Since wind speed is not constant, a wind farm's annual energy production is never as much as the sum of the generator nameplate ratings multiplied by the total hours in a year. The ratio of actual productivity in a year to this theoretical maximum is called the capacity factor. Typical capacity factors are 20–40%, with values at the upper end of the range in particularly favourable sites. For example, a 1 MW turbine with a capacity factor of 35% will not produce 8,760 MW·h in a year (1 × 24 × 365), but only 1 × 0.35 × 24 × 365 = 3,066 MW·h, averaging to 0.35 MW. Online data is available for some locations and the capacity factor can be calculated from the yearly output.
Unlike fueled generating plants, the capacity factor is limited by the inherent properties of wind. Capacity factors of other types of power plant are based mostly on fuel cost, with a small amount of downtime for maintenance. Nuclear plants have low incremental fuel cost, and so are run at full output and achieve a 90% capacity factor. Plants with higher fuel cost are throttled back to follow load. Gas turbine plants using natural gas as fuel may be very expensive to operate and may be run only to meet peak power demand. A gas turbine plant may have an annual capacity factor of 5–25% due to relatively high energy production cost.
According to a 2007 Stanford University study published in the Journal of Applied Meteorology and Climatology, interconnecting ten or more wind farms can allow an average of 33% of the total energy produced to be used as reliable, baseload electric power, as long as minimum criteria are met for wind speed and turbine height.
In a 2008 study released by the U.S. Department of Energy's Office of Energy Efficiency and Renewable Energy, the capacity factor achieved by the wind turbine fleet is shown to be increasing as the technology improves. The capacity factor achieved by new wind turbines in 2004 and 2005 reached 36%.
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