A valuation of wind power projects in Germany using real regulatory options

Market and policy risk under different renewable electricity support schemes

“…The proof can be found in Appendix C. 3. We see that, under a fixed price premium without retroactive termination upon investment, the risk of termination always reduces the required electricity price to trigger investment, and therefore speeds up the investment rate.…”

“…3 If profit scales with production, this implies we can value a single unit of production. We consider a price-taking producer, whose instantaneous per unit revenue is given by the sum of the electricity price and a subsidy payment.…”

“…In accordance with real options theory, we ignore o(dt). 3 For many renewable energy sources, production is completely determined by the weather conditions and may be highly varying on hourly, daily and seasonal time scales. Variations are usually smaller on a yearly time scale, which justifies the assumption of constant expected production.…”

The German Energiewende – History and status quo

“…In 2004, a second amendment to the EEG was implemented, reducing the feed-in tariffs for wind turbines and adjusting European legal requirements. Nonetheless, both the German markets for photovoltaics as well as for wind energy continued to grow into the largest markets in Europe [67]. The issues of climate change and climate protection were explicitly mentioned in the EEG and named as reasons for the increased support for renewable energies (Table 1h).…”

Novel high efficient speed sensorless controller for maximum power extraction from wind energy conversion systems

“…Nowadays, big wind turbines located in large wind farms are widely used in wind energy conversion systems (WECSs) to produce a portion of the electric power consumed in many countries [5]. There are also small wind turbines which are widely used to provide electric energy for off-grid consumers such as remote villages [6,7].…”