Wind Energy Investments Research Articles

Dysfunctional Understanding of Partnership in Sustainable Wind Energy Investments

Dysfunctional Understanding of Partnership in Sustainable Wind Energy Investments

Estimating the cost of capital for wind energy investments in Turkey

Wind power represents a key component of Turkey's energy strategy. Increased investment will be required to meet Turkey's wind power target and, as such, there is a need to understand the viability of wind power projects there. The cost of capital is a crucial element in wind power investment decisions owing to the high capital intensity of wind power plants. A reduction in the cost of capital through support policies can lower overall project costs and increase investment. We estimate the cost of capital for wind power projects in Turkey using data on 138 installations that participated in the Turkish feed-in tariff scheme in 2017. Our estimates indicate an upper bound of 12% for the cost of capital. This suggests the cost of capital for wind power projects in Turkey is not higher than in south-eastern European Union countries. However, because of adverse macroeconomic conditions, the cost of Turkey's main renewable support scheme increased by 46% between 2016 and 2017 in Turkish lira terms. We argue that continued commitment to the current support schemes by the Turkish authorities is crucial for the development of the Turkish wind power sector.

Nonrefundable Tax Credits versus Grants: The Impact of Subsidy Form on the Effectiveness of Subsidies for Renewable Energy

AbstractI study wind energy investment and the impact of awarding subsidies as nonrefundable tax credits rather than as grants. Firms can only use nonrefundable tax credits to reduce taxes. This fe...

Evaluation of wind energy investment with artificial neural networks

Countries aiming for sustainability in economic growth and development ensure the reliability of energy supplies. For countries to provide their energy needs uninterruptedly, it is important for domestic and renewable energy sources to be utilised. For this reason, the supply of reliable and sustainable energy has become an important issue that concerns and occupies mankind. Of the renewable energy sources, wind energy is a clean, reliable and inexhaustible source of energy with low operating costs. Turkey is a rich nation in terms of wind energy potential. Forecasting of investment efficiency is an important issue before and during the investment period in wind energy investment process because of high investment costs. It is aimed to forecast the wind energy products monthly with multilayer neural network approach in this study. For this aim a feed forward back propagation neural network model has been established. As a set of data, wind speed values 48 months (January 2012-December 2015) have been used. The training data set occurs from 36 monthly wind speed values (January 2012-December 2014) and the test data set occurs from other values (January-December 2015). Analysis findings show that the trained Artificial Neural Networks (ANNs) have the ability of accurate prediction for the samples that are not used at training phase. The prediction errors for the wind energy plantation values are ranged between 0.00494-0.015035. Also the overall mean prediction error for this prediction is calculated as 0.004818 (0.48%). In general, we can say that ANNs be able to estimate the aspect of wind energy plant productions.

Investment evaluation of wind turbine relocation

Energy has become one of the most important building blocks of many changes in the world, and it still maintains this quality. The demand for natural resources and energy continues to increase daily. For this reason, the supply of reliable and sustainable energy has become an important issue that concerns and occupies mankind. Of the renewable energy sources, wind energy is a clean, reliable and inexhaustible source of energy with low operating costs. Turkey is a rich nation in terms of wind energy potential. In this context, the profitability of investments made in utilising domestic and renewable energy potential is important. Investment efficiency is a very important issue before and during the investment period due to the fact that wind energy investments are high cost investments. In this study, a solution will be proposed for the replacement of inefficient wind turbines which have been installed. In the ideal solution of the issue, the remaining lifetime of the wind turbine which is to be replaced and capacity utilization at the new location of the turbine will be used as key input factors. The results showed that it was important for the relocation decision to be made early for the investment to be more profitable. In the event of delayed decisions to relocate the turbine, a high capacity factor is expected in the new location. If a high capacity factor is not achieved, the relocation of the turbine will be meaningless and losses will be incurred for the investor. Also according to the results of the analysis, in the first two years, the turbine operating at a low capacity of 19% and 17% is profitable if it works at 26% capacity until the end of its economic life when change is made in the third year.

Transmission Expansion and Reactive Power Planning Considering Wind Energy Investment Using A Linearized AC Model

This paper presents an approximated AC model for simultaneous transmission expansion planning (TEP) and reactive power planning by considering wind power investment. Since the full AC-TEP problem is still challenging to solve due to its non-convexity, a linearized model, by means of special ordered set of type 2, is used to represent the mathematical model of the network. The objective function of our problem is considered to be the annualized investment cost of transmission lines, reactive power resources and wind power plants as well as the operation cost of production of electricity and reactive power resources. Wind and load uncertainties are handled by scenario generation. The K-means clustering technique is employed in order to reduce the number of scenarios. The presented work is applied to the 6-bus Garver’s power system, the 24-bus IEEE RTS and the 118-bus IEEE power system. These three different examples illustrate the characteristics of the method. The results and the provided discussions clearly show the effectiveness and robustness as well as the computational efficiency of the proposed stochastic co-planning framework.

Evaluation of wind and solar energy investments in Texas

Abstract The primary objective of the project is to evaluate the benefits of wind and solar energy and determine economical investment sites for wind and solar energy in Texas with economic parameters including payback periods. A 50 kW wind turbine system and a 42 kW PV system were used to collect field data. Data analysis enabled yearly energy production and payback period of the two systems. The average payback period of a solar PV system was found to be within a range of 2–20 years because the large range of the payback period for PV systems were heavily influenced by incentives. This is in contrast to wind energy, where the most important factor was found to be wind resources of a region. Payback period for the installed wind system in Texas with federal tax credits was determined to be approximately 13 years.

Relative significance of determinants of foreign direct investment in wind and solar energy in developing countries – AHP analysis

The importance of foreign direct investment (FDI) for the development of renewable energy in developing countries has been increasingly recognized. Numerous countries have created various measures to attract FDI in the renewable energy sector. This paper uses the analytical hierarch process to clarify the relative significance of the determinants in the location decisions of foreign wind and solar energy investors. A total of 18 determinants that are categorized into the macroeconomic environment, institutional environment, natural conditions, and renewable energy policy categories are used for the analysis. The results show that adding to the traditional determinants of FDI, including the macroeconomic environment, the institutional environment, and natural conditions, renewable energy support policies have the same or stronger influence as location determinants of FDI. The paper also points out that some of the traditional determinants, such as exchange rate volatility, access to land, and an efficient and transparent administrative procedure, are also very important as determinants of FDI in wind and solar energy. Policy implications focus on the determinants of FDI in wind and solar energy. The relative significance of the determinants clarified through this study offers criteria for prioritizing policies and actions for policy makers.

Social movements against internal colonialism from wind energy investments in Mexico

Mexico’s neoliberal development policies have facilitated private investments in wind energy projects. How do wind energy development investments contribute to a more inclusive society and the well...

Impact of Local Factors on Decision Making – A Multi Criteria Modelling Framework in Wind Energy Investment

Impact of Local Factors on Decision Making – A Multi Criteria Modelling Framework in Wind Energy Investment

Physical modelling of dynamic scour protections: analysis of the damage number

In offshore wind turbines, the need for scour protection may represent a considerable part of the total investment required. Its optimisation is therefore a key aspect in offshore wind energy investments. The protection is commonly designed to be statically stable. An economically attractive possibility is to adopt a dynamic stability criterion that enables some degree of movement of the armour layer stones without allowing the filter placed beneath to be exposed at any time. This criterion is based on the acceptable damage number used to specify the mean diameter of the stones used in the armour layer. Little guidance exists on how to define the acceptable limits for this damage number. This paper elaborates on the effect of different hydrodynamic conditions on the damage number of scour protections. The behaviour of the damage number is studied by means of physical model testing of an offshore monopile foundation. The results show that dynamically stable profiles are developed for damage numbers ranging from 0·40 to 3·53. The accuracy of a predictive formula for the damage number is influenced by the water depth. This parameter described the stability of dynamic scour protections more accurately than the stability parameter used in former projects.

Information gap decision theory to deal with long-term wind energy planning considering voltage stability

This paper proposes a novel approach for long-term planning of wind energy considering its inherent uncertainty. The uncertainty of wind energy is handled via information gap decision theory (IGDT) method. Additionally, due to the importance of security considerations, loading margin is employed as an index of voltage stability to guarantee the security of power system. The operational constraints (such as power flow equations) in initial operation point considered along with those at the voltage collapse point, simultaneously. Accordingly, the IGDT-based voltage stability constrained wind energy-planning model is proposed that can be used for ensuring the safe operation of power networks. The main feature of this model is to handle the uncertainty of wind energy in the long-term wind energy planning via IGDT technique, by considering voltage stability constraints. In order to evaluate the capability of the IGDT technique for uncertainty handling of wind energy, the obtained results are compared with Monte Carlo simulations. To demonstrate the effectiveness of proposed model, it is applied to the New-England 39-bus test system. The obtained results validated the applicability of the proposed model for optimal wind energy planning. The proposed methodology could help wind farm investors to make optimal large-scale wind energy investment decisions.

Investors' perspective on determinants of foreign direct investment in wind and solar energy in developing economies – Review and expert opinions

Abstract Foreign direct investment (FDI) in renewable energy projects in 2015 has reached more than 10% of the total green-field FDI worldwide, and developing economies were increasingly at the forefront of these investments. However, there are few studies that focus on the FDI in this emerging sector. Understanding determinants behind the location decisions of the FDI would lead to creating a better investment climate and further facilitate worldwide deployment of renewable energy technologies. Thus, this paper identifies the determinants of FDI in wind and solar energy in developing economies based on a literature review and semi-structured interviews. Factors that are identified through the literature review are categorized into the following categories: institutional environment, macroeconomic environment, natural conditions, and renewable energy policies. Semi-structured interviews were conducted with experts from multinational corporations that are active in FDI in wind and solar energy. Based on these interviews, 18 factors that could be considered as important determinants are selected and presented along with expert opinions. The experts' opinions suggest strong importance of renewable energy policies when compared to traditionally argued determinants of FDI including macroeconomic environment, institutional environment and natural conditions. Among traditionally argued determinants, exchange rate stability is suggested to be one of the most important factors considering the positioning of investments in solar and wind energy in most of the companies’ investment portfolios.

Numerical and experimental analysis of the wave induced forces on the tripod support structure. Laboratory study

The presented work was realized within the framework of the AQUILO project, aiming in creating the base of knowledge for prospective future investments in offshore wind energy on Baltic Sea. The presented part of the work is focused on the experimental validation of numerical method of evaluation of the wave-induced forces on the bottom-mounted support structure of the offshore wind turbine. The experimental setup and measurement equipment, including in-house developed 6-DOF (six degree of freedom) dynamometer, are described. As a result, comparison of performance of different methods of evaluation of wave loads for wide range of parameters is presented. The results of experiments and numerical analyses are fairly consistent; largest discrepancy occurred at lowest wave frequencies, i.e. largest wave lengths. This may result from increased relative error of measurements for very long waves in relatively short tank.

تخمين سرع الرياح في محافظة نينوى باستخدام معلمات ويبل

إن دراسة سرعة الرياح والتنبؤ بقيمها ذو أهمية كبيرة في العديد من ظواهر الطقس والمناخ، إضافة إلى أهميته في تحديد مدى امكانية استثمار طاقة الرياح في توليد الطاقة الكهربائية او في استخدامات اخرى. تم في هذا البحث التنبؤ بقيم المعدلات الشهرية لسرع الرياح في خمسة محطات مناخية موزعة في عموم محافظة نينوى هي الموصل , ربيعة , سنجار , تلعفر , البعاج وذلك من خلال معلمتي الشكل والقياس لتوزيع ويبل الذي يستخدم بشكل واسع عالميا في وصف سلوك سرعة الرياح وتغيرها وتوزيعاتها. أوضحت الدراسة ان قيم سرعة الرياح التي تم التنبؤ بها كانت مطابقة تقريبا للقيم المقاسة في المحطات كافة, حيث ان معامل التحديد (R2) بين القيم المقاسة والقيم المخمنة كان عالي جدا اذ بلغ ( 0.997 , 0.956 , 0.993 ,0.997 ,0.994 ) وذلك لمحطات الموصل, ربيعة, البعاج سنجار, تلعفر على التوالي. كما تم ايجاد علاقة ارتباط بين القيم المقاسة والقيم المخمنة لسرعة الرياح في عموم محافطة نينوى بموجب معلمات ويبل والتي اعطت معامل تحديدعالي جدا بلغ (0.998 ) وهذا يدلل على التطابق التام تقريبا بين القيم المقاسة والقيم المخمنة.

Research on Wind Energy Investment Decision Making: A Case Study in Jilin

Research on Wind Energy Investment Decision Making: A Case Study in Jilin

German support systems for onshore wind farms in the context of Polish acts limiting wind energy development

Abstract European energy system is undergoing a deep transition to low-emission energy sources, mainly wind farms. This transition is caused mostly by energy politics of European Union (EU) and its goals in the topic of renewable energy. European wind energy is dominated by Germany that produces half of total wind energy in EU. The aim of this article is to present support systems for wind farms existing in Germany in the context of introducing in Poland the Act of 20 May 2016 on Wind Energy Investments limiting onshore wind farms localization and Act of 22 June 2016 introducing changes to the Act on Renewable Energy Sources (RES) and some other acts. It is postulated to make amendments of acts regulating RES while considering German solutions.

The Political Economy for Low-carbon Energy Transition in China: Towards a New Policy Paradigm?

ABSTRACTChina has become the leading country to develop wind and solar energy industries. By presenting the institutional arrangement and interest constellations of China’s regulatory system of renewable energy sectors, this paper argues that the reasons for China’s swift expansion of wind and solar energy investment go beyond the notion of a state-led model. It also reveals that due to a series of internal power struggles and external shocks, the current regulatory system is undergoing significant restructuring. A new policy paradigm is emerging that is largely different from the previous decades of policy orientation that centred on capacity expansion and instrumental interests for renewable energy development. The new paradigm would face tremendous challenges from existing institutions and vested interests, and it requires new set of ideologies that can help renewable energy sector to truly competing with the energy incumbents in order to bring about meaningful low-carbon energy transition in China.

Determinants of foreign direct investment in wind energy in developing countries

The renewable energy industry is one of the fastest growing industries attracting a great amount of foreign direct investment, being one of the top 5 industries in 2015 in terms of the amount of investment allocated. However, the allocation of foreign direct investment in the sector greatly varies between developing countries. Preceding studies have tried to explain the location determinants of foreign direct investment mainly by looking at the effects of institutional and macroeconomic factors. The renewable energy sector has been supported by various economic, regulatory, and political support policies. Considering the importance of these support policies, the paper analyses their effects on foreign direct investment as location determinants in comparison with that of the widely accepted determinants (institutional and macroeconomic determinants), focusing on wind energy in developing countries.The results show that renewable energy support policies have equivalent or greater effect compared to the widely accepted determinants such as corruption level, price stability, access to finance, and GDP growth. The paper demonstrates the importance of analysing determinants of foreign direct investment focusing on a specific sector rather than looking at overall foreign direct investment. The paper also provides important policy implications including the need to improve the regulatory aspect of renewable energy sector such as access to grid infrastructure in order to attract foreign direct investment into the sector.

Modeling renewable energy usage with hesitant Fuzzy cognitive map

Renewable energy sources (solar, wind, tidal, etc.), which are unlimited and have a fair distribution in the world, are an alternative to the depleting fossil fuels (coil, petroleum, natural gas, etc.). It is necessary to identify the right technologies and methods to make more effective use of renewable energy sources including uncertainty and irregularity in resource creation. In this study, dynamic environmental factors affecting the production of solar and wind energy are defined and the relations among them are linguistically expressed by the experts. These linguistic relationships among factors and their initial states are assessed by new developed hesitant linguistic cognitive map method that is an extension of hesitant fuzzy sets and fuzzy cognitive map. Relational development between factors was observed by simulating the model according to the initial condition of the factors. Thus, the model helps investors and governments to direct their solar and wind energy investment decisions.