Resumen de Optimal investment portfolio in renewable energy: the Spanish case
José Ignacio Muñoz Hernández, Agustin Alejandro Sánchez de la Nieta, José Luis Bernal Agustín
This article presents a model for investing in renewable energies in the framework of the Spanish electricity market in a way that risk is minimized for the investor while returns are maximized. The model outlined here is based on an economic model for calculating cash flows intended to obtain the internal rate of return (IRR) of the different energies being studied: wind, photovoltaic, mini hydro and thermo electrical. The IRRs obtained are considered the returns on investment, while their standard deviations are considered associated risks. In order to minimize risk, a comprehensive portfolio of investments is created that includes all off the available energies by means of a system of linear equations. The solution of the linear system is graphically checked using the efficient frontier method for the different financing options. Several case studies within the Renewable Energies Plan (PER is its Spanish abbreviation) that is in force in Spain in the period 2005-2010 are analysed in order to illustrate the method, as are other case studies using different types of financing, helping us to reach the pertinent conclusions.
