Wind Power Capacity Credit A wind power capacity credit is an avoided cost for building and maintaining a conventional power generation. A wind power capacity credit is measured by the amount of conventional energy generation that could be replaced by an additional megawatt of a wind power installation. The capacity credit of wind power projects can range from zero to some fraction: no capacity credit when no impact on the power generation capacity of a system, and a capacity credit when a wind farm expands a power generation capacity (World Bank 2015). As an intermittent renewable energy source, the output of a wind turbine varies over time, and it cannot be directly compared with conventional power plants. Another factor to be considered is whether wind power generation replaces peak or off-peak generation in a power system (European Investment Bank 2013). A capacity credit of a wind power project displacing a conventiona...