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.
|Publication status||Published - 2020|
|Event||The 80th Annual Meeting of American Finance Association. AFA 2020 - San Diego, United States|
Duration: 3 Jan 2020 → 5 Jan 2020
Conference number: 80
|Conference||The 80th Annual Meeting of American Finance Association. AFA 2020|
|Period||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 presented at The 80th Annual Meeting of American Finance Association. AFA 2020, San Diego, United States.