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Analysis of Financial Problems of Wind Farms in Poland

Author

Listed:
  • Joanna Wyrobek

    (Institute of Finance, Cracow University of Economics, 27 Rakowicka Street, 31-510 Cracow, Poland)

  • Łukasz Popławski

    (Institute of Finance, Cracow University of Economics, 27 Rakowicka Street, 31-510 Cracow, Poland)

  • Maria Dzikuć

    (Faculty of Economics and Management, University of Zielona Góra, Licealna Street 9, 65-417 Zielona Góra, Poland)

Abstract

Wind energy has been operating in Poland for over 20 years, but many opinions on its profitability are based on publications from other countries and simulations prepared by manufacturers. However, the truth is that the climatic specificity of various countries and price relationships, especially energy prices and subsidies, significantly differentiate this profitability depending on the country. The publication aimed to look at the profitability of wind farms in Poland from three perspectives: financial analysis, NPV (Net Present Value) calculation for older wind farms (2006–2014), and break-even price of energy for these farms (for a non-negative NPV). The research hypothesis set out in the publication stated that wind farms from this period require higher energy prices than current market prices in Poland to achieve a return on invested capital. An element of novelty was calculating the energy price range that would provide an opportunity for at least some of the older farms operating in the green certificates scheme to achieve a positive NPV. We also attempted to demonstrate that the loss of control over the prices of green certificates, which took place in 2014–2017, led to such a decrease in energy prices that the 2006–2014 wind farms suffered a net loss.

Suggested Citation

  • Joanna Wyrobek & Łukasz Popławski & Maria Dzikuć, 2021. "Analysis of Financial Problems of Wind Farms in Poland," Energies, MDPI, vol. 14(5), pages 1-28, February.
    • Handle: RePEc:gam:jeners:v:14:y:2021:i:5:p:1239-:d:505109
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    References listed on IDEAS

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    Cited by:

    1. Altaf Hussain Rajpar & Imran Ali & Ahmad E. Eladwi & Mohamed Bashir Ali Bashir, 2021. "Recent Development in the Design of Wind Deflectors for Vertical Axis Wind Turbine: A Review," Energies, MDPI, vol. 14(16), pages 1-23, August.
    2. Maciej Dzikuć & Rafał Miśko & Szymon Szufa, 2021. "Modernization of the Public Transport Bus Fleet in the Context of Low-Carbon Development in Poland," Energies, MDPI, vol. 14(11), pages 1-12, June.
    3. Magdalena Maciaszczyk & Aneta Czechowska-Kosacka & Agnieszka Rzepka & Tomasz Lipecki & Ewa Łazuka & Paweł Wlaź, 2022. "Consumer Awareness of Renewable Energy Sources: The Case of Poland," Energies, MDPI, vol. 15(22), pages 1-16, November.
    4. Sylwia Mrozowska & Jan A. Wendt & Krzysztof Tomaszewski, 2021. "The Challenges of Poland’s Energy Transition," Energies, MDPI, vol. 14(23), pages 1-22, December.
    5. Maciej Dzikuć & Arkadiusz Piwowar, 2022. "Economic Aspects of Low Carbon Development," Energies, MDPI, vol. 15(14), pages 1-3, July.
    6. Hubert Kryszk & Krystyna Kurowska & Renata Marks-Bielska & Stanisław Bielski & Bartłomiej Eźlakowski, 2023. "Barriers and Prospects for the Development of Renewable Energy Sources in Poland during the Energy Crisis," Energies, MDPI, vol. 16(4), pages 1-17, February.
    7. Ewa Chomać-Pierzecka & Hubert Gąsiński & Joanna Rogozińska-Mitrut & Dariusz Soboń & Sebastian Zupok, 2023. "Review of Selected Aspects of Wind Energy Market Development in Poland and Lithuania in the Face of Current Challenges," Energies, MDPI, vol. 16(1), pages 1-17, January.
    8. Karolina Talarek & Anna Knitter-Piątkowska & Tomasz Garbowski, 2022. "Wind Parks in Poland—New Challenges and Perspectives," Energies, MDPI, vol. 15(19), pages 1-25, September.

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