Sisodia, Gyanendra Singh and Soares, Isabel and Ferreira, Paula and Banerji, Sanjay and Prasad, Rajiv (2015) Projected Business Risk of Regulatory Change on Wind Power Project: Case of Spain. Energy Procedia, 79 . pp. 1054-1060. ISSN 1876-6102
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Abstract
Regulatory uncertainties have often posed a business risk to renewable energy investors. Energy regulations in Spain
were recently revised in June 2014. The objective of this study is to analyze the 50 MW wind power project under
revised framework. The project is evaluated using NPV with risk and real options method through Monte Carlo
simulations. As a part of this study, five scenarios were evaluated. The base scenario, “Business As Usual (BAU)”
consist of recent framework that was into place, just before the new regulation was announced. The other scenarios
(including newly introduced framework) were compared to the BAU. We have focused on “delay” option for the
current scope. The overall results of the study suggest a negative NPV under the revised framework, with
significantly higher delay value. From the results, it is advisable to delay the project. The paper presents the policy
implications under scenarios selected in the papers. The article also presents the policy implication for developing
countries. The study also served as the learning for developing nations from European Union states.
| Item Type: | Journal Article |
|---|---|
| Additional Information: | 2015 International Conference on Alternative Energy in Developing Countries and Emerging Economies |
| Subjects: | H Social Sciences > HC Economic History and Conditions T Technology > T Technology (General) |
| Divisions: | Faculty of Business and Economics (FBE) > Graduate School of Business |
| Depositing User: | Fulori Nainoca - Waqairagata |
| Date Deposited: | 20 May 2016 04:09 |
| Last Modified: | 20 May 2016 04:09 |
| URI: | https://repository.usp.ac.fj/id/eprint/8930 |
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