Wind Energy Investments Research Articles

Development of wind power plants to increase the fulfilment ratio of renewable energy in Taiwan using system dynamics modelling

ABSTRACT This research aims to improve wind energy development by addressing environmental challenges and market dynamics. To achieve this, a system dynamics model was used to analyze the complex relationships between various factors, including wind energy production, electricity demand, costs, and government policies. The study focuses on increasing the fulfilment ratio and reducing the price of wind energy. By simulating different scenarios, researchers explored the potential impact of expanding wind farm capacity through the addition of onshore and offshore turbines. The research also investigates the role of government incentives, particularly the feed-in tariff (FIT), in stimulating investment in wind energy. The findings suggest that a higher FIT can significantly boost profitability, attract more investment, and accelerate the expansion of wind farm capacity. The optimal FIT level of 5.5 NTD/KWh is projected to lead to a 6.7% annual growth rate and substantial profits by 2040.

Assessment and management of costs for renewable energy investments in Zambia using a novel mixed method.

This paper investigates strategies for managing costs in low-CO2 renewable energy (RE) projects, with a focus on enhancing investment efficiency. The study develops a novel mixed-method framework that integrates Shapley rates, TOPSIS, and Pythagorean fuzzy (PF) DEMATEL to identify effective cost-control tactics. Data is sourced from financial reports, project records, and expert evaluations involving three managers from the energy sector with over two decades of experience in renewable energy investments and CO2 emission reduction. The framework's precision is tested through the VIKOR technique and sensitivity analysis, using five scenarios where the weighting outcomes of criteria are adjusted. Findings reveal that solar energy consistently offers the most cost-effective solutions, while consumer prioritization significantly improves the viability of wind energy investments. The results also emphasize the importance of workforce development in solar energy projects and collaborative cost-control strategies to enhance project success. The study recommends that investors focus on high- or low-level collaborative approaches for solar energy due to its lower associated costs compared to other options. These insights can guide policymakers and investors in optimizing renewable energy investments and enhancing collaboration to reduce CO2 emissions.

Does the Carbon Tax in South Africa Encourage the Adoption of Wind Energy in the Country’s Power Sector?

This research aims to evaluate whether South Africa’s carbon tax rate incentivises the adoption of wind energy within the nation’s power sector. By employing qualitative analysis, the study examines whether South Africa’s carbon tax rate is suitable for promoting wind energy uptake in the power sector. Additionally, it identifies the level of carbon pricing required to stimulate investments in wind energy in South Africa’s power sector using net present value (NPV) simulations. The research finds the South African carbon tax to be too low to incentivise the adoption of wind energy. It emphasises that in order to stimulate decarbonisation investments, carbon prices must be higher than abatement costs. The NPV simulation indicates that increasing the carbon price by ZAR 869.50 per tonne of CO2 would result in a positive NPV, thereby encouraging investment in wind energy in South Africa’s power sector. Therefore, the study advocates for higher carbon prices to drive wind energy investments. This research contributes to tax policy scholarship by proposing a carbon pricing model for the adoption of wind energy in South Africa’s power sector. Ultimately, decarbonising the power sector, a major source of greenhouse gas emissions (GHGs), will strengthen South Africa’s efforts in reducing carbon emissions.

Assessing Decarbonization Approaches across Major Economies

The global energy transition is an uneven process, fundamentally related to the level of economic development of countries and their access to energy resources (renewable and non-renewable) to a large extent. The global climate is interconnected, and all nations impact it through their products and services. The six countries discussed—China, Brazil, Germany, Japan, Russia, and India—account for 44.8% of global primary energy consumption and 49% of global CO2 emissions. Each of them has its own strategy for achieving carbon neutrality, based on different decarbonization scenarios, which, according to the authors, depend on geopolitical factors, national economy characteristics, and the established pragmatic goals and objectives. However, the “green agenda” itself may not always be among the top priorities when formulating energy strategies. The study objective is to analyze the feasibility of the stated goals in these countries using a combined logistic curve-based forecasting tool for predicting solar and wind production as well as investment volumes. It aims to justify the relation between solar and wind energy production and investment policies using a calculated technological coefficient. Results show similar, but time-shifted fluctuating investment dynamics in solar and wind energy trends in Japan, Germany and China, with Germany and Japan outperforming investment forecasts when considering the technology efficiency coefficient. Furthermore, the findings highlight the overwhelming appreciation of the unevenness of the green transition process, which will consequently make it impossible to meet the goals of the Paris Agreement until 2050. Taking these factors into consideration, exploratory decarbonization scenarios for these six major world economies alongside two dimensions, namely, the pace of green transition versus green technology and versus resources, are presented.

A comprehensive analysis of real options in solar photovoltaic projects: A cluster-based approach

Solar photovoltaic (PV) projects are pivotal in addressing climate change and fostering a sustainable energy future. However, the complex landscape of renewable energy investments, characterized by high upfront costs, market uncertainties, and evolving technologies, demands innovative evaluation methods. The Real Options Approach has emerged as a powerful tool, offering strategic flexibility in decision-making under uncertainty. This paper comprehensively analyzes the application of real options for evaluating solar photovoltaic projects in 2008–2023. Analysis of document descriptors (author keywords, index keywords, and noun phrases extracted from titles and abstracts) reveals that the dominant research topics in the last ten years (2014–2023) include investment optimization, strategic analysis, energy policy, optimization of energy generation and investments in wind energy. These descriptors are used to analyze the evolution of research interests on a two-year basis and reveal the yearly evolution of the research topics. Finally, the concept of emergence is used to unveil emerging research trends, providing valuable insights for researchers and practitioners in the renewable energy sector. Ultimately, this work contributes to a deeper understanding of how real options analysis empowers decision-makers to make informed choices in advancing clean and sustainable energy solutions.

Identifying the influence of climate policy uncertainty and oil prices on modern renewable energies: novel evidence from the United States

Abstract The policy uncertainty surrounding climate change can intensify the urgency of implementing climate policies and influence investment decisions, thereby serving as a catalyst for policy transformation. In this context, given its withdrawal from and subsequent re-commitment to the Paris Agreement, the United States (US) may experience policy uncertainty over climate change. Given this backdrop, it is of paramount importance to explore how the uncertainties caused by shifts in climate policy affect clean energy. This study delves into the impact of climate policy uncertainty and oil prices on modern renewable energy sources, such as solar, wind, geothermal, and biofuels. The most recent monthly data from 1989 to 2023 are used by conducting the Residual Augmented Least Squares (RALS) methodology. The empirical findings show that the uncertainty surrounding climate policy is leading to a shift in the US energy composition, with a focus on solar energy, wind energy, and biofuels. Moreover, the fluctuation in oil prices has a significant effect on the deployment of wind and biofuels, but no discernible effect on solar power. These findings provide significant insights for aligning climate policy in the US with Sustainable Development Goal (SDG) 7, highlighting the crucial importance of encouraging investments in solar energy, wind energy, and biofuels. Graphical abstract

Conditions for the Development of Wind Energy for Individual Consumers: A Case Study in Poland

This article presents the economic viability of using 10 m wind turbines in households with financial support from the government. The aim of this study was to indicate whether and how state subsidies affect the efficiency and estimated payback periods of wind energy investments for individual households. The research conducted thus far has focused on the analysis of effectiveness, feasibility, and economic profitability, but it has not taken into account government support for the investment readiness of households, which constitutes a research gap in the literature and economic practice. In addition, this study analyzed a new program that is scheduled to come into force this year. The analysis used the Homer Pro software (ver. x64) module, and simulations were performed for three locations in Poland. Due to differences in the location of wind zones, as well as the location of two locations on the Baltic Sea, an additional factor characterizing the studied voivodeships was introduced. Government support may therefore constitute a mechanism for correcting the geographical location and local wind potential. It has been shown that financial support significantly accelerates the payback period, even in locations with weaker wind potential. Complementary and substitutive possibilities for renewable energy sources, such as sun and wind, were indicated. The conclusions from this research can be used by decision makers and individual households to take advantage of government support to shorten the return on investment in wind energy and the validity of this support.

The impact of local wind and spatial conditions on geometry blade of wind turbine

AbstractThe research addresses the pressing need to understand wind conditions for optimal wind energy utilization, a crucial aspect of achieving global energy sustainability. While previous studies have focused on assessing wind energy potential and terrain roughness, gaps persist in understanding how wind and spatial conditions affect blade geometry. Therefore, this study aims to investigate the impact of local wind conditions on wind turbine blade geometry, integrating nonuniform wind inflow due to wind shear into the theoretical model. Through the paper, it explores blade design for varying inflow conditions and analyses the relationship between terrain type and blade designs. A novel approach to wind turbine blade design, utilizing a theoretical model that combines the local momentum theorem with insights from propeller vortex theory was adopted. Through the analysis, the authors demonstrate that variations in terrain significantly influence blade geometry, underscoring the necessity for tailored turbine designs based on local conditions. The findings reveal discrepancies in blade geometry across different turbine capacities and terrain types, offering novel insights into wind turbine performance optimization. By tailoring blade geometry to specific locations enhances resource utilization, offering insights for energy policymakers. The research provides validated methods for optimizing turbine geometric parameters, opening avenues for increased local investment in wind energy and promoting distributed energy development. Illustrated with wind plants examples, the paper concludes by outlining future research directions in this field.

A Comparative Study on the Estimation of Wind Speed and Wind Power Density Using Statistical Distribution Approaches and Artificial Neural Network-Based Hybrid Techniques in Çanakkale, Türkiye

In recent years, wind energy has become remarkably popular among renewable energy sources due to its low installation costs and easy maintenance. Having high energy potential is of great importance in the selection of regions where wind energy investments will be made. In this study, the wind power potential in Çanakkale Province, located in the northwest of Türkiye, is examined, and the wind speed is estimated using hourly and daily data over a one-year period. The data, including 12 different meteorological parameters, were taken from the Turkish State Meteorological Service. The two-parameter Weibull and Rayleigh distributions, which are the most widely preferred models in wind energy studies, are employed to estimate the wind power potential using hourly wind speed data. The graphical method is implemented to calculate the shape (k) and scale (c) parameters of the Weibull distribution function. Daily average wind speed estimation is performed with artificial neural network–genetic algorithm (ANN-GA) and ANN–particle swarm optimization (ANN-PSO) hybrid approaches. The proposed hybrid ANN-GA and ANN-PSO algorithms provide correlation coefficient values of 0.94839 and 0.94042, respectively, indicating that the predicted and measured wind speed values are notably close. Statistical error indices reveal that the ANN-GA model outperforms the ANN-PSO model.

Wind potential in Argentina, situation and prospects

Patagonia Region in Argentina has one of the best wind characteristics of the world. From 1980 there were local motivation, from Governmental Investments to Privates ones. During the 1990s there was an expansion of energy production investments from non renewable energy fuels which stopped in 1999. The energy needs due to demand rise changes from 300MW per year (1999) to 800MW per year (2006). Since 2005 there have been motivation from different private companies including oil ones, to produce electricity from wind energy. This work describes the wind potential in Patagonia in three aspects: meteorological wind potential, technological one based on technical availabilities in Argentina, and business potential for wind energy investments. Also this work intends to show an approach for the present and actual figures on these upper aspects.

Economic Analysis of Wind Energy Investments Considering Carbon Pricing and Wind Speed Forecasting

Son yıllarda fosil kaynaklardan elde edilen enerji fiyatlarının artması, tedarik problemleri ve 
 çevresel sorunlar gibi faktörler nedeniyle yenilenebilir enerji kaynakları giderek daha büyük bir 
 öneme sahip olmaktadır. Bu enerji kaynaklarına yönelik yapılan yatırımların etkili olması için 
 doğru bir şekilde ekonomik olarak analiz edilmesi gerekmektedir. Son dönemde artan karbon 
 fiyatlandırması uygulamaları da bu analizlerde göz önünde bulundurulması gereken bir 
 faktördür. Özellikle rüzgâr gibi düşük emisyonlu enerji kaynakları için, karbon fiyatlandırması 
 ek bir gelir kaynağı sunmaktadır. Bu çalışmada, belirli bir bölgedeki geçmiş rüzgâr hızı verileri 
 kullanılarak gelecek dönemler için rüzgâr hızı tahminleri yapılmış ve bu tahminlere dayanarak 
 elektrik üretim miktarları hesaplanmıştır. Daha sonra, farklı rüzgâr türbinlerinin ekonomik 
 olarak değerlendirilmesi için birim maliyetler karşılaştırılmıştır. Tahmin yöntemi olarak, 
 mevsimsel ARIMA modeli tercih edilmiştir. Ayrıca, ekonomik analizde Net Bugünkü Değer
 yaklaşımı kullanılmıştır. Böylelikle, yatırımların maliyetleri, enerji üretimi ve karbon 
 fiyatlaması gibi faktörler dikkate alınarak projenin ekonomik durumu değerlendirilmektedir. 
 Özellikle karbon fiyatlamasının dahil edilmesiyle birlikte, rüzgâr türbinlerinin büyüklüğüne 
 bağlı olarak birim maliyetlerde %9,4 ila %16 arasında azalmalar gözlemlenmiştir. Bu, 
 yatırımcılar ve enerji şirketleri için yenilenebilir enerji projelerinin daha cazip hale gelmesini 
 sağlamaktadır. Ayrıca, çevresel etkilerin azaltılması ve sürdürülebilir enerji üretimi hedeflerine 
 ulaşma açısından da önemli bir adımdır

A hybrid AHP-PROMETHEE II onshore wind farms multicriteria suitability analysis using kNN and SVM regression models in northeastern Greece

Wind energy presents a high growth potential in the EU as an emission reduction strategy and to achieve the climate neutrality goal by 2050. Wind farms suitability analysis is one of the primary goals in the spatial planning of wind energy developments. This research paper introduces a hybrid spatial multicriteria GIS-based framework that combines Analytic Hierarchy Process (AHP), PROMETHEE II and Machine Learning algorithms to determine and predict the most efficient onshore wind farm locations by generating suitability index mappings. The methodology allows to overcome PROMETHEE II limitations in raster driven suitability analysis, utilizing machine learning regression methods as the k Nearest Neighbor and Support Vector Machines to predict a graduating mapping of suitability index for wind farm locations in northeastern Greece. The best configured models presented a RMSE of 0.0344 and 0.0154 respectively, indicating a quite high predictive performance. Suitability results indicate that 56.10 % of the feasible locations in the Thrace area present a positive outranking character for the kNN model and 56.79 % for the SVR model. The proposed framework, enriched by PROMETHEE II capabilities, assists energy and spatial planners in identifying suitable sites for wind farm siting and enables rational decision making that enhances efficient wind energy investments.

Analysis of Clean Development Mechanism for Dernah Wind Farm (I) Project (Libya) by Using AM0019 Methodology

Since the Kyoto Protocol came into effect on Feb 16, 2005, the Clean Development Mechanism (CDM) has experienced significant global growth. This mechanism enables developing countries to actively engage in combating climate change by implementing projects aimed at reducing Greenhouse Gas Emissions (GGEs). In 2010, Libya established the Commission of the Designated National Authority (DNA) to oversee the implementation of the CDM. This move was made as part of Libya's efforts to develop a range of projects that qualify for CDM and contribute to reducing GGEs. The main motivation for conducting this study was the absence of Libya's involvement in global-level CDM projects, as evidenced by the United Nations Framework Convention on Climate Change (UNFCCC) annual reports. Additionally, the failure to recognize the significance of CDM in influencing decisions regarding investments in wind energy. This work aims to investigate the use of CDM in Dernah wind farm (I) project (Libya). The study used a suitable CDM methodology, AM0019 with the appropriate tool (03-V3), calculated as CO2 reductions and Certified Emission Reductions (CERs). The results of CDM analysis are as follows: CO2 reductions = 362,201.82 tCO2e/year and CERs for the first ten years of the age of the proposed wind farm (Dernah Wind Farm (ɪ)) (CERs10y) = 1,687,898,590 LD (320,838,371.8 €) for the first ten years, likewise CERs20y= 3,375,797,180 LD (641,676,743.5 €) during the entire life (20 years) of the proposed wind farm. Based on these results, it can be concluded that the project will be highly cost-effective, this will lead to lower electricity prices for consumers and higher profits for the project owners. Therefore, registering wind energy projects as CDM projects and earning CERs is the most practical way to promote wind energy. The findings of this study could be valuable for policy makers and project developers who are interested in CDM wind projects.

Comparative analysis of different methods in estimating wind speed distribution, and evaluation of large‐scale wind turbine performance in Rahva‐Bitlis, Turkey

AbstractIn this study, wind characteristics and electricity generation potential from wind energy were investigated in the Bitlis‐Rahva region in eastern Turkey. Ten‐minute wind data from the Bitlis meteorological station were used in the study. The determination of the wind speed (WS) distribution was carried out using the WindPRO program together with the Weibull and Rayleigh distributions. R2, RMSE, and χ2 goodness‐of‐fit tests were used to measure the accuracy of the velocity distribution process. A digital elevation model of the power generation site was created to evaluate wind data and predict turbine performance. Wind power generation performance was evaluated using five different wind turbines (WTs). A power curve model was developed for the WTs to determine the capacity for energy generation. According to the error tests, it has been determined that the results obtained with the WindPRO program can represent the observed wind data most accurately. The results from the WindPRO program analysis showed an average annual WS of 3.26 m/s and a power density of 49.77 W/m2. Increasing height was found to increase WS and power density. The prevailing wind direction was found to be South‐Southwest with a frequency value of 27.5%. The largest capacity factor was obtained from the WT with the largest rotor diameter and rated power. Out of all the WTs examined, the turbine with the largest rated power and rotor diameter produced the greatest amount of energy. According to the capacity factor values calculated for the selected WTs, the region is not considered efficient for wind energy investments. However, as WS and power density increase with increasing altitude, it is thought that different higher parts of the region may be more efficient in terms of wind energy utilization.

A literature review: Wind energy within the scope of MCDM methods

Renewable energy sources (RES) are vital for environmental sustainability. With the depletion and damage of fossil fuels to nature, energy production from clean and inexhaustible RES has become widespread. Wind energy, one of the RES, is a clean energy source that does not emit any harmful waste to the environment. Wind energy is a low-cost energy source that is mostly used for electricity generation. Criteria such as wind speed, turbine structure and the characteristics of the areas where the wind turbines will be located are effective on the amount of energy to be produced. In this study, a comprehensive review of the studies using MCDM methods related to wind energy is made. In the manner of the statistical data obtained from the 97 studies examined, it has been observed that the wind energy investments and the scientific publications made in these countries do not progress linearly with each other. The fact that countries have different wind energy potentials and the difference in the countries' interest in RES is thought to be effective in this regard. While there are articles in the literature in which studies on RES are discussed together with MCDM methods, there is no comprehensive review study in which wind energy and MCDM methods are discussed together. According to our best knowledge, this is the first study to comprehensively evaluate wind energy studies in terms of MCDM methods. With this study, a framework has been presented for subsequent studies on the application of MCDM methods in wind energy.

Conditions for just offshore wind energy: Addressing the societal challenges of the North Sea wind industry

Global investment in offshore wind energy is anticipated to surge in the coming decades. While improved technology, reduced costs, and generous policy support are frequently acknowledged as driving factors, many assert that there are fewer societal challenges with offshore renewable installations than with onshore ones. Drawing from a co-creation process with key Norwegian stakeholders and an interdisciplinary team of social science and humanities scholars, this article delves deeper than the prevalent techno-economic discourse. It seeks to: a) identify the societal challenges of fostering a just and legitimate offshore wind industry; b) explore solutions to these challenges; and c) understand the potential role of transdisciplinary action research in driving change. Through this collaboration, industry actors co-formulated an agenda for offshore wind, highlighting varied issues and concerns. This was operationalized into four primary societal challenges: 1) Navigating the public debate; 2) Improving public participation; 3) Minimizing land and sea use and co-existence conflicts, and 4) Understanding pace, political dynamics, and geopolitics. This paper offers an exhaustive discussion on possible strategies to tackle these issues, presenting a critical companion research agenda to the predominantly technology-focused studies on offshore wind within the sustainability transitions literature.

Mechanisms to promote household investment in wind energy: A national experimental survey

Citizen investment into wind energy is conducive to public acceptance and can contribute to closing the renewable energy investment gap, while promoting corporate social responsibility. This study addresses this topic and conducts a novel choice experiment to determine the investment preferences of a representative sample of 1,009 Irish households. First, the paper investigates the attributes determining willingness to invest into wind farms. Second, it considers to what extent public attitudes and proximity to wind farms affect investment. Third, it assesses the suitability of five specific investment mechanisms. Through these activities the findings enhance current understanding of the opportunities and challenges concerning the design of citizen investments within a centralised system which is predominantly reliant on incumbent wind energy developers. The findings show that the risk of loss and the expected annual return on investment are the main attributes determining investment decisions, but secondary criteria, such as the project location and ownership characteristics, also affect willingness to invest. Respondents living within 10 km of a wind farm or expressing support for wind energy are significantly more likely to consider investing. Recommendations include interventions to encourage joint ventures between community organisations and specialised developers as a mechanism to promote investment in wind farms.

Modelling the impact of renewable energy investment on global carbon dioxide emissions

The adversities of climate change facing the world highlight the importance of reducing the rise of global carbon emissions (CO2E), which is a top priority for policymakers and researchers. Renewable energy is hailed as a remedy to the rise in global CO2E. However, there are persistently low levels of global renewable energy investment (REI). This study, therefore, examines the linear and non-linear effect of REI (measured by solar, wind, small hydropower, geothermal, biomass, marine, and biofuel energy investment) on CO2E using a global dataset from 2004Q1 to 2018Q1. The study also examines the economic growth mechanism through which REI influences CO2E. Using the Ordinarily Least Squares model, the findings show that all the measures of REI significantly increase CO2E from the linear analysis. However, the non-linear analysis showed that solar and wind energy investment have a statistically significant inverted U-shaped relationship with CO2E while small hydropower and biofuel energy investment have a statistically significant U-shaped relationship with CO2E. Thus, solar and wind energy investment reduce CO2E only after attaining a threshold of investment with the threshold value of solar and wind energy investment being 28.125 (representing about $1.64 trillion) and 26.308 (representing about $266.3 billion), respectively. Also, the threshold value of small hydropower and biofuel energy investment beyond which they increase CO2E are 20.071 (representing about $520.9 million) and 22.8 (representing about $7.978 billion), respectively. Finally, solar, wind and geothermal energy investment indirectly reduce CO2E by increasing green economic growth while the reverse exists for biofuel energy investment. Solar and wind energy investment is, therefore, recommended for attaining carbon neutrality targets. Policymakers should incentivize production tax credits, investment tax credits, feed-in-tariffs, subsidies, affordable loans, and research and development to drive solar and wind energy investment.

Cheaper solar, cleaner grid?

Although wind capacity cost is not expected to experience large changes in the near future, solar capacity cost is projected to drop by 45% in roughly thirty years. Using an analytical model and a dynamic structural simulation model, we show that wind energy capacity investment first increases but then decreases under the projected solar cost decline. Results indicate that when solar cost drops from $880/kW to $700/kW, CO2 emissions increase by 12.9% due to the decline in wind energy investment, indicating that cheaper solar cost does not necessarily imply a cleaner grid without any carbon policy intervention. However, if the regulator requires a minimum of 36% renewable penetration rate, social welfare from renewable investment when solar cost arrives at $700/kW would increase by $0.74 billion/year. This study illustrates the importance of policies such as the renewable portfolio standards under future decline in solar capacity cost if a carbon tax is politically infeasible.

A dual-market strategy for evaluating wind energy investments in Brazil: a real options approach

A dual-market strategy for evaluating wind energy investments in Brazil: a real options approach