This paper proposes the use of wind power as a source of electricity in a new city being developed in the Duqm area of Oman. Recent wind speed measurements taken at the Duqm metrological station are analyzed to obtain the annual and monthly wind probability distribution profiles represented by Weibull parameters. The monthly average mean wind speed ranges between 2.93 m/s in February and 9.76 m/s in July, with an annual average of 5.33 m/s. A techno-economic evaluation of a wind power project is presented to illustrate the project's viability. Given Duqm's wind profile and the power curve characteristics of a V90-1.8 turbine, an annual capacity factor of 0.36 is expected. For the base-case assumptions, the cost of electricity is about $0.05 and $0.08 per kWh for discount rates of 5% and 10%, respectively. These values are higher than that of the existing generation system, due to the subsidized prices of domestically available natural gas. However, given high international natural gas prices, the country's long-term LNG export obligations, and the expansion of natural gas-based industries, investments in wind power in Duqm can be justified. A feed-in tariff and capital cost allowance policies are recommended to facilitate investments in this sector. (C) 2009 Elsevier Ltd. All rights reserved.