Economic risk analysis of decentralized renewable energy infrastructures – A Monte Carlo Simulation approach

Uwe Arnold and Özgür Yildiz

Renewable Energy, 2015, vol. 77, issue C, 227-239

Abstract: There are several different economic barriers such as high up-front capital costs, high transaction costs and diverse risks (e.g. performance and technical, contract risks, market risks) that keep potential investors or institutional lenders from investing in decentralized renewable energy technologies (RETs). Therefore, suitable business models, specific financing concepts and advanced risk management tools to deal with issues concerning transaction costs and financial risks are required to support RET investments.

Keywords: Renewable energy technologies; Monte Carlo Simulation; Risk analysis; Simulation applications; Financial engineering; Bioenergy (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (61)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:renene:v:77:y:2015:i:c:p:227-239

DOI: 10.1016/j.renene.2014.11.059

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