Spherical Fuzzy Cost/Benefit Analysis of Wind Energy Investments

Abstract

Energy investments are highly risky due to the uncertainties of the energy market. Over the past two decades, the usage of wind energy has been increased dramatically. Appropriate wind energy investment valuations are vital for both the public and private sectors. The fluctuations in the energy prices, the uncertainties in the production levels and the changes in the investment costs harden the wind energy investment decision. Using the traditional investment valuations overlooks the necessary managerial flexibility of investments, uncertainty and risk concepts. The spherical fuzzy sets enable us dealing with this uncertain structure with the hesitancy. In this study, a new Spherical fuzzy cost benefit analysis is developed and modified to the wind energy investment evaluation. In order to show the applicability of the proposed method a wind energy investment is analyzed with it. This new approach by taking into account the hesitancy may enable investments to be evaluated with more flexibility and accuracy.