Dissertation (MSc Natural Resources Management)Generation of power using hydropower-plants suffers from water resources fluctuation in power generating reservoir, considerably during extended dry periods. This, impacts negatively on power supply stability as a result of constant power disruptions due to ever increasing demand for electricity. The use of wind turbines as alternative source for power generation is in worldwide demand. A sit is a green grows and economically attractive option, it harvests reliable, clean and efficiently energy from wind. Analysis of costs and benefits of wind turbines installation and use was done for different hub positions (25, 45, and 65m).The study employed different methods such as: documentary review, cost-benefit analysis, residual mass curve, statistical parameters and linear regression. Wind speed data were collected from TMA weather station (Dodoma airport) located in Dodoma Municipality for long-term period of observations (1986-2015).Costs of wind turbine installation were consulted at Singida wind farm project. Current power tariffs in Dodoma were received from TANESCO. Collected raw data were processed to useful information and analyzed to derive accurate and precise results. The study found that, long-term annual mean wind speed at 10 m equal to 5.1 m/s is higher than the minimal average wind speed potential for power generation (5.0 m/s). Extrapolation of wind speed by power law, to other heights (25, 45and 65 m) showed significant increment of wind speed. At 25 m above ground wind speed was 10% more than at anemometer position. While such wind speed at 45 m and 65 m was 16% and 20%higher. As well, the period for power generation increased. At height 25 m period for power generation was one month longer than at 10 m height. Whereas, at 45 m and 65 m it was2 months and 2.5 months longer. Application of cost-benefit analysis showed that, in 20 years period, costs would be outweighed by benefits. Lastly, evaluation of planned wind farm project with different hub positions was based on BCR criterion. Particularly, the benefits for hub position at 25 m were found 2 times greater than investment costs and O &M costs together. Hence, the installation of wind farm with hub position25 m will be more profitable.