Abstract
This study aimed to analyze the systematic risks of wind energy investments. Within this framework, E7 countries are included in the scope of the examination. A large literature review was carried out and 12 different systematic risk factors that could exist in wind energy investments were identified. The analysis process of the study consisted of two different stages. First, the specified risk criteria were weighted with the help of the interval type 2 (IT2) fuzzy decision-making trial and evaluation laboratory (DEMATEL) method. Second, E7 countries were ranked according to the risk management effectiveness in wind energy investments. In this process, the IT2 fuzzy Vlsekriterijumska Optimizacija I Kompromisno Resenje (VIKOR) approach was taken into consideration. The findings show that volatility in exchange rates and interest rates were the most important risks in wind energy investments. In addition, it was determined that China and Indonesia were the most successful countries in managing risks in wind energy investments. In contrast, India, Russia, and Turkey were determined to be the least successful. Additionally, the IT2 fuzzy technique for order preference by similarity to ideal solution (TOPSIS) method was applied as a robustness check of the extended VIKOR method. It was concluded that the ranking results of the IT2 fuzzy TOPSIS method were similar to the results of the IT2 fuzzy VIKOR. It can be understood that the proposed ranking method was consistent with the comparative analysis results. From this point of view, it was observed that countries should take measures regarding their exchange rate and interest rate risks in order to increase the efficiency in wind energy investments. In this context, companies should first ensure that they do not have a foreign exchange short position in their balance sheets by conducting an effective financial analysis. In addition, it is important to use financial derivatives to minimize the exchange rate and interest rate risks. Using these results, it will be possible to manage this risk by taking the reverse position for the existing foreign currency and interest risk. In this way, it will be possible to increase the efficiency of wind energy investments, which will contribute to the social and economic development of each respective country.
Highlights
Energy helps to meet the basic needs of people, such as providing warmth and lighting
It can be understood that the proposed ranking method was consistent with the comparative analysis results. From this point of view, it was observed that countries should take measures regarding their exchange rate and interest rate risks in order to increase the efficiency in wind energy investments
interval type 2 (IT2) fuzzy decision-making trial and evaluation laboratory (DEMATEL) and IT2 fuzzy Vlsekriterijumska Optimizacija I Kompromisno Resenje (VIKOR) approaches were considered for the first time in this study regarding the risks in wind energy investments
Summary
Energy helps to meet the basic needs of people, such as providing warmth and lighting. Wind energy does not take up much space like other types of renewable energy, which is one of the important advantages of this energy type Considering these issues, it can be understood that wind energy investments are very important for the social and economic development of the country. It was possible to find the answer to the question of which systematic risks were faced most by wind energy investors Following these analyses, the E7 countries (Brazil, China, India, Indonesia, Mexico, Russia, Turkey) were ranked in terms of their risk situations regarding wind energy investments. Another important contribution of the study is the ranking of the E7 countries in terms of risk situations in wind energy investments In this way, it will be possible to offer suggestions for these countries to better manage the process. The last part of the study focuses on the strategy proposals that were developed based on the analysis results obtained
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