Sustainability, investment strategy, and governance: evaluation of wind energy sector in North-West Spain

Climate change is one of the greatest challenges humanity faces globally. For this reason, governmental efforts to reduce emissions of polluting gases have multiplied in the last decade. Against this panorama, petroleum companies have adopted a strategic policy focused on energy diversification, intending to contribute to sustainable development. In the case of Spain, wind energy has been one of the renewable energies that have attracted the most investment from petroleum companies. In particular, this trend is especially acute in Galicia (a region located in the northwest of Spain), since its biophysical conditions and, above all, its institutional framework for the promotion of photovoltaic energy has aroused the interest of petroleum companies. The objective of this article is to perform a feasibility analysis of an average wind project in Galicia. through the calculation of the initial investment, the necessary financing, and the preparation of balance sheets and profit and loss accounts. For this purpose, the methodology used is based on the preparation of a feasibility plan, through which the necessary investment is analyzed and the flows of receipts and payments generated by the company are considered. In this way, this analysis is intended to be useful for companies that are considering the appropriateness/inappropriateness to carry out this type of investment. The results show a high internal rate of return, which indicates the high profitability of the project.