When projects are being decided on, the payback period is often considered. Payback period refers to the length of time it will take for the project to produce returns equal to the initial investment. If a project costs $10 million and it has annual returns of $2 million then the payback period is 5 years.
But what about the energy payback time?
Energy payback time (EPBT) refers to how long it takes for the project to generate the same amount of energy it took to build the project. If a project needed 20MWh to be constructed and it generated 5MWh annually, then the EPBT is 4 years.
It is important to consider the EPBT to understand the overall impact of a system. The Carbon Almanac informs us that onshore wind projects have the shortest EPBT of renewable energy options, while fossil fuel plants don’t achieve energy payback in their lifetime.
If there are proposals to build renewable energy projects in your area, consider calling your local government representative and voicing your support.