Wind energy is an indirect form of solar energy. About 1% of the total solar radiation that reaches earth is converted into wind energy. Wind results from the differential heating of the earth and its atmosphere by the sun. Although wind occurs universally, it is intermittent and its strength and reliability varies from one location to another. At ground level where winds are easiest to use, coastal and hill country often have stronger winds than flat inland areas. Wind energy is renewable and poses no environmental threat, particularly in windy locations. The characteristics are (a) variability in locations (b) location and site specificity (c) lower T and D losses in case of wind farms (d) relatively high initial capital costs, compared to thermal power stations (e) zero fuel costs (f) low gestation period provides quicker benefits.

The most important uses for wind energy are :

- pumping water, compressed air generation

- generation of electricity

- as a prime mover for mechanical machines