Evaluation Model for Investment in Solar Photovoltaic Power Generation Using Fuzzy Analytic Hierarchy Process

Abstract

Owing to rapid growth in the Asian solar photovoltaic (PV) power market, decision-making models are required to develop efficient investment strategies. Previous studies have largely focused on technological conditions and macroeconomic indicators, but not on the increasing needs of the financial sector. In this study, we developed an evaluation model of solar PV investment and financial factors at the project level. The model applies the fuzzy analytic hierarchy process and selects appropriate evaluation indicators for investment by emphasizing financial factors such as access to finance and exit strategies after the initial investment. Furthermore, we derived the relative importance of the indicators for each stakeholder. Stakeholder analysis enables comparison by quantifying the risks of each market participant. Economic factors (71.57%) were selected as the most important evaluation factors, followed by policy factors (16.26%), and technical factors (12.17%). Higher weights were assigned to indicators that directly affect profitability. Stakeholders showed significant differences in policy factors. Power generation companies showed higher weight values in policy factors than other groups. Quantification of differences in perceptions provides basic data for establishing effective investment strategies and developing policies. Therefore, the proposed model will contribute to more efficient solar PV project development.

Tail Risk and Extreme Events: Connections between Oil and Clean Energy

“…It is the only one that shows statistical significance in the time between the day before the good event and the day of the event itself. This result is perfectly coherent with the analysis of Reboredo (2015), Kazemilari et al (2017) and Kim et al (2019). Indeed, the solar energy sector displays a distinctive systemic risk pattern.…”

Volatility Connectedness between Clean Energy Firms and Crude Oil in the COVID-19 Era

“…Figure 3 displays different dynamics concerning the clean sector, both at the level of individual companies. We can see that firms in the SOLAR sector are the most transmitters of volatility, according to the results of [4,44,45]. At the same time, TECH companies are, on average, the net receivers.…”

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“…Likewise, almost all of them have a modest (small) market capitalisation, such as JKS, CSIQ and SPWR. Hence, we can see that solar companies are the ones with the highest risk, which shows how this sector has been extremely active in risk transmission in recent years (Kim et al, 2019 ; Foglia & Angelini, 2020 ). In fact, increasing oversupply and overcapacity in the solar sector have reduced the profitability of this industry (Bohl et al, 2013 ; Rezec & Scholtens, 2017 ).…”