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

  • Jina Kim*
  • , Jong Uk Lee
  • , Jaehee Lee
  • , Sung Kwan Joo
  • *Corresponding author for this work

    Research output: Contribution to journalArticlepeer-review

    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
    DOIs
    Publication statusPublished - 2011 Jan

    Keywords

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

    ASJC Scopus subject areas

    • Electrical and Electronic Engineering

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