petauke being the lowest. The study's economic sensitivity analysis conducted by varying the average electricity tariff shows that Lusaka was the most financially viable site. Therefore, policymakers should develop cost-reflective feed-in tariff (FiT) schemes and power purchase agreements for the country to have cost-reflective electricity tariffs that will motivate independent power producers to invest in Zambia.