The unnoticed impact of long-term cost information on wind farms’ economic value in the USA. – A real option analysis

Mansaku Maeda and David Watts

Applied Energy, 2019, vol. 241, issue C, 540-547

Abstract: Renewable energies are a natural replacement for conventional or fossil fuel energy generation. One of these sources, wind energy, has exhibited significant cost reductions during the last decades. Even though this historical cost reduction trend is well known in the industry and in the academia, information on this cost trend and volatility has been scarcely incorporated in previous works, thus a natural concern arises when assessing their influence on the economic valuation of wind farms.

Keywords: Levelized cost of energy; Wind energy; Managerial flexibilities; Deferring investment; Renewable energy; Real option (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (6)

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DOI: 10.1016/j.apenergy.2018.11.065

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