Did you know? Note 9

Developing countries are implementing a growing number of wind power projects with private participation

Wind power projects and associated investment commitments have increased substantially in low- and middle-income countries in the past few years (figure 1). In 2005–07 the governments of 10 developing countries signed at least 34 contracts, involving investment commitments (hereafter, investment) of US$2.2 billion (in 2007 dollars) and 1,670 megawatts (MW) of wind power capacity. This activity represents a major increase over the previous decade: in 1995–2004 there were 15 wind power projects, involving investment of US$320 million (in 2007 dollars) and 348 MW. .

      

The 49 wind power projects implemented since 1995 present some interesting characteristics. All have been greenfield projects implemented mainly through build-operate-transfer or build-own-operate contracts. The only exception is a power plant that is part of a concessioned, isolated system in Honduras (Utila Power Company on Utila Island). While projects have ranged in size from 600 kilowatts to 200 MW, the average (and median) size is about 40 MW. Investment per megawatt has averaged US$1.4 million. But it has varied across years and projects (figure 2). About 75% of projects have had investment per megawatt ranging from US$0.9 million to US$1.9 million. Contract periods have ranged from 15 to 70 years, with half the projects having a contract period between 20 and 30 years.

Wind power projects with private participation have been implemented in 17 developing countries, spanning the range of developing country income groups. But one lower-middle-income country, China, has accounted for more than 60% of the projects, investment, and installed capacity (figure 3). Other lower-middle-income countries that have implemented projects are Ecuador, Honduras, Morocco, Nicaragua, and the Philippines. Among upper-middle-income countries that have done so are Brazil, Costa Rica, Panama, and Poland. Among low-income-countries, India is the only one.