Risk-constrained multi-stage wind power investment

Summary form only given. When deciding on wind power investments, three major issues arise: the production variability and uncertainty of wind facilities, the eventual future decline in wind power investment costs, and the significant financial risk involved in such investment decisions. Recognizing the above important issues, this paper proposes a risk-constrained multi-stage stochastic programming model to make optimal investment decisions on wind power facilities along a multi-stage horizon. The proposed model is illustrated using a clarifying example and a case study.