EconPapers    
Economics at your fingertips  
 

Compound real options valuation of renewable energy projects: The case of a wind farm in Serbia

Dragan Loncar, Ivan Milovanovic, Biljana Rakic and Tamara Radjenovic

Renewable and Sustainable Energy Reviews, 2017, vol. 75, issue C, 354-367

Abstract: Renewable energy sources have become a very important issue due to environmental and sustainability concerns. In addition, most renewable energy electricity generation (RES-E) projects are characterized by considerable uncertainty and sequential decision-making. These projects’ net present value (NPV) is very often close to zero, which renders them a good candidate for the application of real options valuation methodology of investment project appraisal.

Keywords: Renewable energy sources; Electricity generation projects; Wind farm; Binomial tree; Capacity factor; Feed-in-tariffs (search for similar items in EconPapers)
JEL-codes: C41 D81 G11 G31 Q42 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1364032116307602
Full text for ScienceDirect subscribers only

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:eee:rensus:v:75:y:2017:i:c:p:354-367

Ordering information: This journal article can be ordered from
http://www.elsevier.com/wps/find/journaldescription.cws_home/600126/bibliographic
http://www.elsevier. ... 600126/bibliographic

Access Statistics for this article

Renewable and Sustainable Energy Reviews is currently edited by L. Kazmerski

More articles in Renewable and Sustainable Energy Reviews from Elsevier
Series data maintained by Dana Niculescu ().

 
Page updated 2018-02-03
Handle: RePEc:eee:rensus:v:75:y:2017:i:c:p:354-367