ABSTRACT
ABSTRACT: Wind energy is a reliable source for fulfilling the energy demand but due to the investment risks such as the uncertainties in energy prices, climate changes the wind power usage remains limited. Governments’ support on renewable energy compensates these risks partially. Traditional investment evaluation techniques that do not consider the compensations and risks associated with the wind energy investments, are one of the main reasons for the limited usage of wind power. In this study a real option and Monte Carlo simulation based methodology which considers both risks and compensations associated with these investments is proposed to evaluate wind energy investments.
