Betz's law indicates the maximum power that can be extracted from the wind, independent of the design of a wind turbine in open flow. It was published in 1919, by the German physicist Albert Betz. The law is derived from the principles of conservation of mass and momentum of the air stream flowing through an idealized "actuator disk" that extracts energy from the wind stream. According to Betz's law, no turbine can capture more than 16/27 (59.3%) of the kinetic energy in wind. The factor 16/27 (0.593) is known as Betz's coefficient. Practical utility-scale wind turbines achieve at peak 75% to 80% of the Betz limit.
The Betz limit is based on an open disk actuator. If a diffuser is used to collect additional wind flow and direct it through the turbine, more energy can be extracted, but the limit still applies to the cross-section of the entire structure.
Betz's law applies to all Newtonian fluids, but this article will use wind as an example. Consider that if all of the energy coming from wind movement through a turbine was extracted as useful energy the wind speed afterwards would drop to zero. If the wind stopped moving at the exit of the turbine, then no more fresh wind could get in - it would be blocked. In order to keep the wind moving through the turbine there has to be some wind movement, however small, on the other side with a wind speed greater than zero. Betz's law shows that as air flows through a certain area, and when it slows from losing energy to extraction from a turbine, it must spread out to a wider area. As a result geometry limits any turbine efficiency to 59.3%.
The British scientist Frederick W. Lanchester derived the same maximum in 1915. The leader of the Russian aerodynamic school, Nikolay Zhukowsky, also published the same result for an ideal wind turbine in 1920, the same year as Betz did. It is thus an example of Stigler's Law which states that statistically, no scientific discovery is named after its actual discoverer.
The Betz limit places an upper bound on the annual energy that can be extracted at a site. Even if a hypothetical wind blew consistently for a full year, no more than the Betz limit of the energy contained in that year's wind could be extracted. Since wind speed varies, the annual capacity factor of a wind site is around 25% to 60% of the energy that would be generated with constant wind.