Small wind turbines may change the Future of energy in Developing countries

AuthorRobert Foster
PositionJ.D. candidate, May 2012, at American University Washington College of Law
Pages27-28
SUSTAINABLE DEVELOPMENT LAW & POLICY27
As alternative energy sources gain prevalence in energy
markets worldwide,1 small wind turbines have emerged
as a viable alternative to their larger and more expen-
sive counterparts. While most attention has been drawn to their
domestic application in developed countries, and various low
cost commercial turbines are available to consumers for several
thousand dollars, they also offer great promise in electrif‌ication
of developing countries.2 However, because of the t echnologi-
cal nature of small wind turbines, as well as the soci o-political
characteristics of the r egions in which their use is most appli-
cable, special care must be taken
while develop ing po licies to
encourage investment as well as
during implementati on of con-
struction plans. If these f actors
are carefully considered, small
wind turbines may prove to be
an envir onmentally c onscious
option for the electrif‌ication of
developing countries.
Small wind tu rbines d if-
fer from large turbines in many
important ways, demonstrating
their great er ver satility. W hile
large turbine s require mature
power gri ds, sma ll turbi nes
have application both on and off
existing power grids , as a result
of their size and low energy out-
put.3 Their off grid application avoids the heavy cost of expand-
ing transmission lines to rural regions of developing countries.4
Additionally, small turbines operate on lower wind speeds than
large t urbines, giving them more placement o ptions.5 Experts
also indicate that small turbine s, if placed cor rectly in suitable
locations, gene rate more energy per dollar than othe r common
alternative energy sources such as photovoltaics.6
There are three overlapping phases in which introductio n
of small wi nd turbine s must be c arefully con sidered: invest -
ment, planning, and implementation. To encourage investment,
successful policy in itiatives in developed countr ies may o ffer
effective models for developing countries. In developed co un-
tries, investment in small wind turbines usually origi nates at
the individu al household l evel.7 Here, feed in tariffs (“FITs”),
which c ompensate individual s per k ilowatt-hour of electricity
generated,8 offer an effective method to encourage investment.9
Small winD turbineS may change the Future
oF energy in Developing countrieS
by Robert Foster*
* Robert Foster is a J.D. candidate, May 2012, at American University Washing-
ton College of Law.
While there are numerous FIT models,10 those of Germany and
Spain, where individuals may be compensated at rates as much
as four times the ra te paid to commercial power sources, have
been highly successful in encouraging installation of small-scale
renewable energy systems.11 With success and popularity, how-
ever, also comes an element of risk. Developing countries must
be mindful that if too many individuals opt into FIT program s,
operating costs could rise sharply as governmental compensation
obligations grow.12 Notwithstanding this risk, FIT programs are
the most promising way to encourage investment in alt ernative
energy sources in develop ing
countries. Any nation seriously
considerin g widespr ead imple -
mentation of a renewable energy
schem e should also co nsider
exemption of import tariffs on
equipment.13 Such an exemption
will lower startup costs and fur-
ther encourage investment.
Rural regions of developing
countr ies, without es tablished
power gri ds, f ace ad ditional
investmen t considerati ons. As
absence of electricity often indi-
cates lower levels of aff‌luence,
capita l will be less availa ble
than in regions with established
power grids. 14 While FITs may
provide some e ncourageme nt
for investment, the availability of credit in these regions will be
crucial for the viability of any small wind project.15 Sources of
credit include international f‌inancial institutions and countri es’
development agenci es, such as that of France (L’Agence Fran-
çaise de Développement), whic h extends environmental credit
lines to local banks in developing African countries.16 NGO sub-
sidies are also a source of credit; however, their funding must be
carefully designed to create conditions under which they will no
longer be needed in order to ensure ultimate market sustainabil-
ity for renewable energy.17
To break even, small wind projects require approximately
ten to twenty years before the initial cost can be recovered.18 If
connection to an outside established grid is likely, and in-place
While FITs may provide
some encouragement
for investment, the
availability of credit in
these regions will be
crucial for the viability of
any small wind project
SPRING 2011 28
FIT paymen ts are not high enough , then a project’s econ omic
feasibility could potentially be undermined by a sudden inf‌lux of
cheaper electricity. Under this scenario, individual, community,
and institutional investors would never recover their construction
and maintenance costs, as the ma rket rate for electricity would
now be too low.19 For this reason, it is imperative that investment
in small wind turbines be incentivized in regions of developing
countries where connection to an established grid is not expected
during the ten to twenty year cost-recovery period.
Once a developing country has created investment incentives,
planning a nd implementation ar e the next steps for successful
introduction of small wind turbines. According to the Center of
Excellence for Renewable Energy, there are six critical factors at
this stage of development: management, local training capacity,
technical support, viability of the energy source, ownership, and
political interference.20 Dealing with these issues f‌irsthand, Practi-
cal Action, an international charity based out of the UK whose goal
is to combat poverty through the use of technology, has introduced
small wind turbines to isolated villages in Sri Lanka and Peru.21
Before choosing project locations, Practical Action assessed the
demand for electricity, paying close attention to use patterns.22
Ultimately, the distinguishing factor that made wind p ower in
Sri Lanka more feasible than Peru was the existing demand for
electricity.23 However, to forecast energy demand purely based on
current energy demand would be shortsighted; potential demand
should be comparably weighted.24 In making such determinations,
relevant factors include population size, level of infrastructure,
and number of viable f‌inancial institutions.25
Investment in human capital is the f‌inal and perhaps most
critical aspect in implementing any small w ind project.26 The
construc tion, ope ration, and main tenance o f small wind tur-
bines require a high d egree of technic al understandin g.27 For
implementation to be successful, the local population must have
proper training and knowledge. 28 Community involvement is
pivotal, as without a sense of ownership, local population s will
have no sense of commitment to their small wind turbines and
these turbines could easily fall into disrepair.29
Community i nvolvement, in addition to investment incen-
tives, comprehensive planning, and adequate technical training,
is just one critical factor that determines the ultimate success of
any small wind turbine project. If these factors are carefully con-
sidered, small wind turbines offer promise towards electri f‌ica-
tion of developing nations in a way that is both environmentally
conscious and sustainable.
1 See U.S. Energy Consumption by Energy Source, 2005-2009, u.S. energy
inFo. aDmin. (2010), http://www.eia.doe.gov/cneaf/alternate/page/renew_
energy_consump/table1.html.
2 See Chapter 6: Small Wind Turbines, winD energy, the FactS, http://www.
wind-energy-the-facts.org/en/part-i-technology/chapter-6-small-wind-turbines/
(last visited Mar. 31, 2011).
3 Martin LaMonica, In Small Wind Versus Solar, It’s All About Location,
cnet newS (Mar. 22, 2011), http://news.cnet.com/8301-11128_3-20045425-
54.html.
4 Megan Treacy, Small Roof-Mounted Wind Turbines Could Power
Rural India, ecogeek.org (June 7, 2010), http://www.ecogeek.org/
wind-power/3218-small-roof-mounted-wind-turbines-could-power-rural.
5 See generally WT6500 Wind Turbine, winD tronicS, http://www.earthtron-
ics.com/honeywell.aspx (last visited Mar. 31, 2011).
6 See LaMonica, supra note 3.
7 See generally Amy Westervelt, Rooftop Pipe-dreams for Pint Sized Wind-
mills?, MSNBC (Feb. 12, 2011), http://www.msnbc.msn.com/id/41554507/ns/
us_news-environment/.
8 Paul Gipe, Electricity Feed Laws, Feed-in Laws, Feed-in Tariffs, Advanced
Renewable Tariffs, and Renewable Energy Payments, winD-workS, http://www.
wind-works.org/articles/feed_laws.html (last visited Mar. 31, 2011).
9 See generally Toby Couture & Yves Gagnon, An Analysis of Feed-in Tariff
Remuneration Models: Implications for Renewable Energy Investment, energy
policy 1 (2009), http://www.e3analytics.ca/documents/f‌itpolicy.pdf.
10 Id.
11 Kate Galbraith, Europe’s Way of Encouraging Solar Power Arrives in the
U.S., n.y. timeS (Mar. 12, 2009), http://www.nytimes.com/2009/03/13/business/
energy-environment/13solar.html.
12 Id. (explaining how FITs are also seen as regressive, as they promote forms
of energy that are not as cost eff‌icient, resulting in higher energy prices for the
poor).
Endnotes: Small Wind Turbines May Change the Future of Energy in
Developing Countries
13 Masahiro Myazaki, Renewable Energy Issues: Nedo’s Experience in South-
east Asia, new energy & inDuS. tech. Dev. org., http://www.apo-tokyo.org/
gp/manila_conf02/resource_papers/narrative/miyazaki.pdf (last visited Apr. 18,
2011).
14 See generally Poverty, Energy and Society, baker inSt. energy Forum,
http://www.rice.edu/energy/research/poverty&energy/index.html (last visited
Mar. 31, 2011).
15 See V. Ranganathan, Forecasting of Electricity Demand in Rural Areas, 46
inDian J. oF StatiSticS 333 (1984).
16 See France to Finance Kenyan Renewable Energy Investments,
citiZen (Apr. 28, 2011), http://thecitizen.co.tz/business/14-international-
business/10405-france-to-f‌inance-kenyan-renewable-energy-investments.html.
17 eric martinot et al., renewable energy marketS in Developing coun-
trieS 10 (2003), http://www.nrel.gov/analysis/forum/pdfs/eric_martinot.pdf.
18 Myazaki, supra note 13, at 5.
19 Id.
20 See teoDoro SancheZ, arthur williamS, & nigel Smith, the critical
FactorS For SucceSS oF StanD alone energy SchemeS 14 (2006), http://www.
udc.edu/cere/docs/Teo%20Conf%20Paper.pdf.
21 See Small-Scale Wind Power, practical action, http://practicalaction.org/
energy/small_scale_wind_power (last visited Mar. 31, 2011).
22 In regions without established power grids, electricity may still be con-
sumed in the form of charged automobile batteries.
23 See Simon Dunnett, practical action, Small winD energy SyStemS For
battery charging 8, http://practicalaction.org/docs/energy/wind_energy_bat-
tery_charging.pdf (last visited Mar. 31, 2011).
24 See generally Ranganathan, supra note 15, at 341.
25 Id. at 337.
26 Video: Renewable Energy in Sri Lanka, practical action, http://practica-
laction.org/energy/small_scale_wind_power (last visited Mar. 31, 2011).
27 See LaMonica, supra note 3.
28 Video: Renewable Energy in Sri Lanka, supra note 26.
29 Id.

VLEX uses login cookies to provide you with a better browsing experience. If you click on 'Accept' or continue browsing this site we consider that you accept our cookie policy. ACCEPT