t: Wind power is becoming an increasingly attractive method of electric power
generation due to concerns with global climate change, increasing uncertainty of future oil
supplies, and energy security. While most large-scale wind turbines are part of wind farms,
which help states meet state renewable energy standards, several colleges and universities
in the United States have purchased wind turbines for financial and educational purposes.
This paper gives details of a cost-benefit analysis completed for a small liberal arts college
in Illinois, Principia College, which is considering buying a single large-scale turbine. The
process set forth here can easily be adapted to any college, university, or school. It is found
that the project has a positive net present value for both a 20-year scenario and a 30-year
scenario. Assuming the project did not receive any grants, Principia College would need to
have an annual real return rate of about 6% on its initial investment to gain the same
economic benefits.