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Usıng Monte Carlo Sımulatıon for Wınd Power Generatıon Investment’s Assessment

Author

Listed:
  • Şakir Sakarya

    (Balikesir University)

  • Hasan Hüseyin Yıldırım

    (Balikesir University)

Abstract

In this study, using crystall ball software monte carlo simulation (mcs) model was used for evaluation of wind power plant (wpp) investment. Wpp project’s net present value (npv) were determined, by simulating different combinations of input variables affecting the wpp investments. Three different scenarios were used in the evaluation of the project’s npv. In the simulation results for three scenarios, the results of the mcs analysis of the wpp investment’s npv was obtained. End of the results, mcs is a useful method for the evaluation of the wpp investmet.

Suggested Citation

  • Şakir Sakarya & Hasan Hüseyin Yıldırım, 2017. "Usıng Monte Carlo Sımulatıon for Wınd Power Generatıon Investment’s Assessment," Journal of Finance Letters (Maliye ve Finans Yazıları), Maliye ve Finans Yazıları Yayıncılık Ltd. Şti., vol. 32(108), pages 49-70, October.
    • Handle: RePEc:acc:malfin:v:32:y:2017:i:108:p:49-70
    DOI: https://doi.org/10.33203/mfy.357661
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    References listed on IDEAS

    as
    1. Madlener, Reinhard & Wenk, Christioph, 2008. "Efficient Investment Portfolios for the Swiss Electricity Supply Sector," FCN Working Papers 2/2008, E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN).
    2. Roques, F.A. & Nuttall, W.J. & Newbery, D.M., 2006. "Using Probabilistic Analysis to Value Power Generation Investments Under Uncertainty," Cambridge Working Papers in Economics 0650, Faculty of Economics, University of Cambridge.
    3. Donald Hertzmark, 2007. "Risk Assessment Methods for Power Utility Planning," World Bank Publications - Reports 17943, The World Bank Group.
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    More about this item

    Keywords

    Wind Power Investment; Monte Carlo Simulation; Senario Analysis;
    All these keywords.

    JEL classification:

    • E27 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Forecasting and Simulation: Models and Applications
    • G31 - Financial Economics - - Corporate Finance and Governance - - - Capital Budgeting; Fixed Investment and Inventory Studies
    • O22 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Project Analysis

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