Methods for financial assessment of renewable energy projects: a review
Autor(a) principal: | |
---|---|
Data de Publicação: | 2022 |
Outros Autores: | , , |
Tipo de documento: | Artigo |
Idioma: | eng |
Título da fonte: | Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
Texto Completo: | https://hdl.handle.net/1822/78076 |
Resumo: | The financial evaluation of renewable energy sources (RES) projects is well explored in the literature, but many different methods have been followed by different authors. Then, it is important to understand if and how these methods have been changing and what factors may have driven new approaches. Therefore, this article aims to explore the publications on the financial evaluation of RES projects from 2011 to 2020 and to present a critical analysis of the reviewed literature. The methods for evaluating RES projects were grouped into four categories: (i) traditional metrics based on net present value, internal rate of return, and payback period; (ii) levelized cost of electricity; (iii) return on investment approach; and (iv) real options analysis. A quantitative analysis was carried out considering aspects related to the relevance of the authors, productivity by country, and the most relevant journals for each of these groups. Then, a qualitative analysis of the main characteristics of the five most cited articles in each group was conducted. The results show that the more traditional methods are still widely used for the financial evaluation of RES projects. However, approaches based on the levelized cost and real options have been growing in importance to tackle the complex features of financial evaluation and comparison of RES projects. |
id |
RCAP_f9fc8c5e68e9324d2d8ff24eb0bf1ccf |
---|---|
oai_identifier_str |
oai:repositorium.sdum.uminho.pt:1822/78076 |
network_acronym_str |
RCAP |
network_name_str |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
repository_id_str |
7160 |
spelling |
Methods for financial assessment of renewable energy projects: a reviewDiscounted cash flowLevelized cost of energyNet present valueReal optionsReturn on investmentScience & TechnologyThe financial evaluation of renewable energy sources (RES) projects is well explored in the literature, but many different methods have been followed by different authors. Then, it is important to understand if and how these methods have been changing and what factors may have driven new approaches. Therefore, this article aims to explore the publications on the financial evaluation of RES projects from 2011 to 2020 and to present a critical analysis of the reviewed literature. The methods for evaluating RES projects were grouped into four categories: (i) traditional metrics based on net present value, internal rate of return, and payback period; (ii) levelized cost of electricity; (iii) return on investment approach; and (iv) real options analysis. A quantitative analysis was carried out considering aspects related to the relevance of the authors, productivity by country, and the most relevant journals for each of these groups. Then, a qualitative analysis of the main characteristics of the five most cited articles in each group was conducted. The results show that the more traditional methods are still widely used for the financial evaluation of RES projects. However, approaches based on the levelized cost and real options have been growing in importance to tackle the complex features of financial evaluation and comparison of RES projects.- (undefined)MDPIUniversidade do MinhoDelapedra-Silva, VandersonFerreira, Paula VarandasCunha, JorgeKimura, Herbert2022-022022-02-01T00:00:00Zinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articleapplication/pdfhttps://hdl.handle.net/1822/78076engDelapedra-Silva, V.; Ferreira, P.; Cunha, J.; Kimura, H. Methods for Financial Assessment of Renewable Energy Projects: A Review. Processes 2022, 10, 184. https://doi.org/10.3390/pr100201842227-971710.3390/pr10020184https://www.mdpi.com/2227-9717/10/2/184info:eu-repo/semantics/openAccessreponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAP2023-07-21T12:51:02Zoai:repositorium.sdum.uminho.pt:1822/78076Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireopendoar:71602024-03-19T19:49:49.117822Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãofalse |
dc.title.none.fl_str_mv |
Methods for financial assessment of renewable energy projects: a review |
title |
Methods for financial assessment of renewable energy projects: a review |
spellingShingle |
Methods for financial assessment of renewable energy projects: a review Delapedra-Silva, Vanderson Discounted cash flow Levelized cost of energy Net present value Real options Return on investment Science & Technology |
title_short |
Methods for financial assessment of renewable energy projects: a review |
title_full |
Methods for financial assessment of renewable energy projects: a review |
title_fullStr |
Methods for financial assessment of renewable energy projects: a review |
title_full_unstemmed |
Methods for financial assessment of renewable energy projects: a review |
title_sort |
Methods for financial assessment of renewable energy projects: a review |
author |
Delapedra-Silva, Vanderson |
author_facet |
Delapedra-Silva, Vanderson Ferreira, Paula Varandas Cunha, Jorge Kimura, Herbert |
author_role |
author |
author2 |
Ferreira, Paula Varandas Cunha, Jorge Kimura, Herbert |
author2_role |
author author author |
dc.contributor.none.fl_str_mv |
Universidade do Minho |
dc.contributor.author.fl_str_mv |
Delapedra-Silva, Vanderson Ferreira, Paula Varandas Cunha, Jorge Kimura, Herbert |
dc.subject.por.fl_str_mv |
Discounted cash flow Levelized cost of energy Net present value Real options Return on investment Science & Technology |
topic |
Discounted cash flow Levelized cost of energy Net present value Real options Return on investment Science & Technology |
description |
The financial evaluation of renewable energy sources (RES) projects is well explored in the literature, but many different methods have been followed by different authors. Then, it is important to understand if and how these methods have been changing and what factors may have driven new approaches. Therefore, this article aims to explore the publications on the financial evaluation of RES projects from 2011 to 2020 and to present a critical analysis of the reviewed literature. The methods for evaluating RES projects were grouped into four categories: (i) traditional metrics based on net present value, internal rate of return, and payback period; (ii) levelized cost of electricity; (iii) return on investment approach; and (iv) real options analysis. A quantitative analysis was carried out considering aspects related to the relevance of the authors, productivity by country, and the most relevant journals for each of these groups. Then, a qualitative analysis of the main characteristics of the five most cited articles in each group was conducted. The results show that the more traditional methods are still widely used for the financial evaluation of RES projects. However, approaches based on the levelized cost and real options have been growing in importance to tackle the complex features of financial evaluation and comparison of RES projects. |
publishDate |
2022 |
dc.date.none.fl_str_mv |
2022-02 2022-02-01T00:00:00Z |
dc.type.status.fl_str_mv |
info:eu-repo/semantics/publishedVersion |
dc.type.driver.fl_str_mv |
info:eu-repo/semantics/article |
format |
article |
status_str |
publishedVersion |
dc.identifier.uri.fl_str_mv |
https://hdl.handle.net/1822/78076 |
url |
https://hdl.handle.net/1822/78076 |
dc.language.iso.fl_str_mv |
eng |
language |
eng |
dc.relation.none.fl_str_mv |
Delapedra-Silva, V.; Ferreira, P.; Cunha, J.; Kimura, H. Methods for Financial Assessment of Renewable Energy Projects: A Review. Processes 2022, 10, 184. https://doi.org/10.3390/pr10020184 2227-9717 10.3390/pr10020184 https://www.mdpi.com/2227-9717/10/2/184 |
dc.rights.driver.fl_str_mv |
info:eu-repo/semantics/openAccess |
eu_rights_str_mv |
openAccess |
dc.format.none.fl_str_mv |
application/pdf |
dc.publisher.none.fl_str_mv |
MDPI |
publisher.none.fl_str_mv |
MDPI |
dc.source.none.fl_str_mv |
reponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação instacron:RCAAP |
instname_str |
Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
instacron_str |
RCAAP |
institution |
RCAAP |
reponame_str |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
collection |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
repository.name.fl_str_mv |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
repository.mail.fl_str_mv |
|
_version_ |
1799133080824315904 |