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At least 91 records · Page 5

A geospatial environmental and techno-economic framework for sustainable phosphorus management at livestock facilities

Nutrient pollution of waterbodies is a major worldwide water quality problem. Excessive use and discharge of nutrients can lead to eutrophication and algal blooms in fresh and marine waters, resulting in environmental problems associated with hypoxia, public health issues related to the release of toxins and freshwater scarcity. A promising option to address this problem is the recovery of nutrient releases prior to being discharged into the environment. Driven by the sustainable materials management concept, the COW2NUTRIENT (Cattle Organic Waste to NUTRIent and ENergy Technologies) framework is developed for the techno-economic evaluation and selection of nutrient recovery systems at livestock facilities. Furthermore, environmental vulnerability to nutrient pollution determined through a geographic information system (GIS)-based model and techno-economic information of different state-of-the-art nutrient management technologies are combined in a multi-criteria decision analysis (MCDA) model, resulting in the selection and economic analysis of the most suitable process for each studied livestock facility. This framework has been employed for studying the implementation of sustainable phosphorus management systems at 2,217 livestock facilities in the Great Lakes area, resulting in capital expenses of 2.5 billion USD if only phosphorus recovery technologies are installed, and up to 5.2 billion USD if nutrient management is combined with biogas and power production. However, considering potential economic incentives for the recovery of phosphorus, net revenues up to 230 million USD per year can be achieved. Therefore, the framework presented reveals the potential of implementing nutrient management systems at regional scale for the abatement of phosphorus releases from livestock facilities.

54 ENVIRONMENTAL SCIENCES↗

Northwest Colorado Local Energy Analysis: October 2025 Results

The U.S. Department of Energy's (DOE) Communities Local Energy Action Program (Communities LEAP) provided customized technical assistance to the Northwest Colorado region to assist in developing strategies that facilitate long-term economic benefits through locally driven energy planning and development. The region sought technical assistance to model alternatives energy projects in response to the expected retirement of coal-fired powers plant and associated coal mines by 2030. Northwest Colorado faces a potential economic gap due to the loss of tax revenue, labor income, and jobs within the region due to the impending closure of the Craig and Hayden Power Stations and related mining operations at Trapper and Colowyo mines.

08 HYDROGEN↗

Valuation of pollination services from habitat management: a case study of utility scale solar energy facilities in the United States

Creating and maintaining pollinator habitats following the ecological infrastructure concept in degraded or unutilized land, such as solar energy facilities, is a practical way to synergistically advance the food, energy, and ecology nexus. Given the large land-use requirements for solar farming—the fastest growing renewable energy technology–considerable attention has been focused on strategies to maximize multiple ecosystem services. In this study, we coupled the principles of agronomy and ecology with economics and integrated national-scale data on crops, pollinators, and solar facilities to identify locations for creating pollinator habitats and estimating the economic value of pollination from the habitats. We examined opportunities for pollination services from pollinator-friendly utility-scale solar facilities adjacent to 42 million hectares of pollination-dependent crops in the conterminous United States at high resolution of 1 ha. We used the net income method to estimate the potential economic value of creating habitat in the land adjacent to solar facilities in the eight states with the greatest number of solar installations. Creating pollinator habitats at the 217 utility-scale solar facilities in these states could support adjacent 80,000 hectares of high pollinator dependent crops, which could potentially generate a pollination value of $\$$120 to $\$$264 million USD. The location-specific information and high-resolution maps generated for the United States demonstrate integration of grey and green infrastructure to support the food, energy, and environment nexus.

14 SOLAR ENERGY↗

Electrification of industrial boilers in the USA: potentials, challenges, and policy implications

Decarbonization of the industrial heat demand through electrification could contribute significantly to climate change mitigation efforts. In the US industry, thermal processes accounted for 75% of the total final energy demand in 2018, of which 17% is consumed by conventional industrial boilers (excluding cogeneration) for steam generation. Electric boilers have a small share in the US industrial steam generation due to several techno-economic reasons. Here, this study employs a bottom-up approach to investigate the sector-level and state-level techno-enviro-economic potentials of deploying electric boilers in the US industry in different timeframes. The results show that the technical potential energy and CO 2 savings by electrifying industrial boilers are 595 PJ and 200 MtCO 2 per year in 2050, respectively; however, these incur additional costs in each sector. Although there may be individual cost-effective opportunities for electrifying boilers in specific industrial sites, the overall costs are high in all industrial sectors and states due to the large disparity between electricity and combustion fuel prices. To overcome the highlighted techno-economic barriers, a comprehensive action plan for different stakeholders is also formulated. This study provides novel insights that should inform policymakers’ and executives’ decisions about the electrification of the current and future US industrial boiler systems.

32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATI↗

Heuristic Dispatch Based on Price Signals for Behind-the-Meter PV-Battery Systems in the System Advisor Model

The economic potential of a behind-the-meter (BTM) PV-battery system depends greatly on how the battery is dispatched. Different utility rates, system sizes, generation and load profiles can all require different dispatch strategies. This paper presents price signals dispatch, a new algorithm for automated economic dispatch of BTM PV-battery systems, which utilizes 24-hour PV and load forecasts, degradation data, and utility rates. The algorithm is integrated with the System Advisor Model (SAM) tool and is tested with a nonlinear generic electrochemical battery model. Price signals dispatch outperforms SAM’s existing algorithms in cases requiring a balance between demand charge management and energy arbitrage, and in cases where battery degradation imposes a significant cost.

41 EE - Solar Energy Technologies Office (EE-4S)↗

Heuristic Dispatch Based on Price Signals for Behind-the-Meter PV-Battery Systems in the System Advisor Model: Preprint

The economic potential of a behind-the-meter (BTM) PV-battery system depends greatly on how the battery is dispatched. Different utility rates, system sizes, generation and load profiles can all require different dispatch strategies. This paper presents price signals dispatch, a new algorithm for automated economic dispatch of BTM PV-battery systems, which utilizes 24-hour PV and load forecasts, degradation data, and utility rates. The algorithm is integrated with the System Advisor Model (SAM) tool and is tested with a nonlinear generic electrochemical battery model. Price signals dispatch outperforms SAM’s existing algorithms in cases requiring a balance between demand charge management and energy arbitrage, and in cases where battery degradation imposes a significant cost.

41 EE - Solar Energy Technologies Office (EE-4S)↗

Exploring the cost and emissions impacts, feasibility and scalability of battery electric ships

The United States’ greenhouse gas (GHG) emissions reduction goals, along with targets set by the International Maritime Organization, create an opportunity for battery electric shipping. In this study, we model life-cycle costs and GHG emissions from shipping electrification, leveraging ship activity datasets from across the United States in 2021. We estimate that retrofitting 6,323 domestic ships under 1,000 gross tonnage to battery electric vessels would reduce US domestic shipping GHG emissions by up to 73% by 2035 from 2022 levels. By 2035, electrifying up to 85% of these ships could become cost effective versus internal combustion engine ships if they cover 99% of annual trips and charge from a deeply decarbonized grid. We find that charging demands from electrifying these ships could be concentrated at just 20 of 150 major ports nationwide. This study demonstrates that retrofitting to battery electric vessels has economic potential and could significantly accelerate GHG emission reductions.

32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATI↗

Conversion of food waste to renewable energy: A techno-economic and environmental assessment

Increasing quantities of food waste have become a concern due to high disposal costs in landfills and high greenhouse gas emissions. With this increase in food waste generation, there is also an increasing demand for renewable natural gas to supplement traditional fossil fuel combustion and offset the impacts of climate change. Collecting food waste from landfills and turning it into renewable natural gas using anaerobic digestion could be a win-win option for both food waste disposal and renewable energy production. While some literature exists on the energy potential, economic feasibility, and environmental benefit of food waste disposal via anaerobic digestion, no existing study simultaneously evaluates the energy, economic and environmental effect of food waste to renewable energy via anaerobic digestion, especially on a plant and city scale. Further, this study is focused on the techno-economic and environmental assessment of food waste to energy via anaerobic digestion in order to fill this gap. Four anaerobic digestion pathways are considered in this study: flare, pipeline natural gas, combined heat and power, and combined cycle for efficient power generation. Using a city of 1M people the results show that renewable natural gas from food waste could supply the natural gas usage for 1.9% of residential use, 2.7% of commercial use, 1.1% of industrial use, 167.5% of the compressed natural gas vehicle fleet, 0.7% of electric power generation, or 2.5% of industrial high-temperature heating processes. All pathways except pipeline natural gas will have a positive net present value in the baseline scenario, and the pipeline natural gas pathway will become economically viable with a net present value of 31 USD/t of food waste with renewable energy credits. Lastly, all of the pathways achieve negative greenhouse gas emissions, which indicates that anaerobic digestion is a more environmentally friendly method for the handling of food waste than landfills.

03 NATURAL GAS↗

Integrating Chemical Catalysis and Biological Conversion of Carbon Intermediates for Deriving Value-Added Products from Carbon Dioxide

Carbon dioxide valorization represents an appealing approach to reducing greenhouse gases in the atmosphere. While electrocatalysis is an effective tool to reduce CO 2 into small carbon compounds, it becomes increasingly challenging to efficiently produce compounds with more carbon atoms. In contrast, while biological systems struggle to utilize CO 2 , they can readily upcycle other small carbon compounds. This project explores the use of a two-stage process that electrocatalytically converts CO 2 into methanol, formate, or acetate which is subsequently utilized by Methylotuvimicrobium alcaliphilum 20Z to produce medium chain length polyhydroxyalkanoate. A techno-economic analysis and life cycle assessment evaluates the commercial viability of the process as well as its carbon emissions. We show here an enhanced CO 2 -to-methanol electroconversion step coupled with the use of a microbial culture adapted to the process conditions to be the optimal configuration for economic potential.

09 BIOMASS FUELS↗

The Value of Increased HVDC Capacity Between Eastern and Western U.S. Grids: The Interconnections Seam Study

The Interconnections Seam Study examines the potential economic value of increasing electricity transfer between the Eastern and Western Interconnections using high-voltage direct-current (HVDC) transmission and cost-optimizing both generation and transmission resources across the United States. The study conducted a multi-model analysis that used co-optimized generation and transmission expansion planning and production cost modeling. Four transmission designs under eight scenarios were developed and studied to estimate costs and potential benefits. The results show benefit-to-cost ratios that reach as high as 2.9, indicating significant value to increasing the transmission capacity between the interconnections under the cases considered, realized through sharing generation resources and flexibility across regions.

13 HYDRO ENERGY↗

The Value of Increased HVDC Capacity Between Eastern and Western U.S. Grids: The Interconnections Seam Study

The Interconnections Seam Study examines the potential economic value of increasing electricity transfer between the Eastern and Western Interconnections using high-voltage direct-current (HVDC) transmission and cost-optimizing both generation and transmission resources across the United States, proposing, assessing, justifying, and illustrating a major infrastructure change involving two of the worlds largest power grids. The study conducted a multi-model analysis that used co-optimized generation and transmission expansion planning and production cost modeling. Four transmission designs under eight scenarios were developed and studied to estimate costs and potential benefits. The results show benefit-to-cost ratios that reach as high as 2.5, indicating significant value to increasing the transmission capacity between the interconnections under the cases considered, realized through sharing generation resources and flexibility across regions.

24 POWER TRANSMISSION AND DISTRIBUTION↗

Onshore U.S. Carbon Pipeline Deployment: Siting, Safety, and Regulation

Carbon capture, utilization, and storage (CCUS) technology has significant potential to reduce greenhouse gas (GHG) emissions and mitigate the impact of climate change, particularly in hard to decarbonize industrial and commercial sectors. CCUS involves capturing carbon dioxide (CO 2 ) from industrial processes or power generation and utilizing it for other purposes, such as enhanced oil recovery (EOR), or storing the captured CO 2 underground. CCUS technology can reduce the environmental impact of continued fossil fuel use while smoothing the transition to a low-carbon economy. CCUS can create new economic opportunities, such as the development of new industries and job creation, and can enhance energy security by diversifying energy sources. For these reasons, enabling CCUS has become a key objective of the Biden-Harris administration’s clean energy policy and has received bipartisan support. Despite its environmental and economic potential, CCUS faces multiple barriers to widespread deployment. One of the main challenges is the high cost and technical difficulty of implementing and operating large-scale CCUS infrastructure. CCUS remains a relatively expensive way to reduce carbon emissions (e.g., compared to solar photovoltaic technology’s displacement of coal generation). Additionally, financial incentives and supportive policies like those enacted to support solar photovoltaic development, especially at the state level, are inconsistent or nonexistent, which can discourage investment in CCUS projects. There are also technical challenges associated with safe and secure underground CO 2 storage and the development of new carbon utilization technologies. Public opposition to various aspects of CCUS technologies, ranging from concerns that CCUS will extend reliance on fossil fuels to CCUS infrastructure being sited in disadvantaged communities, is a growing challenge. This paper focuses on another significant barrier to broad CCUS deployment: the need for considerable expansion of the dedicated land-based CO 2 pipeline network in the United States to meet CCUS goals and the unique regulatory challenges to its development. To reach carbon emissions targets in the United States by 2050, CCUS technology will need to be supported by tens of thousands of miles of CO 2 pipelines. Estimates range from a minimum of roughly 29,000 pipeline miles (according to a 2020 Great Plains Institute study) to 66,000 pipeline miles (as per a 2021 Princeton University–led study). As of October 2022, however, the U.S. Department of Transportation (U.S. DOT) reports fewer than 5,400 miles of U.S. pipelines carrying CO 2 . This deficit—and what it means for the prospect of moving substantially larger quantities of CO 2 from source to use or storage—threatens to stifle the development of CCUS projects and technologies identified as an important tool to meet emissions targets. The current regulatory landscape facing CO 2 pipeline development can best be described as uncertain. At the federal level, the U.S. DOT Pipeline and Hazardous Materials Safety Administration (PHMSA) oversees safety regulation of pipelines transporting hazardous materials, including CO 2 upon commencement of operation. However, PHMSA’s definition of CO 2 as “a fluid consisting of more than 90 percent CO 2 molecules compressed to a supercritical state” has not been updated since its 1991 addition to the Federal Register. Because CO 2 can be transported in a gaseous, liquid, or supercritical state (indeed, the physical state of CO 2 can fluctuate within a single pipeline due to environmental changes), doubts persist about the extent of PHMSA’s purview—and raise questions about what, if anything, states should do to address this apparent gap. PHMSA has begun a major revision of its existing rules, but the agency does not expect a first draft before 2024. Economic oversight of CO 2 pipelines is even less clear. The Federal Energy Regulatory Commission (FERC) and Surface Transportation Board (STB)—which regulate the rates of interstate oil/natural gas and non-energy pipelines, respectively—have both declined jurisdiction over interstate CO 2 pipelines. This presumably leaves economic regulation to state and/or local governments, but few if any states have the laws or resources in place to oversee just and reasonable rates. Further, the interstate nature of CO 2 pipeline development creates questions around how different states should align their rate-making decisions. Onshore U.S. Carbon Pipeline Deployment: Siting, Safety, and Regulation Currently, regulatory responsibilities regarding CO 2 pipeline siting and permitting fall to state and local governments. The variety of laws and regulations across the country, however, creates a maze of requirements for pipeline developers to navigate. To secure necessary permits, most states require pipeline companies to be “common carriers” that provide transport service to the public at uniform rates. However, the specific definition of that term varies. Some states require clear evidence that a pipeline services the public, while others automatically deem any pipeline company transporting energy products or hazardous materials to be a “common carrier”—with little consideration for accessibility to third parties. Other states have eschewed common-carrier terminology entirely, placing private and publicly accessible pipelines on equal footing. Much like the variation in common-carrier requirements, laws governing eminent domain authority to secure rights-of-way (ROW) to commence construction on a planned pipeline route differ by state. Several states have no laws or rules governing CO 2 pipelines. In addition to creating questions about whether long-standing rules for other pipelines (e.g., natural gas or petroleum products) apply to CO 2 , this policy vacuum leaves local governments as the sole authority over sections of pipe within their boundaries. With dozens of counties along a given route, the probability of inconsistent regulation of the same pipeline is significant. Even in states with CO 2 pipeline laws in place, local regulatory attempts to address rising concerns over pipeline routing and safety have triggered lawsuits by pipeline companies seeking to delimit areas of federal, state, and local government responsibility. Meanwhile, legislators across the country have introduced bills to restrict the application of eminent domain to CO 2 pipeline projects, which could threaten a key means of securing ROW that companies cannot secure through negotiation with landowners. Taken separately, any of these regulatory issues—the narrow federal definition of CO 2 , FERC’s and STB’s decisions that CO 2 pipelines are not within their jurisdiction, and the considerable variation in state and local governments’ laws regulating CO 2 pipeline technologies—are extremely difficult to resolve. Adding the required scale of CO 2 pipeline expansion and the currently identified narrow window of time in which to reach climate target goals, the task becomes even more difficult—and raises a host of urgent questions for regulators. How should CO 2 be defined in federal regulations to ensure consistent safety standards across the country? What is the potential impact radius of a CO 2 pipeline rupture, and how should that inform local emergency response? In the absence of centralized federal oversight, what should state legislatures do to increase alignment for interstate CO 2 pipeline projects? This paper intends to serve as a primer for regulators and stakeholders who seek to better understand the regulatory challenges and opportunities facing this critical infrastructure.

42 ENGINEERING↗

Optimize heat prosumers' economic performance under current heating price models by using water tank thermal energy storage

Due to heat prosumers' dual roles of heat producer and heat consumer, the future district heating (DH) systems will become more flexible and competitive. However, the current heating price models have not yet supported the reverse heat supply from prosumers to the central DH system, which means the prosumers would gain no economic benefit from supplying heat to the central DH system. These unidirectional heating price models will reduce interest in prosumers, and thus hinder the promotion of prosumers in DH systems. This study aimed to optimize prosumers' economic performance under the current heating price models by introducing water tank thermal energy storage (WTTES). A dynamic optimization problem was formulated to explore prosumers' economic potentials. The size parameter of WTTESs was swept in prosumers to obtain the optimal storage size considering the trade-off between the payback period and the heating cost saving. The proposed method was tested on a campus DH system in Norway. The results showed that the prosumer's annual heating cost was saved up to 9%, and the investment of WTTES could be recovered in less than ten years. This study could provide guidelines on improving prosumers' economic performance and promote the development of prosumers during the transformation period of DH systems.

Li, H↗

Study of Additive Manufacturing Applications to Geothermal Technologies Final Project Report

This report summarizes work performed to assess the potential for utilizing additive manufacturing (AM) to substantially improve either the availability, performance or cost basis for tools and components that are required for geothermal energy production. A systematic cataloging of geothermal activities, associated technologies, and current manufacturing methods was first undertaken. This included literature reviews as well as interviews with subject matter experts, service companies and OEMs. An industry workshop was held as part of this portion of the project to obtain input and concerns from a broad range of OEMs, service providers and end users. This workshop was also used to gage the current level of AM activity in industry, receptiveness to the use of AM manufactured parts, and any up front concerns that may exist. A summary of the workshop is presented in this report. Representative components and assemblies and their current manufacturing methods were then analyzed by additive manufacturing experts at a company called Senvol to determine the feasibility and required steps for producing parts by additive manufacturing. A step by step description of conventional manufacturing of the parts was also performed to establish a manufacturing baseline for comparison purposes. This analysis also considered and described the benefits of additively manufacturing the parts in terms of specific AM systems, material availability for AM, dimensional requirements and potential economic advantages. Details of the manufacturability assessment were summarized in a report which is included as a chapter in this document. The analysis of the AM subject matter experts was then be used by techno-economic analysts to perform a comparative economic evaluation of the manufacturing of select technologies by AM and conventional approaches. This activity leveraged ORNL expertise and prior experience in other applications. A framework based on assessing cost, volume production considerations, and time to manufacture was created to more easily discern the advantages or disadvantages of additive versus conventional manufacturing methods. The report concludes with a general assessment of the current applicability of AM for geothermal technologies, AM gaps and needs related to typical geothermal hardware, and the potential benefits and impacts of AM to geothermal energy production.

15 GEOTHERMAL ENERGY↗

Microwave-Assisted Dehydroaromatization of Flare Gas: Reactor Modeling, Plant-Wide Simulation and Economic Feasibility Analysis

Flaring is widely practiced in the oil, gas, and petrochemical sectors to ensure safety during upsets and maintenance but emits large amounts of GHGs, causing energy and economic losses. In the U.S., about one-third of Bakken gas (~250 MMSCFD) and ~100 MMSCFD from Eagle Ford are flared. Recovering this gas is essential for sustainability. Existing recovery methods—compression and reinjection (EOR), conversion to NGL, LNG/CNG, GTL, and GTW—are often limited by flowrate, composition, and variability, especially in unconventional wells. This study develops a microwave-assisted dehydroaromatization (DHA) process to convert flare gas into benzene, toluene, ethylene, and naphthalene. A laboratory reactor model is scaled up into a modular plant-wide system. Techno-economic (TEA) and life-cycle (LCA) analyses evaluate performance and sustainability, with sensitivity studies on plant capacity, electricity cost, and catalyst price confirming strong economic potential.

dehydroaromatization↗

Assessing geothermal/solar hybridization – Integrating a solar thermal topping cycle into a geothermal bottoming cycle with energy storage

Geothermal and concentrating solar power (CSP) technologies typically use heat at different temperatures in their commercial deployments. This enables a technically viable hybridization of a solar topping cycle and a geothermal bottoming cycle at locations where both resources are available. In this article, an underperforming geothermal power system based at Burley, Idaho is used as a baseline to investigate the technical and economic potential of such a hybrid cycle. A direct thermal energy storage (TES) system is also integrated to overcome the intermittency of the solar resource. Design and off-design behavior of key components are modelled to simulate the annual performance of the hybrid system on an hourly basis. The sizing of the solar field and thermal storage is investigated and is seen to significantly impact the annual electricity generation and efficiency. Various cost scenarios for the solar field and thermal energy storage are investigated. An economic metric - levelized cost of electricity (LCOE) - is used to optimize the solar field sizing and TES capacity. The hybrid plant converts the additional solar heat input into additional work with an efficiency of 32.9%. Retrofitting a geothermal plant with solar and eight hours of energy storage can achieve an LCOE of 0.136 $/kWhe in current cost scenarios and 0.081 $/kWhe in a future cost reduction scenario. Although the hybrid system cannot directly compete with current PV systems without batteries, it has an LCOE 32% lower than that of a PV-battery system. This paper provides insights into the research and development of the future grid with a high renewable energy penetration and encourages further study of energy hybridization for improved efficiencies and economics.

15 GEOTHERMAL ENERGY↗

Coal as Value-Added for Lithium Battery Anodes (Final Report)

Graphite is a basic material used for energy storage in lithium-ion (Li-ion) batteries. More than 70% of worldwide graphite production and nearly 50% of the annual graphite supply for the United States comes from China. Potential economic and national security concerns exist because Li-ion batteries are used not only for the fast-growing electrical vehicle market (15.6% compound annual growth rate [CAGR] from 2018 to 2028 in North America), but also for defense applications including unmanned aerial and ground vehicles. Development of an alternative formulation for Li-ion batteries is key. Building upon previous research confirming the ability of silicon alloys to improve the energy density of anodes, Semplastics developed a novel material based on our X-MAT® polymer-derived ceramic (PDC) technology. The X-MAT anode material is a composite of chemically tailored silicon oxycarbide (SiOC) and domestically sourced coal powder, designed to be a drop-in replacement for graphite within Li-ion battery anodes. Preliminary tests of this material showed more than twice the reversible capacity of graphite anodes (1,000 mAh/g vs. 372 mAh/g), with excellent stability and capacity retention, almost 100% coulombic efficiency, low voltage potential, and low thermal expansion. At full adoption in 2024, we expect the coal utilization to reach 27,300 tons. Through this project, Semplastics proposed to complete development and begin commercialization of this material. The objective was to determine the best formulation for technical performance and economic viability. At the end of the project, the X-MAT anode material is ready for implementation into existing battery manufacturing processes and can have a significant impact on the utilization of coal, with positive effects for the mining sector and the mitigation of carbon dioxide (CO 2 ) emissions.

01 COAL, LIGNITE, AND PEAT↗

Valuation of Wind Energy Turbines Using Volatility of Wind and Price

The limitedness of the nonrenewable local energy resources in Israel, even in the background of the later gas fields’ findings, continues to force the state to devote various efforts towards ‘green’ energy development. These efforts include installations, both for the solar and for wind energy, thus improving the diversity of energy sources. While the standard discounted cash flow (DCF) method using the net present value (NPV) criterion is extensively adopted to evaluate investments, the standard DCF method is inappropriate for the rapidly changing investment climate and for the managerial flexibility in investment decisions. In recent years, the real options analysis (ROA) technique has been widely applied in many studies for the valuation of renewable energy investment projects. Taking into account the above background, we apply, in this study, the real options analysis approach for the valuation of wind energy turbines and apply it to the analysis of wind energy economic potential in Israel, which is the context of our work. We hypothesize that due to nature of wind energy production uncertainties, the ROA method is better than the alternative. The novelty of this paper includes the following: real world wind statistics of the Merom Golan site in Israel (velocity 3.73 m/s, with a standard deviation of 2.03 m/s), a realistic power generation estimation (power generation of 1205.84 kW with a standard deviation of about 0.5% in annual value which is worth about 1.3 M$ per annum), and an economic model to evaluate the profitability of such a project. We thus discuss the existing challenges of diversifying renewable energy sources in Israel by adding wind installations. Our motivation is to introduce a method which will allow investors and officials to take into account uncertainties when deciding in investing in such wind installations. The outcomes of the paper, which are obtained using the method of Weibull statistics and the Black–Scholes ROA technique, include the result that market price volatility adds to the uncertainties much more than any wind fluctuations, provided that the analysis is integrated over a long enough time.

17 WIND ENERGY↗