The research and development work on the shrouded wind-turbine concept, carried out in Israel, is described in some detail. First, the shroud concept is considered and the theoretical and experimental results indicating its power-augmentation capabilities are shown. Thereafter, technical improvements aimed at reducing the shroud cost while keeping its good aerodynamic performance are discussed. Based on the described work with shrouds, a pilot plant was built and tested. The preliminary results obtained from this unit support early expectations regarding the usefulness of the shroud for power augmentation.