Economic risk analysis of decentralized renewable energy infrastructures – A Monte Carlo Simulation approach

There are several different economic barriers such as high up-front capital costs, high transaction costs and diverse risks (e.g. performance and technical, contract risks, market risks) that keep potential investors or institutional lenders from investing in decentralized renewable energy technologies (RETs). Therefore, suitable business models, specific financing concepts and advanced risk management tools to deal with issues concerning transaction costs and financial risks are required to support RET investments.