Management of sustainable investments: A comprehensive financial evaluation of wind energy facilities in Kastamonu

• Published in: Energy for sustainable development 2024-08, Vol.81, p.101501, Article 101501
• Main Authors: Dayi, Faruk, Yucel, Mustafa, Demirkol, Ziya, Cilesiz, Ali
• Format: Article
• Language: English
• Subjects: Energy finance; Energy management; Investment profitability; Sustainability; Wind energy
• ISSN: 0973-0826
• DOI: 10.1016/j.esd.2024.101501

The rich renewable sources of nature, such as water, wind, solar, geothermal, and biomass, are converted into energy, revitalized into the economy without causing pollution, and ensure sustainability in energy management. Wind power plants have been among the most preferred renewable energy sources in recent years since they are harmless to the environment and easy to install in places with consistent and sufficient wind speed. This study focuses on conducting a feasibility analysis of a Wind Power Plant (WPP) in Kastamonu, a region known for its persistent wind patterns. The analysis aims to contribute to the existing literature by examining the potential of a WPP investment project within the region. Utilizing wind speed data collected from 23 observation stations for six years, starting from 2017 to 2022, a total of 1,200,600 h, a statistical evaluation method known as the Weibull probability density function is employed to indicate the wind energy potential. The parameters are determined by applying the maximum likelihood method. The findings indicate that it is feasible to establish Wind Energy Power Plants in specific locations, namely İnebolu, İnebolu Kar, Küre, and Tosya stations. The cost estimation for establishing a 10 MW power plant with three different turbine powers across these four locations ranges from 10 million USD to 20,8 million USD. Furthermore, the analysis indicates that the net profit for producing 1 kW of electrical energy falls from 9.39 to 50.65 USD. The projected payback period for the investment ranges from 2 to 25 years, depending on factors such as the exact site of the facility and the size of the turbines. Some investments are more feasible than others, with economic viability and potential return on investment varying significantly within the specified locations. •Utilized six years of wind speed data from 23 stations to assess feasibility of wind plants in Kastamonu, Türkiye.•İnebolu, İnebolu Kar, and Tosya as the most feasible locations for wind energy investment.•Payback periods of stations ranged from 2 to 25 years, with some stations unable to cover operational costs.•Wind power investments with payback periods up to 38 years are feasible. Increased wind speed and effective cost management could improve returns.