Optimization Model for Economic Evaluation of Wind Farms - How to Optimize a Wind Energy Project Economically and Technically

Abstract

This paper makes a review and systematize methods and techniques of economic evaluation applied to renewable energy projects, specific to wind energy projects. Both project and cost methodologies of economic evaluation are reviewed for a model optimization construction for a proposed optimization model with its objective function most appropriated. It is necessary to engage in different approaches, but complementary, microeconomic project evaluation methods and optimization methods applied to engineering solutions in wind energy converter systems. Optimization model for economic evaluation of wind farms can be as an efficient planning and resource management, which is the key to the success of an energy project. Wind energy is one of the most potent alternative energy resources; however the economics of wind energy is not yet universally favorable to place wind at a competitive platform with coal and natural gas (fossil fuels). Economic evaluation models of wind projects developed would allow investors to better plan their projects, as well as provide valuable insight into the areas that require further development to improve the overall economics of wind energy projects.Keywords: Optimization model; Economic evaluation; Wind energy projects; RE projects management.JEL Classification: Q42; C61