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 journalArticlepeer-review


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
Issue number1
Publication statusPublished - 2011 Jan


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

ASJC Scopus subject areas

  • Electrical and Electronic Engineering


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