Publicação
Methods for financial assessment of renewable energy projects: a review
| 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. |
|---|---|
| Autores principais: | Delapedra-Silva, Vanderson |
| Outros Autores: | Ferreira, Paula Varandas; Cunha, Jorge; Kimura, Herbert |
| Assunto: | Discounted cash flow Levelized cost of energy Net present value Real options Return on investment |
| Ano: | 2022 |
| País: | Portugal |
| Tipo de documento: | artigo |
| Tipo de acesso: | acesso aberto |
| Instituição associada: | Universidade do Minho |
| Idioma: | inglês |
| Origem: | RepositóriUM - Universidade do Minho |
| _version_ | 1866878079327010816 |
|---|---|
| author | Delapedra-Silva, Vanderson |
| author2 | Ferreira, Paula Varandas Cunha, Jorge Kimura, Herbert |
| author2_role | author author author |
| author_facet | Delapedra-Silva, Vanderson Ferreira, Paula Varandas Cunha, Jorge Kimura, Herbert |
| author_role | author |
| contributor_name_str_mv | Universidade do Minho |
| country_str | PT |
| creators_json_txt | [{\"Person.name\":\"Delapedra-Silva, Vanderson\"},{\"Person.name\":\"Ferreira, Paula Varandas\"},{\"Person.name\":\"Cunha, Jorge\"},{\"Person.name\":\"Kimura, Herbert\"}] |
| datacite.contributors.contributor.contributorName.fl_str_mv | Universidade do Minho |
| datacite.creators.creator.creatorName.fl_str_mv | Delapedra-Silva, Vanderson Ferreira, Paula Varandas Cunha, Jorge Kimura, Herbert |
| datacite.date.Accepted.fl_str_mv | 2022-02-01T00:00:00Z |
| datacite.date.available.fl_str_mv | 2022-05-30T23:05:57Z |
| datacite.date.embargoed.fl_str_mv | 2022-05-30T23:05:57Z |
| datacite.rights.fl_str_mv | http://purl.org/coar/access_right/c_abf2 |
| datacite.subjects.subject.fl_str_mv | Discounted cash flow Levelized cost of energy Net present value Real options Return on investment |
| datacite.titles.title.fl_str_mv | Methods for financial assessment of renewable energy projects: a review |
| dc.contributor.none.fl_str_mv | Universidade do Minho |
| dc.creator.none.fl_str_mv | Delapedra-Silva, Vanderson Ferreira, Paula Varandas Cunha, Jorge Kimura, Herbert |
| dc.date.Accepted.fl_str_mv | 2022-02-01T00:00:00Z |
| dc.date.available.fl_str_mv | 2022-05-30T23:05:57Z |
| dc.date.embargoed.fl_str_mv | 2022-05-30T23:05:57Z |
| dc.format.none.fl_str_mv | application/pdf |
| dc.identifier.none.fl_str_mv | https://hdl.handle.net/1822/78076 |
| dc.language.none.fl_str_mv | eng |
| dc.publisher.none.fl_str_mv | MDPI |
| dc.rights.cclincense.fl_str_mv | http://creativecommons.org/licenses/by/4.0/ |
| dc.rights.none.fl_str_mv | http://purl.org/coar/access_right/c_abf2 |
| dc.rights.rights.copyright.fl_str_mv | openAccess |
| dc.subject.none.fl_str_mv | Discounted cash flow Levelized cost of energy Net present value Real options Return on investment |
| dc.title.fl_str_mv | Methods for financial assessment of renewable energy projects: a review |
| dc.type.none.fl_str_mv | http://purl.org/coar/resource_type/c_6501 |
| 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. |
| dirty | 0 |
| eu_rights_str_mv | openAccess |
| format | article |
| fulltext.url.fl_str_mv | https://prod-dspace.uminho.pt/bitstreams/ed1c35e2-bf48-4b54-8350-3f0aad28d8cf/download |
| id | rum_4eef8a8a485489ad2af72c964bc6551b |
| identifier.url.fl_str_mv | https://hdl.handle.net/1822/78076 |
| instacron_str | repositorium |
| institution | Universidade do Minho |
| instname_str | Universidade do Minho |
| language | eng |
| network_acronym_str | rum |
| network_name_str | RepositóriUM - Universidade do Minho |
| oai_identifier_str | oai:repositorium.uminho.pt:1822/78076 |
| organization_str_mv | urn:organizationAcronym:repositorium |
| person_str_mv | Delapedra-Silva, Vanderson Ferreira, Paula Varandas Cunha, Jorge Kimura, Herbert |
| publishDate | 2022 |
| publisher.none.fl_str_mv | MDPI |
| reponame_str | RepositóriUM - Universidade do Minho |
| repository_id_str | urn:repositoryAcronym:rum |
| service_str_mv | urn:repositoryAcronym:rum |
| spelling | engMDPIporThe 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.application/pdfporMethods for financial assessment of renewable energy projects: a reviewDelapedra-Silva, VandersonFerreira, Paula VarandasCunha, JorgeKimura, HerbertHostingInstitutionOrganizationalUniversidade do Minhoe-mailmailto:repositorium@usdb.uminho.ptrepositorium@usdb.uminho.ptDOIIsPartOf10.3390/pr100201842022-05-30T23:05:57Z2022-022022-05-30T22:56:03Z2022-02-01T00:00:00ZHandlehttps://hdl.handle.net/1822/78076http://purl.org/coar/access_right/c_abf2open accessDiscounted cash flowLevelized cost of energyNet present valueReal optionsReturn on investment3125893 bytesliteraturehttp://purl.org/coar/resource_type/c_6501journal article2022-02http://creativecommons.org/licenses/by/4.0/openAccesshttp://purl.org/coar/access_right/c_abf2application/pdffulltexthttps://prod-dspace.uminho.pt/bitstreams/ed1c35e2-bf48-4b54-8350-3f0aad28d8cf/download |
| 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 |
| status | SINGLETON |
| subject.fl_str_mv | Discounted cash flow Levelized cost of energy Net present value Real options Return on investment |
| title | 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_short | Methods for financial assessment of renewable energy projects: a review |
| title_sort | Methods for financial assessment of renewable energy projects: a review |
| topic | Discounted cash flow Levelized cost of energy Net present value Real options Return on investment |
| topic_facet | Discounted cash flow Levelized cost of energy Net present value Real options Return on investment |
| url | https://hdl.handle.net/1822/78076 |
| visible | 1 |