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A portfolio model for siting offshore wind farms with economic and environmental objectives

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  • Cranmer, Alexana
  • Baker, Erin
  • Liesiö, Juuso
  • Salo, Ahti

Abstract

Siting offshore wind farms is a complex problem due to the wake interactions between wind farms. We develop a profit maximizing portfolio model based on underlying network models to track the wake effects through a series of wind farms. Our portfolio model optimizes the siting of wind farms considering multiple wind directions and wind speeds and performs better than simple decision heuristics. Excluding sites from the portfolio has nonlinear impacts on the profitability of the portfolio of sites in that areas excluded from consideration have greater impacts on profit if they are grouped together or aligned parallel to the prevailing wind direction. The model can be readily adapted to include additional cost factors.

Suggested Citation

  • Cranmer, Alexana & Baker, Erin & Liesiö, Juuso & Salo, Ahti, 2018. "A portfolio model for siting offshore wind farms with economic and environmental objectives," European Journal of Operational Research, Elsevier, vol. 267(1), pages 304-314.
    • Handle: RePEc:eee:ejores:v:267:y:2018:i:1:p:304-314
    DOI: 10.1016/j.ejor.2017.11.026
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    1. LE CADRE, Hélène & PAPAVASILIOU, Anthony & SMEERS, Yves, 2015. "Wind farm portfolio optimization under network capacity constraints," LIDAM Reprints CORE 2689, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
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    Cited by:

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    2. Marttunen, Mika & Haara, Arto & Hjerppe, Turo & Kurttila, Mikko & Liesiö, Juuso & Mustajoki, Jyri & Saarikoski, Heli & Tolvanen, Anne, 2023. "Parallel and comparative use of three multicriteria decision support methods in an environmental portfolio problem," European Journal of Operational Research, Elsevier, vol. 307(2), pages 842-859.
    3. Mavrotas, George & Makryvelios, Evangelos, 2021. "Combining multiple criteria analysis, mathematical programming and Monte Carlo simulation to tackle uncertainty in Research and Development project portfolio selection: A case study from Greece," European Journal of Operational Research, Elsevier, vol. 291(2), pages 794-806.
    4. Milford, James & Henrion, Max & Hunter, Chad & Newes, Emily & Hughes, Caroline & Baldwin, Samuel F., 2022. "Energy sector portfolio analysis with uncertainty," Applied Energy, Elsevier, vol. 306(PA).
    5. Liesiö, Juuso & Salo, Ahti & Keisler, Jeffrey M. & Morton, Alec, 2021. "Portfolio decision analysis: Recent developments and future prospects," European Journal of Operational Research, Elsevier, vol. 293(3), pages 811-825.

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