Techno-Economic Feasibility Study of Wind Energy for Electricity Generation in Algeria

Abstract

This study aims to evaluate the techno-economic feasibility of wind energy as a sustainable solution for electricity generation in Algeria, with a focus on the regions of Batna, Djelfa, Saida, Oran, and Setif. Data from these regions were considered for the year 2006 in the case of Oran, and for the period from 2020 to 2024 for the remaining provinces. A sample of wind turbines was analyzed using key technical and economic indicators such as Annual Energy Production (AEP), Levelized Cost of Electricity (LCOE), Net Present Value (NPV), Internal Rate of Return (IRR), Benefit-Cost Ratio (BCR), and Payback Period (PBP). This study adopts a quantitative and analytical approach. The aforementioned financial and technical indicators were applied to assess the techno-economic feasibility of wind energy. The analytical dimension lies in the interpretation of economic results and the sensitivity analysis of key variables influencing project viability. The results indicate that the H25.0-60kW turbine model represents a cost-effective option under current conditions, with LCOE values falling within acceptable limits. Regarding the project's profitability, positive NPV values were recorded in Djelfa, Saida, and Setif, with Djelfa emerging as the overall best site. In contrast, Batna and Oran are recommended to be excluded from any wind energy investment due to the negative results observed under the current assumptions