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As wind energy installations grow in absolute terms and as a proportion of existing output, critics have raised concerns about integrating wind energy into existing grids due to the variability of power output from wind. In combination with the output profile of existing power plants, concern has been expressed about the extent to which wind can be relied upon for output during periods of high demand, sometimes referred to as its base capacity factor. Proponents claim this is a misstatement or misunderstanding of the windpower case, which assumes little capacity benefit, and argue that the main economic benefit comes from fuel displacement rather than capacity replacement (overall energy output versus replacement of peak generating output).
[[Image:Aralvaimozhy station.jpg|left|thumb|350px|A wind farm in [[Muppandal]], [[Tamil Nadu]], [[India]]]]
The annual capacity factor is the average output over a year divided by the turbine's nameplate capacity. The base capacity factor is primarily a function of the statistically reliable output of wind during the period of peak demand in a given area, as these are the times when the capacity to meet demand without threatening grid stability or shortages will be most critical.
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