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On the Wind Turbines Assessment by Real Options Technique in Israel

Authors:
Doron Greenberg
Michael Byalsky
Asher Yahalom

Keywords: wind energy; energy market; renewable energy; investment decisions; real option analysis

Abstract:
The limitation factor for using of the local energy resources in Israel is the persistent one that causes different economics participants to develop the ‘green’ technologies. The wind turbines installation constitutes undoubtedly an important trend of their efforts in this area. Many methods are elaborated for assessment of the investment projects in the industry and energetics. One of them, extensively applied to the investments evaluation, presents the standard discounted cash flow method, using the net present value criterion. Yet, this method is unsuitable for the fast altering investment environment, and for the consequent need of the managerial decisions flexibility. The technique of real options analysis is broadly used nowadays in many investment projects of renewable energy for their efficiency estimating. The current research develops the real options analysis facilities for evaluation of the wind turbines efficiency and profitability, as a part of the wind energy economic potential in Israel.

Pages: 1 to 6

Copyright: Copyright (c) IARIA, 2016

Publication date: June 26, 2016

Published in: conference

ISSN: 2308-4154

ISBN: 978-1-61208-489-3

Location: Lisbon, Portugal

Dates: from June 26, 2016 to June 30, 2016