Wind as a source of energy has gained a significant amount of attention because it is free and green. Construction of a wind farm involves considerable investment, which includes the cost of turbines, nacelles, and towers as well as logistical costs such as transportation of oversized parts and installation costs such as crane-rental costs. The terrain effects at the project site exert considerable influence on the turbine assembly rate and the project duration, which increases the overall installation cost. For higher capacity wind turbines (>
3MW), the rental cost of the cranes is significant. In this study, the impact of interest rate, sales price of electricity, terrain effects and availability of cranes on the duration of installation and payback period for the project is analyzed. Optimization of the logistic activities involved during the construction phase of a wind farm contributes to the reduction of the project duration and also increases electricity generation during the construction phase.