I provide a novel theoretical approach to value wind energy investments. It allows to adjust for a number of risk parameters, including wind speeds, electricity price forecasts, discount rates, and uncertainty in subsidies. I use this approach to model wind energy investments under two different subsidy schemes in Denmark through a numerical Monte Carlo simulation. Moreover, I model wind energy investments under the assumption of a subsidy-free asset class. I compare the three systems and expose them to various sources of uncertainty through which I provide more clarity on which risk parameters matter most to wind energy investors and how the three systems compare to each other.
|Status||Udgivet - 2020|
|Begivenhed||The 80th Annual Meeting of American Finance Association. AFA 2020 - San Diego, USA|
Varighed: 3 jan. 2020 → 5 jan. 2020
Konferencens nummer: 80
|Konference||The 80th Annual Meeting of American Finance Association. AFA 2020|
|Periode||03/01/2020 → 05/01/2020|
- Energy finance
- Project finance
Kronies, A. (2020). The Value of Renewable Energy and Subsidies: An Investor’s Perspective. Poster session præsenteret på The 80th Annual Meeting of American Finance Association. AFA 2020, San Diego, USA.