scholarly journals Valuation of Wind Energy Turbines Using Volatility of Wind and Price

Electronics ◽  
2021 ◽  
Vol 10 (9) ◽  
pp. 1098
Author(s):  
Doron Greenberg ◽  
Michael Byalsky ◽  
Asher Yahalom
Keyword(s):  
Power Generation ◽  
Renewable Energy ◽  
Standard Deviation ◽  
Wind Energy ◽  
Real Options ◽  
Green Energy ◽  
Energy Sources ◽  
Energy Investment ◽  
Real Options Analysis ◽  
The Real

The limitedness of the nonrenewable local energy resources in Israel, even in the background of the later gas fields’ findings, continues to force the state to devote various efforts towards ‘green’ energy development. These efforts include installations, both for the solar and for wind energy, thus improving the diversity of energy sources. While the standard discounted cash flow (DCF) method using the net present value (NPV) criterion is extensively adopted to evaluate investments, the standard DCF method is inappropriate for the rapidly changing investment climate and for the managerial flexibility in investment decisions. In recent years, the real options analysis (ROA) technique has been widely applied in many studies for the valuation of renewable energy investment projects. Taking into account the above background, we apply, in this study, the real options analysis approach for the valuation of wind energy turbines and apply it to the analysis of wind energy economic potential in Israel, which is the context of our work. We hypothesize that due to nature of wind energy production uncertainties, the ROA method is better than the alternative. The novelty of this paper includes the following: real world wind statistics of the Merom Golan site in Israel (velocity 3.73 m/s, with a standard deviation of 2.03 m/s), a realistic power generation estimation (power generation of 1205.84 kW with a standard deviation of about 0.5% in annual value which is worth about 1.3 M$ per annum), and an economic model to evaluate the profitability of such a project. We thus discuss the existing challenges of diversifying renewable energy sources in Israel by adding wind installations. Our motivation is to introduce a method which will allow investors and officials to take into account uncertainties when deciding in investing in such wind installations. The outcomes of the paper, which are obtained using the method of Weibull statistics and the Black–Scholes ROA technique, include the result that market price volatility adds to the uncertainties much more than any wind fluctuations, provided that the analysis is integrated over a long enough time.

scholarly journals Valuation of Wind Energy Turbines Using Volatility of Wind and Price

2021 ◽  
Author(s):  
Doron Greenberg ◽  
Michael Byalsky ◽  
Asher Yahalom
Keyword(s):  
Wind Energy ◽  
Real Options ◽  
Net Present Value ◽  
Discounted Cash Flow ◽  
Energy Investment ◽  
Real Options Analysis ◽  
The Real ◽  
Investment Projects ◽  
Managerial Flexibility ◽  
Renewable Energy Investment

The limitedness of the nonrenewable local energy resources in Israel, even in background of the later gas fields’ findings, continues to force the state to devote various efforts for the ‘green’ energy development. These efforts include installations both in the solar and in the wind energy, with a purpose to improve the diversity of energy sources. While the standard discounted cash flow (DCF) method using the net present value (NPV) criterion is extensively adopted to evaluate investments, the standard DCF method is inappropriate for the rapidly changing investment climate and for the managerial flexibility in investment decisions. In recent years, the real options analysis (ROA) technique is widely applied in many studies for valuation of renewable energy investment projects. Hence, we apply in this study the real options analysis approach for the valuation of wind energy turbines and apply it to the analysis of wind energy economic potential in Israel.

scholarly journals Comprehensive Examination on Solar -Wind Energy Systems Grid Integration and Emerging Power Quality challenges

2019 ◽  
Vol 8 (6S3) ◽  
pp. 733-737
Keyword(s):  
Power Generation ◽  
Renewable Energy ◽  
Wind Energy ◽  
Power Quality ◽  
Renewable Energy Sources ◽  
Atmospheric Condition ◽  
Energy Systems ◽  
Green Energy ◽  
Energy Sources ◽  
Wind Energy Systems

Sources of energy for conventional power generation are limited and depleting ceaselessly owing to rising demand of power because of the social modernization, rising industrial growth, quick rate of infrastructure development and also technological innovation. Several developed countries have started the employment of renewable energy sources considerably to attenuate the greenhouse gases effects within the atmosphere and harmful emission. The rising demand of the power without any harmful and damaging issue, forces the eye of researchers towards renewable sources (like wind and solar) of energy. Therefore, it's minimum impact on the atmosphere. Renewable Energy sources are becoming the key contributors in the present society due to the increasing cost of oil products and decrease in the price of RES. By using natural resources energy sources like Solar and wind are providing green energy. Renewable Energy penetration is increasing worldwide day by day. Renewable power generation will introduce noticeable power quality challenges when integrated to power grid. From the aspect of RES, renewable energy generation is intermittent and non-dispatchable because of varied nature of RES. The most common PQ challenges on RE integration are frequency and voltage fluctuations in the power system caused by noncontrollable atmospheric condition and Harmonics that are introduced because of power electronic converters used in RE power generation. This paper presents an intensive literature review, conducted on emerging PQ issues owing to Solar and Wind energy systems integration and existing mitigation methods.

Comparison of Voltage Regulation of a Smart Load for 3 Bus System and 15 Bus System under High Penetration of Wind Energy System

2021 ◽  
Vol 9 (11) ◽  
pp. 1625-1635
Author(s):  
Sharmini Nakkela
Keyword(s):  
Power Generation ◽  
Renewable Energy ◽  
Wind Energy ◽  
Energy System ◽  
Voltage Regulation ◽  
Energy Sources ◽  
Renewable Power ◽  
High Penetration ◽  
Renewable Power Generation ◽  
Bus System

Abstract: Modern study about utilizing energy from renewable energy sources was stimulus due to emerging oil crisis in older days due to uncontrolled use of conventional energy sources. Renewable Power Generation from wind and solar energy has become a significant proportion for the overall power generation in the grid. High penetration of Renewable Power Generation (RPG’s) effectreliable operation of bulk power system due to fluctuation of frequency and voltage of the network. The main objectives of high penetration of Renewable Power Generations in distribution system are Regulation of voltage, Mitigating voltage fluctuations due to flickers and Frequency control. The design and control of voltage regulation system using smart loads (SL’s) under large penetration of renewable energy system in distribution level is to be studied with the help of FACT devices like Static Compensator (STATCOM) and It is one of the fast active devices with accurate voltage regulation capability and most importantly for the sensitive/critical loads. Electric spring (ES) is proposed as compelling technique for guideline of framework voltage under fluctuating RPG's with next to no guide of correspondence framework [1]. It is a converter-based framework with self-commutated switches in span design, which is associated with non-basic burdens in series to go about as savvy load. These Smart Loads are controlled to direct voltage across basic burdens and hence partaking popular side administration. Expanded entrance of RPG’s, basically factor speed wind energy transformation framework is having impact on voltage and power quality [1][2]. In this paper, A contextual analysis of impact of variable speed wind energy framework on voltage is completed and which is demonstrated with fluctuating breeze speed. Execution examination of keen burdens are to be contrasted and existing receptive power compensator burdens and Improvement in voltage profile on test feeder is directed on a 3 Bus system and 15 Bus system. Keywords: Renewable energy system (RES), Electric spring (ES), STATCOM, Voltage Flicker, Smart load

scholarly journals Evaluation of Investments in Wind Energy Projects, under Uncertainty. State of the Art Review

2021 ◽  
Vol 11 (21) ◽  
pp. 10213
Author(s):  
Benjamin Murgas ◽  
Alvin Henao ◽  
Luceny Guzman
Keyword(s):  
Wind Energy ◽  
Real Options ◽  
Renewable Energy Sources ◽  
Energy Investment ◽  
The Real ◽  
Monte Carlo Simulation Technique ◽  
Real Options Approach ◽  
Energy Projects ◽  
Marked Tendency ◽  
Public Opposition

The use of renewable energy sources, especially wind energy, has been widely developed, mostly during the last decade. The main objective of the present study is to conduct a literature review focused on the evaluation under uncertainty of wind energy investment using the real options approach to find out whether public opposition (NIMBY projects) has been contemplated, and if so, what have been the flexible strategies applied for its intervention. Overall, 97 publications were analyzed, identifying 20 different models or approaches, which were grouped into eight categories: 1. Real options, 2. Optimization, 3. Stochastics, 4. Financial evaluation, 5. Probabilistic, 6. Estimation, 7. Numerical prediction, and 8. Others. The real options approach, present in 32% of the studies, was the most popular. Twenty-eight types of uncertainties were identified, which were grouped, for better analysis, into nine categories. In total, 62.5% of the studies included the price of electricity as a source of uncertainty; 18.8%, the velocity of wind; and 15.6%, the feed-in rates-subsidy. Both random and non-random techniques were applied to assess the real options and to model the uncertainties. When evaluating real options, the Monte Carlo simulation technique was the most preferred, with 16 (51.6%) applications, followed by non-randomized techniques, decision tree, and dynamic programming, with eight (25.8%) applications each. There is a marked tendency to use stochastic processes to model uncertainty, particularly geometric Brownian motion, which was used in 61.3% (19) of the studies in the sample. When searching for “real options AND (nimby OR public opposition)”, no study was found, which shows the possibility of developing research on this aspect to determine its impact on investments in wind energy projects.

scholarly journals Investment evaluation in renewable projects under uncertainty, using real options analysis: the case of wind power industry

2017 ◽  
Vol 14 (1) ◽  
pp. 96-103 ◽  
Author(s):  
Ioannis Kinias ◽  
Ioannis Tsakalos ◽  
Nikolaos Konstantopoulos
Keyword(s):  
Wind Energy ◽  
Real Options ◽  
Electricity Market ◽  
Flow Analysis ◽  
Investment Strategy ◽  
Investment Analysis ◽  
Real Options Analysis ◽  
The Real ◽  
Capital Costs ◽  
Regulatory Policies

Investment analysis is a crucial process for any investment’s success. This process can be supported by both the discounted cash flow analysis and the real options analysis. Many researchers have point out restrictions for the first one, in cases of uncertainty in the entrepreneurial environment. The main types of uncertainty, concerning the wind energy sector, include uncertainties related to the price of electriticity by RES, the public policy regulatory policies, the demand, the initial capital costs, the technological progress, the weather conditions, the political and economical situations and generally the RES market structure. In this paper, we try to find the optimal investment strategy in a liberalized global electricity market, where the price of electricity is uncertain while the other parameters are configured separately in each country. The authors consider about the factors of the time for investment and the electricity’s price level, in wind energy by using the real options theory. The authors select a variety of data for the wind energy industry from different countries in several continents, and also create a model for the investment analysis in this entrepreneurial sector.

scholarly journals Experimental Study of Energy Conversion of Daily Temperature Difference

2021 ◽  
Vol 2096 (1) ◽  
pp. 012133
Author(s):  
V Chelukhin ◽  
A Vasiliev ◽  
Pyae Zone Aung
Keyword(s):  
Renewable Energy ◽  
Solar Energy ◽  
Wind Energy ◽  
Temperature Difference ◽  
Salt Water ◽  
Renewable Energy Sources ◽  
Temperature Drop ◽  
The United States ◽  
Green Energy ◽  
Energy Sources

Abstract Recently, more and more attention is paid to renewable energy. Recently, green energy or renewable energy is increasingly beginning to squeeze traditional energy based on the combustion of fossil fuels: coal, oil, and so on. Basically, the development of renewable energy sources comes from wind energy and solar energy. However, as recent situations in Germany, the United States and others have shown, wind energy has its drawbacks. This is, first of all, the instability of the power supply, as well as the difficulty of converting variable wind energy into direct alternating current for industrial use. Solar energy also has its drawbacks. This is the need for large areas, the need for just such sunny areas and the cleaning of solar panels from snow, dust and other precipitation. Today, there is a search for renewable energy sources in all directions, the most insignificant options are being considered, such as, for example, at the junction of fresh water, salt water, some kind of energy is released. The paper considers a method of obtaining energy using the temperature difference between day and night. At any point in the world, the temperature is always higher during the day, and always lower at night. This so-called temperature drop can be from 3 to 12.15 and more degrees, for example, in Urengoy in winter it can reach 60 degrees. It’s the same on the planets: on the moon, especially on Mars. There, the temperature difference between day and night is about 60-80 degrees, since Mars has no atmosphere.

Sustainable Development of Green Energy Technologies in the Republic of Sudan

Green ◽  
2011 ◽  
Vol 1 (4) ◽  
Author(s):  
Abdeen Mustafa Omer
Keyword(s):  
Renewable Energy ◽  
Wind Energy ◽  
Rural Areas ◽  
Energy Demand ◽  
New Technologies ◽  
Renewable Energy Sources ◽  
Regional Distribution ◽  
Green Energy ◽  
Energy Sources ◽  
Wide Range

AbstractSudan is an agricultural country with fertile soil and ample water resources, as well as livestock and forestry resources, and agricultural residues. Energy is one of the key factors in the development of Sudan's national economy. We present an overview of the energy situation in Sudan, with reference to its end uses and its regional distribution. We separate energy sources into two main types: conventional energy (biomass, petroleum products, and electricity) and non-conventional energy (solar power, wind energy, hydro-electric, etc.). Sudan has a relatively high abundance of sunshine and solar radiation, and has moderate biomass, hydro-electric and wind energy resources. Exploiting the available new and renewable energy sources to provide part of the local energy demand, as alternatives to conventional fossil energy, has become a major issue in Sudan's strategic planning of future energy policies. Sudan presents an important case study with respect to renewable energy, as it has a long history of meeting its energy needs by use of renewable sources; Sudan's portfolio is broad and diverse, due in part to the country's wide range of climates and landscapes. Like many African frontrunners in the utilisation of renewable energy, Sudan has a well-defined commitment to continue research, development, and implementation of new technologies. Sustainable low-carbon energy scenarios in the new century emphasize the importance of exploiting the untapped potential of renewable resources. Sudan's rural areas in particular, can benefit from this transition. The increased availability of reliable and efficient energy services will stimulate the development of new alternatives. We conclude that using renewable, environmentally friendly energy must be encouraged, promoted, implemented, and demonstrated by full-scale energy plants or collection devices, in particular for use in remote rural areas.

scholarly journals Evaluation of wind energy investment with artificial neural networks

2019 ◽  
Vol 9 (2) ◽  
pp. 142-147
Author(s):  
Hasan Huseyin Yildirim ◽  
Mehmet Yavuz
Keyword(s):  
Neural Network ◽  
Neural Networks ◽  
Artificial Neural Networks ◽  
Renewable Energy ◽  
Wind Speed ◽  
Wind Energy ◽  
Renewable Energy Sources ◽  
Energy Sources ◽  
Energy Investment ◽  
Data Set

Countries aiming for sustainability in economic growth and development ensure the reliability of energy supplies. For countries to provide their energy needs uninterruptedly, it is important for domestic and renewable energy sources to be utilised. For this reason, the supply of reliable and sustainable energy has become an important issue that concerns and occupies mankind. Of the renewable energy sources, wind energy is a clean, reliable and inexhaustible source of energy with low operating costs. Turkey is a rich nation in terms of wind energy potential. Forecasting of investment efficiency is an important issue before and during the investment period in wind energy investment process because of high investment costs. It is aimed to forecast the wind energy products monthly with multilayer neural network approach in this study. For this aim a feed forward back propagation neural network model has been established. As a set of data, wind speed values 48 months (January 2012-December 2015) have been used. The training data set occurs from 36 monthly wind speed values (January 2012-December 2014) and the test data set occurs from other values (January-December 2015). Analysis findings show that the trained Artificial Neural Networks (ANNs) have the ability of accurate prediction for the samples that are not used at training phase. The prediction errors for the wind energy plantation values are ranged between 0.00494-0.015035. Also the overall mean prediction error for this prediction is calculated as 0.004818 (0.48%). In general, we can say that ANNs be able to estimate the aspect of wind energy plant productions.

scholarly journals Impact of IoT on Renewable Energy

2021 ◽  
Author(s):  
Sivagami Ponnalagarsamy ◽  
V. Geetha ◽  
M. Pushpavalli ◽  
P. Abirami
Keyword(s):  
Power Generation ◽  
Renewable Energy ◽  
Smart Grid ◽  
Renewable Energy Sources ◽  
Thermal Power ◽  
Green Energy ◽  
Energy Sources ◽  
Renewable Power ◽  
Power Stations ◽  
Huge Data

The emerging computing technology in this era is the Internet of Things. The network of intelligence that bridges various devices, systems located in remote locations together by means of cloud portal. IoT maybe equipped with millions or billions of devices. IoT handles large volume of data, process the huge data and performs useful control actions to make our life safe and simple. IoT evolves Human-human communication with thing-thing communication. IoT applications are not confined to a particular sector. In the fields such as health care, smart homes, industries, transportation, etc., the technology which is more influential is IoT. Energy sectors are now undergoing transformation. The transformation is driven by IOT. Green energy without IoT cannot be imagined in this energy sector. Renewable energy sources will be the major power producers among all the other sources due to the depletion of conventional energy sources. Among the renewable energy sources, Solar and Wind contributes more when compared to geothermal, biomass, etc. Renewable energy power production depends on environmental factors such as temperature, wind speed, light intensity etc. These factors affect the performance of energy conversion in renewable energy sources. Since our future generation will depend only on renewable energy, it becomes necessary for the researchers to integrate IOT to provide reliable and affordable energy. Renewable power generation helps in reducing the toxic level of gases which may be produced by thermal power stations during power generation. IoT brings about changes from generation to transmission to distribution. For example, let us compare the traditional grid with that of the smart grid. In the case of traditional one-way communication exists that is power produced from the power station is transmitted to the customer. The customer has to pay for the energy consumed. But smart grid has two-way communication. The customer has the capability to pay for the energy consumed only and if excess power produced can be transmitted to the grid. IoT helps in analyzing the demand as well the wastage of energy, helps in scheduling the load in order to reduce the cost. The sensors and data sciences with IOT helps in achieving the automation and intelligent operation of renewable energy farms, increases the efficiency and reliability of the farms to meet our future power demand.

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