Economic assessment of a wind farm project using least square monte-Carlo (LSMC) simulation

Jina Kim, Jong Uk Lee, Jaehee Lee, Sung-Kwan Joo

Research output: Contribution to journalArticle

Abstract

The economic value of a wind farm project is influenced by various risk factors such as wind power output and electricity market price. In particular, there is uncertainty in the economic evaluation of a wind farm project due to uncertain wind power outputs, which are fluctuated by weather factors such as wind speed, and volatile electricity market prices. This paper presents a systematic method to assess the economic value and payback period of a wind farm project using Least Square Monte-Carlo (LSMC) simulation. Numerical example is presented to validate the effectiveness of the proposed economic assessment method for a wind farm project.

Original languageEnglish
Pages (from-to)32-35
Number of pages4
JournalTransactions of the Korean Institute of Electrical Engineers
Volume60
Issue number1
Publication statusPublished - 2011 Jan 1
Externally publishedYes

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Farms
Economics
Wind power
Monte Carlo simulation
Power markets

Keywords

  • LSMC (least square monte-carlo)
  • Risk factor
  • Wind farm investment

ASJC Scopus subject areas

  • Electrical and Electronic Engineering

Cite this

Economic assessment of a wind farm project using least square monte-Carlo (LSMC) simulation. / Kim, Jina; Lee, Jong Uk; Lee, Jaehee; Joo, Sung-Kwan.

In: Transactions of the Korean Institute of Electrical Engineers, Vol. 60, No. 1, 01.01.2011, p. 32-35.

Research output: Contribution to journalArticle

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