We model the financial performance of portfolios of wind farms located around Great Britain in the early 2020s. We measure the expected annual profits and their variance as the measures of performance most relevant to investors (acknowledging that system operators need to respond to short-term variations in output). The efficient frontiers contain relatively few stations (no more than four out of a possible fifteen), and the average portfolio has an efficiency of just 0.725. The correlation between the efficiency of a portfolio measured with respect to annual output and with respect to annual profits is just 0.103. Careful market analysis is needed if investors are to build optimal portfolios of wind stations.
Post your comments and questions for the speakers here