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Optimization Model for Economic Evaluation of Wind Farms - How to Optimize a Wind Energy Project Economically and Technically

Author

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  • Wagner Sousa de Oliveira

    (Department of Economics, Management and Industrial Engineering, University of Aveiro, Portugal)

  • Antonio Jorge Fernandes

    (Department of Economics, Management and Industrial Engineering, University of Aveiro, Portugal)

Abstract

This paper makes a review and systematize methods and techniques of economic evaluation applied to renewable energy projects, specific to wind energy projects. Both project and cost methodologies of economic evaluation are reviewed for a model optimization construction for a proposed optimization model with its objective function most appropriated. It is necessary to engage in different approaches, but complementary, microeconomic project evaluation methods and optimization methods applied to engineering solutions in wind energy converter systems. Optimization model for economic evaluation of wind farms can be as an efficient planning and resource management, which is the key to the success of an energy project. Wind energy is one of the most potent alternative energy resources; however the economics of wind energy is not yet universally favorable to place wind at a competitive platform with coal and natural gas (fossil fuels). Economic evaluation models of wind projects developed would allow investors to better plan their projects, as well as provide valuable insight into the areas that require further development to improve the overall economics of wind energy projects.

Suggested Citation

  • Wagner Sousa de Oliveira & Antonio Jorge Fernandes, 2012. "Optimization Model for Economic Evaluation of Wind Farms - How to Optimize a Wind Energy Project Economically and Technically," International Journal of Energy Economics and Policy, Econjournals, vol. 2(1), pages 10-20.
    • Handle: RePEc:eco:journ2:2012-01-2
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    References listed on IDEAS

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    Cited by:

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    2. Mbuli, N. & Ngaha, W.S., 2022. "A survey of big bang big crunch optimisation in power systems," Renewable and Sustainable Energy Reviews, Elsevier, vol. 155(C).
    3. Ljerka Cerovic & Dario Maradin & Sa a Cegar, 2014. "From the Restructuring of the Power Sector to Diversification of Renewable Energy Sources: Preconditions for Efficient and Sustainable Electricity Market," International Journal of Energy Economics and Policy, Econjournals, vol. 4(4), pages 599-609.
    4. Kim, Kyung-Taek & Lee, Deok-Joo & Park, Sung-Joon, 2014. "Evaluation of R&D investments in wind power in Korea using real option," Renewable and Sustainable Energy Reviews, Elsevier, vol. 40(C), pages 335-347.
    5. Adjei, E.A. & Amoabeng, K.O. & Ayetor, G.K.K. & Obeng, G.Y. & Quansah, D.A. & Adusei, J.S., 2022. "Assessing the impact of hydro energy project on poverty alleviation: The case of Bui Dam in Ghana," Energy Policy, Elsevier, vol. 170(C).
    6. Alfredo Vi kovic & Vladimir Franki, 2015. "Coal Based Electricity Generation in South East Europe: A Case Study for Croatia," International Journal of Energy Economics and Policy, Econjournals, vol. 5(1), pages 206-230.

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    More about this item

    Keywords

    Optimization model; Economic evaluation; Wind energy projects; RE projects management;
    All these keywords.

    JEL classification:

    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis

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