In developing and emergent countries, wind turbines are an alternative to conventional power stations. In comparison with fossil-fuelled power stations wind energy can now be cost-effective in many places, as well as being non-polluting and reducing dependence on imports of fossil fuels.

Opportunities for utilising wind power in developing countries

There is great economic potential for wind energy in developing countries. At many sites the excellent wind conditions make up for the higher investment costs compared to conventional methods of power generation. In comparison with wind farm projects in industrialised countries, wind energy projects in developing and emergent countries often incur higher costs for transport, installation, maintenance and adaptation to the prevailing climatic conditions. Nevertheless, economically viable operation is still often possible, as high opportunity costs have to be taken into account when assessing generation from wind power. For example, if it is intended to replace diesel as a high-cost fuel in power stations, the value of the wind-generated electricity largely depends on the price of diesel at the particular location. Diesel prices, in particular, rose sharply in the last years.

Over and above that, the profitability of wind farm projects in developing and emergent countries can be improved through the sale of certified emission reductions (CERs) generated within the context of the CDM (Clean Development Mechanism).

From the macroeconomic standpoint, expanding wind energy brings yet more positive effects. Generating energy from wind turbines saves developing countries from all-too-rapid use of their foreign exchange resources to pay for energy imports, which in view of the rise in energy prices on world markets constitutes a considerable additional burden on their economies. At the same time, diversifying national energy sources usually enhances the security of supply. In the long term, reducing energy generation from fossil sources will make a positive contribution to climate protection and improve local air quality. The local market will also gain new impetus for growth, as well as many new jobs in the fields of maintenance, repair and controlling.

All in all, the utilisation of wind energy in developing countries can help achieve more efficient energy supply and improve a country’s macroeconomic situation, thereby contributing towards poverty reduction and sustainable development.