Risk evaluation of wind turbine investments

Petros Katsoulis and Nikolaos S. Thomaidis and Jan Jantzen

Journal of Energy Markets

Abstract: ABSTRACT We assess the risk inherent in wind turbine investments that rely on a power market in order to determine the selling price of generated power. Using scenario analysis, we calculate various indexes that attempt to highlight different aspects of the market risk to which the energy producer is exposed. Using as a benchmark a wind turbine in Denmark that relies on Nord Pool Spot for selling its output, we experiment with four different models for the dynamics of daily electricity prices using time series analysis, which are further used to calculate scenarios for the future annual project yield. The results of our analysis highlight important aspects of the risk profile of this particular project, which could provide a basis for the development of a general methodology of risk assessment if supplemented with models measuring production uncertainty.

References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.risk.net/journal-energy-markets/242283 ... -turbine-investments (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:rsk:journ2:2422831

Access Statistics for this article

More articles in Journal of Energy Markets from Journal of Energy Markets
Bibliographic data for series maintained by Thomas Paine ().