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Article

Conditions for the Development of Wind Energy for Individual Consumers: A Case Study in Poland

Faculty of Economics and Management, University of Zielona Góra, Licealna Street 9, 65-417 Zielona Góra, Poland
*
Author to whom correspondence should be addressed.
Energies 2024, 17(14), 3358; https://doi.org/10.3390/en17143358 (registering DOI)
Submission received: 27 May 2024 / Revised: 30 June 2024 / Accepted: 6 July 2024 / Published: 9 July 2024
(This article belongs to the Special Issue Challenges and Opportunities for Energy Economics and Policy)

Abstract

:
This article presents the economic viability of using 10 m wind turbines in households with financial support from the government. The aim of this study was to indicate whether and how state subsidies affect the efficiency and estimated payback periods of wind energy investments for individual households. The research conducted thus far has focused on the analysis of effectiveness, feasibility, and economic profitability, but it has not taken into account government support for the investment readiness of households, which constitutes a research gap in the literature and economic practice. In addition, this study analyzed a new program that is scheduled to come into force this year. The analysis used the Homer Pro software (ver. x64) module, and simulations were performed for three locations in Poland. Due to differences in the location of wind zones, as well as the location of two locations on the Baltic Sea, an additional factor characterizing the studied voivodeships was introduced. Government support may therefore constitute a mechanism for correcting the geographical location and local wind potential. It has been shown that financial support significantly accelerates the payback period, even in locations with weaker wind potential. Complementary and substitutive possibilities for renewable energy sources, such as sun and wind, were indicated. The conclusions from this research can be used by decision makers and individual households to take advantage of government support to shorten the return on investment in wind energy and the validity of this support.

1. Introduction

At the current stage of development, the increase in social welfare is associated with an increasing use of energy. However, this situation generates costs, not only in financial terms, but also in social and environmental terms, which result from the increase in greenhouse gas emissions and the use of non-renewable energy sources. The issue of ensuring energy security is also important. Today, access to energy is as important as access to a sustainable environment, health care, social security, and education. It is not only a need, but also a social good [1]. Due to the growing demand for energy and actions to be taken that minimize negative impacts on the environment (while also considering the financial aspect), alternative methods of obtaining energy, mainly from renewable resources, are increasingly being considered. One of the constantly developing branches of renewable energy is wind energy. In many countries, it is a complementary source of energy to other solutions [2]. In order to assess the profitability and effectiveness of such an investment, factors such as topographic features that change the distribution of wind energy, especially at a local scale [3], as well as the system of financial support for prosumers and macroeconomic conditions, can be considered. Although the conversion of wind energy is relatively simple in concept, the design of the turbine can be quite complex [4]. Wind energy is clean but not sustainable for long periods of time. Recent years have shown that wind energy has been developed and expanded for industrial applications in some European countries and for individual consumers, such as in Germany, Denmark, and Spain. Their successes have been the impetus for other countries to include wind energy in their electricity generation systems. Wind farms have currently proven to be the most attractive solution for ensuring the dynamic development of electricity generation from renewable energy sources [5], and, as current research indicates, the total installed capacity of wind energy will increase in most EU countries [6]. Although the share of electricity in the EU from renewable sources is increasing in most countries following the introduction of significant subsidies, conventional energy technologies and fossil fuels still dominate the electricity generation market. Sustainable energy development strategies have proposed three main technological changes, which include energy savings on the demand side, increasing the efficiency of energy production, and the continuous replacement of fossil fuels with renewable energy [7]. Additionally, due to the economic aspect, there is the need to have a quick interaction with the environment, which attracts the attention of political and business circles and private individuals [8]. Importantly, the energy supplied from wind is free, independent (increases political security), fully natural, and infinite, although unstable. Wind turbines located in appropriate locations are a relatively cheap method of generating electricity. Thanks to this, they are a good alternative to energy from conventional sources and ensure the security of electricity supply to locations not connected to the grid. Additionally, there are earning opportunities related to trading in emission certificates. Prosumers can also benefit from on-site energy production, thus qualifying them for exemption from the climate tax. You can also pay for surplus electricity supplied to the grid [9]. A proper location for wind turbines is therefore important. The study of the geographical distribution of wind speed, characteristic wind parameters, topography and local wind flow, and the measurement of wind speed are very important in the assessment of wind resources for the successful application of wind turbines [10]. As noted by [11], the optimal placement of wind turbines within a wind farm using site-specific wind data can reduce excitation effects and maximize the total wind energy utilization of the wind farm. The energy resources available in a specific location depend largely on the average annual wind speed. However, the average annual wind speed at a particular location depends greatly on the local topography and can differ significantly from the regional average. Knowledge of the wind speed profile in cities is also important for the construction and insurance industries, wind energy forecasting, and simulations of the release of pollutants and toxic gases [12]. Wind turbines require service and maintenance, which constitute a major part of the total annual cost of a wind turbine. However, it is estimated that compared to most other energy production costs, they are very low. In addition, other variable costs should be taken into account in the analysis. Operation and maintenance costs are related to a limited number of cost elements and include insurance, maintenance, repairs, and spare parts. Additionally, the price of wind energy depends largely on the institutional environment in which the wind energy is supplied [13]. The high initial costs of such an investment and the possibility of settlements in energy transmission are important. To accurately assess the wind energy potential and its characteristics, it is necessary to conduct long-term meteorological observations. Wind speed data are needed to assess the potential. Wind speed is a random variable, and the change in wind speed over time is presented by the probability density function [14]. Although wind energy is considered to be harmless to the environment compared to conventional fossil fuels, it still has impacts on animals and human life, such as noise and visual effects [15]. Constant economic growth results in an increase in demand for energy, and an additional issue is constantly rising electricity prices, especially for economies focused on conventional energy production, such as Poland [16]. For this purpose, national economies adopt various solutions for the optimization and production of electricity from renewable sources [17]. The impact of the COVID-19 pandemic and the related decline in economic activity on electricity consumption in Poland was also significant [18]. Recent research [19] has also indicated that the behavior of electricity market consumers is subject to behavioral and cognitive errors. The tendencies in the changing attitudes of energy market consumers toward pro-ecological and pro-social sensitivity were also noted, and the acceleration of changes already introduced in the energy and climate policy toward a transition to using renewable sources was indicated. Although electricity production in Poland is stable and the share of renewable energy sources is constantly growing, Poland is still dependent on fossil fuels. The current number of renewable energy installations is insufficient to cover the deficit in electricity production. These production gaps could be supplemented if they were developed at a faster pace [20]. Financial support from the government may bring such solutions.
Taking into account the above issues, an attempt was made to estimate an investment in a wind turbine by households in Poland for three locations in northwestern Poland. The aim of this study was to indicate the importance of state subsidies under the “My Wind Power Plant” program on investment efficiency in renewable energy sources using simulation methods. The literature contains numerous studies on, among others, the payback period, profitability, and effectiveness of using household and cooperative (urban) wind turbines at the local, regional, and supranational levels [21,22,23,24]. However, these studies mainly concern a priori direct investments made by individual entities, households, or larger communities. This undiscovered area constitutes a research gap between the profitability of investing in renewable energy solutions and state interference in the process of financing such investments. The analysis concerned three cities located in three different voivodeships: Zielona Góra—Lubusz Voivodeship, Gdańsk—Pomeranian Voivodeship, and Szczecin—West Pomeranian Voivodeship. However, Zielona Góra does not have direct access to the Baltic Sea; hence, the average wind speeds are lower than in the other two areas. The choice of these locations resulted from the existence of clear differences between wind zones. It was a response to the problem that arises when assessing the government program, i.e., whether in the new system there will be a clear difference in the rate of return and profitability of investments in different parts of the country. Hence, the central belt (Lubusz Voivodeship), the western sea zone (West Pomeranian Voivodeship), and the eastern sea zone (Pomeranian Voivodeship) were chosen as the study location. However, locations with strong winds but low population density (mountain areas) were omitted. The selection criteria were based on the difference in wind zones in Poland, which have also been used in other studies [25,26], but they did not take into account the financial support in investment projects. This study, therefore, provides information for the government and individual households about the effectiveness of investments, while assuming different wind zones, along with the estimated payback period, which was the main research goal.

2. Profitability of Using Wind Energy and Taking into Account the Financial Support Mechanism

Knowledge of the potential benefits and costs of obtaining energy from renewable sources is becoming an increasingly important issue that has been raised during discussions about the impact of greenhouse gas emissions on climate change, the problem of the limited availability of fossil fuels, and the uncertainty regarding changes in energy prices in the long term. Many economic studies have confirmed that renewable energy, including wind energy, should complement conventional energy by promoting hybrid models, i.e., models such as conventional energy—photovoltaics—wind energy, as was the case in the Lubuskie Voivodeship in Poland [2]. For Korean households, the impact of local acceptance levels for a wind–PV hybrid project and profit-sharing assessments on their profitability was assessed. The contingent valuation method used indicated total readiness to adopt photovoltaic and wind projects with values of USD 13,815 and USD 27,587 per household, respectively, for a subsidy period of 5 years. The internal rate of return (IRR) was used to assess the profitability of the projects. This rate without household profit sharing ranged from 4.49% to 9.50%, and the rate with profit sharing ranged from −1.67% to 7.64% [27]. Economic viability criteria were utilized for a techno-economic evaluation of the construction of small wind turbines in six areas in Ardabil Province, Iran. For each location, the type of equipment used in the project, benefits, costs, total net costs, depreciation, and the amount of electricity generated were indicated. Hybrid Optimization of Multiple Energy Resources and Homer software (ver. x64) were used in the modeling. For the adopted input data, the following equipment was used: 1 wind turbine with a capacity of 10 kW, a 12 kW generator, a 12 kW converter, and a 25-year life system that is powered by two batteries. The estimated values were as follows: net current costs (NPC) during the systems life cycle of USD 42,533; a cost of energy (COE) in cents per kilowatt hour (as a unit of electricity price) of USD 0.25/kWh; operating costs of USD 1407; and revenues of USD 9691/year [28]. The Homer software module was also used to evaluate two locations in Chile for the installation of a small wind farm with a nominal production capacity of 90 kW. It was indicated that, considering government aid, the cost assumed by the client in the best scenario could be reduced to USD 0.67 per resident. From the group of studied variables, NPC showed greater sensitivity to the purchase price of energy from the grid and to the average annual wind speed [29]. The suitability of Homer modules was also used to analyze a 6 kW hybrid wind–photovoltaic system to assess meeting the electricity demand of a single household in Northern Cyprus. In the case of wind, the assumed capacity kW was 3; the capital cost (in USD/kW) was 3000; the replacement cost (in USD/kW) was 2000, and the annual O&M cost (in USD/kW) was 39.53. Studies have shown that the system is economically viable, and the hybrid system has an NPV and IRR of approximately PLN 11,000, respectively. Using USD and a 10% payback period of approximately 11 years, provides annual lifecycle savings of USD 788 [30]. In a case study in Austria, using statistical methods, an economic analysis was conducted for a wind turbine with a capacity of 1.5 MW, initial investment costs of EUR 1.5 million/MW, operating costs of EUR 0.020/kWh, and an IRR with a probability of 95%, which was not lower than the approximated 7.60%. For the adopted input data, it was determined that, with a probability of 5%, the investor can achieve an IRR above 8.98% [31]. Economic analyses using wind energy for hybrid solutions were also applied to a semi-detached house with an area of 147.42 m2 for two families of four people in Poland. Three variants of hybrid models were used: (1) a biomass boiler, solar collectors, and photovoltaic panels; (2) heat pumps, solar collectors, and photovoltaic panels; and (3) heat pumps, solar collectors, and a wind turbine. These solutions were combined with a traditional heating system using a gas boiler and drawing electricity from the power grid. It was indicated that traditional technical solutions generate the highest costs. The investment profitability analysis was carried out using both simple and discounted profitability assessment methods, and it was shown that Variant 3 provided the shortest discounted payback period of approximately 13 years, where the investment will reach the break-even point after that time [32]. A review of the research on the profitability of implementing wind energy in private use indicates that the economic analyses carried out were mainly based on the adopted input assumptions of the model, which determines the course of the entire analysis. This method often only seems indicative due to the high variability of economic parameters over time, e.g., inflation. In order to provide consumers with the opportunity to partially reduce the risk, it is possible to pursue policies related to subsidies or other forms of direct or indirect support. Renewable energy financing involves multiple entities at local (municipal) and national (government) scales, and it includes activities and practices that develop and implement financial instruments to orient financial resources toward renewable energy investments. Access to various financial and investment mechanisms gives households the opportunity to pursue new roles in the energy sector. The use of government subsidies is a policy mechanism that directs public resources to the designated areas of infrastructure and development. Thanks to this, the innovation process is accelerated, and it is possible to achieve social goals, including assistance for people with low incomes or ensuring a social safety net [33]. Policymakers in Europe have implemented support policies for renewable energy sources to meet established low-emission policy goals. These are the goals of producing renewable energy at the lowest cost, reducing carbon dioxide emissions, and promoting technology improvement through learning and doing [34]. This type of support can bring many benefits, including reducing dependence on energy needs, developing remote rural areas by providing electricity [35], or creating the function of an electricity prosumer. However, the effectiveness of subsidy programs for investment in renewable energy sources depends on the credibility of the government. It is recommended that interventions be designed in such a way as to reduce the political uncertainty perceived by investors [36]. It is not possible to simultaneously increase installed capacity and reduce network costs while reducing subsidies for wind energy. Therefore, among others, China has implemented a mechanism aimed at introducing incentives for companies to invest in the offshore wind industry in order to increase its potential and provide subsidies and other benefits [37]. German research has shown that the introduction of a feed-in tariff system in the context of small wind turbines plays a key role in the investment decisions of private households [38]. Augustowski and Kułyk indicated that the subsidy system constitutes an economic incentive for households to undertake investments, mainly due to the reduction in initial costs [39] Werner and Scholtnes [40] noted that financial support still plays an important role in the decision to invest in wind energy projects in the case of the German economy. An analysis of the potential of wind energy in the Chinese economy has shown that the feed-in tariff system used there is very effective for the sustainable use of wind energy throughout the country. However, it has been shown that the risk of network limitations and availability may significantly reduce the potential profitability of such an investment [41]. Thanks to the tariff, the investor is able to build a network larger than its energy needs. The repurchase guarantee and fixed rates provided under state policy allow the investor to precisely estimate the payback period and the time when the investment will start generating income. Research in this area indicates the role of the government in the process of generating clean energy. Welch and Venkateswaran [42] showed that—due to the convergence of improved technologies, greater efficiency, and the increasing costs of traditional, competitive sources such as oil and natural gas—wind energy under certain conditions can approach self-sufficiency in terms of financial support, which, at some stage, may release the government from the function of generating financial support.

3. Materials and Methods

This study analyzed the situation in three locations with different weather conditions, representing the following three voivodeships: Lubusz, Pomerania, and West Pomerania. In each of them, a simulation of the economic viability of installing a 10 kW wind turbine at a height of 10 m, which is suitable for households, was performed. The assessment took into account monthly wind distributions (Figure 1).
In the case of the Lubusz Voivodeship, Zielona Góra was specifically investigated; for the West Pomeranian Voivodeship, Szczecin; and, for the Pomeranian Voivodeship, Gdańsk. The following economic parameters were adopted as part of the analyses (Table 1).
The first part presents the economic assumptions of the simulation. The nominal discount rate was determined on the basis of risk-free, long-term 10-year treasury bonds. A much greater challenge is estimating the level of the inflation rate. The recent months in Poland (from February 2023) have been characterized by a downward trend in the CPI index, to the current level of 2.4%. Recent months have also been characterized by a passive attitude of the Monetary Policy Council, which did not decide to change the interest rates of the National Bank of Poland. According to the NBP’s policy, the inflation rate in Poland should be 2.5%, with a possibility of symmetrical deviations from this level by ±1%. Therefore, the upper range of the range was used for analysis, i.e., 3.5%. The estimated duration of the project was estimated at 10 years. The system’s fixed costs were estimated at USD 2500.00, which included the costs of transporting the turbine, labor, the cost of connecting to the installation, and other fixed costs. The operation and maintenance (O&M) cost of a component is the cost associated with operating and maintaining that component. The total O&M cost of the system is the sum of the O&M costs of each system component. In the analyzed case, the possible repairs and maintenance in a given year were estimated at 10% of the purchase price of the turbine on the free market (approximately USD 10,000 in Poland), i.e., USD 100.
For each voivodeship, an analysis was carried out for two variants, the first of which did not include any financial support, while the second was related to the “My Wind Power Plant” program conducted in Poland. The “My wind farm” program aims to support the construction of a small wind farm and energy storage facilities for commercial use and in residential houses. The aim of the program is to increase the availability of renewable energy, which will enable more Polish residents to become producers of green electricity, using a natural source such as wind, and to reduce investment costs. The preliminary draft of the program indicates that natural persons who own or co-own residential buildings will be able to apply for the subsidy. Entities that purchase and install a wind turbine with appropriate equipment, such as an inverter or energy storage, will receive financial support in the form of a non-refundable subsidy, which may ultimately amount to up to 50% of eligible costs. The program provides for two variants of investment co-financing:
  • Wind installation—a subsidy of up to PLN 30,000 (up to PLN 5000/1 kW),
  • Electricity storage—a subsidy of up to PLN 17,000 (up to PLN 6000/1 kWh).
Option 1 does not take into account the current support policy, while Option 2 introduces 50% financing for the purchase of a wind turbine.
The analysis assumed the possibility of reselling energy surpluses to the grid at strict rates: grid power price (USD/kWh) = 0.3 and grid sellback price (USD/kWh) = 0.063. As part of the simulation for Polish conditions, the height of the wind turbine hub was assumed to be 10 m, and its estimated lifespan was approximated at 20 years. The market price of the turbine was USD 10,000 (approximately PLN 40,000). The cost of operation and maintenance (O&M) was set at 10% of the turbine value. The cost of purchasing a 10 kW inverter was USD 2812 (approx. PLN 11,250). The investment also included the costs of purchasing an energy storage facility. The data related to wind profiles and simulation modules came from the Homer Pro x64 program and referred to the year of introduction of the support program—2024.
The technical assumptions of the simulation were as shown in the figure below. The general scheme of installing a wind turbine for household needs is shown in Figure 2.
The proposed model included the possibility of power supply from the grid and obtaining energy using a 10 kW wind turbine mounted at a level of 10 m. The electrical energy obtained in this way is converted into direct current using an inverter, and it is partially stored in five small storage units with a capacity of 50 V (in case the energy is not completely used in a given cycle). In the adopted variant, a partial sale of surplus energy to the grid is allowed, on similar terms as in the case of photovoltaics. As She, Erdem, and Shi [43] noted, wind turbines for residential purposes equipped with batteries may actually be beneficial for users connected to the grid, as well as in terms of the monetary profits that result from the differences in the purchase prices of electricity from the network and the possibility of selling it back to the network.
According to the assumptions, the constructed wind farm cannot exceed the power of 20 kW. If a power plant is purchased with accompanying energy storage facilities, their capacity should be at least 2 kWh. Additionally, the installation cannot be higher than 30 m, and its total power, including the connected energy storage units, must be less than 50 kW. Home installations can power your own household or produce electricity that can be sold to the grid, which is in accordance with the adopted assumptions.

4. Results

In order to fully use the Homer Pro simulation tool for the three locations of Zielona Góra, Szczecin, and Gdańsk, the local wind speeds and location above sea level were taken into account. The average monthly wind speeds were higher for locations closer to the Baltic Sea (Table 2).
There are differences in the strength and distribution of winds between individual investments, which should be reflected in the economic results of the investment. The most favorable wind conditions were observed for Szczecin and Gdańsk, which is due to the close proximity of the Baltic Sea (Figure 1). The wind profiles for the three cities representing the three voivodeships are shown in Figure 3a–c.
The simulation analysis was based on determining the values of the main economic indicators related to the investment. The following indicators were estimated, as shown below. Present value (USD), which was estimated according to the following formula [30]:
0 = N P V = k = 1 1 R k 1 + i k C ,
where NPV means the net current value, Rk determines the level of annual income, and C determines the total costs associated with installing the system. By equating NPV to zero, the internal rate of return (IRR) can be determined. The other indicators included the following: annual worth (USD/yr), return on investment (%), internal rate of return (%), simple payback (yr), and discounted payback (yr). The cost side was calculated according to the following formula [44]:
N P C = k = 0 n C O k 1 + i k
where n is the investment period, COk is the cash outflow for k-th year, and i is the predetermined discount rate. The results of the analysis of investment indicators for the variant without financial support and the variant with financial support at the level of 50% of eligible costs are presented in Table 3.
In each case, where both financial support and a lack of financial support were considered, the current value was positive, which indicates the profitability of the entire investment. The ROI value, when taking into account financial support at the level of 50% of the eligible costs, was more than twice as high as in the absence of financing. From the point of view of an individual consumer, the most important criterion is the payback period. The analysis took into account that financial support reduced the payback period for all locations by two times (discounted payback), and it also took into account that cash flows in the absence of support and that estimated savings occurred only in the 10th year of the investment. These findings are very important because the benefits in this respect are significantly limited. The period of ten years is, to some extent, a limiting period due to the installation warranty period of approximately 10 years (which varies depending on the manufacturer). Therefore, without support at the current stage and energy prices, the benefits appear relatively late and there is a risk of investment renewal. This may effectively limit the scale of investment into wind energy for prosumers. The estimated amounts of nominal financial flows are illustrated in Figure 4.
When analyzing all three locations, it can be noticed that, in the case of a discounted payback period for investments with financial support, the payback period was almost twice as fast (e.g., for Zielona Góra it went from almost 9 years to 4 years). The payback period and profitability result from the restrictions imposed on the program. The general direction of changes indicates that the benefit–cost ratio increases with the increase in wind turbine power, and the payback period tends to shorten with increases in the size of the wind turbine [45]. For example, the results of economic analyses for several regions of Iran, which were conducted for turbines, indicated that, in the case of the Ardebil region, the installation of turbines with a capacity of 3.5 kW and 100 kW will have a payback period of 13 and 5 years, respectively [46].
Through taking into account the specificity of the “My wind farm” program, the program assumptions were taken into account, and the support provided ensures a payback period that is reasonable for individual expectations. Thus, the program can complement national photovoltaic programs, and it may also constitute an alternative to them when the possibilities of building photovoltaic installations are limited.

5. Discussion

The offered support system for the installation of wind turbines for households is consistent with the European Union’s policy on reducing greenhouse gas emissions. Similar to the experience of the German economy, the introduction of a subsidy system may play a key role in the making of private investment decisions in using renewable energy from wind. Reducing initial costs and shortening the payback period is the main element of incentive for consumers, who can also play a new role—prosumers. The effects of financial support observed in the Chinese economy have proven to be effective within the concept of sustainable development, which also creates potential opportunities for the much smaller Polish economy. This also creates opportunities for peripheral and poorer areas to obtain cheaper and ecological electricity, and it can help with allocating free funds in the alternative methods of their use. The use of simulation methods significantly facilitated the processes of estimating long-term investments based on the adopted economic parameters. The technical and economic assessments were consistent with the research conducted in this field in Iran, Cyprus, and Austria. Comparing the results with other countries and systems, it can be noticed that the payback period after applying support was clearly shorter in two other countries (Chile and Austria) [30], whereas in Poland [32] (in terms of previous solutions of tariff and support systems), it was above 10 years. This approach allows us to point to a clear change in the approach to wind energy in the Polish tariff system. If this system is not taken into account, the results are similar to similar studies, but the period seems relatively long, especially for households. In the case of Poland, it is also important due to the more reasonable use of a hybrid system, which is needed due to the climatic zone [39], and the greater complementarity of wind and solar energy than in locations with a relatively longer period of sunlight during the calendar year (e.g., countries in southern Europe [47,48]). It can also be noted that the importance of the applied policy and tariff system, as in this study, is an important factor influencing the profitability of an investment [23,41,49]. In the case of households, the importance of this factor increases even more due to the higher level of sensitivity to economic conditions.

6. Conclusions

This study presents technical and economic analyses in order to achieve the most favorable configuration for the prosumer using data on the supply and demand side, as well as assumptions of the state support policy in accordance with the assumptions of the new “My wind farm” program. A system’s economic performance is determined by assessing the system’s operating costs, original investment and replacement costs, and opportunity costs.
Based on the feasibility study of the wind energy system, it can be concluded that it is a cost-effective power supply solution in Poland, even without the use of a support system. However, in this case (assuming a stability of conditions), it is relatively unattractive for the prosumer due to a payback period of almost ten years, which is similar to the installation warranty period.
The introduction of financial support shortens the potential investment payback period from nearly 9 to 4 years for the province of Lubuskie, and from approximately 8 to nearly 4 years for the province of the West Pomeranian Voivodeship. It is estimated that the cost recovery will also apply to Gdańsk, which has the best annual wind profile. If so, the return on investment is shortened from almost 7 years to only 3.5 years. This brings the conditions for profitability of investments closer in the individual wind farms of the considered locations, and it makes them profitable for the customer relatively quickly. The use of a support system ensures faster turnaround and greater cost savings. This is important because individual photovoltaic installations dominate in Poland, and as indicated in an earlier publication, a hybrid system combining wind and photovoltaic installations is certainly more advisable in the climatic conditions in Poland [2]. The consequence of a lack of other solutions is problems with energy reception in high sunlight conditions and the refusal to connect new photovoltaic installations to the power grid because the system is not able to handle such a high number of installations.
The analyzed support model will be a strong economic stimulus for investments in wind turbines for individual households. It allows one to significantly shorten the return period for investors. This limits the sensitivity of investments to external conditions. However, it requires an adaptation of transmission networks and infrastructure to the new technology due to the increasing importance of these installations. Household preference for wind turbines remains an issue.

Author Contributions

Conceptualization, Ł.A. and P.K.; methodology, Ł.A. and P.K.; software, Ł.A. and P.K.; validation, Ł.A. and P.K.; formal analysis, Ł.A. and P.K.; investigation, Ł.A. and P.K.; resources, Ł.A. and P.K.; data curation, Ł.A. and P.K.; writing—original draft preparation, Ł.A. and P.K.; writing—review and editing, Ł.A. and P.K.; visualization, Ł.A. and P.K. All authors have read and agreed to the published version of the manuscript.

Funding

This research received no external funding.

Data Availability Statement

The data come from the Homer Pro database.

Conflicts of Interest

The authors declare no conflicts of interest.

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Figure 1. Local wind speeds in Poland at a height of 10 m. Source: own study based on: https://globalwindatlas.info/en, accessed on 2 May 2024.
Figure 1. Local wind speeds in Poland at a height of 10 m. Source: own study based on: https://globalwindatlas.info/en, accessed on 2 May 2024.
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Figure 2. The model used was an installation with a 10 kW wind turbine installed at a height of 10 m. Source: own development based on Homer Pro x64 software.
Figure 2. The model used was an installation with a 10 kW wind turbine installed at a height of 10 m. Source: own development based on Homer Pro x64 software.
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Figure 3. Wind profiles. (a) Zielona Góra—Lubusz. (b) Szczecin—West Pomeranian. (c) Gdańsk—Pomeranian. Source: own development based on Homer Pro x64 software.
Figure 3. Wind profiles. (a) Zielona Góra—Lubusz. (b) Szczecin—West Pomeranian. (c) Gdańsk—Pomeranian. Source: own development based on Homer Pro x64 software.
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Figure 4. The nominal values of the cash flows. Source: own development based on Homer Pro x64 software.
Figure 4. The nominal values of the cash flows. Source: own development based on Homer Pro x64 software.
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Table 1. Assumed economic parameters.
Table 1. Assumed economic parameters.
Economic ParameterValue
Nominal discount rate (%)6.80
Expected inflation rate (%)3.50
Project lifetime (years)10.00
System fixed capital cost (USD)2500.00
System fixed O&M cost (USD/yr)100.00
Table 2. Average wind speeds.
Table 2. Average wind speeds.
Monthly Average Wind Speed
MonthZielona GóraSzczecinGdańsk
Jan7.6607.6508.460
Feb7.3507.4608.170
Mar7.1307.1807.670
Apr6.1906.3706.600
May5.8505.8906.130
Jun5.7005.9206.250
Jul5.6605.8706.090
Aug5.5005.7806.170
Sep6.1806.4707.120
Oct6.7106.9407.700
Nov6.8606.9207.700
Dec7.3407.2908.040
Annual Average (m/s)6.516.657.18
Source: own study based on the Homer Pro x64 software database.
Table 3. Estimated investment rates for the selected locations.
Table 3. Estimated investment rates for the selected locations.
Zielona GóraSzczecinGdańsk
MetricWithout FinancingWith 50% FinancingWithout FinancingWith 50% FinancingWithout FinancingWith 50% Financing
Present worth (USD)USD 444,821USD 730,432USD 495,909USD 781,520USD 674,028USD 959,639
Annual worth (USD/yr)USD 52,649USD 86.454USD 58,696USD 92,501USD 79,778USD 113,582
Return on investment (%)8.421.79.023.111.427.8
Internal rate of return (%)10.325.211.126.713.831.7
Simple payback (yr)7.843.747.133.566.113.05
Discounted payback (yr)8.694.058.213.846.903.27
Source: own development based on Homer Pro x64 software.
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Augustowski, Ł.; Kułyk, P. Conditions for the Development of Wind Energy for Individual Consumers: A Case Study in Poland. Energies 2024, 17, 3358. https://doi.org/10.3390/en17143358

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Augustowski Ł, Kułyk P. Conditions for the Development of Wind Energy for Individual Consumers: A Case Study in Poland. Energies. 2024; 17(14):3358. https://doi.org/10.3390/en17143358

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Augustowski, Łukasz, and Piotr Kułyk. 2024. "Conditions for the Development of Wind Energy for Individual Consumers: A Case Study in Poland" Energies 17, no. 14: 3358. https://doi.org/10.3390/en17143358

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