Analysis of Financial Problems of Wind Farms in Poland
Wind energy has been operating in Poland for over 20 years, but many opinions on its profitability are based on publications from other countries and simulations prepared by manufacturers. However, the truth is that the climatic specificity of various countries and price relationships, especially en...
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Online Access: | https://www.mdpi.com/1996-1073/14/5/1239 |
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doaj-a0dd822975ba4b0b8ced125b6cdbf0d72021-02-25T00:04:17ZengMDPI AGEnergies1996-10732021-02-01141239123910.3390/en14051239Analysis of Financial Problems of Wind Farms in PolandJoanna Wyrobek0Łukasz Popławski1Maria Dzikuć2Institute of Finance, Cracow University of Economics, 27 Rakowicka Street, 31-510 Cracow, PolandInstitute of Finance, Cracow University of Economics, 27 Rakowicka Street, 31-510 Cracow, PolandFaculty of Economics and Management, University of Zielona Góra, Licealna Street 9, 65-417 Zielona Góra, PolandWind energy has been operating in Poland for over 20 years, but many opinions on its profitability are based on publications from other countries and simulations prepared by manufacturers. However, the truth is that the climatic specificity of various countries and price relationships, especially energy prices and subsidies, significantly differentiate this profitability depending on the country. The publication aimed to look at the profitability of wind farms in Poland from three perspectives: financial analysis, NPV (Net Present Value) calculation for older wind farms (2006–2014), and break-even price of energy for these farms (for a non-negative NPV). The research hypothesis set out in the publication stated that wind farms from this period require higher energy prices than current market prices in Poland to achieve a return on invested capital. An element of novelty was calculating the energy price range that would provide an opportunity for at least some of the older farms operating in the green certificates scheme to achieve a positive NPV. We also attempted to demonstrate that the loss of control over the prices of green certificates, which took place in 2014–2017, led to such a decrease in energy prices that the 2006–2014 wind farms suffered a net loss.https://www.mdpi.com/1996-1073/14/5/1239wind energywind farm performancePoland |
collection |
DOAJ |
language |
English |
format |
Article |
sources |
DOAJ |
author |
Joanna Wyrobek Łukasz Popławski Maria Dzikuć |
spellingShingle |
Joanna Wyrobek Łukasz Popławski Maria Dzikuć Analysis of Financial Problems of Wind Farms in Poland Energies wind energy wind farm performance Poland |
author_facet |
Joanna Wyrobek Łukasz Popławski Maria Dzikuć |
author_sort |
Joanna Wyrobek |
title |
Analysis of Financial Problems of Wind Farms in Poland |
title_short |
Analysis of Financial Problems of Wind Farms in Poland |
title_full |
Analysis of Financial Problems of Wind Farms in Poland |
title_fullStr |
Analysis of Financial Problems of Wind Farms in Poland |
title_full_unstemmed |
Analysis of Financial Problems of Wind Farms in Poland |
title_sort |
analysis of financial problems of wind farms in poland |
publisher |
MDPI AG |
series |
Energies |
issn |
1996-1073 |
publishDate |
2021-02-01 |
description |
Wind energy has been operating in Poland for over 20 years, but many opinions on its profitability are based on publications from other countries and simulations prepared by manufacturers. However, the truth is that the climatic specificity of various countries and price relationships, especially energy prices and subsidies, significantly differentiate this profitability depending on the country. The publication aimed to look at the profitability of wind farms in Poland from three perspectives: financial analysis, NPV (Net Present Value) calculation for older wind farms (2006–2014), and break-even price of energy for these farms (for a non-negative NPV). The research hypothesis set out in the publication stated that wind farms from this period require higher energy prices than current market prices in Poland to achieve a return on invested capital. An element of novelty was calculating the energy price range that would provide an opportunity for at least some of the older farms operating in the green certificates scheme to achieve a positive NPV. We also attempted to demonstrate that the loss of control over the prices of green certificates, which took place in 2014–2017, led to such a decrease in energy prices that the 2006–2014 wind farms suffered a net loss. |
topic |
wind energy wind farm performance Poland |
url |
https://www.mdpi.com/1996-1073/14/5/1239 |
work_keys_str_mv |
AT joannawyrobek analysisoffinancialproblemsofwindfarmsinpoland AT łukaszpopławski analysisoffinancialproblemsofwindfarmsinpoland AT mariadzikuc analysisoffinancialproblemsofwindfarmsinpoland |
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