Financial Modeling for Renewable Energy Projects: Risk and Return Analysis of Wind and Solar Energy Investments

Mustafa Ozyesil, Havane Tembelo

Abstract


In this study, the financial modeling of wind and solar energy investments is investigated with an emphasis on the analysis of risk and return profiles. The primary objective is to provide a comprehensive financial performance assessment for renewable energy projects, focusing specifically on wind and solar energy sectors across various geographic locations. The study contributes to the literature by offering a detailed analysis of the factors influencing the financial performance of these investments and evaluates the applicability and effectiveness of different financial models in the renewable energy domain. Limitations of the research include variability due to geographical factors and potential market dynamics changes. Furthermore, the financial models are based on current economic conditions and technological advancements, which may affect the validity of results over time. Future directions suggest expanding financial modeling to include diverse energy sources and technological innovations, as well as a deeper examination of macroeconomic factors, such as policy making and government incentives, on renewable energy investments.


Keywords


Renewable Energy, Financial Modeling, Investment Risk, Return Analysis, Solar and Wind Energy

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DOI (PDF): https://doi.org/10.20508/ijrer.v15i4.15391.g9131

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