scholarly journals Valuation of Wind Energy Projects: A Real Options Approach

Energies ◽  
2014 ◽  
Vol 7 (5) ◽  
pp. 3218-3255 ◽  
Author(s):  
Luis Abadie ◽  
José Chamorro
Keyword(s):  
Wind Energy ◽  
Real Options ◽  
Real Options Approach ◽  
Energy Projects

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.

Assessment of Offshore Wind Energy Projects in Denmark. A Comparative Study With Onshore Projects Based on Regulatory Real Options

2015 ◽  
Vol 137 (4) ◽  
Author(s):  
José Balibrea Iniesta ◽  
Manuel Monjas Barroso
Keyword(s):  
Renewable Energy ◽  
Wind Energy ◽  
Comparative Study ◽  
Real Options ◽  
Offshore Wind ◽  
Wind Generation ◽  
Offshore Wind Energy ◽  
Renewable Generation ◽  
Energy Projects

There is a gap in the literature on the assessment of renewable energy projects regarding the role of regulatory real options (RROs) that do not depend entirely on the project promoter and yet affect the value of the project. This paper provides a methodology for evaluating investments in offshore wind generation in Denmark, based on the use of this type of options. The main results show that these RROs held by the administration, decrease the value of these renewable generation projects in Denmark. This confirms previous research for onshore generation in the same country.

Wind energy investments facing uncertainties in the Brazilian electricity spot market: A real options approach

2020 ◽  
Vol 42 ◽  
pp. 100876
Author(s):  
G. Aquila ◽  
A.R. de Queiroz ◽  
P.P. Balestrassi ◽  
P. Rotella Junior ◽  
L.C.S. Rocha ◽  
...  
Keyword(s):  
Wind Energy ◽  
Real Options ◽  
Spot Market ◽  
Real Options Approach ◽  
Electricity Spot Market

A real options approach to analyse wind energy investments under different support schemes

2017 ◽  
Vol 188 ◽  
pp. 83-96 ◽  
Author(s):  
Lena Kitzing ◽  
Nina Juul ◽  
Michael Drud ◽  
Trine Krogh Boomsma
Keyword(s):  
Wind Energy ◽  
Real Options ◽  
Real Options Approach

scholarly journals Optimal valuation of wind energy projects co-located with battery storage

2020 ◽  
pp. 116247
Author(s):  
Angeliki Loukatou ◽  
Paul Johnson ◽  
Sydney Howell ◽  
Peter Duck
Keyword(s):  
Wind Energy ◽  
Battery Storage ◽  
Energy Projects
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