Managing the Intermittency of Wind Energy Generation in Greece

Theodoros Christodoulou, Nikolaos S. Thomaidis (), Stergios Kartsios and Ioannis Pytharoulis
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Theodoros Christodoulou: School of Economics, Aristotle University of Thessaloniki, 54124 Thessaloniki, Greece
Nikolaos S. Thomaidis: RiskGroup, Department of Financial and Management Engineering, University of the Aegean, 82100 Chios, Greece
Stergios Kartsios: Department of Meteorology and Climatology, School of Geology, Aristotle University of Thessaloniki, 54124 Thessaloniki, Greece
Ioannis Pytharoulis: Department of Meteorology and Climatology, School of Geology, Aristotle University of Thessaloniki, 54124 Thessaloniki, Greece

Energies, 2024, vol. 17, issue 4, 1-32

Abstract: This paper performs a comprehensive analysis of the wind energy potential of onshore regions in Greece with emphasis on quantifying the volume risk and the spatial covariance structure. Optimization techniques are employed to derive efficient wind capacity allocation plans (also known as generation portfolios) incorporating different yield aspirations. The generation profile of minimum variance and other optimal portfolios along the efficient frontier are subject to rigorous evaluation using a fusion of descriptive and statistical methods. In particular, principal component analysis is employed to estimate factor models and investigate the spatiotemporal properties of wind power generation, providing valuable insights into the persistence of volume risk. The overarching goal of the study is to employ a set of statistical and mathematical programming tools guiding investors, aggregators and policy makers in their selection of wind energy generating assets. The findings of this research challenge the effectiveness of current policies and industry practices, offering a new perspective on wind energy harvesting with a focus on the management of volume risk.

Keywords: wind energy generation; portfolio theory; resource aggregation; volume risk; principal component analysis (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2024
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