The role of taxation policy and incentives in wind-based distributed generation projects viability: Ontario SOP case study

Author

Albadi, M.H. ; El-Saadany, E.F.

Author_Institution

Dept. of Electr. & Comput. Eng., Univ. of Waterloo, Waterloo, ON, Canada

fYear

2008

fDate

28-30 Sept. 2008

Firstpage

1

Lastpage

6

Abstract

Taxation policy and incentives play a vital role in wind-based distributed generation projects viability. In this paper, a thorough techno-economical evaluation of wind-based distributed generation projects is conducted to investigate the effect of taxes and incentives in the economic viability of investments in this sector. This paper considers the effects of provincial income taxes, capital cost allowance (CCA), property taxes, and wind power production federal incentives. Net present value (NPV) and internal rate of return (IRR) for different scenarios were used to assess the project´s viability considering Ontario Standard Offer Program (SOP) for wind power.

Keywords

distributed power generation; government policies; incentive schemes; power generation economics; taxation; wind power plants; Ontario SOP; Ontario Standard Offer Program; capital cost allowance; economic viability; incentive viability; internal rate of return; net present value; nvestments; property taxes; provincial income taxes; taxation policy; techno-economical evaluation of; wind power; wind power production federal incentives; wind-based distributed generation projects; Costs; Distributed control; Finance; Investments; Power generation economics; Production; Wind energy; Wind energy generation; Wind speed; Wind turbines; Economic viability; Incentive programs; Power generation economics; Taxation policies; Wind-based distributed generation;

fLanguage

English

Publisher

ieee

Conference_Titel

Power Symposium, 2008. NAPS '08. 40th North American

Conference_Location

Calgary, AB

Print_ISBN

978-1-4244-4283-6

Type

conf

DOI

10.1109/NAPS.2008.5307308

Filename

5307308