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generis
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My answer is (A). Option (D) is a major distractor.

(A) The only minor issue with (A) is the juxtaposition of "electricity, small, relatively inexpensive windmills". It took a second for readers to recognize that they are not meant to be a list.
The use of colon is totally fine: an independent clause must be at the left side of the punctuation mark, and it is.

(B) "several advantages" cannot serve "as generators of electricity". Eliminated promptly and with confidence.

(C) "shaped like eggbeaters" incorrectly modify "electricity". It does require outside information that electricity does not have tangible shape.

(D) It is correct not to use colon here. Objects for "include" should be provided in order to construct an independent clause. We take issues with "for generating electricity" because
(1) to express intention, infinitive (to generate electricity) should be preferred.
(2) It might, unwittingly, indicate that "shaped like eggbeater" is needed in order to generate electricity. Outside knowledge about the basic mechanism of windmills is assumed.

(E) See (C).
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As generators of electricity, small, relatively inexpensive windmills shaped like eggbeaters have several advantages over large, propeller-shaped windmills: simplicity, reliability of stressed components, efficiency in convening wind energy, and beauty.

Comparison is b/w two types of windmills: Type 1 - small, relatively inexpensive windmills that are shaped like eggbeaters and type 2-large, propeller-shaped windmills
Type 1 has several advantages over type 2



A) As generators of electricity, small, relatively inexpensive windmills shaped like eggbeaters have several advantages over large, propeller-shaped windmills:

Meaning is clear and modifiers are appropriately places to avoid ambiguity or distortion in meaning.
After Colon the list of advantages mentioned nicely connects with the clause.


B) As generators of electricity, several advantages that small, relatively inexpensive windmills shaped like eggbeaters have over large, propeller-shaped windmills include

Verbed modifier modifies advantages - Eliminate

C) Several advantages that small, relatively inexpensive windmills for generating electricity shaped like eggbeaters have over large, propeller-shaped windmills include

Modifier Shaped like eggbeaters illogically modifies electricity
Eliminate


D) Several advantages of small, relatively inexpensive windmills shaped like eggbeaters for generating electricity over large, propeller-shaped windmills include

Phrase "Shaped like eggbeater for generating electricity " gives a sense that windmills have several shapes and one of them is eggbeater
Misplaced modifier changes meaning and comparison


E) Small, relatively inexpensive windmills for generating electricity shaped like eggbeaters have the following several advantages over large, propeller-shaped windmills

Electricity is shaped - illogical


(A) is the correct answer IMO
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IMO B

Lets look at differences:
1. windmills shaped like eggbeaters VS electricity shaped like eggbeaters
2. Colon (:) vs Include
3. Placement of several advantages

For #1, 'electricity shaped like eggbeaters' is nonsensical... C and E eliminate
#2 and #3 are not clear differentiators and we will have to read the options

A. Usage of colon (:) should generally be preceded by the list it is describing. In this case 'advantages' As that is not the case so eliminate
B. This looks fine. Keep
D. 'Several advantages.. for generating electricity' Incorrect idiomatically. So eliminate

Answer is B


generis

Project SC Butler: Sentence Correction (SC2)


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As generators of electricity, small, relatively inexpensive windmills shaped like eggbeaters have several advantages over large, propeller-shaped windmills: simplicity, reliability of stressed components, efficiency in convening wind energy, and beauty.

A) As generators of electricity, small, relatively inexpensive windmills shaped like eggbeaters have several advantages over large, propeller-shaped windmills:
B) As generators of electricity, several advantages that small, relatively inexpensive windmills shaped like eggbeaters have over large, propeller-shaped windmills include
C) Several advantages that small, relatively inexpensive windmills for generating electricity shaped like eggbeaters have over large, propeller-shaped windmills include
D) Several advantages of small, relatively inexpensive windmills shaped like eggbeaters for generating electricity over large, propeller-shaped windmills include
E) Small, relatively inexpensive windmills for generating electricity shaped like eggbeaters have the following several advantages over large, propeller-shaped windmills:
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A bit tough. I went with A in the end. Option A at first seemed a bit awkward but it presents the meaning in a grammatical and unambiguous manner. I had decided never to reject an answer choice based on awakwardness.

B) As generators of electricity, several advantages that small, relatively inexpensive windmills shaped like eggbeaters have over large, propeller-shaped windmills include

Several advantages are modifying generators of electricity. This jumped at me right away. Eliminate

C) Several advantages that small, relatively inexpensive windmills for generating electricity shaped like eggbeaters have over large, propeller-shaped windmills include--->

'Shaped like beaters' is now modifying electricity which is incorrect. Eliminate

D) Several advantages of small, relatively inexpensive windmills shaped like eggbeaters for generating electricity over large, propeller-shaped windmills include---->

The meaning changed as now it says that generation of electricity (with small windmills) being considered over the large windmills whereas it should be the generation of electricity from small over the generation of electricity over large. Difficult to eliminate though.

E) Small, relatively inexpensive windmills for generating electricity shaped like eggbeaters have the following several advantages over large, propeller-shaped windmills:--->

Shaped like beaters modifying electricty. Eliminate
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As generators of electricity, small, relatively inexpensive windmills shaped like eggbeaters have several advantages over large, propeller-shaped windmills: simplicity, reliability of stressed components, efficiency in convening wind energy, and beauty.

POE shall be modifier

B) As generators of electricity, several advantages that small, relatively inexpensive windmills shaped like eggbeaters have over large, propeller-shaped windmills include
Clause "As generators of electricity" modifies "several advantages". Not Logical. OUT

C) Several advantages that small, relatively inexpensive windmills for generating electricity shaped like eggbeaters have over large, propeller-shaped windmills include
Highlighted part is illogical. OUT

E) Small, relatively inexpensive windmills for generating electricity shaped like eggbeaters have the following several advantages over large, propeller-shaped windmills:

Same error as C. OUT

Between A & D,main difference is comparison

D) Several advantages of small, relatively inexpensive windmills shaped like eggbeaters for generating electricity over large, propeller-shaped windmills include
Comparision seems between "several advantages" and "large windmills" OUT

A) As generators of electricity, small, relatively inexpensive windmills shaped like eggbeaters have several advantages over large, propeller-shaped windmills:
A is winner
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A) As generators of electricity, small, relatively inexpensive windmills shaped like eggbeaters have several advantages over large, propeller-shaped windmills: Looks good. Modifiers at correct position

B) As generators of electricity, several advantages that small, relatively inexpensive windmills shaped like eggbeaters have over large, propeller-shaped windmills include As generators of electricity is modifying Advantages

C) Several advantages that small, relatively inexpensive windmills for generating electricity shaped like eggbeaters have over large, propeller-shaped windmills include shaped like eggbeaters is modifying electricity

D) Several advantages of small, relatively inexpensive windmills shaped like eggbeaters for generating electricity over large, propeller-shaped windmills include for generating electricity is modifying eggbeaters

E) Small, relatively inexpensive windmills for generating electricity shaped like eggbeaters have the following several advantages over large, propeller-shaped windmills: shaped like eggbeaters is modifying electricity
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It's quite hard. Here is my analysis:

A) As generators of electricity, small, relatively inexpensive windmills shaped like eggbeaters have several advantages over large, propeller-shaped windmills:

"As generators of electricity" modify "small, relatively inexpensive windmills shaped like eggbeaters". It's a good structure.

B) As generators of electricity, several advantages that small, relatively inexpensive windmills shaped like eggbeaters have over large, propeller-shaped windmills include.

"As generators of electricity" modify "several advantages". It's incorrect

C) Several advantages that small, relatively inexpensive windmills for generating electricity shaped like eggbeaters have over large, propeller-shaped windmills include

"Generating electricity shaped like eggbeaters" is not the correct meaning.

D) Several advantages of small, relatively inexpensive windmills shaped like eggbeaters for generating electricity over large, propeller-shaped windmills include

"Generating electricity" modify "eggbeaters". It is not the correct meaning

E) Small, relatively inexpensive windmills for generating electricity shaped like eggbeaters have the following several advantages over large, propeller-shaped windmills:

"Eggbeaters" modify "electricity". It is not the correct meaning.

IMO A
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