The Value of Renewable Energy and Subsidies: An Investor’s Perspective

Research output: Contribution to conferencePosterResearchpeer-review

Abstract

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.
Original languageEnglish
Publication date2020
Publication statusPublished - 2020
EventThe 80th Annual Meeting of American Finance Association. AFA 2020 - San Diego, United States
Duration: 3 Jan 20205 Jan 2020
Conference number: 80
https://afajof.org/annual-meeting/

Conference

ConferenceThe 80th Annual Meeting of American Finance Association. AFA 2020
Number80
CountryUnited States
CitySan Diego
Period03/01/202005/01/2020
Internet address

Keywords

  • Energy finance
  • Valuation
  • Project finance
  • Subsidies

Cite this

Kronies, A. (2020). The Value of Renewable Energy and Subsidies: An Investor’s Perspective. Poster session presented at The 80th Annual Meeting of American Finance Association. AFA 2020, San Diego, United States.